[varmintman]

GOVERNMENT austerity is NEVER bad for business. The source of Government spending is ALWAYS from taxes (think 'spread the wealth') and therefore takes the choice of how it is spent within the economy away from the 'earner' and gives it to the Government. How's that working out?

I say again, this issue is not simple and you clearly do not understand it. The United States went until 1913 without any sort of a permanent income tax; are you claiming that the federal government never spent any money between 1789 and 1913???

Best resource on the net for this sort of thing is Ellen Brown's site:

http://www.webofdebt.com

[Servant of the Cross]

Yes, the Government also borrows (trillions & trillions) to spend, way beyond what they collect. That’s why VDH says that what the socialists call “growth” is really “borrowing and spending”. And the income tax is not the only source of revenue: What are the Federal government’s sources of revenue

However, the only way any of that government debt will ever be paid off (without incurring new debt) is through the taxation of its citizens, which is a redistribution of wealth. And I absolutely believe that the citizen earners would spend it better, generating far more economic growth than federal bureaucrats ever could.

An article that I really like (partially due to the title) is: End the Fed? Ron Paul Is Wrong for All the Right Reasons.