Monday, October 4, 2010

IT'S HUMAN NATURE FOLKS

IT'S HUMAN NATURE FOLKS or WHAT THE COLLECTIVISTS DON'T UNDERSTAND



Via the wonders the internet I have been in touch with people all over the world, and more importantly the United States lately who have been espousing either extremely high taxes, and/or some sort of socialist/communist/collectivist government. Preferably run on a global scale to make everyone everywhere equal socially and financially. There is one small problem with that, no one does anything for free. Anytime you do anything it is because you desire the perceived results of that action.

I fix appliances, I desire the money that those jobs will pay me so that I can pay my bills and feed my family. Monks value a relationship with God far more than money so they take a vow of poverty. Sadly a battered wife values something in her abusive relationship more than she values her own safety. When you give the bum on the street corner a buck it just means that you value presumably the feeling of having helped that bum more than you valued the dollar.

So if you take the freedom to gain financially from those that produce financially they will either flee or go underground. This has been historically proven over and over again. Once the financial activity becomes inaccessible to the government the government will have nothing to take to that will enable it enforce its policies, and give the masses that keep it in power. When that happens civil unrest ensues, and it has brought down every civilization that has tried it in the past.

Fleeing to financially freedom is one of the reasons America became a nation, and then a super power. Now though you can see it happening right here in America. The rich are fleeing California and New York in droves. Just the other night I saw an interview with Donald Trump who is normally liberal leaning in which he made a threat to take his money overseas if taxation and regulation got any worse here in America. I don't know how many people Trump employees, but I can't imagine dumping them all into the American unemployment system will be good for our economy. That flight of financial producers is leaving those states with HUGE financial obligations, but no financial activity with which to pay for them. Want to look overseas, then look no further than birthplace of democracy in Greece where they have recently had riots because their economy is so hideously enmeshed in collectivism that no one bothers to produce because there is no gain from it.

Think about it this way. Tomorrow you go to work, and your boss tells you that your tax rate has gone down from the average (includes city, state, and federal) of 40% to 1%. You've just gotten a HUGE raise courtesy of the government. Most of us would suddenly be working fools, and we'd enjoy our newly found income. I personally would buy a new truck as soon as I got off work that first day. My ancient Ford is on it's last leg, and I'm worried about it going belly up any day now.

But, if you went in and found that you're tax rate has been hiked to 99% most people would simply not bother to show up the next day because it would cost more to drive to work and back than to stay home. Especially if a collectivist government is promising to pay you the same whether you work or not.

Now of those two scenarios which one creates more financial activity and more safety, comfort, and happiness for the people? And, which one ultimately leads to a de-civilization of American society? And, no discussing the destruction of American society over taxes isn't hyperbole it's a definite historic fact. There is no magic bullet that makes America immune to the lessons of history.

Unfortunately for those that would like to see a collectivist-every-one-is-equal world the people are GOING to feed themselves and their family, and defend themselves and their family. They are then going to try to obtain comfort for them and their family. That is not only a simple animal instinct, but a natural right of any species. Which is why there is rioting in Greece. The people realize that the gravy train of government money is drying up, and their first instinct was/is to riot and scream, “Hey reopen the gravy spigot!” When that doesn't work because the well is dry they'll have to reinvent their society to match the new reality. But, that transition will NOT be pretty. History tells us that there will most likely be more rioting, violence, and possibly a civil war. And historically it will not end up in more freedom for the Greek people until it gets much worse. Out of such things world wars and genocides are made.

All of which can be avoided if collectivism would simply be done away with, and people were allowed to work at what they wanted to work at while keeping what the market sees fit to give them for that work. Oh and being allowed to sink or swim on their own but that's another blog.

Unfortunately I can't say that taxes should be done away with, but as in all things in life a balance should be reached. And, since historically higher taxes have meant less economic activity while lower taxes have meant more economic activity I'd say that we need to examine the idea of cutting rather than raising taxes. Certainly raising taxes in a recession is not the way to go.

Hey, don't blame me, I'm just the messenger.

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