Thursday, February 26, 2009

Governments Circle of Taxation

I want to expand a little further on my talk yesterday about government spending and taxes. The government does not work like businesses that we are familiar with in our everyday life. The government does not produce anything. All money that it uses doesn't come from money it makes on it's own merit. Instead, that money has to come from somewhere else... from you and I.

Business Produces Goods & Services --> Creates Revenue --> Funds Itself --> Uses Those Funds to Create More Goods --> Etc...
Government Takes American Money --> Uses it How It Pleases --> Takes More When It Runs Low --> Continues to Spend Our Money --> Etc...
I often wonder what it would be like if instead of government spending, people had a more truthful term for it... something along the lines of spending Americans money. But of course, the government has to keep hiding behinds it's own words.
So in the future, when new government spending is revealed, (as it always will be), remember, that money is not "governments money", it is our money; the people's money. Maybe if we all thought of government in that way, we would all pay a little more attention.

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