Socialism/Communism requires more bureaucrats than any other form of government because it has to control every aspect of life. The more any government does, the bigger it has to be, i.e., bigger buildings, more employees, more intrusions into the private sector. Government growth requires higher taxes to pay for higher governmental spending.
Higher taxation reduces the amount of money taxpayers have available to spend.
Less taxpayer spending means less private purchasing.
Less private purchasing means less demand for real goods and services.
Less demand for goods and services means private sector layoffs and business failures.
Layoffs and business failures means government must take even more taxes from those who are still working to pay unemployment “benefits” to those workers who lose their jobs.
That is what is happening here and now.
Because the newly laid-off private sector workers receive an unemployment “benefit” they are like “employees” in the sense that they get “paid.” But, for the most part they produce few, if any, goods and services.
So, with dwindling numbers of private sector workers, the supply of what the public wants and needs shrinks, and the prices go up (you know — that supply and demand thing).
And, as the number of government employees grows, private employment and production shrink even more.
As government continues to tax, print and borrow dollars, the value of each dollar falls faster and faster.
Makers have to slow down on selling products for U.S. dollars, because they can’t trade their valuable products for paper dollars which lose value daily.
U.S. dollars become worth less and less as more “makers” lose their jobs and become “takers.”
Can you imagine the destination of the path upon which we are traveling? Government and those who still have money find that the price for goods goes up.
Goods become harder to afford because makers are moving away from U.S. dollars.
Eventually, the “house of cards” collapses.
When the shelves are empty and the makers are gone, what will you eat; what will you drink; what will you wear, and where will you sleep?
The more government taxes, taxpayers will have less to spend; and that means less work for businesses, fewer jobs for employees, more layoffs and more business failures.
• 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.