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>what's qualitatively different between 70% of the population working with 30% on welfare, and 10% of the population working with 90% on welfare? The governmen
by ConfuciusSay 12y ago
>what's qualitatively different between 70% of the population working with 30% on welfare, and 10% of the population working with 90% on welfare?
The government receives less tax revenues because 20% of the population is no longer working (and paying taxes). At some point if enough of the population is no longer contributing, unless there are massive changes in how we manage the economy, the country will become insolvent and won't be able to afford the welfare payments as tax revenue decreases.
- logicchains 12y ago>The government receives less tax revenues because 20% of the population is no longer working (and paying taxes). The assumption is that machines exist that are more productive than all these people no longer working. If these machines didn't exist, then these people would still be productively employed.
- ConfuciusSay 12y agoAhh yes, then we shall tax the machines!
- tomjen3 12y agoThe machines don't make money, the owners make the money. So we will end up taxing the owners - which will already happen under the current system.
- ConfuciusSay 12y agoExcept if consumers don't have jobs they won't be able to purchase the products made by machines, therefore the owners will NOT make the money, and the economy will enter into a "death spiral".