Why do people think countries need centrally planned money?

Answer the question. To pay for a war would you take the money from the private sector, even if it leaves them impoverished, in order to pay for the war?

 

war gets paid for the same way if you tax the resources of the private sector, or if you appropriate their resources by printing money...

 

for some reason you're having trouble grasping the concept that printing money drains the private sector of money. your understanding of economics is that of a 5 year old who wishes money could grow on trees

 

if you could print wealth then everybody in zimbabwe would be rich!

 

I see akphidelt has ignored you once again, becuase you embarassed him beyond belief

 

akphidelt seems to think the laws of economics don't apply to the USA!

 

exactly. except inflation acts as a flat tax, which harms the poor the most. by taxing the resources of the private sector, you are at least more fairly distrubiting the burden.

so i have two questions for akphidelt:
1. why do you support forcing the poor to have more of a burden of paying for the wars?
2. if the result is the same, then why print the money instead of directly taxing?

 

no, he seems to think that the USA has its own special laws of economics that are immune to basic mathematics and logic, whereas the rest of the world are just different economies that "are silly" to compare to the US.

 

The private sector is being drained, regardless for even wars on abstractions such as drugs or terror. How much of our commercial productive capacity is being reallocated, as a form of wealth transfer if not direct income transfer to our "wartime" efforts? Consider that higher petroleum prices due to conflict in the Middle East can be considered an indirect form of taxation and income transfer. That money is going somewhere, but not to lower our tax burden.

 

What about the millions of jobs it creates to build factories, planes, weapons, ammo, clothing, technology, software, etc?

So not only does the private sector still have money to buy their own food, phones, toys, cars, houses, etc... now you have entire new industry for people to be employed in?

So you want the private sector to suffer so they can pay for the war? Why do you guys hate humans?

 

woot. apparently helicopter ben thinks so..

 

see bastiat's broken window, sir. the broken window fallacy is another one of these things that I am truely baffled people believe.

 

Lol, this has nothing to do with the broken window fallacy. You are PRODUCING goods. There is more production, more labor, more goods for your money to buy, which there is more of. How do you not understand this?

 

Where did you get your understanding of economics?

 

In college. Same place all the other economists who run our country got theirs. You know, normal economics... not this crazy economics about magical gold.

 

We produced over a quarter of the world's output last year. Our economy is amazing!!

You can thank all the economists who figured out that your theories were inefficient and illogical.

 

If you decided to go in debt for life getting a degree and learning misinformation, that's your problem. I prefer choosing the knowledge I absorb.

Nice chart... not very pretty though. And it means NOTHING! The spending by the state is part of the GDP! The more the state spends the higher the GDP goes, that doesn't mean the US economy is healthy. The key indicators for a healthy economy (by rational people that actually understand how the economy works) are CPI, housing cost and availability and employment. The US is failing in all three.

 

My point was about wasting our exorbitantly expensive super power on boondoggles and generational forms of theft.

 

The generational forms of theft is a lie. We've never had to pay for WWI (my grandpa's generation) or WWII (my father's generation)... and my kid's won't ever have to pay for my generation.

Spending money on the military has been one of the most productive things in American history. The technology, jobs, and innovation that comes from the military is amazing.

 

Why dont we dig holes and fill them in...

 

So you are equating the military to digging holes and filling them?

 

Not everyone shares your opinion. Some may claim that even income transfers and public policy decisions to attempt to ameliorate official poverty have been considered generational forms of theft and poverty.

I only agree with you to extent we may have spent even less on those technologies by implementing even worse public policy choices.

In my opinion, there was no real need for a Cold War or our subsequent wars on abstractions, if the former Soviets had engaged us in an industrial automation race instead of a cold war and our elected representatives had real solutions instead of ony propagand and rhetoric.

 

War takes resources away from productive uses. You conveniently ignored my post that printing money to fund war is just another form of taxing the private sector.

 

It's just basic mathematics. When you spend money on people who need things, that requires people to produce things. It is as simple as that. Just like my example in the other thread on people finding gold. If there are people willing to produce, people willing to consume, and people willing to work... then all you need to do is provide them with a medium of exchange.

No one is stealing money from anyone. Production is production, if you can spend money and it leads to someone producing a good, then you are being more productive. I don't get you crazy people's view of money. It's like the stability of money to you guys is more important than the stability of the economy.