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Sorry, the government can't create wealth for free. If the government wants to allocate dollars, it must at some point come from taxes (pulling dollars in the e
by sskates 16y ago
Sorry, the government can't create wealth for free. If the government wants to allocate dollars, it must at some point come from taxes (pulling dollars in the economy back out of it) or inflation (printing more dollars and decreasing the value currently held dollars). Now, the economy may grow such that the amount of wealth in the future is much larger than the amount we have now, and therefore represents a smaller fraction of the economy, but the fact remains that the wealth comes from somewhere.
- nkassis 16y agoWhat if the money allocated by the gov ends up creating more wealth than it would have previously? This is important to consider I think. This kind of program in my view can be a good idea if it creates more wealth than taken from the economy. I know it's unpopular to say this but government can create wealth (internet, space, health research...) that I don't think would have happened without.