Increased Inflation and Hiked Cost of Living To Expect During The COVID-19 Recovery Period

Every time the whole world goes into an economic crisis, it usually begins with the US bailing out the companies that are "too big to fail." A lot of credit is created out of thin air cause austerity and transfer of wealth are politically challenging. It's easy to print worthless dollars out of the thin air in low-interest rate as the dollars are not backed by Gold or Silver.

This is bad news for the US, or is it? The emerging economies are in huge debt in USD, the reserve fiat currency that's not backed by Gold or Silver. But the devaluation of dollars in the US will also devalue the currencies of the countries that are in debt to the US. This means it becomes more expensive for these countries to pay off their debt. The US will happily loan out their toxic credit to desperate economies like ours.

In a country like ours where the government is apparently the safe haven of people, the big corporations that are operating in loss exist because we pay for them through taxes. My take is, if a business cannot make a profit, it should shut down instead of obtaining lazy money from taxpayers. The government should pay the debt and let competitors enter the market cause we know the market will take care of the losers.

The government shouldn't be powerful enough to avoid competition in industries operating in losses such as Oil Corporation & NEA cause we all know their fate from the condition of Nepal Airlines. These toxic businesses must shut down and let us taxpayers breathe. There is no nobility in operating a failing national carrier by stealing the operating costs from taxpayers. Let the competitors enter the market.

From the data I've collected from the 1800's till 2020, the USA follows one simple pattern. Whenever there is a massive decrease in GDP, the recovery period follows increased taxation and the extremely high cost of living since the USD is the reserve currency and the whole world follows the same pattern when the USA creates a lot of digital credit out of nowhere.

What does this mean for a country like Nepal? We already have a 6% inflation rate on average. This can easily go up and I do not want to throw numbers here but there can be extreme consequences. The cost of living will dramatically increase and the gap between the rich and the poor will stretch out even farther.

This is bad considering the fact that the government did not do anything to boost investor confidence during the 2016 - 2020 stock market crash. The government could have lowered the interest rates to make corporate loans easily accessible. However, the government did not do anything about it. The market could have seen a rebound cause the economy was recovering with less inflation after 2018 as positive GDP growth was recorded.

Who is the Nepali government trying to impress? "Ghati herera haad nilnu" quote should apply to them and they should let the market run openly? Increasing taxes and not letting people even breathe in properly is inhumane. We should stop giving the government too much power when the government isn't doing anything to acknowledge the power it has.

The solution for a country like Nepal could be less government spending as printing more credit will not help us. We don't even have a lot of collateral for that. However, the government clearly doesn't like to live below its means. We can expect the extremely hiked cost of living and increased taxation in the near future. Stop stealing from the taxpayers to run the companies operating in the loss.

The government feeds these lazy corporations for the sake of monopoly and it doesn't work out in the long run. Just like Ncell was introduced to compete with NTC, the corporations should be allowed to compete against NEA as well as Oil Corporation. Nepal Airlines has already faced the wrath of the market for not being able to compete with other players. The market will take care of the losers. We need more competitors.

This is our money and we want our money to generate more money for the country. We don't want our money to feed off the businesses that cannot make a profit on their own. For a country to be prosperous, the state-owned businesses must be profitable and they shouldn't be bailed out from the taxes paid by us.