THERE IS ONLY ONE. 100% TAX. BIG GOVERNMENT!
(with apologies to McDonald’s Big Mac packaging)
At times when money is tight and our resources are stretched to the limit, it pays to spend our money wisely. That is why it makes so much more sense to reduce the costs imposed on private industry instead of increasing spending by government. Industry takes their earnings and reinvests them to create sustainable wealth creation: they hire and train workers, conduct research, build and perfect machinery and robotics, and develop brand equity and a reputation for quality. All of these endeavors represent lasting value creation. What is spent on these things this year will continue to create revenues, wages, and profits for years to come.
Government spending is pure consumption. Think of a hamburger store. While it may taste good at the time, it is temporary and fleeting, and will likely do more harm than good in the end. It keeps the beast alive for one period, and then the process has to start all over again next period.
When we approve a massive spending bill, it covers government purchases of goods and services for the next year, maybe less. In one end; out the other, with nothing left to show for it, except a hungry program that needs to be fed again next year, and the next and the next.
Government programs in and of themselves never produce lasting value; only in conjunction with private industry is any wealth or value created. And even then the government purchases have pushed aside, prevented, crowded out, or priced out purchases that would have been made by the private economy.
So, please, keep this in mind whenever you think of any type of government spending or tax increase: it is here today, gone tomorrow. Oh, and skip the fries!