With all the liberals lining up to give free this and free that, ever wonder how this will all get paid for. They say that they will raise taxes on the rich end of the story. Will there be enough to pay for all this stuff?
Let’s look at the rough metrics of these offerings and put it all in perspective. These politicians are saying that Medicare for All, for example, will cost approximately 45 trillion dollars over a 10 year period. This is almost next to impossible to achieve.
With approximately 1.7 trillion dollars in circulation, how in the world will the Government be able to come up with enough tax income to pay for such an extraordinary expense. It can’t happen!
When you couple Medicare for all and then education for all, the need for dollars becomes even greater. Again, there is not enough money in circulation to pay for these offerings. Many economists will tell you that they can get velocity on the dollars in circulation so the tax base increases. You can’t tax enough to come up with enough money to pay for all the promises.
This means how many times the same dollar is spent in a year and therefore how many times the government can tax the same dollar over and over again. Therefore the velocity has to increase dramatically for there to be enough money to pay for such extraordinary promises. There would have to be more velocity on the dollar achieved than ever before in the history of our Country.
Any economist, who is truthful about this topic, can look at these numbers and tell that there is no way these benefits can be achieved unless it is on the backs of the people. This means that there will have to be a huge transfer of wealth that will result in economic depression and the migration of wealth out of our Country. It will be so massive that no one will want to create wealth in the United States and will look elsewhere to practice their entrepreneurial skills.
If Liberals Were Honest!
With the Government commandeering all the money in circulation there will be a massive collapse of our financial institutions along with no growth in any business since there will be no money to buy goods and services. With all the money going to provide the promised benefits, Government employees will not get paid unless they are part of the delivery system that is providing the benefits that were promised.
As all the money goes to the Government, the collapse will ensure that the Country will end up probably worse than Venezuela, with the only capital going to a select few.
So for everyone who wants these free benefits, they must be told that after a time the Country will flip and even they will be living in poverty. If the liberals were honest they would say “we will give you free Medicaid for all” and “free education for all” but you will eventually end up living in poverty as will every American.
The liberals should be told that life as you know it will suffer and you will have no choice but to move to another Country. Perhaps States will succeed from the Union and form their own Conservative Governments, who knows.
Any free stuff promised by a politician no matter what party will place a huge financial strain on the economy and depending on the expense of the promise can wreck an economy as I discussed above.
Here is a novel option. If any promise is left to the citizens to decide whether they want the promise or not and instead of taxing the people to pay for any promise let the people use the tax money to buy it themselves. In other words, instead of taking the tax money away from the citizens let them keep it and decide whether they want it or not, then the politician will know whether the particular promise is of value or not.