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North Texas Objectivist Society (NTOS) Message Board › Why Do We Have Taxation? Not For the Same Reason Most People Think

Why Do We Have Taxation? Not For the Same Reason Most People Think

A former member
Post #: 79
Why do we have taxes? So that the government can pay for programs, right? But couldn't they just inflate the money supply, get rid of taxes entirely and accomplish the same thing?

Not quite....

A former member
Post #: 230
Here is what Alan Greenspan had to say in an essay called "Gold and Economic Freedom" published in "The Objectivist" newsletter in July 1966 before he was a Fed chairman:

"The opposition to the gold standard in any form--from a growing number of welfare-state advocates--was prompted by a much subtler insight: the realization that the gold standard is incompatible with chronic deficit spending (the hallmark of the welfare state). Stripped of its academic jargon, the welfare state is nothing more than a mechanism by which governments confiscate the wealth of the productive members of a society to support a wide variety of welfare schemes. A substantial part of the confiscation is effected by taxation. But the welfare statists were quick to recognize that if they wished to retain political power, the amount of taxation had to be limited and they had to resort to programs of massive deficit spending, i.e., they had to borrow money, by issuing government bonds, to finance welfare expenditures on a large scale....

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided for example to convert all their bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."

The essay in its entirety is at the link below.­
A former member
Post #: 96's been a while since I read A.G.'s old stuff. I forget how much I liked it. What the heck happened to him?
Karen G.
Sulphur, OK
Post #: 85
Power, prestige and wealth. Against them convictions were a nuisance.
A former member
Post #: 82
Power, prestige and wealth. Against them convictions were a nuisance.

Ooh. I am totally Tweeting that!
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