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The world economy does not respond to commands from the Oval Office or governors’ mansions

Posted by John T. Reed on

The government thought it was in control of the economy. They could turn it off. And they could turn it back on.
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Nope. the economy is not in the control of the government. It is controlled by consumers world wide, business world wide, governments world wide. Furthermore, politicians and American laymen seem to think all businesses are very powerful and have profit margins in the 60% range.
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Supermarkets used to have 1% profit margins, that was why they refused to take credit cards then. Many other businesses have single-digit profit margins.
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Politicians and laymen also think the small businesses and many of the large ones have huge rainy day savings accounts. They do not.
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So they casually shut them all down for months on end and with no clear end in sight. This is akin to holding their heads under water. They the omniscient government decides it’s time to reopen the economy and says grandly, “Okay, Reopen.”
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So they stop holding the businesses heads under water, but many do not raise their heads on command.
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They drowned. They are not going to reopen. They are not going to be part of a V-shaped recovery. You killed them.
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You assumed you could just shut them down for months and that no permanent damage would be done by that. Assumptions are the mother of all screw-ups. You assumption that you could do that to them and just turn it off whenever you felt like it was wrong. You made that assumption without asking the people you were killing.
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Now, you grandly order the great reopening and the V-shaped recovery and you are astonished that the world economy and world consumers do not click their heels and comply.
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Simple explanation: You did not know what the hell you were doing.

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