In contemporary society, citizens often find themselves grappling with the dual pressures of high inflation and a labyrinth of government regulations that contribute to an increasingly difficult economic landscape to achieve any sense of savings or prosperity. As the cost of living continues to rise, consumers are subjected to various forms of economic gouging—whether it be through exorbitant interest rates on loans or the multitude of taxes levied on everyday necessities.
This essay explores how government policies, both directly and indirectly, exacerbate financial strain on citizens. With all of the new regulations, hyperinflation, wars, unfettered immigration, 100% hike in fuel prices and taxes, and hasty Green policies, Moody
Analytics shows that consumers' savings rates for lower income workers has been negative for about two years which means that the American middle class has been wiped out by these last 3 years of economic disaster and malaise.
High Inflation and Its Consequences
Inflation, the general increase in prices and fall in the purchasing value of money, poses a significant challenge for workers in the USA. It erodes purchasing power while working and in retirement, meaning that the same amount of money buys fewer goods and services over time. The government's role in inflation has been disastrous, often stemming from poor leadership, weak energy polices, never ending wars, and government regulations which paralyze job creation and business growth.
For everyday consumers, high inflation translates to increased costs for essential items such as groceries, healthcare, insurance, education, and housing. This phenomenon is particularly pronounced when examining housing costs, where high demand paired with limited supply due to immigration policies can inflate home and rent prices particularly in democrat controlled cities which hurts teachers and union workers the most. As interest rates rise—often in response to inflation—mortgages become more expensive, making homeownership unattainable for most.
The same principles apply to auto loans and student loans, where rising interest rates have tripled the financial burden on the middle class, minorities, teachers and union members seeking education or reliable transportation.
Regulatory Burdens and Their Financial Toll
Government regulations, while often well-intentioned, impose significant costs on consumers. From stringent city rules, difficult building codes that increase housing prices, and to environmental regulations that drive up energy costs, these measures can have unintended consequences on the working poor. Businesses typically pass on compliance costs to consumers, further exacerbating the financial strain felt by families.
Moreover, regulations on banking and lending restrict competition and limit consumer choice, leading to higher fees and interest rates. The net result is that citizens are often left with few options and are forced to pay more for loans and credit than they might in a more competitive market. When laws about shoplifting, fraud, and crime are weakened, costs of theft and vandalism rise causing many stores in inner cities to shut down
Taxation: The Hidden Cost of Government Services
Taxes are another significant factor contributing to the economic gouging of citizens. Government entities impose taxes on a wide array of goods and services, often under the guise of funding essential services. However, these taxes can disproportionately affect lower and middle-income families, as they often spend a larger portion of their income on taxed items.
For instance, taxes on cell phone services, internet access, and cable television are prevalent, making essential communication services less affordable. Furthermore, taxes on alcohol and tobacco serve as additional burdens, impacting those who may be financially vulnerable. Fuel, utility, diesel taxes, and gas taxes, while intended to fund infrastructure, significantly inflate the cost of transportation, food, farming, busing, and goods, effectively acting as a tax on mobility and economic participation.
Additionally, sales taxes on everyday essentials can disproportionately affect low-income families, who spend a larger percentage of their income on basic needs. In many cases, these taxes are not accompanied by corresponding increases in income, resulting in further financial wage decreases and financial strain.
Broader Implications of Economic Gouging
The cumulative effect of high inflation, city taxes, state taxes, sales tax, regulatory burdens, and excessive fees creates an environment where citizens feel financially pinched. As costs rise and purchasing power diminishes, many families are forced to make difficult choices—sacrificing savings, foregoing investments in education or homeownership, and even struggling to afford basic necessities. This cycle of economic strain can perpetuate poverty and limit social mobility, trapping individuals and families in a cycle of debt and financial insecurity.
It can further be argued that the totality of taxes and fees form state, city and federal government along with lending rate gouging have recently been the chief cause of: inflation, recession, low GDP, and stagflation.
Moreover, the burden of high-interest rates on loans—spanning homes, cars, student loans, and credit cards—exacerbates these problems. Consumers find themselves caught in a cycle of borrowing to pay off previous debts, leading to a precarious financial situation that can result in bankruptcy or financial ruin.
Conclusion
In conclusion, the economic landscape shaped by government policies often results in a form of fees and taxes where government is taking too much money from working folks which adversely affects the overall economy and it’s citizens.
High inflation, stringent regulations, and oppressive taxation collectively contribute to the financial struggles of everyday people while millions on government assistance programs are getting tax-free benefits of health care, housing, education and food. As consumers navigate this challenging terrain, it is crucial for policymakers to recognize the implications of their decisions and strive for a more equitable economic system that fosters growth without sacrificing the well-being of the populace.
Ultimately, addressing these issues will require a concerted effort to balance regulation, taxation, and monetary policy in a manner that promotes sustainable economic health for all citizens.
While some candidates harp on price controls, maybe some government leaders should emphasize city, state and federal tax-controls to reduce the full-spectrum tax and spend schemes that hit working families, teachers, unions and minorities the hardest. Hopefully, government legislators will refocus their efforts to provide incentives and benefits for those who are working which would improve the economy, create jobs, and boost productivity.
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Commissioner George Mentz JD MBA CILS CWM® is the first in the USA to rank as a Top 50 Influencer & Thought Leader in: Management, PM, HR, FinTech, Wealth Management, and B2B according to Onalytica.com and Thinkers360.com. George Mentz JD MBA CILS is a CWM Chartered Wealth Manager ®, global speaker - educator, tax-economist, international lawyer and CEO of the GAFM Global Academy of Finance & Management ®. The GAFM is a EU accredited graduate body that trains and certifies professionals in 150+ nations under standards of the: US Dept of Education, ACBSP, ISO 21001, ISO 991, ISO 29993, QAHE, ECLBS, and ISO 29990 standards. Mentz is also an award winning author and award winning graduate law professor of wealth management of one of the top 30 ranked law schools in the USA.