Why Pay Taxes If the State Prints Money?

It’s not that simple.

Aure's Notes
Notes

--

Damn, ChatGPT is getting good isn’t it. Made by ChatGPT.

We look at money as a means to buy things.

But when it comes to taxes, it’s best understood as what it enables you not to buy.

Think about it.

What would happen if everyone on earth had $1 billion in their bank account tomorrow?

Would we all be able to afford a yacht?

No. There are not enough resources and manpower for everyone to get a yacht.

So the prices of everything would increase in order to make sure that we don’t run out of things.

Money doesn’t enable you to get things; it prevents you from getting too much.

Money is a means of resource distribution (among other things).

Those who produce a lot get lots of money because they produced a lot, hence are allowed to consume a lot; those who don’t produce much don’t get lots of money, hence cannot consume much.

Capitalism keeps the equilibrium between consumption and production balanced. Communism tilted the balance in favor of those who consumed at the expense of those who produced, which is why they were poor and the system collapsed.

--

--

Aure's Notes
Notes
Editor for

2X Msc in pol. science and business econ. Summarized +100 books. 25k people read auresnotes.com. From Belgium. No niche.