Imagine if it was Feb 2020 again and the government shared the following: “there is very likely a worldwide pandemic about to explode a la the Spanish Flu all over again. The virus spreads by breathing the air of infected persons. We encourage everyone to follow public health guidance regarding COVID as we learn more about the disease.”
Then, nothing. No shut downs, no mask mandates, no stimulus payments, no extended unemployment, no supply chain bottlenecks, no refundable child tax credits. Nothing.
Let the citizenry make their own decisions about their health, work, etc. Send the message that it’s everyone’s personal responsibility to be prepared to weather a crisis, and the government is not here to take care of you or bail you out.
But, not going to happen. People are scared, worried, insecure. They turn to the government and politicians to take care of them. Politicians are concerned about reelection, so they print money to delay an inevitable recession caused by COVID. Americans suffer from the virus AND politicians’ tinkering. I’m not sure which is worse. I’m not trying to be glib; I have friends killed by COVID.
Who benefits the most from 0% FED interest rate and 7.5% inflation? Persons with the highest credit, income, and assets. The wealthiest are not simply leveraging their finances to enjoy upgrades in luxuries. They’re just creating free wealth courtesy of Capitol Hill and whomever we elected president.
Personally, my family is in at least the top quartile for pretty much every financial metric. I cashed in big on the wacky economic landscape over the last 24 months, but probably only half of what I could have done. I’m annoyed as to why these opportunities exist, but I’m not going to sit out in protest either.
At the end of the day, I chose not to let short-term economic variables dictate my decisions, whether it’s a pandemic, supply chain shortages, interest rates, inflation, housing prices etc. I’m sticking to the fundamentals of low/no debt, sufficient emergency fund, invest in mutual funds, sufficient insurance, etc. They work well over the long-term in a variety of economic conditions. I haven’t gambled enough to potentially lose more than I feel comfortable with. My needs are met, I’m blessed, I’m content. Likely no longer going to purchase a recreational property anymore but that’s OK.
