Posted on 07/18/2011 7:44:15 PM PDT by kathsua
The most important principle taught in the graduate business economics course I took at the University of Kansas is: "There is no free lunch."
Many wealthy Republicans either don't understand that "you can't get something for nothing" or don't understand how the value of their assets depends upon the federal government providing them with a safe and financially stable environment in which to make their fortunes.
The term "free lunch" comes from the practice of some nineteenth century bars placing a "free lunch" on the bar for those who purchased drinks that might have a higher price than at other bars or be watered down. The meats were usually heavily salted to protect against spoilage which could induce patrons to purchase more overpriced drinks.
The founding fathers recognized that a federal government was necessary to their economic well being. Modern Republicans don't understand the need for a financially healthy federal government.
Americans don't get rich solely through their own efforts, but by taking advantage of opportunities and protections within the economic system managed by government.
For example, the federal government helps finance new technology such as computers. Government protects companies that invest in new inventions by preventing competitors from copying the technology without payment.
Government provides businesses with educated employees and protects against foreign and domestic sources of violence.
One of the most important purely economic actions of the federal government is maintaining the integrity of the money supply. Effective commerce requires that everyone have confidence in whatever is used as "money" particularly when the "money" is stored in computers and transferred from computer to computer.
The federal deficit poses a major threat to the integrity of America's money. Wealthy anti-tax Republicans don't understand that a federal default would reduce their wealth more than a slight tax increase would. What is important is not the amount of dollars and other assets that one owns but the value of those dollars and other assets.
Allowing a default would be the equivalent of flushing money down the toilet or burning it in the fireplace.
Wealth lost through default would be gone forever. Money invested as taxes would eventually come back to those paying increased taxes.
For higher income individuals taxes are a form of investment. Individual businesses invest in government to finance those amenities such as roads and airports that all businesses share as well as financing other activities such as national defense. Businesses get a return on the investment by taking advantage of the economic environment provided by government.
Biologists talk about the food chain and how very small plants and animals become the food for small animals which are then food for increasingly larger animals. If something happens to the small life forms the larger animals will eventually have trouble finding food.
The economy has what might be called a money chain. Those at the bottom of the chain pay their money to individuals and businesses in exchange for goods and services. These individuals and businesses then purchase from those higher up on the money chain.
Some wealthy anti-tax Republicans don't understand that cutting Social Security payments to reduce the deficit would reduce their income. Most Social Security recipients spend everything they get. If their benefits are reduced they will buy less. Some companies they purchase goods and services from may have to lay people off to cut costs. The result would be less money moving up the money chain to those on top.
The collapse of Wall Street a few years ago occurred because the rich had too much money. They had trouble finding enough real assets to invest in so they bid stock prices up too high and then began investing in garbage like mortgage derivatives.
Problem #1: Rich people had money.
Problem #2: Wall St crashed and rich people lost money.
Solution: Eat the rich -- they're just troublemakers.
TANSTAAFL.
There ain’t no such thing as a free lunch.
—Robert A. Heinlein
spending has to be under control first. otherwise the additional money generated by taxes won’t go to the deficit.. it will just go to increased spending and wasted.
For the past decade the GOP wouldn’t understand *free-market capitalism* if it were tattooed on their foreheads.
The good news is that it appears to be changing - save RINOs like McConnell who is trying to get the Kenyan re-elected so he can be a ‘good ole’ boy’ as they say.
Workers and producers aren’t giving enough money to the government.
Fascinating what people confuse themselves with so they can accept being mastered.
Hogwash! We are in this problem because 0bama tripled the national debt in the matter of two years. We have a spending problem.
I also object to method you prefer - increasing 'income'. Come right out and say it - taking money from people who have worked hard to earn it and giving it to slouches who suck it down like a black hole and never produce a thing in their lives.
Everywhere is freaks and hairies
Dykes and fairies, tell me where is sanity
Tax the rich, feed the poor
Till there are no rich no more
Id love to change the world
But I dont know what to do
So Ill leave it up to you
Population keeps on breeding
Nation bleeding, still more feeding economy
Life is funny, skies are sunny
Bees make honey, who needs money, monopoly
Id love to change the world
But I dont know what to do
So Ill leave it up to you
World pollution, theres no solution
Institution, electrocution
Just black and white, rich or poor
Them and us, stop the war
Id love to change the world
But I dont know what to do
So Ill leave it up to you (mo
The moron who wrote this tripe shouldn’t be trusted with a five dollar bill let alone a word processor.
“I have a quadraphonic recording of this song, “I’d Love to Change the World” by Ten Years After. It is as crystal clear of a recording as it was 39 years ago.”
Way cool, I am listening to it now,Via You Tube, great old song!
I like that song, but I bet the leftist stooge who wrote it regrets those lyrics today. After all, it made him “rich”.
“I like that song, but I bet the leftist stooge who wrote it regrets those lyrics today. After all, it made him “rich”.”
LMAO, it fits our side better now days!
What moron wrote that tripe?
STOP SPENDING MONEY!
Are these people stupid or what?
Bullshiite to your comments and this article
I’ve heard this song and dance before. It boils down to this. The government makes everything possible, therefore you owe everything to the government.
Praise the State from Whom all blessings flow
Praise the State all creatures here below
Praise the State above ye heavenly host
Praise judiciary, legislative and executive the most
All men.
Look where it came from!~~!The University of Kansas, the most left wing, liberal, cesspool of higher education that exists today. It is a shame that Quantrill and Anderson did not complete their mission.
The absolute ignorance on how things work displayed in that article is staggering.
To increase revenue, economic growth is the only avenue available to this government. You need to create producers and achievers. To encourage entrepreneurs and value creation, the government cannot continue promoting collectivist policies. “You will run out of other people’s money”
Actually we should just kill all the poor. Problem solved.
(I was thinking of Swift’s “A Modest Proposal” when I wrote this BTW)
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