Basic economics lesson for JGliberals.

Posted on: November 17, 2016 at 13:15:04 CT

Every dollar taxed is at minimum a dollar lost to the economy.

Simple dumbed down example. Person A is taxed by the government. Person B receives welfare as the government redistributes money taken from Person A. On the surface, to those not thinking of all aspects, they see a positive. Person B gets food, housing or medical care. The problem with this is easy to overlook as it requires more indepth thinking.

Person C has reduced demand for his/her product as Person A has less discretionary income to spend due to taxation. Person C then does not have the demand or capital to increase employment and hire Person B.

Government promotes shovel ready jobs program. People see workers building some new project, financed by government tax revenue and borrowing. On the surface, it looks like a success as it is easy to point to the project and see it in action. Again, lost is the tax dollars are taken from the individual and corporations. Money that was taken out of the economy that would have served to create new jobs. Instead the government not only took away today's dollars but borrowed against the future.

The end result is the government is constantly trying to solve problems it created in the first place. The government does not create wealth, the government only destroys it.