Hugh
January 29, 2009, 12:24 PM
It's simple:
Peter Producer goes to work, produces a product or a service and pays taxes on his earnings for the priviledge of being a productive person. The government takes that tax money and gives it to Nick Nonproducer and Charlie Criminal. The theory is that Nick Nonproducer and Charlie Criminal will then spend Joe's money, thereby "stimulating" the economy.
Actually, however, the government simply prints and/or borrows the money and gives it to Nick Nonproducer and Charlie Criminal who will happily vote for the people who gave them the free money. Pete Producer, his children and grandchildren then get to pay it back with interest and lost buying power due to inflation . . . only as long as they are productive, of course.
Either way, Peter Producer gets the sharp end of the stick in his eye.
---- Hugh
Peter Producer goes to work, produces a product or a service and pays taxes on his earnings for the priviledge of being a productive person. The government takes that tax money and gives it to Nick Nonproducer and Charlie Criminal. The theory is that Nick Nonproducer and Charlie Criminal will then spend Joe's money, thereby "stimulating" the economy.
Actually, however, the government simply prints and/or borrows the money and gives it to Nick Nonproducer and Charlie Criminal who will happily vote for the people who gave them the free money. Pete Producer, his children and grandchildren then get to pay it back with interest and lost buying power due to inflation . . . only as long as they are productive, of course.
Either way, Peter Producer gets the sharp end of the stick in his eye.
---- Hugh
