3 ms·

The greater the government expenditure, the greater the taxes.

• Grakel 5y ago
  That's not literally true, obviously. There's plenty of money for them to go after if they were actually worried about government debt. I think the big secret is that it doesn't really matter as long as the debt growth rate doesn't become shocking.
  • coliveira 5y ago
    No, the real secret is that the US government controls dollar creation. At the sign of any problem in the economy, they create more cash and give it to bankers, who on their turn put it in the hands of investors, who use it to buy assets around the world, increasing the assets and profits of American businesses. That's why the US will use any dirt trick to maintain the dollar supremacy.
• thatguy0900 5y ago
  If our money was actually backed by something, maybe. As it stands though the government doesn't really need to tax more money to spend more, even banks are allowed to create money for free now.
  • lupire 5y ago
    Govt spending creates inflation which is a tax on everyone. Sometimes its obvious, like Quantirative Easing, and sometimes it's subtle, like wasting human labor and natural resources on worthless stuff/activity instead of value creation. Formal taxation just redistributes the pain.