Seven Things About the Government that May Shock You
It has been said that if the government is the solution, it was a stupid question. Yet one of the government’s biggest tricks is making people believe they can’t do without it. If you’re one of them, maybe you’re not aware of these seven shocking things about the government.
1. Government workers don’t pay income tax
If Bob earns a$100,000 salary from the government, all of that money comes from the treasury. Then when he “pays back” $30,000 in taxes, the net drain on the treasury is still $70,000, so he’s a net tax consumer, not a net tax payer. This is also true of government contractors, like construction companies and defense contractors, at least as to that portion of their income that comes from the public sector. This is discussed in Chapter 22 of The Truth About Liberty.
Watch the video for further explanation:
2. It’s the government that creates monopolies
Monopolies can only exist if you prevent competition; natural monopoly is a myth. If there’s a profitable opportunity, people will compete against you for your customers, and they’ll do it relentlessly unless you stop them by force. You can’t legally do that — only the state can. Another way the state creates monopolies is by granting favors and privileges that make competition difficult or nearly impossible. The railroads are an example; there the government gave land to the rail barons with the most political influence, instead of allowing the free market dispense land to the best competitors.
3. The Federal Reserve has a monopoly on counterfeiting
The Fed makes up money out of thin air, lends it to the government and private persons (we don’t know who because the Fed refuses to be audited), and then collects interest on the debt. The principal is made up out of thin air, but the interest that’s paid back to them is the real stuff, taken from taxpayers who actually produced wealth in the economy. If anyone else does what the Fed does, it’s called a crime and they go to jail. But when the Fed does it, they call it “central banking.” They must be laughing their tails off.
For more on how the Fed works, watch these videos:
4. Insider trading is perfectly legal – but only if you’re a congressman
Insider trading is when you have secret knowledge about a corporation’s activity, and you buy or sell stock to get a special advantage before your secret knowledge becomes common knowledge. For example, if you’re a company insider and you know that company P is planning to buy company Q, and you buy company Q stock for pennies right before the announcement is made, driving the price of stock sky-high, that’s insider trading, and it’s illegal. Unless you’re a congressman. Then it’s fine. In fact, the rulers have exempted themselves from a lot of laws, like ObamaCare and social security. Those laws are good enough for us, but not quite good enough for them. Read an analysis of the economic benefits of decriminalizing insider trading.
5. Nine of the 10 planks of the Communist Manifesto are the law of the land
Our nationwide statist socialist welfare policy is right in line with most of the Marxist principles in the Communist Manifesto.
- Abolition of private property in land. There is no state in the US without property tax on land, which means you’re simply paying rent to the state (stop paying property tax and you’ll find out who owns it). In addition, according to a document published by the Natural Resources Council of Maine, the states and the federal government own 785 million acres of land, or about 35% of the total land area of the United States.
- Progressive or graduated income tax. Marx wanted the government to be the great redistributor of income. This prevents the accumulation of private wealth and independence from the government, which is the greatest threat to statism.
- Inheritance tax. Whatever you do manage to accumulate in your lifetime is subject to the inheritance tax, in which the government steals from your heirs. I guess it’s more noble to steal than to give.
- Confiscation of the property of emigrants and rebels. This has been enacted in part since 1980, and then expanded in the 1990s. The current state of the law is that the government demands an accounting of all the money you take out of the country, and requires you to pay income taxes for ten years after you renounce your US citizenship. See? You don’t own your money, the government does.
- Central banking. The Fed is the central bank of the United States, item 5 in the Communist Manifesto.
- Centralization of communications and transport. You can’t broadcast anything on the airwaves without the government’s permission. You can’t conduct business or transport goods on the roadways without the government’s permission. Item 6 in the Communist Manifesto.
- Factors of production owned by the state. The nationalization of GM was only a small incremental step; the government already controlled every aspect of every business in the country through literally hundreds of agencies, directorates, and departments. When the government doesn’t own production outright, but dictates its operation, that’s the definition of fascism.
- “Equal liability of all to labor.” This was a Marxist euphemism for forced labor. So far we’ve been safe from outright forced labor, except when it comes to the draft, business and tax reporting requirements, and subpoena laws.
- Forced distribution of the population. In the case of Kelo v. City of New London, the US Supreme Court established the government’s right to take perfectly good, safe property and give it to a commercial developer so the state could collect more taxes. This is totalitarian and tyrannical, pure and simple.
6. The national debt is 15 times worse than you think
The “official” US debt is currently $15 trillion, but that’s pure fiction. The real debt is over $202 trillion. The reason for this mind-blowing discrepancy is “labeling.” You might find this hard to believe, but “labeling” is simply when the CBO (Congretional Budget Office) looks at a debt in the balance sheet and pretends it’s not there. If it was counted, voters would freak out, so they call that liability an “unofficial” debt. Yes, it’s still a debt, it still is owed, it still is going to bankrupt us, but we don’t count it when figuring the “official” debt. I’m not making this up. Our rulers — and I guess most voters — live in an alternate universe. The US is in worse shape than Greece.
7. The average Roman paid 4000 times less in taxes than the average American
We actually have a national flat tax, in a sense. No matter your income bracket, when you account for all state, federal, and local taxes, everybody pays roughly the same percentage — around 40%. During the heydey of the Roman Empire’s power and influence, the average Roman paid about .01%, although assessments increased to as much as .03% during war time.
The next time someone tells you we can’t live without the government, show them this list. In fact, pass this around to help share the knowledge.