Why Government Control Is Overrated

Control, by all objective measures, is overrated. Control requires subservience. Control requires masters and bondsmen. Control requires coercion.  Control requires the absence of freedom. Control requires property confiscation. Control requires a society full of dependents. Control requires conflict.  But that’s not all…

Control promotes wars. Control magnifies depressions. Control produces stock market bubbles and busts. Control leads to famines…and supply shortages…and debt blowouts…and currency debasements. Control delivers complete societal massacres.

Walking calmly through chaos. Rewarding those who work hard, save their earnings, and pay their own way with the fruits of their labors. Allowing freedom to flourish.

The alternative to control – small government, balanced budgets, honest money, personal freedom – is largely unthinkable to 116th U.S. Congress. But it’s an alternative they’ll be forced to reckon with as their policies of control push the nation to the breaking point.

In the interim, these policies of control will continue to disfigure the economy and financial markets, and debase the resolve of the populace, in ways that were once thought impossible…

Why Government Control Is Overrated

Reliable New York Stock Exchange data dates back to 1871. From then, through 1958, a period of roughly 87 years (and likely predating much earlier), with the exception of three brief reversals, stock yields exceeded bond yields. During this extended period, it was unthinkable for bonds to yield more than stocks. Gilbert Burke, in an article in Fortune magazine for March 1959, declared:

“It has been practically an article of faith in the U.S. that good stocks must yield more income than good bonds, and that when they do not, their prices will promptly fall.”

About the time of Burke’s writing, the long-term relationship reversed. Then, two decades later, it reversed to the extreme.

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