Sunday, July 18, 2010

Barack Obama and George Bush Are Spending Us Into Hyperinflation

To understand the economy is to understand the issues.
     The polls have been all over the place with respect to health care but two things have been clear: Americans want universal health care but they are suspect of the government and are generally unwilling to spend more tax money to get it done.
When issues are presented to the American people in a "Do you want the government to do   ", they will overwhelmingly be in support of it if it is a social issue. But if those same people are asked "Are you willing to pay more taxes in order for the government to ___", they will overwhelmingly be against it.
     This is the dilemma facing the California government. Voters are consistently voting down tax increases but at the same time voting for more government handouts, programs, buildings, etc.
     The two cannot go hand in hand. The government has no wealth of its own. It only operates by taking from the people's production and redistributing it across the society. The society would work best when they expect the least from the government. Because when the government is unable to raise in revenue the taxes they need to satisfy their expenditures, they will print more money. That adds to the money supply and has the effect of decreasing the value of all dollars in circulation at the time a.k.a inflation.
     The United States is currently in a very inflationary cycle in the economy and the people are going to have to start expecting less from their government in order for us to survive a hyper inflationary environment.

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