When will we get rid of our hidden, regressive tax?
May 31, 2010 1:15pm CST
All nations have a hidden, regressive tax system in place today. It's called a fiat paper money system. Central banks and governments can create new paper currency out of thin air whenever they wish, and then give it to whomever they wish. And the recipients are always the rich, politically connected class. Inflation almost goes unnoticed but it makes good revenue for the government. The people don't realize they are being taxed by it, as a result the government is not properly restrained by taxpayers. Inflation is regressive, harming the poor and middle classes the most. Their wages don't rise fast enough to keep up with the costs of living. Also, it's the richer, politically connected class that gets to spend the newly printed money before it looses some of it's value. The best thing that nations could do worldwide for the poor and middle class is ending this system. Demand that your currency be baked by something of value (such as gold), and/or demand that legal tender laws be repealed so you can trade with gold or silver coins without breaking the law. It's time the people learn about their money. Only when they understand the horrific consequences of fiat paper money will they demand its replacement.
2 people like this
• United States
1 Jun 10
It's not a good system by anyone's definition. The problem is that capitalism is a tough system to make work and there has never been a society that has made it work fairly. Governments have to have a way to keep the system from collapsing in bad years. This all started when farming was the back bone of our economy and trying to balance bad crop years. As the economy became more complicated we stayed with the old system and I don't think anyone knows how to make your idea work. There is not enough precious metal in the world that would represent our economy or the rest of the worlds worth. Our population explosion alone has stripped this concept from the realm of the possible. The cost of gold would triple and we would all be living in the streets.