Pittsburgh, Pennsylvania – July 26 –
I heard a young man from Kentucky on the radio today. He said that he loved taxes, and all the wonderful things they provided in his life. He mentioned highways and roads, police, fire fighters, libraries, and a lot of other things. The host of the program argued that the government was taking his money and spending it. He argued that the man earned a dollar, and the government took 30 cents in taxes. He argued that the dollar was the young man’s and not the government’s. He argued that if only twenty cents would be taken by the government, he would have more of his own money to spend on himself. The young man aggressively disagreed.
I thought about the event, and decided that the young man paid 60 cents in taxes, the government borrowed 40 cents, and one dollar of government benefits resulted. This assumes that the government did not waste both the taxes and the borrowed money. We all know that government gets their fingers in the till.
Perhaps the propensity of young people to support government spending comes from the situation I described. They get a false sense of satisfaction by benefitting from government borrowing. The borrowing has hit a snag, and young people have the false notion that borrowing by government will go on forever. We are finding out that it can’t and won’t go on forever.