6/12/2009

The end of civilization as we know it

I caught the tale end of a conversation on television the other day as the commentator was quoting someone who roughly said that democracy eventually destroys all civilizations who embrace it because politicians figure out the only way to get elected is to continually lower taxes while increasing spending.

I tried many searches but could not come up with the exact quote or author. Let me know if you know who it is.

It's not the politicians fault, they just feed us the lines we want to hear. The problem is they have stopped lying about it. They used to make these ridiculous promises and then renege on them once they got into power. Now they seem to actually do what they promise.

Taxes are collected on a percentage basis of gross income for individuals and net income for businesses. In a booming economy those tax breaks add fuel to the fire and government revenue can actually go up for a while in spite of the smaller percentage of income collected.

But, what happens when our income shrinks? The government still takes the same or smaller percentage of our income (smaller cause they keep cutting taxes to get elected or "stimulate" the economy) and governments continually spend more to get elected or "stimulate" the economy.

So the question is how long can this continue? It leaves me to ponder what rational mind can see a good outcome in this.

Think.

If it continues it will be the end of us all.



When this movie was made the American national debt was 8.7 trillion, it's now 11.4 trillion. The projected 2009 annual deficit is almost 1.4 trillion

Good luck with that.

5 comments:

longandwrong said...

See... http://en.wikiquote.org/wiki/Alexander_Fraser_Tytler

"A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury. After that, the majority always votes for the candidate promising the most benefits with the result the democracy collapses because of the loose fiscal policy ensuing, always to be followed by a dictatorship, then a monarchy. "

Is there a prize? :-)

Solfest said...

There certainly should be a prize. Should be, but there isn't.

I missed the part about what happens after the democracy collapses. This is great news and I am very excited about my new dictatorship career.

When do I start?

It's not the end of civilization as we know it; it's the beginning of Solfestland.

I must practice my decreeing now.

J the FX Wizard said...

Why don't we just share everything. We could pool everything together and make sure everyone has the same luxuries as everyone else.

What do you say, Comrade Solfest?

People don't really love to be free anyways. If they did, they would stop asking the government to fix all of their problems. People get lazy and treat government as some kind of over-unity device where 1 tax dollar in equals 50 program and welfare dollars out. Seems to be working so far...

By the way, any wagers on how long the "Audit the Fed" bill is going to last?

Solfest said...

Ah J me thinks you don't quite get this dictator thingy. How shall I put it?

There are no comrades or sharing in Solfestland.

I am the supreme ruler of and over all. Of course I will treat my serfs nicely, unless they make me angry by calling me a "comrade".

I shall be known as his Royal Most Shiny Headed Supreme Excellency Solfest Dude.

In Solfestland people with too much hair will be toilet scrubbers. Start shaving my friend.

Oh ya and that “Audit the Fed” bill is just another example of how bad this political honesty thing has become.

thelonelytrader said...

California is ready for you now.