Do They Understand Where the Money Comes From?

Set Our Children Free ^ | 5/14/2012 | Tony Caruso

[Guido2012]

Does Governor Moonbeam and his clueless California Democrat legislature understand where the money comes from? Or is it just that they can’t get past their core Socialist philosophy to find their way out of this mess?

[Guido2012]

Does Governor Moonbeam and his clueless California Democrat legislature understand where the money comes from? Or is it just that they can’t get past their core Socialist philosophy to find their way out of this mess? I mean, they’ve taxed Californians to death for decades, and they’ve still got an enormous budget shortfall. So what’s the answer? Raise taxes, of course! I’m reminded of when Obama remarked that even though he knew that government revenues historically fell when taxes were raised on upper incomes, that taxes should be raised anyway as a matter of fairness. I’m beginning to wonder whether there’s a single Democrat left in this country that really understands where the money comes from. So in case any of them are reading this, here is a condensed version of Economics 101.

Revelation #1 – The government has no money of its own. All of the money it spends is money that it has taken by force from someone who has worked to produce something of value (goods or services) that someone else was willing to purchase. With today’s tax rates, the more someone produces, the more the government takes from them. When the government decides it wants to take even more by raising taxes, the inevitable and predictable result will be that the individuals and companies that are being taxed will find ways to avoid having their hard earned money confiscated and given to someone else. They do this by either leaving the state, or finding legal and illegal loopholes that allow them to keep more of their cash, i.e. they’re going to adjust the playing field to their own idea of fairness. That’s why raising taxes always results in the government getting less revenue. When taxes are lowered, the exact opposite happens, and revenues increase. And at some point, if they can’t avoid the taxes, the producers in our society will stop producing because there’s no point in doing so if you can sit at home and make just as much.

Revelation #2– Even though the government prints paper money, that paper simply represents a promise by the Federal Reserve to honor it as a means of legal tender. It has no intrinsic value of its own such as it would have if you could exchange it for a piece of gold or some real estate that the government owns. It is backed up by nothing but trust, period. And it is only worth something as legal tender if your grocer or car mechanic will accept it in exchange for some goods or services. And if the government continues to print money to cover the debt we owe, the dollar’s value will decrease to the point that no one will accept it because it’s so inflated. At that point, we will resort to exchanging things of value again like we did in the days of bartering. Please note: the only way that a state or nation can generate wealth is by judicious use of raw materials in the manufacture of products that bring money into that state or nation. Our socialist leaders have done everything they can to over-regulate and kill this golden goose during the past generation to the point where we’ve lost most of our manufacturing capability. This is why we desperately need new leadership that recognizes that this needs to be reversed, or we are all in big trouble.

Even though the above revelations are indisputable, the socialists that run California and the U.S. simply can’t resist playing Robin Hood. These communist captains of the sea would rather that everyone go down with the ship together (fairness), than allow the first class passengers (evil rich and middle class) to fuel and maintain the ship so we can all enjoy the journey.

[samtheman]

That are easy.

Ya get it from dem dar rich folks.

They gottems all the money!

(And they pretend that Sarah Palin is stupid.)

[volunbeer]

They are blind to economic reality. It all looks good on paper and it feels good emotionally. I have known more than a few socialists who told me socialism had never been implemented properly and that is why it had problems. They used to point to some European countries, but that does not work anymore.

Socialism is their religion. State uber alles.

[GraceG]

I say give Kalifornia it’s own currency and printing presses and let Governor Moonbeam trash it because I have already written off Kalifornia.

[bandleader]

They(The DemonRats)think money comes from raising taxes.They don’t understand that raising taxes discourages business activity and(ultimately)leads to lower revenues.They have NEVER understood this and(probably)NEVER will!!!!!!!!!!!!!!!

[bandleader]

California has a HUGE deficit problem now for two-reasons:We are in a deep recession(which has worsened under Obama’s policies).This means revenues to The State of California are reduced because there is much less business activity and VERY high unemploymentThe second reason they have such a high deficit is that they won’t consider cutting spending.They still want to spend as if their revenues are growing.If governor MoonBeam raises taxes,the result will be even less revenue to the state!I’m just an underemployed musician;WHAT DO I KNOW???????????????

[SERKIT]

This is easy: In the pea-brain of a LibDem, all money is THEIRS. In their interpretation of any constitution you place in front of them (US or State) it is a RIGHT for the politicians (Dems and RINOs) to have access to all of your money whenever they want it.

[going hot]

Bowler and Green were asked the purpose of state govt.

Bowler replied that it was to repair roads, insure safe streets, promote business etc. Green replied that it was to gather money from where it was and disburse it where (they thought) it would do the most good.

Moonbeam allowed collective bargaining of state emplyees last time around.

It is biting his rear this time.

The collective bargaining is/was across a table with dem reps on one side, bargaining for votes from the unions, and giving away the state treasury as the trade.

[Cheburashka]

Do They Understand Where the Money Comes From?

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You have the government take it away from people you don't like.

[ex91B10]

"The second reason they have such a high deficit is that they won’t consider cutting spending."

Or the court system that keeps ordering govt agencies to 'pay up' on promises already made via legislation.