Tag Archive for Inflation

All the Other Stuff, Government Incompetence, Michigan, Opinion, Philosophy

The Fed Does More Damage Than Good

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Time to Fix Interest Rates ?

The Federal Reserve loves to tinker with interest rates like they’re a magic lever that controls the entire economy. But what do we get in return? Booms, busts, recessions, and instability—all because an unelected central bank insists on micromanaging the cost of money.

To be clear: The Fed does more damage than good.

The Problem With Constant Rate Manipulation

Every time the Fed messes with rates, it distorts the free market.

🔹 2008 Housing Crash – The Fed kept rates too low for too long, creating a housing bubble. When they finally hiked rates, the bubble popped, leading to the Great Recession. There were certainly other factors, but the FED’s role played a large part.
🔹 2020-2023 Inflation Surge – They printed trillions, suppressed rates, then panicked and raised them too fast—crushing small businesses and killing opportunity.  Frankly, it was a great money shift into the pockets of the pockets of those with friends in government.  With Small Business Destruction – Low rates helped Wall Street, but high rates crushed Main Street. Who really benefits here?

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Cronyism, Elections, Michigan, Michigan Politics, Proposal 15-1

It Only Gets Worse

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Taxes that increase every year to keep up with inflation.

STOP-167Say What?

We have used the 16.7% tax increase in the stop sign logo, (at the right) and will continue to do so.  However, it is hardly a complete look at the tax implications if proposal 15-1 were to pass. We are attempting to find all the ways in which our prior legislative session gave us the shaft, including train to nowhere projects, redistribution of wealth, and the fuel tax replacement components.

Folks might actually be aware of the replacement fuel tax and that it will be more than what the was tax was before. Presumably, it simply replaces the sales tax that has been collected on fuel, that does not go toward roads.  However, when one looks at the analysis done by the House Fiscal Agency, there is a paragraph that explains the mechanism accurately; and in particular, a line at the end of that paragraph points out an easily missed point.

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