The Consequences Of Current U.S. Policies

What are the consequences for the United States if it continues down this path of reckless spending, ever-increasing trade and budget deficits, and helicopter Ben’s policy of dropping dollars out of helicopters?

 

There are already many signs to what lies in store for us if we do not quickly change course. But some of main consequences and some trends that are already starting to pickup steam including flight of capital, brain drain, no recovery, and a reduction in the standard of living.

 

Flight of Capital:

As government in the United States gets bigger and imposes itself on the people and on the free market, regulations and taxes will increase. If the government doesn’t have the political will to increase taxes they will tax the people through inflation. All of these policies are currently leading to a flight of capital that will increase if things do not change in Washington.

 

There are many signs of capital flight already in progress. Companies, which help American’s invest abroad, are growing at a frantic pace, in an economy where most companies are cutting back. The number of American’s expatriating is at an all time high. College students are increasing looking abroad for employment opportunities.

 

Brain Drain:

For the better part of a century the United States as the Mecca for ambitious people who sought freedom and opportunity. Both low and skilled classed workers migrated to the United States in search of opportunity. The term “brain drain” was coined to reference the flight of human capital from one region or country to another. In the past the United States has benefited from this phenomenon, as ambitious college graduates and professionals migrated to the United States.

 

However, as the situation worsens in the United States the stage is being set for a mass migration of human capital to other areas of the world where governments give people more freedom, where taxes are lower, and where economic freedom gives ambitious young American’s more opportunity to prosper.

 

No Recovery:

As the clueless politicians continue to bail out companies, and print more money, another stage is being set. This stage is one in which there will be no economic recovery for the United States.

 

Other areas of the world including Asia, Europe, and Parts of Latin America are already seeing signs of real recovery. Meanwhile in the United States, talking heads, are touting “jobless recoveries”, and padded government numbers. However, talk is cheap, and the United States cannot escape free market forces.

 

As our neighbors and trading partners bask in the new light of an economic recovery the United States will be haunted by the clouds of big government, and flawed economic policies. If we continue on our path, we will experience more job losses, more capital flight, higher taxes, and a drastic reduction in the standard of living.

 

Reduction in Standard of Living

There are many signs that American’s are already experiencing a drastic reduction in their standard of living. Grad students are heading back home because they can’t afford to live on their own. Divorces are down because couples cannot afford to get divorced. Elderly people are moving in with their younger relatives because they cannot afford their own homes. Young people are moving in with their parents for the same reasons. These are just a few, but the trend is clear and undeniable.

 

A Change Must Be Made in Washington:

The United States is heading down a dangerous path. However, there are signs of hope. Increasingly American’s are waking up to the fact that government is part of the problem and not part of the solution. There is a growing movement and a call for new candidates who can help change the course of America. Some of these include: Peter Schiff, Ron Paul, and Rand Paul.