All Government Spending Is Taxation

Hey Jessrepresentivies

The global economy is in a depression, those of us who follow the trends realise this, those that don't will eventually see it for themselves when the solvency crisis hits over the next few months. Governments are panicking and doing everything they can to try and smooth out this correction by filling the gap with quantitative easing.

We see small business relief programs, payment protection/salary protection programs, boost to unemployment programs and buying up of stocks and bonds to try and inject liquidity into the system.

Trying to keep M2 money supply and the velocity of money up so that it can trade hands fast enough to stimulate the economy by the traditional financial plumbing was never effective, and it becomes less effective over time.

Governments are by no means businesses; they are just the WORST hedge funds in the world that are poor capital allocators. Governments do not understand the theory of diminishing returns and will continue to do what they think is right until the system implodes or explodes; either way, the ending is the same.

Government's don't create money

Government's print currency but they do not create money, this sounds like a weird concept, but it's essential to make the distinction. Government programs are financed by two methods, tax revenue, which is effectively stealing from working people through a legal framework and giving it to the less productive.

Or through deficit spending which is created by inflation, which is effectively stealing from everyone who holds their national currency, stripping buying power away from everyone to divert it to their programs.

A country has a set of purchasing power that is divided by the amount of currency in circulation. When governments spend through inflation, they don't increase the purchasing power; they only split it into more units.

Think of the economy as a pizza. When governments inject freshly printed money into the economy it doesn't make the pizza bigger it only cuts it into smaller and smaller slices to be handed out as they feel it should be, often mistakenly so.

Governments don't generate products and services that profit society; what they do is move money around as they see fit. This creates unnatural purchasing and consumer behaviour as well as gross inefficiencies and finally unintended consequences we don't see.

But tax the rich

There is often a myth that the rich sit with loads of money and all we need to do is tax them and all that money will come flooding our way, and we will all be saved when in fact the government does the exact opposite. It taxes everyone else to give to the rich through various instruments but mainly through banks and investment companies.

The rich don't get taxed, they are smart enough and tap into the right legal framework to avoid it, it costs them less to pay accounting firms millions to move their money around than to give it to governments.

The rich have currency, but they don't have purchasing power, that's what society has, and its stripped away through government spending and reallocated to the top 1%.

All government spending is your purchasing power

So now you see all governments are doing is spending your money on other people. The purchasing power your work hard for, to support yourself and your family is taken from you to give to others, and we think this creates no moral hazard?

This magical accounting is what gives governments their power; they cap us at the knees and then pretend to be the crutch we need to walk. What we need, is to walk on our own, to live on our savings and labour, to be free to spend the money in local places where we feel it is needed not bureaucrats and investment fat cats.

Accomplice to a crime

Tax is theft, there are no two ways about it. Anyone who says any different is an accomplice to thievery, the unintended consequences of taxes moved to help the poor is NOT a justification for stealing.

How would you like I take your money right now, and when you ask me what I did with it, I say I gave it to someone on the streets, see how understanding you're going to be about it, so why do governments get a free pass?

I'm all for helping our fellow man, and I think the best way to do that is for every man and woman to have their own money. To be able to spend it how they see fit, start businesses, employ people in their local community, give to charity, start charities, invest in each other and cut out this money-sucking middle man called government.

Protect your time and dime

If you genuinely value the work you've put in to earn a living, storing it in something that cannot be taken from you via tax, inflation or confiscation is a great way to claim back your power.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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