Wednesday, July 18, 2007

Government doesn't "spend"; just moves money around


Patrick Robinson isn't a political analyst. He's a "pop" author in the Tom Clancy vein. Never-the-less, we were struck by one of his character's (from a 2004 novel) concise analysis of government spending.

And we paraphrase:

Do you know what brasses us off about government? It's what is never adequately explained to "the folks". The fact is that "government" doesn't have any money of its own. It creates nothing - no wealth. They only "have" what they can take from the American people and corporations. So when they say, for example, a counter insurgency program, or an aircraft carrier is "too expensive" they are talking nonsense. Government doesn't "spend" in the conventional sense. They take money from whatever source they can find with out inciting a revolt and they redistribute that money throughout the economy.

This applies at all levels of government. They don't really spend, they push everyone else's money around and take a cut for salaries, pensions, and benefits in the process.

Let's take a road initiative. Half of the labor cost goes to they guys building the roads - paychecks that go to people who immediately give one third of it back to the government in taxes. The rest gets spent in the communities, buying concrete, lunches, etc., which goes to other folks who immediately pay one third back to the government. Some goes to corporations like Cat, Mitsubishi, etc., who pay corporate taxes. The whole thing is just a round-about.

The road isn't expensive - it's free! It's not the government's money anyway. They're just moving it around and taking their cut.

We get so amused by these people that want new benefits, new parks, want to force a "green" society via taxes; Where does the money come from? These folks aren't creating any new money. They are just taking from one area and moving it to another while taking a salary for their supposed "wisdom".

Next time something is called "expensive" or "no-cost" by your taxing authorities - STOP - and think - where is the money coming from and who is it going to?

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