Soak the poor

The astonishing part about modern macroeconomics is how those whose wealth is most comprehensively plundered through public spending and crony capitalism are the ones who are told that everything is being done on their behalf. Governments spend trillions hiring their friends and colleagues through moneys syphoned off from a proportion of the taxpaying public, but the reality is that everyone who is not on the receiving end is on the paying end, whether one pays taxes or not.

An economy during any relatively short period of time – say over the course of a decade – has only so many goods and services along with only so much physical capital. Those who receive payments from the government, whether public servants or government contractors, get to spend well beyond any productive contributions they make to the economy. Everyone else ends up with less.

It’s how Keynesian economics works. A massive Ponzi scheme, where the poor and middle class are made to subsidise the relatively well off as well as the rich.

You think you are getting free this and free that. But the ones who are creaming off the system are the ones the government is paying on your behalf. Even if you don’t pay a cent in tax, you are paying an enormous cost in allowing others to get rich while you struggle to get by.

And if you think it’s bad now, wait till Modern Monetary Theory becomes the go-to means to finance governments. We are just one election away from a full roll out in Australia.

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6 Responses to Soak the poor

  1. Entropy

    Yes in the same way QE mostly benefits the asset holding class.

  2. Behind Enemy Lines

    Soak the poor
    Posted on 12:18 pm, May 15, 2019 by Steve Kates
    The astonishing part about modern macroeconomics is how those whose wealth is most comprehensively plundered through public spending and crony capitalism are the ones who are told that everything is being done on their behalf.

    The poor and the middle class keep being soaked because they keep voting to be soaked. If the greedy cretins stopped voting for gangs of thieves in hope of getting their undeserving hands on other people’s property, most of our national problems would end overnight.

  3. stackja

    A massive Ponzi scheme, where the poor and middle class are made to subsidise the relatively well off as well as the rich.

    Death duties are been proposed. The ‘poor’ and ‘middle class’ will pay.

  4. Peter Greagg

    stackja
    #3012886, posted on May 15, 2019 at 1:39 pm
    A massive Ponzi scheme, where the poor and middle class are made to subsidise the relatively well off as well as the rich.

    Death duties are been proposed. The ‘poor’ and ‘middle class’ will pay.

    Death duties definitely have NOT been postponed.
    When you die, a 15% tax is levied on your remaining super balance.
    In addition, when you die, Capital Gains Tax is an issue.

    Unless the asset you inherit is fully exempt, you’ll need to know the cost base of the asset to work out your capital gain when you sell it. The cost base may be based on the value of the asset when the deceased acquired it or the value when they died, depending on the circumstances.

    (https://www.ato.gov.au/General/Capital-gains-tax/Deceased-estates-and-inheritances/).
    I appear to have failed to link this properly.

    This shows that a form of Death Duties already exist.

    Just wait for the ALP/Greens tyranny to start.

  5. SubsidizMe

    I would like to offer sincerest thanks to the battlers who have subsidised the 15-20kW rooftop PV systems and government sponsored Tesla batteries my colleagues and I have installed. There seems to be no end to the “green energy” initiatives offered by likes of AGL and the state and federal governments for these installs. Several are installing their second Tesla as we speak, all subsidised of course. Having the privilege of being in the upper echelons of earners, i.e. having enough disposable income to turn green, we are no not only energy independent, but picking up a decent return on investment in the sunnier months. So yes, the poor and middle class are truly being screwed, and we are laughing all the way to the bank. I now understand the concept of “sheeple”.

  6. Iampeter

    It’s how Keynesian economics works. A massive Ponzi scheme, where the poor and middle class are made to subsidise the relatively well off as well as the rich.

    Yea! Wait…well…unless Trump is doing it, then it’s a heroic battle for Western Civilization, right?

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