Matt Kibbe is joined by Jon Miltimore, managing editor at the Foundation for Economic Education, to talk about the reason why America’s supply chain has broken down and what can be done to fix it. By locking down the economy for over a year, the government artificially changed consumer habits while preventing workers from stepping up to meet the excess demand. Now, out of ideas, the Biden administration is simply pumping money into the economy, which doesn’t solve the problem, but does create inflation that is bad for everyone.
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@ 32:15 or so, I haven’t read Carol Roth’s book, but the reason that the economy is split 50/50, and BTW, it was 60/40 before the pandemic, is that the small business half of the economy engages in “capitalism” in competitive and “fair” markets charging competitive prices. The other half engages in “corporate capitalism,” the goal of which is to make their markets non-competitive and skewed in the favor of the few participants. Many do this by manipulating the government or the public information and perception or both, and they engage in a sort of non-collusive oligopoly with their shared market-participants where each can charge premium prices and earn economically excessive profits at inefficient equilibria.
The solutions to this are not easy. They involve credible information, dollar votes, and political will. But, there are viable solutions. Strategic implementation is the tricky part.