As 2022 unfolds, there’s much concern regarding the US economy and our geopolitical standing. According to the International Monetary Fund (IMF), the United States was once again the world’s largest economy in 2021, producing an estimated $22.94 trillion or 24.4 percent of global GDP. The number is especially impressive given the population of the US. at just over 333 million people, which is a per capita GDP of roughly $68,700, among the highest in the world.
However, we are concerned with the size, growth, and state of the US economy when comparing its transition from 1960 to date. In 1960, the US produced $543 billion in GDP, or just under 40 percent of the world’s $1.367 trillion global economy. When adding Canada and Mexico, North American GDP totaled $597.42 billion or 43.7 percent of the world’s GDP. In comparison, China in 1960 produced a GDP of $59.72 billion or 4.39 percent of global GDP.
Today, North America comprises only 27.9 percent of global GDP while China, now a country of 1.445 billion people, generates a GDP worth $16.86 trillion (17.8 percent). Including India, Japan, South Korea and all of Asia, total 2021 Asian GDP was 33.7 percent of the $94 trillion global economy. Clearly, North America has been outpaced by Asia since 1960.
While the reasons US competitiveness has declined since 1960 are many, we’ll focus on three of the issues that have been the most problematic, and if not remedied, will continue to be for decades to come.
1. Inflation Will Continue to be a Problem
The month of December saw US consumer price inflation at 7 percent on an annualized basis and the Producer Price Index up a record 9.7 percent on the year. As 2022 begins, many experts predict food inflation will increase 5 percent for the year. US holiday sales were partially fueled by stimulus checks and the child tax care credit that will no longer exist in 2022, thus presenting a potential major decline in retail sales in Q1 2022, but not necessarily accompanied by lower prices.
In addition to food inflation, we expect a high level of wage inflation across all labor markets in 2022. There is a clear shortage of labor in the United States, as evidenced by rising wages in 2021 for jobs from truck drivers to airline employees and $180,000 bonuses for many Apple employees. Perhaps the telltale sign of higher wages to come in 2022 is that the US unemployment rate has declined to 3.9 percent with 6.3 million Americans unemployed, according to the US Bureau of Labor Statistics, and roughly 11 million job openings available. We believe the US chip shortage will improve in 2022 but remain an economic factor through early 2023, continuing to put upward price pressure on automobiles and electronic devices.
Our preliminary estimate for inflation in 2022 is 8 percent as inflation indicators like the 10-year Treasury Bond Yield, gold and oil are up in January. We believe, as did Nobel laureate Milton Friedman, that inflation is caused by government monetary policy. The Federal Reserve, through its open-market operations, must eliminate its years of quantitative easing by tightening the US money supply to bring inflation under control before it becomes an even larger and more difficult problem.
2. Growing Antitrust Sentiment
The US federal government continues to threaten to break up America’s largest companies. Should it?
Consider: On Jan. 4, 2022, the stock market value of Apple was worth more than Walmart, Disney, Netflix, Nike, ExxonMobil, Comcast, Coca-Cola, Morgan Stanley, McDonald’s, ADT, Goldman Sachs, Boeing and IBM — COMBINED. For a brief period during the trading of Apple stock on Jan. 3, 2022, Apple’s market cap or stock value surpassed $3 trillion … marking the first time in the history of global stock markets a company achieved a value at or above $3 trillion. Is the fact that only a few stocks — Apple, Microsoft, Google, Amazon, Tesla, Meta, Nvidia — seem to control the size, scope, and fate of the S&P 500 a problem? Is the index concentration of the S&P 500 itself a risk for the market? Is it a problem that the seven largest mega cap stocks account for nearly a third of the entire S&P 500 market value? Or are these companies simply among America’s finest companies in the areas of invention, innovation, and entrepreneurial leadership setting the stage for growth and change within the economy, making them companies government should laud and encourage rather than break up?
Simply stated, the top seven S&P 500 Stocks outperformed the remaining members of the S&P 500 by 33 percent in 2021 because American consumers and consumers around the world felt they had more to offer and purchased their goods, services, and stocks at record levels. Apple alone represented roughly 7 percent of the S&P 500 estimated market value of $42.5 trillion on Jan. 3, 2022. This market share was due to many factors, including the millions of devices, such as phones, watches, and iPads in use around the globe and the broad range of entertainment provided by Apple streaming services.
For the most part, we believe the “magnificent seven” are evidence of the best and brightest ideas and minds business has to offer. It would be counter to the short- and long-term best interest of the US to break these companies up. It is outdated for US antitrust laws to only regulate a company’s size, scope, and influence in the US rather than globally. As noted earlier, America no longer dominates the global economy as we once did.
Still, US companies should compete without government protections, favors or subsidies, to promote successful entrepreneurial activity, improve lives, and safeguard America’s position as an economic powerhouse.
3. Surging Debt Threatens Prosperity
As the US national debt has grown over the last 50 years, interest on the national debt is now among the top 10 items in the annual US federal budget.
The national debt recently eclipsed $30 trillion, which is almost $90,000 per US man, woman, and child, and roughly $239,000 per taxpayer.
Today, the US national debt is 127.55 percent of today’s roughly $23.4 trillion GDP, up from 53.33 percent in 1960 and even higher when compared to 34.5 percent in 1980. In addition, the current debt figures do not include the more than $3.25 trillion in state and local government debt.
Much of our current national debt is due to excessive government spending on unnecessary items. If the massive spending continues into 2022 and beyond, U.S. credit ratings will decline, while adding trillions of dollars to an already unsustainable budget deficit.
In 205 years, from 1776 to 1981, the total US national debt went from $0 to $998 billion. With an accumulated national debt of less than $1 trillion over the first 205 years of American history and a debilitating additional $29 trillion since 1982, perhaps there are lessons for Congress to learn related to a.) budgeting; b.) public policy; and c.) Consensus building in Congress prior to 1982 — lessons that will help restore the American competitive, free enterprise system and enhance opportunities for an ever wider range of Americans and investors from abroad.
Timothy G. Nash is the Director of the McNair Center for the Advancement of Free Enterprise and Entrepreneurship at Northwood University.
This article was originally published on FEE.org. Read the original article.
Big Pharma’s Five Major Minions that Everyone, Vaxxed or Unvaxxed, Must Oppose
This is not an “anti-vaxxer” article, per se. It’s a call for everyone to wake up to the nefarious motives behind vaccine mandates, booster shots, and condemnation of freedom.
The worst kept secret in world history SHOULD be that the unquenchable push for universal vaccinations against Covid-19 has little if anything to do with healthcare and everything to do with Big Pharma’s influence over the narrative. Unfortunately, that secret has stayed firmly hidden from the vast majority of people because of the five major minions working on behalf of Big Pharma.
What’s even worse is the fact that Big Pharma’s greed is merely a smokescreen to hide an even darker secret. We’ll tackle that later. First, let’s look at the public-facing ringleaders behind the vaccine push, namely Big Pharma. But before we get into their five major minions, it’s important to understand one thing. This is NOT just an article that speaks to the unvaccinated. Even those who believe in the safety and effectiveness of the vaccines must be made aware of agenda that’s at play.
Let’s start with some facts. The unvaccinated do NOT spread Covid-19 more rampantly than the vaccinated. Even Anthony Fauci acknowledged the viral load present in vaccinated people is just as high as in the unvaccinated. This fact alone should demolish the vaccine mandates as it demonstrates they have absolutely no effect on the spread of the disease. But wait! There’s definitely more.
This unhinged push to vaccinate everyone defies science. Those with natural immunity may actually have their stronger defenses against Covid-19 hampered by the introduction of the injections which fool the body into creating less-effective antibodies. Moreover, the push to vaccinate young people is completely bonkers. The recovery rate for those under the age of 20 is astronomical. Children neither contract, spread, nor succumb to Covid-19 in a statistically meaningful way. What they DO succumb to more often than Covid-19 are the adverse reactions to the vaccines, particularly boys.
All of this is known and accepted by the medical community, yet most Americans are still following the vaccinate-everybody script. It requires pure cognitive dissonance and an overabundant need for confirmation bias to make doctors and scientists willingly go along with the program. Yet, here we are and that should tell you something.
Before I get to the five major minions of of Big Pharma, I must make the plea for help. Between cancel culture, lockdowns, and diminishing ad revenue, we need financial assistance in order to continue to spread the truth. We ask all who have the means, please donate through our GivingFuel page or via PayPal. Your generosity is what keeps these sites running and allows us to expand our reach so the truth can get to the masses. We’ve had great success in growing but we know we can do more with your assistance.
Who does Big Pharma control? It starts with the obvious people, the ones who most Americans believe are actually behind this push. Our governments at all levels as well as governments around the world are not working with Big Pharma. They are working for Big Pharma. Some are proactive as direct recipients of cash. Others may oppose Big Pharma in spirit but would never speak out because they know anyone who does has no future in DC.
This may come as a shock to some, but it’s Big Pharma that drives the narrative and sets the agenda for the “experts” at the CDC, FDA, WHO, NIH, NIAID, and even non-medical government organizations.
Most believe it’s the other way around. They think that Big Pharma is beholden to the FDA for approval, but that’s not exactly the case. They need approval for a majority of their projects, but when it comes to the important ones such as the Covid injections, Big Pharma is calling the shots. They have the right people in the right places to push their machinations forward.
That’s not to say that everyone at the FDA is in on it. Big Pharma only needs a handful of friendlies planted in leadership in order to have their big wishes met. We have seen people quitting the FDA in recent weeks for this very reason. The same can be said about the other three- and five-letter agencies. Too many people in leadership have been bribed, bullied, or blackmailed into becoming occasional shills for the various Big Pharma corporations. Some have even been directly planted by Big Pharma. That’s the politics of healthcare and science that drives such things as Covid-19 “vaccines.”
All ORIGINAL content on this site is © 2021 NOQ Report. All REPUBLISHED content has received direct or implied permission for reproduction.
With that said, our content may be reproduced and distributed as long as it has a link to the original source and the author is credited prominently. We don’t mind you using our content as long as you help out by giving us credit with a prominent link. If you feel like giving us a tip for the content, we will not object!
JD Rucker – EIC