Government’s size affects its budget requirements. Budgets set revenue requirements. Ever increasing revenue requirements force new tax increases. New taxes reduce taxpayer purchasing power, which causes unemployment and business failure. Unemployment and business failures cause larger demands on our governmental social spending, which causes higher taxes, which causes... Well; you get the idea... more unemployment?
The vicious circle of tax and spend spirals into collapse. We cannot solve the problem by running the “printing presses.” We will find that producers eventually won’t take our inflated money and won’t provide their goods and services. The only reason the dollar has value is that people will still give us something of value for the money; but, that support is beginning to fail.
Unless our governmental overspending stops soon, government will not be able to tax enough to even pay the interest on the debt. “Funny money” economics are sure to sink America. Over the years, all of our political leaders have poisoned the “well” of prosperity. Governments have spent more than they can tax to do things that do not need to be done.
The bureaucratic hordes that copy, process and featherbed the business of the state require the government to extract even more taxpayer wealth. Citizens are willing to pay the price for certain government “services.” However, because government can only add to the net cost of providing private goods and services, we cannot afford to let government take on obligations that we should and can do ourselves as individuals. As taxation climbs to the stratosphere, freedom wanes and we become slaves.
Governments’ handling of the economy has dried up capital. As government gathers up the dollars and hoardes the money, economic transactions slow. Cash flows restrict. Incomes shrink. Household bills can’t be paid. Property owners go bankrupt. Values shrink. Then the government uses our money to buy our properties that we can no longer afford to keep; even if the mortgage has been paid in full.
Can you see that; is that not a perversion of the founders’ vision of freedom? Why do we let our current “leaders” become our masters?
• Ahwatukee Foothills resident George R. Ferrin is a local attorney. For three years he was a civil structural engineer holding a Bachelor of Science in Civil Engineering from Arizona State University. For the last 30 years, he has practiced law as a commercial litigator focusing primarily on construction and engineering related cases.