Social benefit recipients are ultimately the biggest losers
The Covid Stimmy payments seemed to keep many playing along… Not sure how these payments help the economy or reduce the debt, except provide a few trips to the grocery store for those that use it wisely and after they spend it they still need money…
So really it was money given to the people who then distributed it to the corporations, who took out even more loans and created more debt.
Greg
While on the surface it may seem counterintuitive, the ostensible beneficiaries of social welfare in its many forms are actually the most adversely impacted over the long term.
Socialism ultimately consolidates the wealth and power over those who depend on these “benefits.” What’s worse is that over time, the social benefit recipients become ever more dependent on the governing authorities for social transfers.
Let me explain…
Intermediate level microeconomic theory at work
In this instance, we’ll contemplate what a direct monetary injection, like the covid stimulus payments or Trump’s envisioned tariff dividend, does to the economy.
The money that is generated is placed into the hands of the recipient, who then goes out and spends it. The asset owners are the ones who ultimately accrue this extra spending as profits.
To wit, the shareholders of the biggest corporations like AMZN, WMT, MCD, NKE, MSFT, etc. profit the most from these social benefits. Thus, the wealth is consolidated onto the balance sheets of the asset owners. Landlords and shareholders come out ahead, with the largest assets owners benefitting the most.
The benefit recipients largely spend all of that extra money and have nothing to show for it, except for a bunch of depreciating assets and fast food wrappers.
Unfortunately for the benefit spender, all of that extra government injected money stimulates demand and just works to ultimately raise the economy’s equilibrium price level.
Regulated economic sectors with limited supply are especially impacted
This phenomenon is especially present when we observe certain sectors of the economy that already have limited supply and are heavily subsidized and regulated by the government itself (e.g. healthcare, education, housing).
For instance, the supply of healthcare and housing is limited (inelastic) to begin with and injecting money into the economy or subsidizing consumer costs essentially raises the equilibrium price level of healthcare and housing by stimulating overall demand without a comparable rise in supply.
Yes, in terms of overall microeconomic theory, all of the extra benefit money that is dispensed out to the citizenry ultimately works to just raise price levels in the intermediate to long term, with no true economic gain measured.
Why? This spending was achieved through taxes and debt. It is a zero-sum game in this regard. While spending increased, the resulting debt must be serviced, which just drags down future economic growth. Taxes also takes the money out of the taxpayers pockets, reducing demand.
Here is the clever transfer of wealth in action; debt financed money leaves the government coffers, which goes to the benefit recipient who spends it. This money is then captured as revenue and eventually as profit on the balance sheets of the corporations and landlords.
The process continues and the asset owners continue their wealth consolidation and essentially use the government as a self-generating mechanism to accumulate their wealth and power over the masses. The whole Crux of socialism is based on ultimately impoverishing those the social programs are intended to help.
Our gut instincts are correct
So Greg, you are correct in many assumptions. The government can either spend its tax revenue or finance spending through deficits.
As we can see in the real world, multicultural socialism is very expensive and is ultimately achieved through the generation of trillions of dollars in debt.
The government accrues the debt, which is inflationary by nature. The deficit spending essentially raises the money supply. This money is then dispensed to the average person. These people then spend the money. The money is ultimately captured by the asset owners.
Of course, anyone can make a claim that stocks are very expensive. But the more fiscal deficit spending that accrues, the more money that is captured as profits by the corporations. Landlords and real estate investors also benefit, because overall demand is stimulated, without a comparable rise in supply, by all of this extra money, and rents and house prices ultimately keep rising as a result.
That’s right, everyone loses out from the indirect tax of inflation. However, if one has acquired enough income generating assets, he can keep up or move ahead of those around him.
Socialism is a very clever means to impoverish society, while enriching the wealthy. In socialism, only the top 10-15% in balance sheet wealth come out ahead in the long run. Socialism’s ostensible beneficiaries are the ones who keep falling further behind.
From Bloomberg
It was just the other day when the conventional wisdom was that the Federal Reserve had turned the corner and more rate cuts were effectively a lock. Putting aside President Donald Trump’s relentless attacks on the central bank’s independence in his quest for cuts, a wavering US labor market and economic uncertainty were seen as prime motivators for future reductions. But maybe not anymore.
Inflation has been rising under Trump, sitting now at 3%, and Fed policymakers are stepping up warnings that another cut in December could be a damaging move. Officials broadly agree the labor market has cooled, but are split over whether the slowdown will intensify. And while one group is sanguine about price pressures, others are warning further cuts put years of progress on inflation at risk.
“I do not think further cuts in interest rates will do much to patch over any cracks in the labor market—stresses that more likely than not arise from structural changes in technology and immigration policy,” said Jeffrey Schmid, president and chief executive of the Federal Reserve Bank of Kansas City. “However, cuts could have longer-lasting effects on inflation as our commitment to our 2% objective increasingly comes into question.”
From Bloomberg;
The congressional clock in La Paz once again runs clockwise, replacing the “clock of the south” design.
After two decades of almost uninterrupted socialist rule and international isolation, Bolivians are seeing the first signs of change promised under new President Rodrigo Paz.
Long lines at gas stations are disappearing, the currency is gaining appeal, and bond investors are taking a more optimistic view. Even the clock that sits atop the congressional building has been reset to run…clockwise.
Paz’s arrival ushers in a renewal of relations with the US, with his administration signaling it’s open to allowing Elon Musk’s Starlink to operate in the country, and introducing measures to encourage US tourism and investment to kickstart the poverty-stricken economy.
Take lithium. Bolivia is awash in the battery material but it’s nearly all trapped underground, and Paz wants Bolivia to become a major exporter. In his US pivot, he’s rethinking deals with Russia and China.
With a majority in Congress and emerging alliances with opposition parties, the US-educated Paz may have enough support to push through his economic overhaul. But the clock is ticking.
I dated a Russia Jewish woman once upon a time. Her father was the finance manager for a large manufacturing concern. She said communism in the Soviet Union was wonderful.
Imagine how much would have been already revealed to the world if the Catholic Church hierarchy didn’t burn down all the ancient libraries, destroy the ancient texts and historic manuscripts, and kill the scholars who disagreed with the Edomite Constantine. The Catholic church is the Great accommodator and is the whore in the last days. The last days are the time subsequent to the death of Jesus…
People Magazine – Gio Benitez, Openly Gay ABC News Weekend Anchor, Joins Catholic Church and Reaffirms Faith with Husband by His Side
“I found the Ark of the Covenant in my heart, stored there by the one who created me … exactly as I am,” Benitez wrote
NEED TO KNOW
•Gio Benitez, an openly gay ABC News anchor, joined a Catholic church in New York City and celebrated his confirmation mass on social media
•He said that the special moment was partly inspired by learning more about the late Pope Francis’s “legacy of inclusivity”
•Benitez’s husband, Tommy DiDario, served as his sponsor
•Gio Benitez, an ABC News anchor who is openly gay, joined a Catholic church in New York City and reaffirmed his faith after a long spiritual journey.
On Monday, Nov. 10, the Good Morning America co-anchor shared a moving video of his confirmation mass at the Church of St. Paul the Apostle in Manhattan with his husband, Tommy DiDario, serving as his sponsor — a special moment partly inspired by the late Pope Francis’ “legacy of inclusivity.”
“I found the Ark of the Covenant in my heart, stored there by the one who created me… exactly as I am,” wrote Benitez, 40, on Instagram.
Twenty-five years ago, Benitez was baptized with his mother when he was 15. But he was grappling with a big question.
“If God created me, how could he not love me?” wrote the transportation correspondent for ABC News. “I went on to study religion in college, searching for proof of God. But maybe I was just searching for proof of God’s love.”
In April 2016, Benitez and DiDario exchanged vows at a historic property in Miami after a chance meeting online.
But it wasn’t until six months ago that Benitez began making his way back to the Catholic Church. After Pope Francis died on April 21, Benitez was inspired by Father James Martin’s appearance on GMA, who talked about the church leader’s more progressive views. The late Pope famously said, “Who am I to judge?” when speaking about gay people in 2013.
“His words struck me,” Benitez recalled on Instagram, describing Martin’s interview. “It was the first time I had seen a Catholic priest speaking in such a beautiful way about LGBTQ people.”
Martin, a major advocate for LGBTQ+ people in the Catholic Church, met with Pope Francis about the community’s place in the church. On the day of his death, Martin explained just how big of an impact the late Pope had.
“Pope Francis did more for LGBTQ Catholics and LGBTQ people in general than all of his predecessors combined,” Martin told NPR in April. “He was the first pope ever to use the word gay. He called for the decriminalization of homosexuality. He met with LGBTQ people. He met regularly with transgender people.”
He continued, “So, this is a pope who really wanted to emphasize pastoral outreach to this group of people that he felt had been marginalized for too long in their own church.”
Such messaging spoke to Benitez’s heart. In May, he entered the Church of St. Paul the Apostle, a church known for its inclusivity, and was galvanized by Father Eric Andrews’ message that day: “three simple words spoken by Christ: Love. One. Another.”
Benitez continued, quoting Andrews, “When we’re able to love and love freely and openly — and love ourselves as well — we are a long ways down the road to fulfilling the Kingdom of God.”
The newsman realized that the “divine love” he’d been searching for was inside himself all along, “always whispering guidance, gently reaching out with arms wide open, and like Michelangelo’s Creation of Adam, patiently waiting for me to reach back out and embrace the greatest mystery,” Benitez wrote.
When his confirmation mass arrived, he was surrounded by a small group of friends and family who had shown him support, according to his social media post.
“But in my mind, those empty pews were filled with a cloud of witnesses: my grandparents who taught me how to pray, my aunts and uncles who helped raise me, and dear friends,” Benitez wrote, “praying for me behind an invisible veil.”
The anchor gave thanks to the church leaders who taught him that “God’s loving mercy is unconditional,” and others in attendance. He also expressed gratitude to his mother and sister “for being examples of grace in action,” and thanked his husband for “supporting me through it all.”
In response, Martin wrote one word: “Welcome!”
I think mainstream religious organizations are whores for the Synagogue of Satan. The Catholic Church worked for the SoS with their medieval inquisitions of those who did not go along with their ideology.
I believe some of the gnostic Christians had a lot of valuable knowledge that has since got lost. That is why they burned down libraries and persecuted those with certain beliefs because that knowledge that existed with the libraries empowers people instead of making them into spiritual slaves of the priests.
The Jesuits appear to be directing the Universal Church. Here is a link to the Jesuit *Oath:
Source: Scribd https://share.google/9jJ1YXQGio1CyMmWj
Initiates pledge total obedience to the General of the Society of Jesus, also known as the Black Pope (currently Arturo Sosa, a Venezuelan). Pope Francis would have taken this oath and consequently would have obeyed direction from Arturo Sosa “as a corpse”. Bob Prevost was elected by a majority of Jesuits – all directed by Arturo Sosa.
* I have seen several copies of this and all are the same. I believe it to be authentic and this is the one that was recorded into the Library of Congress. The only question for me is whether Jesuit educated people such as Jerome Powell and Mark Carney have taken the oath.
The great Universal Church whore is at it again. Today’s judeo-christian, even all those women who used to excoriate me on my blog, are for mongrelization and the One World government without even realizing it.
Clergy protest at ICE facility outside Chicago
https://x.com/Reuters/status/1989358669033877550?s=19
The Catholic Church is the organization that I would consider as the Great accommodator. I frequently hear from Catholics who employ circular logic to support their whore organization and use church doctrine from centuries past. They pick and choose, but since 325 AD the Catholic Church has accommodated every government in which it felt the power was going to.
In this instance, the Catholic Church is fully behind the Cain Esau banking families and the global government. So are most of the other judeo-christians today. If they’re not behind the actual global government seat, per se, these supposed Christians are fully behind the mongrelization and open borders through compassion and love.
These last day Christians care more about people from other races who actually hate them, rather than people like me, like-minded and like kind people who are out warning to take cover and to embrace this sobering truths of our Heavenly Father.
Catholics like to hang their hat on the Magisterium – conferred to the Roman Catholic Church by the Roman Catholic Church. It removes personal responsibility and the effort required to understand Gods Law and who it is for.
It’s true that we lost so much recorded history, but the spade has dug up so much information in symbology that we can piece together the puzzle. Many of the cuneiform tablets that were discovered are boring accounting records – important to people like merchants and bankers. The most Ancient carvings and tablets depicting Marduk show a symbol on the sleeve – an 8 pointed star. This star is seen throughout history on Summerian, Akkadian, Hittite etc carvings, the sign of Shamash. Pope Francis first public appearance after his extended illness placed his wheelchair in front of two symbols (not by chance) – behind his left wheel the Keys to loose and bind symbol of the Vaticans Authority, behind his right wheel is the Star of Shamash. Our link to Cain/Esau.
https://www.reuters.com/world/europe/pope-francis-greets-crowds-vatican-first-appearance-since-leaving-hospital-2025-04-06/
These days, I tend to just look at the pictures. Like the lead photo in this AP article.
https://apnews.com/article/carney-budget-canada-election-2d05c2e0dcd2f1736b61afe154477887
Kind of says it all about how he sees himself.
The Catholic Church reconfigures the ten commandments and eliminates the second. Here’s the Catholic version of the baby Jesus.
The catholic church worships mithra/ tammuz.
This doesn’t even look like baby Jesus. In fact this is modeled after baphomet with the two finger hand sign on the left and other hand pointing down. Anybody with eyes to see will realize this is a sign of the Catholic Church’s true colors and who the pope really worships. See below Wikipedia article about baphomet:
https://en.wikipedia.org/wiki/Baphomet
Leviticus 18:22 ~ You shall not lie with a male as with a woman; it is an abomination.
Leviticus 20:13 ~ If a man lies with a male as with a woman, both of them have committed an abomination; they shall surely be put to death; their blood is upon them.
Reading these words comes across as very clear and to the point, not a mistranslation.
Thanks for the shout out, fantastic answer as usual. The gov shut down just ended and I asssume these stimmy payments are on the way just in time for the holidays, why wait til next year. Seems to be it all planned out and timed.
The Soviet Union was a case in point of how socialism resulted in a huge disparity of wealth and privilege between a small group of power holders and the masses.
The top Communist party officials were super wealthy who owned second homes, had access to special high end stores that sold expensive imported items where no one else could shop (only certain officials could shop at these places).
These top communists also ate at special restaurants and received top notch medical care that the masses could not get.
Meanwhile the masses had to work 50 hours a week and live in shared housing, shop at stores with mostly empty shelves, and receive subpar medical care.
Socialism is a clever deception as it results in the very opposite of what the proponents promise.
Masses are asses and they get what they deserve. There is no such thing as a free lunch.