Dr. Walter Block, well-known Austrian economist, breaks down why we are seeing some of the economic problems we see today.
“Prices are not flexible,” he points out. “If you have a shortage of truck drivers their wage is supposed to go up, and that attracts people into it. But, if you don’t allow gigs because you favor unions, then you’re bolloxing it up. Sometimes we’ll have plenty of trucks, but no truck drivers to bring stuff from ports to WalMart.”
He then laments the tax code and how it inhibits productivity. “And then you have all sorts of things where, if you earn $1,000 more, you lose $20,000 in terms of benefits, because you get pushed into a higher income bracket. So, you don’t take a job that is necessary.”
Stimulus and unemployment isn’t helping, either. “Biden keeps giving people money for not working,” he said. “Sometimes he gives them more money for not working than for working. Sometimes he only gives them three-quarters of what they can earn, and then they say, ‘Why should I work for 25% of my salary? I will sit home and watch TV.”
Thus, we see empty shelves, piles of stuff on the ports, and gas prices that are going through the roof, because of inflation. “The government is printing money like a drunken sailor,” said Dr. Block. “Apologies to sailors. The Fed is going berserk.”
Biden loves unions, says Dr. Block. “And now there are all sorts of strikes. In a free society, if you want to go on strike,fine, but you can’t hassle replacement workers. You can call them scabs if you want, but you shouldn’t be able to preclude them from taking the job you are renouncing, but we are getting more unionism.”
In short, unionism, taxes and subsidies are bolloxing up the economy, says Dr. Block. Those who voted for Biden deserve what they get.
“People who voted for Biden deserve to get it good and hard and that is what they are getting,” says Dr. Block. “Gasoline prices through the roof, empty shelves. Hospitals are not able to take cancer patients or heart attack patients due to covid situation, which they’re mismanaging. Those are some of the explanations as to why we have supply chain difficulties.”
Watch the clip: