Government

Federal Spending as a Percent of GDP

Government Shutdown 2025: What It Means for You and the Markets

The U.S. government is shutting down for the first time since 2018, suspending many non-essential services while essential operations (military, Social Security, Medicare, USPS, TSA, etc.) continue. Around 750k–800k federal employees will be furloughed, cutting consumer spending and costing the economy an estimated $200–$400 million per day. For investors, shutdowns delay key economic data releases and create short-term uncertainty, but history shows market sell-offs are typically brief and often followed by rebounds.

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FED Lowers interest rates

Fed’s First Rate Cut in Nine Months

On September 17th, the Federal Open Market Committee finally trimmed its benchmark lending rate by 0.25%, bringing the target range to 4.00%–4.25%. It’s the Fed’s first cut since December 2023, and typically, a rate cut signals that policymakers are bracing for softer growth and cooler consumer spending. But with inflation still “running hot,” why are they easing?

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Sacrificing Truth

Media Censorship-Sacrificing Truth

Unfortunately, in Germany, and at least sporadically in the United States, “truth” is whatever the government proclaims. “Disinformation” is whatever contradicts the latest government pronouncements.
Last Sunday, 60 Minutes featured tyrannical German prosecutors boasting about persecuting private citizens who made comments that officialdom disapproved. Three prosecutors explained how the government was entitled to launch pre-dawn raids and lock up individuals who criticized politicians, complained about immigrant crime waves, or otherwise crossed the latest revised boundary lines of acceptable thoughts.

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Uncle Sam Cranking out Dollars

The Real Effects of Cutting Government Waste

Almost no one believes that government waste is a good thing. But the devil is in the details when it comes to deciding what actually constitutes “waste”.  Suddenly, no one wants their pet project cut. The  Government Accountability Office (GAO) lists thirty-seven government programs that are considered highly vulnerable to fraud, waste, abuse, and mismanagement.

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Taxes vs Tariffs

Are Some Forms of Taxation Worse Than Others for the Economy?

All taxation is generally bad for the economy…this is why virtually every administration that’s tried tax cuts has found them to be stimulative to the economy, going all the way back to at least JFK. Now, as the question suggests, there are different ways government takes resources out of the private sector, and they all have different characteristics regarding exactly who they harm.

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Drowning in Red tape

Bureaucracy: The Red Tape that Prevents Economic Growth

Argentina’s “Chainsaw policy” shows how stifling red tape and bureaucracy can be and how beneficial eliminating it can be. Two months after Milei assumed the presidency, nine thousand state jobs had been eliminated, and by the end of March fifteen thousand layoffs had been ordered. Furthermore, when Javier Milei spoke at the IEFA Latam Forum, he mentioned that seventy thousand contracts of public employes were going to be canceled. He also mentioned that two hundred thousand social programs were eliminated, and public works were also eliminated.
Not surprisingly, the state has not only not collapsed, but it has experienced its third consecutive fiscal surplus, showing unequivocally to the world that the excessive state bureaucracies do nothing but harm.

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