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Hey, ever take an economics course?
"3. If the government pays $60 for a toilet, its contribution to the GNP/GDP is $60; if the government pays $60,000 for the same toilet, its contribution to the GNP/GDP is fully $60,000."
WRONG!!!!!!!!!!!!
The truth is that if the government pays the market rate, $60 for a toilet, the effect is immaterial. If a government spends $60,000 for a toilet, it taxed the private sector an excess of $59,940 and wasted that much independent purchasing power formerly in the hands of the private sector, who would not pay that much for a toilet and, if free to choose, would have spent or invested the $59,940 a thousand different ways more wisely. (See Diversification of Risk)
The Federal government is broke.
The Post Office is broke.
Medicare is broke.
Social Security is broke.
State pension funds are underfunded (broke).
What makes you think turning everything over to the government is the best solution?
What makes you think the government makes better decisions than a thousand of us?
Their cost of capital to invest (spend) is free, via taxes; we have to work for our (after tax) "capital" to invest. Their "investments" lose money so they raise taxes on us to compensate; our investments lose money, we suffer the pain and change our behavior and invest more wisely.
We don't make the same mistake twice (we can't afford to), the government institutionalises mistakes public policy. Because they can.
History prooves that government spending chases out private sector spending which is why the 1932 Depresssion under FDR lasted so long. Read up on the history of the Depression. Then opine.
Read: "The Forgotten Man" by Amity Schlays *
"The Road to Serfdom" by Fredrich Hyeck
"Atlas Shrugged" by Ayn Rand
"Free to Choose" by Milton Friedman
The "Forgotten Man" was not the unemployed guy, but the guy they taxed to give freebies to the unemployed for political popularity. They "forgot" to ask the taxpayer's opinion on their generous policy. The "forgotten man" was too busy working to notice what the politicians (FDR) didn't have to worry about, after all, it wasn't their (FDR's) money.
If The Feds ran everything, we would be driving 1979 Chevettes and SAABs would just be a dream. Or SAABs would be the car of the Polit Bureau rulers.
Wise up. Its your future.
And your money.
posted by 74.88.23...
, Thu, 8 Jul 2010 16:38:39, Sat, 10 Jul 2010 09:38:16
, Sat, 10 Jul 2010 10:45:44, Sat, 10 Jul 2010 09:35:22, Sat, 10 Jul 2010 13:31:41
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