Friday, September 21, 2012

It's not the 47%, it is the Spending!

The whole argument about the "47% of Americans who don't pay income taxes" is a diversion.  The argument about the "47%" is misleading, and can even be twisted to imply that more people need to pay income taxes.  This a horribly flawed argument.

The issue should be that more money is disbursed than can possibly be received.  According to the Bureau of Economic Analysis, the US Government has been paying more money to US households than it receives for the last 3 years.  This hasn't happened since the Great Depression.
CHART SOURCE: MSN MONEY

This poor economic practice can't be maintained for long.  Logic dictates that there will be a point at which payables will stop due to a lack of finite receivables.  Some economists indicate that we have already reached the fiscal event horizon, regardless of what government does.

Put the arguments to the side, for a moment, about redistribution, socialism and the like.  It is simply not possible to spend more than you make, no matter what project receives the funds.  It isn't possible to fund all of the projects people want.  Eventually, the money will be worthless as a medium of exchange and you will be working constantly, with nothing to show for it.

Of course, this is one of the reasons our government wasn't intended to be everything to everyone.  Sure, you can modify your government to do many things, but, if you violate the core principles of individual freedom, that a government has only the power the individual chooses to share with it, you basically have nothing at all.  Eventually, you won't even control your own life. 

This kind of usurpation of individual rights is what went on from the beginning of humanity until our nation was founded.  No, our nation isn't perfect and we strive to work towards perfection.  In this pursuit, however, we need to make sure that we don't abandon the idea that made our government unique in the first place.

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