The Future of Fed Plenty
30th May 2023
ZMan turns over a rock.
Americans have been conditioned to believe we live in a market economy where producers chase customers. The subtext to American politics for generations has been protecting the marketplace from the socialists. In reality, America is more of a command economy than a market economy. We do not think of it as a command economy because that phrase brings to mind commissars arguing about why the left shoe factory has a different quota than the right shoe factory.
While we have never had five-year plans or an official industrial policy, the people in charge have always had a tight grip on the economy. The primary lever since the 1980’s has been the money supply. The bank of all banks, the Federal Reserve, controls the flow of money in the system. While it does not decide how many shoes get made, it does decide the shoe maker’s cost of money. The Fed can create a recession to reduce demand and it can create plenty through cheap money.
This is not the only lever of our command economy. The regulatory state exerts an enormous amount of power on the economy. Right now, the EPA is plotting to kill off the gas stove market in order to please Gaia. The claim is gas stoves give people the cooties or something, but the real reason is the people in the EPA are primitives who follow a spirit religion. They can and often do change economic activity based on what their shaman has to say about Gaia.