Posted Jun 24, 2015 by Martin Armstrong
I like your idea of capping government spending at 5% of GDP. I also agree that simply increasing the money supply would work just fine instead of destructive taxation. However, your plan still assumes that we’ll have benevolent politicians in charge who actually give a damn about the nation.
The Founding Fathers put restrictions in place to shackle government, but that didn’t seem to work for very long either. How long would it be before the 5% cap is moved to 7%, 10%, then 12%? Or they could simply change the calculation of GDP to boost their ability to spend.
The income tax was originally touted as only a tax on the “rich” or the top 1%. Now here we are with the average American having at least a third of their income confiscated and consumed by unproductive bureaucrats. Nothing ever changes.
REPLY: We are talking about a palatable solution, not a revolution. Ideally, you are correct. We should eliminate career politicians. But we must comprehend, they would never eliminate their own jobs. The best we can hope for is that the older ones will vote to end career politicians, imposing term limits on their way out the door. So how do we save our future without revolution and bloodshed?
The solution presented is one that assumes there are no benevolent politicians, but ones who would vote for something that makes the basic changes we need without driving a stake through their own hearts. So this is by no means the PERFECT solution, only a palatable one.