This is exactly what we discussed earlier this week. As more and more taxes are levied on the things we buy and the things we do, people will eventually reduce or eliminate these purchases, thereby reducing the revenue streams, and causing the taxing authorities to implement even more taxes. Given enough time, municipalities will run out of things to tax.
Without ruthless control of spending, there are never enough dollars to meet all obligations.
The fallacy of Keynesianism once again raises its ugly head. We are attempting to spend our way out of this mess; it didn't work before, and it won't work now. The theory is flawed, and unfortunately too many people have bought into it. And while I am a monetarist and believe in a monetary policy based on the theory of monetarism, the flip side of the coin is, once again, spending.
Without ruthless control of spending, there are never enough dollars to meet all obligations.
The fallacy of Keynesianism once again raises its ugly head. We are attempting to spend our way out of this mess; it didn't work before, and it won't work now. The theory is flawed, and unfortunately too many people have bought into it. And while I am a monetarist and believe in a monetary policy based on the theory of monetarism, the flip side of the coin is, once again, spending.
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