- May 12, 2001
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There are really only three ways the government can get money, that it can then spend on its projects. All three are terrible for individuals. First, they can tax individuals on their work or any arbitrary transaction. This also includes fees such as "licensing fees" and tariffs. Second, they can borrow money, either through bonds locally, or from international entities. Third, they can simply print more money.
The first way, taxation, is terrible for the economy because it's taking productive dollars out of the hands of individuals who will use it better than the government can. Even if you subscribe to the (flawed) theory of keynesian economics where ALL government spending is divine, you're operating under the assumption that someone else somewhere who has never met you knows better how to spend your money.
Borrowing money, while a temporary benefit can be seen, loads us with debt for future generations. Like a payday loan, it's a bad deal! This method, as well as the third method introduce new money into our economy which causes inflation and the devaluation of the dollar. Even when we "borrow" from the fed we're watering down the money supply artificially.
Printing money, well this should be obvious. Making money and currency out of thin air? With the Fed regulating the printing of 85bn / month we're getting hosed on inflation and stacking the deck against ourselves having to pay it back.
Summary: Government spending, derived from how the government gets its money, is bad for us.
The first way, taxation, is terrible for the economy because it's taking productive dollars out of the hands of individuals who will use it better than the government can. Even if you subscribe to the (flawed) theory of keynesian economics where ALL government spending is divine, you're operating under the assumption that someone else somewhere who has never met you knows better how to spend your money.
Borrowing money, while a temporary benefit can be seen, loads us with debt for future generations. Like a payday loan, it's a bad deal! This method, as well as the third method introduce new money into our economy which causes inflation and the devaluation of the dollar. Even when we "borrow" from the fed we're watering down the money supply artificially.
Printing money, well this should be obvious. Making money and currency out of thin air? With the Fed regulating the printing of 85bn / month we're getting hosed on inflation and stacking the deck against ourselves having to pay it back.
Summary: Government spending, derived from how the government gets its money, is bad for us.
