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The online discourse, I've been watching this week is the $20 Burrito. As a super TLDR; this is an intra-right argument that got started by one conservative saying young conservatives are upset about food affordability, and gave an offhand example about '$20 burritos'. The response was a combination of:
Burritos aren't actually that unaffordable, the rate of increase in unaffordability has come down, also you can make them at home for cheaper, also you aren't entitled to eating out.
The response to the response is that this is a losing message to one's own side, avoids accountability for losing focus on why 2024 went Trump, and suspiciously aligned to Iran war support.
Before I address that specifically, a little about my personal burrito.
I am as close to a controlled middleclass experiment as possible.
I live in the same zipcode I grew up in; my kids go to the same Catholic school I went to. I work in the same industry as my father. I aspire to give my family the same life I grew up with. I can't live the life my parents lived.
In the 90s my parents moved us into a new construction. Today, I live in smaller a house, on a smaller lot built in the mid-70s. In realtive terms, I live in a house that is not only smaller, but nearly 50 years older than the one my father did.
My parents had >8 kids. I have 5.
Here's the kicker: My father was an individual contributor, software developer. I am a Director-level at a mid-market software company; This isn't title inflation, I manage an org of about 25, including multiple layers of leadership.
While being considerably more successful than my father in my career, I financially struggle to same life he lived.
I don't disagree with any of the above points, or probably other reasonable ones, but they all miss the point: I want to live the life I grew up in, I am willing to work hard for it, I held up my part of the implied social contract, I think that the failure of the implied social contract is a BAD thing, something to be seen as regrettable, and I want my politicians to focus on fixing it.
Burritos aren't actually that unaffordable, the rate of increase in unaffordability has come down, also you can make them at home for cheaper, also you aren't entitled to eating out.
This is all arguably true. But yet, is a losing message. Especially when your side won on addressing the real and percieved reasons we can't get affordable burritos, and super especially when the other side's solution is 'free burritos for our friends, mass immigration for our enemies'
The US middle class opportunity has changed in negatives ways for reasons that don't benefit me, and I didn't ask for, and instead of my political side agreeing to help address these issues, they are telling me to support a foreign war
I was thinking about it from the EU point of view of a regular employee and I think a lot of this comes from how insane the modern state costs. Let me make my case from numbers in Slovakia.
Direct income and payroll taxes in Slovakia for average salary is around 45%. This includes social contribution, income tax and all the rest. Out of 55% that is left you pay 23% VAT on all goods and services. Other than that you need to pay property tax, excise taxes for gas, alcohol and tobacco. In reality, you might be left with about a third of what you earned. But it doesn't even end there.
Fees and other direct payments There is constant and very opaque stream of various payments. You pay for building permits, you pay for your passport or other state documents, you pay car registration fee, you pay road tax and highway toll, you pay even a fee for your dog. It is numerous small things that however add up quite quickly and more if you are bellow average income as many of these are just nominal prices.
Indirect taxes These are various hidden taxes often paid by producers. Manufacturers also pay various taxes and fees: they pay for carbon emissions, they pay packaging recycling fees, and they pay customs duties on imported raw materials. Or take another example: developers pay cities and the state infrastructure development fees and for social policies, because what cities collect from your income tax and property tax isn't enough for them. Builders, of course, pass all of this into the price of your apartment, and you end up paying VAT on top of that non-transparent indirect taxation as well. All of this drives up final prices and reduces your purchasing power out of the pittance you have left.
Forced labor. The state has literally enslaved people, demanding labor for absurdities—like how you have to wash out beverage cans at home like an imbecile so they don't smell and attract wasps, and then wait in line at grocery store for the one functional reverse vending machine, just so the state returns your stolen, exorbitant recycling deposit, the recovery of which cost you a bunch of time and your own water. But it also enslaves companies and individuals through filling out various forms. You pay accountants for tax returns, and companies must comply with regulations like GDPR, for which they have to hire extra consultants like a GDPR Data Protection Officer. They have to fill out paperwork, they have to pay corporate lawyers and attorneys who must track thousands of new directives, regulations, and amendments that the EU and member states churn out every year. Behind this is an army of office workers who produce nothing, not even a single nail—they only produce paperwork for the state bureaucracy, such as the new paperwork on the gender pay gap in your company according to the latest EU directive, because that is exactly what was missing for perfect prosperity in our countries. And the great thing for the government? This is officially considered added value, and you pay VAT on it too. It’s a perpetuum mobile, where every new hidden regulation brings an increase in corporate costs, which companies then use to raise prices, and that increases tax revenue at the expense of your wallet.
Conclusion: The Shift to Autarky If you add everything up, your real purchasing power is maybe a quarter of what you produced. This spiral of higher tax and regulatory burdens completely demotivates people from producing. Even now, domestic autarky combined with bartering and undeclared work—which is tax-free and unregulated—is paying off for people. If you cook that $20 burrito at home, perhaps using your own ingredients from your garden, you bypass this entire machinery. The state is shocked by the "illegal" sale of homemade Christmas cakes. A person who bakes cakes and sells the leftovers is now literally treated as an enemy of the state, simply because they found one of the few remaining ways to increase their standard of living without non-stop bleeding. And yet this I think is what people are feeling right now. It is not exactly affordability crisis, it is just that some things are so overpriced that it stops making sense.
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