The first Democrat debate between Bernie Sanders and Hillary Clinton seemed like a debate between Karl Marx and Fidel Castro. Sanders truly believes that Marxist socialism will work, and Hillary just uses the Marxist rhetoric to win a position of power. The real winner in the debate was Milton Friedman who, in the video below, knocks Bernie and Hillary’s free lunch rhetoric out of the park.
SERFDOM OR FREEDOM
Bernie and Hillary tried to out do each other on what they will give away if elected. But, since Government doesn’t produce anything. It can’t give anything away unless politicians and bureaucrats try one or all of the steps listed below.
1) They can force the person who produces the good or service to provide it for free.
2) They can confiscate money from citizens (taxes) to pay the people who produce the good or service.
3) If they can’t steal enough, they have to borrow money to pay the people who produce the good or service.
4) If they can’t do #2 or #3, they have to get the Federal reserve to print money to pay the people who produce the good or service.
Our Government has spent a little over a half a trillion (500 billion) dollars more than it has taken in taxes each of the last 3 years. These three years follow a three-year period in which it spent over a trillion more than it took in taxes in each year. So as you can see we have exhausted step 2 and are at full speed on steps 3 and 4.
Since no one will work for nothing when they have other options, step one is difficult to implement. Step two has its limits as revenue will start to decrease if taxes are too high. Step 3 syphons money from capital markets and moves it into consumption activities (which is what government spending is). If Government borrows too much, interest rates will go up, the cost of the debt will increase, and Government will have a hard time selling its debt. At this point step 4 will be implemented. The Federal Reserve will step in and buy U.S. T-Bills with electronically printed counterfeit money. Step four is how the Government can fund itself if 2 and 3 are maxed out.
These steps are not a part of a free society, they happen in a country that is heading toward a centrally planned Marxist society. If the government doesn’t own the means of production out right, it uses its force to control the privately owned means of production. This is where we are, and I think you can see the direction we are headed unless ‘we the people’ turn this around.
Related Article – Milton Friedman, Moving Toward Serfdom, at austrianaddict.com
Related Article – Milton Friedman: Market Failure vs. Government Failure. Which Has A Higher Cost? at austrianaddict.com.
Related Article – The Essential HAYEK. at austrianaddict.com.
AUSTRIAN ECONOMICS ADDICT 