This Sort of Explains a Lot
By the way, where does the government get the money to fund all these immensely useful programs? According to a Fox News poll earlier this year, 65 per cent of Americans understand that the government gets its money from taxpayers, but 24 per cent think the government has "plenty of its own money without using taxpayer dollars." You can hardly blame them for getting that impression in an age in which there is almost nothing the state won't pay for.
Jens Fiederer:
The feds actually DO have plenty of their own money, if you count wealth held in the form of LAND.
May 28, 2010, 8:50 amDr. T:
I most certainly can "blame" Americans who are so ignorant that they don't know the funding sources of our federal government. There are only two types of funding: 1. Taxes, fees, and tariffs; 2. Sale or lease of federal assets (land, mining rights, and grazing rights). Type 2 funding currently provides less than 1% of federal revenues.
In response to Jens Fiederer: Land is an asset, but it is not money or legal tender. The federal government cannot pay a Medicare bill by deeding the hospital twenty acres of national forest in Wyoming.
May 28, 2010, 3:52 pmastonerii:
This actually seems to mirror the government's own view on where it gets its money from. 75% of the money comes from tax payers and 25% is just made up from nothing and tacked onto our deficit.
May 28, 2010, 5:29 pmColoComment:
"the government has “plenty of its own money," and lo and behold, miracle of miracles, it luckily just keeps finding more and more in that institution known as the U.S. Mint....
May 28, 2010, 7:39 pmCilla Mitchell, Galveston Texas:
The other 24 per cent need to be euthanized because they are using the earth's natural resources.
May 29, 2010, 1:47 amRob:
But, the land they hold was TAKEN from somebody else. The government is a structure, not a being.
Locally Measure J is on the ballot to add City dollars to the construction of a new Stadium for the SF 49er's.
The assertion is that no general fund monies (and therefore no taxes) will be contributed, only re-development monies. They are actually floating the lie that those bond generated funds are magically "not tax-payer money". How are the bonds being retired dolts?!?
It will probably pass, because people don't think.
I am not opposed to the stadium, but I am opposed to public funding of anything which is not, well.. public. Roads? Okay. Schools? If you must (I think the public school model is severely flawed). BUT contribute to a private business - NO.
May 29, 2010, 7:38 amWilliam J McKibbin:
Ironically, the most expeditious (politically feasible) way for our nation to reduce its borrowing and rout entitlements is through inflation (as opposed to austerity or default). More at:
http://wjmc.blogspot.com/2010/05/using-inflation-to-reduce-public-debt.html
To set the "inflation monster" loose and to activate the healing process, we should encourage the government to accelerate its spending programs and to "print" as much money as it wishes...
May 30, 2010, 5:24 amJudge Fredd:
Yep, those 24 percent were also the ones that were interviewed getting "Obama Money" last year. When asked where said money came from? "His stash."
I also wonder if they want their taxes raised to pay for teacher salaries?
May 30, 2010, 7:00 amMark:
There is some truth to the Government makes its own money. All paper bills for instance were created by the government, and spent by the government to get into general circulation.
Interestingly if we were willing to live with inflation, we could stop all federal taxes in a trade off for 30% inflation per year. Basically then the government would just print all the money it needs.
May 30, 2010, 8:58 amSpeedmaster:
Dear Lord, that is scary.
May 30, 2010, 5:13 pmRon H.:
Mark said: - "Interestingly if we were willing to live with inflation, we could stop all federal taxes in a trade off for 30% inflation per year. Basically then the government would just print all the money it needs."
I assume you are just kidding, but if not, then this has to be one of the stupidest ideas I've ever heard.
Inflation is a cruel hidden tax that hurts the poor, and those on fixed incomes most, but everyone is affected. Think of everything you buy doubling in price every 2.4 years.
Here's how THIS financial genius provides for government spending in his country because he has damaged the economy so badly, it no longer provide enough tax revenue.
http://www.usatoday.com/money/world/2010-05-08-venezuela-inflation_N.htm
Here's an extreme example of hyperinflation where the price of everything doubles EVERY DAY.
http://www.cato.org/zimbabwe
May 31, 2010, 2:55 pmJeff:
Mark,
So we'll fix the problem of too much debt by destroying the savings of thrifty people who showed restraint.
That'll teach 'em.
Jeff
June 1, 2010, 8:53 amRick C:
"They are actually floating the lie that those bond generated funds are magically “not tax-payer moneyâ€."
Hey, Dallas mayor Tom Leppart says the same exact thing about his desire to float half a billion-with-a-B dollars worth of bonds to build a city-owned hotel next to the convention center.
June 1, 2010, 6:27 pm