Member-only story
Hoard of Plenty
Cache of Deprivation
Let’s enjoy a little fairy story. It’s the same story that everybody in the U.S. is taught about our economy. You’ll recognize it instantly since it’s about a hundred years old and it goes something like this:
Dad goes to work and brings home a paycheck. That paycheck represents dollars which the family uses to buy necessities. They set some dollars aside since, at year end they’ll need to pay taxes. The taxes are paid so that the federal government will be able to provide services. Everything our government does requires money which it gets from our taxes.
Dollars are the outgrowth of profitable American business. Companies use dollars to buy goods which they use to create other goods which they sell to consumers who buy them using money they made working for a company. That is the private economy.
The government has expenses like buildings, research labs and government employees. The government pays these expenses from the tax dollars it receives from the tax payers. Without sufficient taxes, the government will go broke and so, the government has to spend only as much as it brings in. Unfortunately, the government is in deficit. It either needs to raise taxes (which would cripple the economy) or stop spending as much as it does (which puts the government’s house in order). That is the public economy.
