Quote:
Originally Posted by crockett
Don't be dumb..even if money is used to buy drugs it still gets used before and after and is taxed each time aside from private transactions. The simple fact is the poor and middle class circulate those dollars endlessly until it winds up into the hands of the 1%.
At that point it's less likely to be recirculated or taxed for some time causing the money to go out of circulation causing the tax earned on that money to drastically decrease. This is why a strong middle class is the most important foundation for a solid economy.
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You make an interesting argument and it is true for a country like the USA was...however, it ultimately failed because it is an artificial system. It is clear from history and from countries even today that there has always been a disbalance of wealth.
There is always a ruling class and then a class of commoners. Only 2 classes with the small group having 99% and then the rest sharing the 1% left over.
The USA is quickly equalizing to this norm. Given 50 more years (or perhaps less) this country will be functioning exactly as any relatively developed 3rd world country such as Chile for example.
The middle class is essentially nonexistent in those countries and so it will be in the USA as well.
The USA might just have been like the Roman empire and the English empire the last empire humans will know...perhaps