Lies! Economic theory contains more half-truths and lies than any other scientific study. Bad economists present their errors to the public better than good economists present their truths.
The challenge for non-experts is that the result of economic theory is rarely seen in an observable time frame. This fact opens up endless opportunity for manipulation of the uninformed by the devious, the powerful, and the greedy.
Economic collapse is already happening, in slow motion. Stay ahead of the doomsday curve. More important than firearms, more crucial than food stores, more urgent than seed collecting, understanding economics could help you predict a collapse before it happens.
7 Economic Rules for Preppers is a series of blog posts to help you clear the fog and understand what may be the single most important factor in your preparedness strategy.
Rule 3: Debt is Slavery.
Lie: Government debt creates jobs and improves the economy.
Fact: Debt is destructive in every way every time.
If you wanted to read this blog post in one sentence then here it is: When the government wants to repay the debt accumulated for public works, it must raise taxes more heavily than it spends. The more taxes a government needs to raise the more it must take from citizenry to do so. The more it takes, the less wealth is created by private efforts. The less private efforts the less non-government jobs there are for citizens. The less private jobs the less taxes are raised. Do you see the cycle?
Remember these three generally accepted concepts:
- Higher taxes reduce incentive of private businesses to operate and take risks.
- Higher taxes reduce private citizen purchasing power which reduces sales tax revenue and living standards.
- Higher taxes reduce production thus reducing total wealth of a nation.
Consider these notions next time you put a prep item on a credit card. Consider these concepts next time your local government wants promises better roads or a new bridge in your area. The money must come from somewhere. That somewhere is YOU.
Remember that government is not a productive and profitable operation. Government only gets revenue by taking a portion of earnings from those who produce goods and services that are profitable. This is not to say that government is not valuable. We need roads, police force, rule of law, etc. These services are necessary for the daily operation of a nation. The decline of a nation begins when the government becomes bloated and commits the state to a debt load that is impossible to ever repay.
The logical and only conclusion to a mountain of debt that cannot be repaid is SHTF.
The rich rule over the poor,
and the borrower is slave to the lender. Proverbs 22:7
Want to learn now to improve your Prepper finances? ASK BENNETT HOW!