Quote:
Originally Posted by Paul Markham
You all seem to think that money spent by the Government disappears. It fuels your everyday life and a load of the joins on the sites you earn from. Shit you didn't think of that did you?
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Of course you realize that the government can only raise the money one of three ways... Either it takes it from the people that actually create wealth by their labor, in creating new services and products.... Or it does it by devaluing the currency, lowering the spending power of the citizens, (i.e. printing more), or by borrowing it and then having to pay interest for bond issues, etc....
The government doesn't create wealth, so that while " money spent by the Government disappears" is not the case, it doesn't end up ADDING anything to the economy either! Government spending is zero-sum. In order for the government to put "money" into the economy it must first take it OUT of the economy, (taxation, devaluation, or debt). It never actually adds to the wealth of the society.
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