Well-Wishing Horsemen Of Apocalypse
If the plan of the White House is to cause a full-scale recession by crushing the markets and increasing inflation in order to spark the ‘American ingenuity,’ which then will make ‘America Great Again,’ this plan might be called Apocalyptic. Here’s why.
To have a breakthrough on a country level, there must be preliminary conditions that will make it possible. The number of those conditions is very limited: sheep, educated and very productive labor, an abundance of readily available and easily accessible natural resources, a regulatory environment with very low taxes and the absence of bureaucratic barriers for entrepreneurship, an increasing uninterrupted flow of investments, and, most importantly, very large and growing markets (external or internal) that will be able to consume all produced products and services.
At present, none of those conditions are present in America. Labor is very expensive, easily available resources are very limited, and their extraction is very costly. The regulatory environment is very complex and non-inviting, especially for SMEs. Internal consumption is only 50% of national GDP, so it will be necessary to open external markets to boost current GDP further, which is not possible due to a growingly hostile geopolitics. The only readily available factor is investments, but if the current Administration intends to crash stocks, this resource will be depleted. The notion that DOGE will free SMEs from regulation has not yet been realized and, by the look of it, won’t be realized soon.
So, if the current Washington Administration’s plan is, indeed, to orchestrate the recession (I am not sure if that is true or not) to ‘clear the field’ for genius entrepreneurs, it might be compared to the plan of Emperor Nero, who burned the Rome to free places for his new edifices and, of course, to amuse and immortalize himself at the same time.