love this. Although I've had a radical counterproposition in mind for some time: eliminate ALL taxation, and pay for government services exclusively through monetizing, "printing money"; whereupon the resultant excess "inflation rate"effectively would be the across-the-board taxation on new purchases and existing assets. Essentially a super VAT. Yes there'd be inflation, yes you'd have to trust the government not to overprint – but imagine the huge efficiency in not having to retain armies of accountants; spend weeks fretting over tax forms; stop and pay tax at every financial "tollbooth" along the way. Has anybody ever, anywhere, tried this?
Javier Milei has been in the office for little over 2 weeks and he’s doing exactly what he promised. He’s reducing government jobs, ending nonsensical regulations, reducing cabinets, etc. The most interesting decisions for me came yesterday. In section VII of article 209, it states: “The word "free" may no longer be used to promote benefits financed with contributions from taxpayers”. It’s surprising to me that any of the regular citizens would think that anything government gives them is actually free, but I have been negatively surprised too many times in the last 5 years and Milei’s action insinuates this is exactly the case. Governments produce nothing and they generate revenues by: -Taxation -By issuing debt such as Treasury bonds, bills, and notes -Stealth tax or inflation tax - they simply print money and we all pay it collectively through inflation Remember, the old saying there is no such thing as a free lunch is especially true when it comes to governments. I wish you a happy New Year and see you in 2024! #financialeducation #danijelzoric #personalfinance
Stephan Lutz
3mo
I like the comment in the picture as it shows that extreme positions don't work. But equally, depending on where you live, governments DO deliver a lot. And it's exactly where markets won't deliver. Markets are tools and are unethical as such (not as the opposition to ethical behaviour, just empty of it). The ever-celebrated 'invisible hand' of Adam Smith worked in the theory only if people would behave ethically (he was a philosopher). So a market in the hands of unethical people will be as bad as having no market in the hands of gooddoers. Political and economic liberalism (don't misuse the word and read the original texts) was the acceptance that certain things have to be organised centrally while the majority cannot as no one has full visibility and know-how. So neither extreme will work in any case. Both would lead to feudalist societies. And even companies aren't organised internally as markets at all. Rather the contrary. They are feudalist on the inside with the ability to leave for the underlings. That requires that there's always another place you can go to (this needs to be enforced by something above a company - aka the state). Capitalism applied to countries and left run free wouldn't provide this.
Jeff Simonian
3mo
With a healthy “Productive” country PRODUCING A Vast Majority of our-own goods, commodities, products we manufacture Here, services we own and employ Here, then import-tariffs and taxing the importers, NOT The products or consumers is how our U.S. federal government was funded AND Why there Were NO Federal income tax imposed upon citizens for many, Many, MANY Years after the founding of Our Nation. Want to learn more about “who, how, why?”. Read Tim LeHaye’s book “Faith of Our Founding Fathers”.
Ed Duncan
3mo
Yes, Weimar Germany tried this big time, Doctor, and soon Germans were pushing wheelbarrows of paper money to buy groceries.
Dominic Allen
3mo
Ahh yes, the double inflation of college degrees.
Danijel Zoric
3mo
🙏
Timothy Johnston
3mo
Lol
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3moI'm always nervous when people criticize governments or want to reduce or abolish governments. We need governments. Government IS the solution to the problem, and the problem is not the government but the people who are in the government... But if we keep voting for the same ol' same ol candidates, how do we expect something different?