In Jim Cook's Archive


Massive government spending on welfare subsidies must eventually lead to a breaking point. Our government is passing out enormous quantities of money for every kind of human hardship or discomfort. Everywhere you turn, people are getting free money. Eventually this leads to the kind of inflation that erodes so much of the dollar’s purchasing power that people don’t want to hold it. Now you have a situation where the welfare checks no longer buy much and the welfare recipients are angry. The government does everything in its power to pacify the unhappy citizens whose welfare payments, Social Security checks and government retirement checks are buying less and less. Huge dollar increases to fund the government’s payments cause the inflation fires to burn out of control. Riots, demonstrations and civil unrest plague the nation. Law-breaking and violence are excused if it helps the needy. (Much of this is hypothetical, but some of it has happened in other countries that have experienced runaway inflation. However, no nation has ever had so many people totally dependent on government welfare payments.)


Rumors begin to circulate that the government is preparing a new currency to replace the sinking dollar. That’s the final nail in the coffin for the dollar. Suddenly everyone rushes to spend their dollars and their value falls precipitously. Now the government checks buy little or nothing. The media and left-wing politicians are quick to blame capitalism and affluent citizens. A cry goes up to raise taxes to impossibly high levels. Radicals preach for the downfall of our system to be replaced by equal outcomes for all.

A new currency replaces the old dollar, but it is no longer the world’s reserve currency. It buys little and a lengthy depression ensues for America. The excesses of the inflationary period are rung out and the people must endure hard times that the government can’t fix. Little patience exists for misbehavior and a strict application of the law becomes prevalent. In this dire period of pain and suffering, a new work ethic emerges and an improved respect for our nation’s history evolves into hope and optimism. A bitter lesson has perhaps been learned.

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