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Now This Could Open A Pandora's Box!
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<blockquote data-quote="wkmac" data-source="post: 87574" data-attributes="member: 2189"><p>Tie,</p><p> </p><p>Here's something else to consider and I'll contend it's oversimplied and that real life may not be entirely this simple but in some reality it is. I contend that at somepoint gov't ends up holding every dollar that is in circulation via our tax model we use in America. </p><p> </p><p>Simple game you can play with several friends to kinda see this point. Gather say 5 people into a group as this represents the consuming public at large. Now add in a single dollar bill which represents the economy of your small group. As our larger intrinstic value of our economy is finite, so is your small economic model. Now understanding that gov't taxes and that in general taxes are required when money transactions take place such as sales or wages paid. Now start making transactions among yourselves for goods, services or labor (you decide what and have fun with it, add in some adult beverages and it can get very comical) but with each transaction withdraw a single penny from the pool and place it into an isolated treasury that's you'll call gov't revenue or taxes. As the game continues you'll see your economic model grow smaller and smaller and smaller until maybe there's a single penny left and then someone will have to make that last step to where a transaction takes place but they will recieve no pay as the gov't gets the last penny.</p><p> </p><p>But wait a minute, in our true society we don't run out of money and you are absolutely correct. So this time play the game again but add a 6th person and this person you will call Uncle Sam and it's Uncle Sam's job to also be a player in the game. Uncle Sam's job is to take his collections and also buy goods and services in the market place and to also compete in the marketplace but there's a twist. Uncle Sam can also pass laws to regulate what transactions can take place and he can even raise the tax rate to more than a penny. He can also accumulate a large pot of the money to the point that he controls most of the dollar and then in order to keep the game continuing he can spend his money back into the game but with a twist. He can dictate what the price of goods and services will be because the players believe in order to conduct themselves for trade and labor they need that money and will accept anything in order to keep their economy going. Uncle Sam therefore can come into the game and on his will artifically inflate or deflate (purely his pleasure) your little economy and in essence control the market of your economy by deciding where to fuse money in and then regulate what he doesn't like to the point it's no longer a factor to contend with. Some people in the game may even go bankrupt as Uncle Sam via regulation killed their business that until this point people in the game were using and were happy with. By further law he can further control to the point that he can plan for a certain outcome that benefits him. This sometimes requires him to bankrupt persons and kill an industry within the group as it threatens his planned outcome for the economy he now controls. </p><p> </p><p> In the private sector we'd tar and feather a business interest that did that but in our game the rules are such that our Uncle Sam is completely free to go down that road and we have no power to stop it.</p><p> </p><p>It's a fun game to play and again it is very simplified, maybe even oversimplified but the scary part is it's not real far from the truth either!</p></blockquote><p></p>
[QUOTE="wkmac, post: 87574, member: 2189"] Tie, Here's something else to consider and I'll contend it's oversimplied and that real life may not be entirely this simple but in some reality it is. I contend that at somepoint gov't ends up holding every dollar that is in circulation via our tax model we use in America. Simple game you can play with several friends to kinda see this point. Gather say 5 people into a group as this represents the consuming public at large. Now add in a single dollar bill which represents the economy of your small group. As our larger intrinstic value of our economy is finite, so is your small economic model. Now understanding that gov't taxes and that in general taxes are required when money transactions take place such as sales or wages paid. Now start making transactions among yourselves for goods, services or labor (you decide what and have fun with it, add in some adult beverages and it can get very comical) but with each transaction withdraw a single penny from the pool and place it into an isolated treasury that's you'll call gov't revenue or taxes. As the game continues you'll see your economic model grow smaller and smaller and smaller until maybe there's a single penny left and then someone will have to make that last step to where a transaction takes place but they will recieve no pay as the gov't gets the last penny. But wait a minute, in our true society we don't run out of money and you are absolutely correct. So this time play the game again but add a 6th person and this person you will call Uncle Sam and it's Uncle Sam's job to also be a player in the game. Uncle Sam's job is to take his collections and also buy goods and services in the market place and to also compete in the marketplace but there's a twist. Uncle Sam can also pass laws to regulate what transactions can take place and he can even raise the tax rate to more than a penny. He can also accumulate a large pot of the money to the point that he controls most of the dollar and then in order to keep the game continuing he can spend his money back into the game but with a twist. He can dictate what the price of goods and services will be because the players believe in order to conduct themselves for trade and labor they need that money and will accept anything in order to keep their economy going. Uncle Sam therefore can come into the game and on his will artifically inflate or deflate (purely his pleasure) your little economy and in essence control the market of your economy by deciding where to fuse money in and then regulate what he doesn't like to the point it's no longer a factor to contend with. Some people in the game may even go bankrupt as Uncle Sam via regulation killed their business that until this point people in the game were using and were happy with. By further law he can further control to the point that he can plan for a certain outcome that benefits him. This sometimes requires him to bankrupt persons and kill an industry within the group as it threatens his planned outcome for the economy he now controls. In the private sector we'd tar and feather a business interest that did that but in our game the rules are such that our Uncle Sam is completely free to go down that road and we have no power to stop it. It's a fun game to play and again it is very simplified, maybe even oversimplified but the scary part is it's not real far from the truth either! [/QUOTE]
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