taxing your way into prosperity
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Started by mcfarm - Sept. 11, 2022, 11:08 a.m.
By metmike - Sept. 11, 2022, 11:20 a.m.
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Excellent post mcfarm, thanks much!

In early 2022, the cost of food and even more so energy skyrocketed and surely was higher than taxes.

But the cure for high high prices. Energy prices have come down.

Big changes in energy prices CAUSE higher and lower food prices with a lag of numerous months, so food prices may also drop a bit here now that gasoline prices have dropped substantially. 

From your article:

By bear - Sept. 11, 2022, 12:24 p.m.
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i give some students these examples...

in the 1800's, and early 1900's, we have low taxes, less bureaucracy, few social programs, and a gold standard.  and during this time (except for during the civil war),  the poverty rate came down decade after decade, after decade.  there was no long term inflation.  wages went up.  inflation did not go up.  and the standard of living improved.  

from the late 1960's onward, we have had higher taxes, more bureaucracy, a war on poverty, massive spending, and we scrapped the gold standard (early 70's).  and since then the poverty rate has not declined,  but has remained flat.  and inflation has mostly outpaced wages.  

the only time since the early 70's when wages rose faster than inflation was briefly under trump.

By metmike - Sept. 11, 2022, 1:13 p.m.
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Thank bear,

I agree with most of your great points.

However, using the 1800's and early 1900's or most previous time frames are not apples to apples.

The technological advances that were in their early stages and massive increase in productivity in those era's will never happen again as we are seeing the inevitable law of diminishing returns.

In addition, a crushing national debt that's getting worse and a massive older generation that must be supported that was not present in previous generations.

In most ways, it suggests we must be much more conservative and careful with our spending and taxing because we don't have the luxury of massive new industries creating jobs and growth out the wazoo to cover our arses when getting it wrong.