Saffire

There's two fallacies here, let me see if I can explain them without catching ire: 1. Heavily taxing the rich in order to lighten taxation on the poor is sort of like putting makeup on acne. It doesn't really solve the root problem, which is that very rich people are usually making money off certain legal protections to their businesses - patents, regulations, corporate structure, etc. If you dismantle these barriers-to-entry, you'd see tons of startup companies spring up to compete with the established names in every industry. And the billionaires would only be hundred-millionaires. 2. The rich don't actually "sit on wealth". They spend their money on homes, cars, staff, boats, planes, landscaping, toys, etc. They also invest a lot of the money (some investments are more helpful to society than others). But the rich do create tens of thousands of jobs. Forget for a minute about rich people and poor people and class strata. Think about a society as a whole, just one big group of people. There are certain things everybody wants - education, car, house, food, entertainment, health care, etc. In order to know how much of this stuff to make, we need to have accurate signals that draw people toward certain career paths. Right now, the laws and taxes draw people away from productive career paths (health care, farming, engineering, trades) and toward less-productive jobs (lawyer, hedge fund manager, teacher, pharmacist). This is why the price of certain goods/services keeps rising, while the price of other goods/services remains fairly low - the signals are skewed. We have too many people manufacturing bombs and houses, and too few doctors and engineers. If you just feed the middle class free money, you end up with higher prices for the stuff they typically buy, because you haven't actually increased the production of that stuff.

[ame=http://www.youtube.com/watch?v=3jzvMGuRXvs]ALERT: Paul Krugman pushing FAKE alien invasion and NWO agenda - YouTube[/ame] *smashes head against wall*

I'm being facetious, of course, but at least with moneyprinting there isn't a sense of force involved - only fraud. But then there are "legal tender" laws which force you to use the government's chosen money, but 90% of people do this unthinkingly anyway because it has pretty pictures of your country's idols on it. Chuck, printing money adds no value to society. It's just a redistribution of wealth from the people who hold existing money, to the people who are first-in-line to get the new money.

So? Taxing people decreases how much they can spend on things that improve their quality of life. Inflation or taxation, pick your poison. They both have the same effect. The only reason taxation exists is to maintain this sense of "shared sacrifice" among the masses. It's all for show.

Don't worry, the Supreme Court will make sure we all have "free" health care. This ruling was clearly a mistake, because the Great One is a Constitutional scholar and could never misinterpret that holy document.

I don't even understand what the purpose of taxes is, if countries can just print money. Are they like a punishment for existing? It seems really medieval.

Exactly. It's like a hostage situation. "Don't piss him off or he'll make our lives even harder!" It's the dream of every fascist to have the citizens blame one another for his oppressive policies.

I see this so often. Police are the reason there is violence, poverty, and shortages of goods/services. They prohibit the market's ability to clear.

Good post, Tifosi. Although I do think the next year or two will be dangerous and impoverished, I believe we CAN rise out of this stronger and wealthier than ever. The answer is simple, and has always been right in front of us: end central banking, and allow gold and silver to become money once again. Also: Don't be fooled by China. They aren't as strong as they appear...

Ohh the government always as a cop-out for its' bosom buddies. It's a good day to be an insurer! EDIT: Good post, Bart! People should be asking themselves: why do we need austerity? Where is our tax money going? Interest payments and wars!

Myes, Pay your taxes, cattle! Stop embarrassing the queen! Wonder how much those cops are being paid for overtime. [ame=http://www.youtube.com/watch?v=q_hk-UuoFjU]‪True News: The Real Source of the British Riots‬‏ - YouTube[/ame] Some interesting statistics here.

DJIA down another 521 pts today. What's wrong? Corporate earnings are high! Companies are rich with cash! Low P/E's and high dividend yields (higher than Treasuries at least)! It's the great paradox - why are stocks so cheap when interest rates are so friggin low? Ironically Bank of America might be a good flip at this price level - does anyone honestly believe the Federal Govt would allow it to tank? With a name like that? Haha. Oil is probably undervalued here as well, just my two cents. Gold is undervalued until it hits $5000 an ounce, at least. http://realclearpolitics.com/video/2011/08/10/ron_paul_gold_is_not_a_bubble.html

Overwhelming force by sheer numbers of police won't stop these riots. Only time will, the rioters will get tired of it. Until they decide to do it again. They need jobs, and they can't get it in an economy where bankers in the City of London are making 500 million pounds a year pressing buttons on a keyboard trading stocks.

Gold just hit $1800 an ounce.

[ame=http://www.youtube.com/watch?v=tigA5OubpFQ]‪True News: The British Riots‬‏ - YouTube[/ame]

Absolutely. It's bread and circuses. As long as unemployment is high in the West, we'll continue to see these problems. A culture of responsibility and self-respect does not grow out of a nanny state. But for the life of me I don't understand how the Brits got suckered out of being able to own guns for self defense.

:dozey: Most British people think that if they're handed a gun, they'll obviously just start shooting random people. Who knows, maybe they're right.

It wouldn't happen in my area because thugs here are afraid of being shot. [ame=http://www.youtube.com/watch?v=7x7W-K0eMw0]‪'London needs army to crush thugs - call back Afghan troops'‬‏ - YouTube[/ame] Time for the government to really crack down! Show em who's boss! I wonder how much all this is costing taxpayers? They could probably have cut a check to each of the rioters on the condition they stayed home at night, and I'm sure many of them would have taken that deal.

Thank goodness business owners aren't allowed to have guns to defend themselves and their property! Quick! Call the police! They'll be here in 2 hours! :laugh:

[ame=http://www.youtube.com/watch?v=q6vi528gseA]‪Alan Greenspan: WE CAN ALWAYS PRINT MORE MONEY‬‏ - YouTube[/ame]

http://www.realclearpolitics.com/video/2011/08/08/rick_santelli_if_not_for_tea_party_us_would_be_rated_bbb.html

Hey Jen, welcome. If you've been lurking then you're aware I'm pretty acerbic sometimes. ;)

Eh, if it's under enough stress from government it can. You could have a situation where price-signals are so skewed that chains of production are no longer coordinated because it's impossible to tell if things are profitable or not. Then you get a social breakdown and collapse. [ame=http://www.youtube.com/watch?v=5eP6iujgeWI]‪Capitalism In One Lesson‬‏ - YouTube[/ame]

Ugh. There is no such thing as the "multiplier effect" in economics. It's an illusion. Saving is deferred consumption. Not printed money.

Chuck, you think there's a realm outside of capitalism where dreams come true. Problem is, capitalism isn't escapable because it's praxeological. It's about value. If you have a government, there's value in controlling it. Value is often measured with money - the most-marketable commodity in a society. Separating money from government is impossible, just like separating money and sex. When people want something, they can either trade for it or fight for it. If you get rid of money, all you've got left is guns.