Not only does the journalist have his facts wrong about the tax history and he doesn't seem to know a lick about economics, but he shows that he has no understand of, or any respect for individual rights.
Sure, we're paying lower taxes than we were in recent years but our taxes are still quite relatively high. According to The Tax Foundation, we are presently paying anywhere from 10% to 35%, depending on our income. But that's just in income tax alone. That does beat having to have to pay from 11% to 50% in 1986, and that's with lower tax brackets! Just imagine making 176,000 a year and you have to pay half of that in income taxes. It's outrageous and insane. But the thing of it is that this journalist so conveniently left out was the hidden tax that we pay today. Inflation. All economist, especially those of the Austrian, warn of inflation being a hidden tax governments impose on the people.
Inflation has often the most popular way of paying for debt and wars by various governments throughout history. The reason being is because people don't want to pay tax and they certainly don't want to see increases in taxes they pay. Tax increases, especially if it's too high, can cause people to revolt against their governments.
So, instead of putting a tax on the people to pay debt, war and other things, government simply print or coin more money. Or in some cases, they monetize debt. Monetizing debt is basically saying that debt is money and therefore it's considered done and paid for. Wouldn't that be lovely if we could all do that with our mortgages, credit card debts, car loans and any other debt we may have? Except that it doesn't work that way. The reason we have money is because it is the axiom for trading value for value.
The perceived value of a given currency is based on the amount of paper money out there, what it's backed by, and the desirability of the currency. When government starts rolling out the money press and injects millions or billions of dollars in the market, then you lose value because money is no longer in greater demand because now there's more to be had and it's not so hard to get it anymore. In turn, this causes for the price of your milk, bread and butter to go up at the local grocery store. It causes for the price of gas to go up as well, which then also causes for food to go up again because farmers use gas to run a lot of their machinery to do a lot of the work. Ever wondered why when last year at this time you were able to get ground beef for less than 3 dollars a pound and now it's more like 4 dollars a pound? Or that you remember when you were able to get a gallon of milk for about 2 dollars and now it's well over 3?
Just to explain about something else and I don't mean to get a little side tracked but I do think this needs to be explained as well. When the Federal Reserve injects their quantitative easing of millions of dollars, you'll notice that often times after that, the stocks go up and then you hear economists tell you we're on the verge of recovery. When you hear that, I bet you're scratching your head, thinking yeah ok, so why am I or my friend, or this person I know personally, still out of a job? The recovery couldn't be further from the truth. The recovery is just a veneer, it's not real recovery at all. The Federal Reserve injects money and shortly thereafter the stocks jump but then after awhile inflation catches up and then we see the stocks take another dive. The idea of injecting money is a Keynesian idea; one that Austrian economists are against because it hurts real growth and causes for the demise of any given currency. So, don't be fooled when you see stocks go up and you think we're on a recovery. We're not. We're just getting ready for the perfect storm in economics.
So, are we paying lower taxes than ever before? No. Simply put, we're paying more in taxes than ever before to pay for the reckless spending on altruistic social programs, sending troops overseas for so many years on a war that could have ended a long time ago, and getting absolutely no where.
We need to allow the markets to correct themselves. You hardly ever hear about the Depression of 1910, but that's probably because it wasn't so long and horrible as the Great Depression that started in 1929. The reason that the Depression of 1910 didn't last so long was because government stayed out of the markets way and let things carry on. Government, at that time, didn't step in with social programs, stimulus money or bailouts. What happened? The markets corrected themselves and it was business as usual before too long. Yet, the Great Depression of the 1930's took over a decade and things did not get better after FDR came out with all the social programs he brought in. Outside of Obama, FDR was the president that brought in more social programs and bureaucrats than any other president in US history. It wasn't until AFTER we won WWII that we finally saw any economic growth and it was because markets were finally being allowed to correct themselves.
Government has got to stop printing more money but then again how do you tell a heroin to stop shooting up more drugs to save themselves? The way I see it is this, if we do not cut government spending, stop the injecting of millions of dollars in the markets and raise the interest rate, then we ARE on that certain path of destroying the dollar as leaders from around the world lose faith in our currency. But like a heroin that won't stop shooting up, Bernake, the Federal Reserve Chairman, and Obama won't stop injecting money in the markets. So, we can expect to see continued increase in prices on food, gas, products, and services we enjoy everyday. As the price of gold and silver continues to climb and show record rises in price, people everywhere are going for the sure thing, not to gain more money, but to keep themselves from losing purchasing power. In the past, it has been shown that those families that invested in silver or gold, did fairly well compared to those who don't. I won't be surprised at all if the White House Administration decided to come out with laws against owning gold or silver or trading dollars for precious metals. They'll do it to tell people it's to keep the dollar from losing its desirability as more people dump the dollar and they'll say it's wrong to do that because you should have loyalty to your nation. Forget it, do yourselves a favor now and invest in physical gold and silver that you can store in your own home, stock up on food storage and be prepared to take care of yourselves. Of course, that's a whole other topic.
http://www.taxfoundation.org/publications/show/151.html
Inflation has often the most popular way of paying for debt and wars by various governments throughout history. The reason being is because people don't want to pay tax and they certainly don't want to see increases in taxes they pay. Tax increases, especially if it's too high, can cause people to revolt against their governments.
So, instead of putting a tax on the people to pay debt, war and other things, government simply print or coin more money. Or in some cases, they monetize debt. Monetizing debt is basically saying that debt is money and therefore it's considered done and paid for. Wouldn't that be lovely if we could all do that with our mortgages, credit card debts, car loans and any other debt we may have? Except that it doesn't work that way. The reason we have money is because it is the axiom for trading value for value.
The perceived value of a given currency is based on the amount of paper money out there, what it's backed by, and the desirability of the currency. When government starts rolling out the money press and injects millions or billions of dollars in the market, then you lose value because money is no longer in greater demand because now there's more to be had and it's not so hard to get it anymore. In turn, this causes for the price of your milk, bread and butter to go up at the local grocery store. It causes for the price of gas to go up as well, which then also causes for food to go up again because farmers use gas to run a lot of their machinery to do a lot of the work. Ever wondered why when last year at this time you were able to get ground beef for less than 3 dollars a pound and now it's more like 4 dollars a pound? Or that you remember when you were able to get a gallon of milk for about 2 dollars and now it's well over 3?
Just to explain about something else and I don't mean to get a little side tracked but I do think this needs to be explained as well. When the Federal Reserve injects their quantitative easing of millions of dollars, you'll notice that often times after that, the stocks go up and then you hear economists tell you we're on the verge of recovery. When you hear that, I bet you're scratching your head, thinking yeah ok, so why am I or my friend, or this person I know personally, still out of a job? The recovery couldn't be further from the truth. The recovery is just a veneer, it's not real recovery at all. The Federal Reserve injects money and shortly thereafter the stocks jump but then after awhile inflation catches up and then we see the stocks take another dive. The idea of injecting money is a Keynesian idea; one that Austrian economists are against because it hurts real growth and causes for the demise of any given currency. So, don't be fooled when you see stocks go up and you think we're on a recovery. We're not. We're just getting ready for the perfect storm in economics.
So, are we paying lower taxes than ever before? No. Simply put, we're paying more in taxes than ever before to pay for the reckless spending on altruistic social programs, sending troops overseas for so many years on a war that could have ended a long time ago, and getting absolutely no where.
We need to allow the markets to correct themselves. You hardly ever hear about the Depression of 1910, but that's probably because it wasn't so long and horrible as the Great Depression that started in 1929. The reason that the Depression of 1910 didn't last so long was because government stayed out of the markets way and let things carry on. Government, at that time, didn't step in with social programs, stimulus money or bailouts. What happened? The markets corrected themselves and it was business as usual before too long. Yet, the Great Depression of the 1930's took over a decade and things did not get better after FDR came out with all the social programs he brought in. Outside of Obama, FDR was the president that brought in more social programs and bureaucrats than any other president in US history. It wasn't until AFTER we won WWII that we finally saw any economic growth and it was because markets were finally being allowed to correct themselves.
Government has got to stop printing more money but then again how do you tell a heroin to stop shooting up more drugs to save themselves? The way I see it is this, if we do not cut government spending, stop the injecting of millions of dollars in the markets and raise the interest rate, then we ARE on that certain path of destroying the dollar as leaders from around the world lose faith in our currency. But like a heroin that won't stop shooting up, Bernake, the Federal Reserve Chairman, and Obama won't stop injecting money in the markets. So, we can expect to see continued increase in prices on food, gas, products, and services we enjoy everyday. As the price of gold and silver continues to climb and show record rises in price, people everywhere are going for the sure thing, not to gain more money, but to keep themselves from losing purchasing power. In the past, it has been shown that those families that invested in silver or gold, did fairly well compared to those who don't. I won't be surprised at all if the White House Administration decided to come out with laws against owning gold or silver or trading dollars for precious metals. They'll do it to tell people it's to keep the dollar from losing its desirability as more people dump the dollar and they'll say it's wrong to do that because you should have loyalty to your nation. Forget it, do yourselves a favor now and invest in physical gold and silver that you can store in your own home, stock up on food storage and be prepared to take care of yourselves. Of course, that's a whole other topic.
http://www.taxfoundation.org/publications/show/151.html
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