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I don’t know anything about junkies. But you’re missing the point, taxed money doesn’t come from creation rather than from someone else directly. Assume an eco
by whb07 9y ago
I don’t know anything about junkies. But you’re missing the point, taxed money doesn’t come from creation rather than from someone else directly.
Assume an economy valued at $100. If you taxed it and passed that money to another party, it’s not going to grow the $100 at all. Because all you’re doing is shifting that ownership of that money around and in between steps losing some to intermediaries.
So taxing $10 and passing it around is really some value less than $100. Meanwhile that $100 could be used to grow to $300 and everyone is vastly better off.
Now these are extremes, if you took some extreme tax like 90% then the whole thing falls apart and you have the state running things and we know how that goes.
Same for the opposite side, at 0% tax then things like national defense and the like wouldn’t be supported and we’d have things like other nations/parties trying to invade etc.
Clearly there’s a middle ground but I’d say it’s definitely not at the current ratio of tax burden which is what 30% roughly of GDP? Might be more with future liabilities
- lovich 9y agoYou are still valuing all government actions at zero dollars. When the government takes ten dollars of tax money and then spends it on a plane, how is that purchase different than if Delta spent 10 dollars on a plane? It's still a transaction and it goes into the economy to create something. On the flip side youre also valuing all private transactions as being a multiplier. How is it a multiplier when a monopoly just charges higher prices one day with no improvement to their product? That's just extracting money out with no equivalent increase in value, which does not make it a multiplier
- paulddraper 9y agowhb07 is not valuing all government actions at zero dollars. They are valuing all government actions at substantially less than the original value in private hands.