Samuraikoku wrote:
And yet my source says it funded ENIAC. And the Internet.AuSable River wrote:all of its wealth originates from taxpayers.
http://en.wikipedia.org/wiki/Government_bondsAuSable River wrote:hence, using your illogic government doesnt need to tax or regulate since it can fund 'itself'
What does that have to do with anything I said?AuSable River wrote:and for the 2nd time please answer my challenges in a previous post.
I would if they were actually relevant to what I'm posting.
dude you have to be able to think beyond immediate consequences.
1) when you say govt funds projects, you dont seem to understand that this funding originates from tax payers .
2) government bonds leverage the government's monopoly on fiat currency. for example, government has a monopoly on money making on the printing and issuing of currency. without it, nobody would pay a thin dime for government debt. Moreover, government has a monopoly on taxation - -hence investors realize that government can fund these debts without having to compete in a free, voluntary, and competive market.
hence, if government didnt have the power to tax ---- nobody would be stupid enough to buy these bonds.
3) in sum, without a coercive monopoly to protect itself from competition thereby making government the only player in an industry or taxation -- government cant compete.