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11 sats \ 1 reply \ @kepford OP 28 Oct \ parent \ on: Which is Worse: Taxes or Fiat Money? econ
Notes and free banking are not fiat. I'm referring to central bank era. The FED era. Money by decree where supply is controlled as it is today. Where currency is tied to nothing. Untethered.
Of course you can make good arguments for tax being worse. Its why I posed the question. Looking at the Cantillon Effect coupled with the inflation of money supply admitted by the FED should open the eyes of people. It doesn't. Its hard to see the unseen.
How do governments spend so much money? Its not just taxes. Its the money printer as well. Removing this ability (bitcoin could do this) will force the state to do the harder thing. Increase taxes which leads to more conflict with the taxed. Which might be what we need to wake more people up.
In an ideal world you'd get rid of both. Today the state can print to fund their adventures. They don't have to raise tax as they did when governments of the world were on gold standards.
Inflation is a hidden tax
All government spending is funded via explicit taxation, borrowing and inflation. Of course borrowing is also paid for via taxation. The real tax is what government spends. Ultimately the taxpayer has to pay for it, all of it.
Since the Fed was created in 1913, price stability has decreased and bank closures have increased. They can't fulfill their mandate or raison d'etre
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