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>with enough generations of spending/income all the money becomes 99.999% the government's This doesn't make sense. The govt spends all the money they take in
by ChrisLomont 5y ago
>with enough generations of spending/income all the money becomes 99.999% the government's
This doesn't make sense. The govt spends all the money they take in (and then some) back to the private sector. It's paid in SS, payrolls, purchases, services.
Your example ignores that the govt spends that 20c tax you listed on police, goods, social security, wages, etc, along with some borrowed from markets, so in practice the govt ends up with negative money, which is called the national debt.
- maerF0x0 5y agoyes, but the government spending from collected taxes is only a small fraction of the taxable economy and thus over time the money still accumulates in the coffers. It's only when money is stagnant (or exchanging without profit) that it becomes in accessible from taxes. Removing the long term investment incentives (Long term capital gains) and introducing a penalty for not spending it during your life time (Estate tax) is how you ensure even those avenues of protection are gone.