Abdul Mohamed makes some correct points concerning the luxury home tax that will slowly ensnare almost every home, much like the USA’s alternative minimum tax. He and others are simply wrong about the ability to tax the rich. A tax of any sort extracts money from the private economy and sends it through the colander of the state leaving much behind in its dirty hands.
The rest then used for all the purposes demanded of it. The primary costs are government employees and economic “rights,” labor law, health law, education law etc. Since no social democracy spends less than it takes in, and nor will that ever occur because there is no end to need, this must be paid for with debt which then debases currency so the debt can be rolled over and over and over ad infinitum while growing and consuming an ever growing value of the worlds currencies.
There is currently a world war being fought with currency devaluation as nations attempt to prop up employment and exports with devalued currency to lessen the burden of their debt by paying it off with lessor valued currency. The Tico currency bands have held the colon firm to the dollar, but that ignores the Obama administration’s purposeful currency debasement as M1 money supply has nearly doubled since 2010.
The point is, no group, rich or poor, can avoid paying for that. No one country will pay more or less. Even the conservative Swiss and Swedes are being punished. Everyone pays because of this social-caused debt and its rising, unfunded social liability. Everyone will continue to pay more and more and more.
How do we pay you ask? Through everything we use money for. Even with amazing advances in productivity, ask yourself why televisions and computers cost less and less while quality improves and improves, but health care and education cost more and more while quality declines.
The smallest economic unit is not the state, or a village, it is the family. Until all rights and responsibility, with it’s hard consequences and great rewards, are returned to the family, the currency war will continue.
The last time an American president engaged in this foolishness 1939 was the result. F.A. Hayek wrote at that time in his book “The Fatal Conceit, ” “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.”
The only unfair economic practices we need concern ourselves with are those of governments. The rich do not create poverty. The rich do not have your money. Governments do. Now I am sure I will see a flood of refutation. However, not by people with their eyes open to reality.
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