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Chapter 1 Notes
Robert's Topics > Chapter 1 Notes > Taxes, Debt and Inflation...
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Robert - 2/5/2009 2:14:38 AM
Taxes, Debt and Inflation...
[Page 11] Are the three forces of taxes, debt, and inflation and their effects that cause people to work hard yet still struggle clear or is more explanation required?
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nafiaywazi - 2/5/2009 6:09:46 AM
working harder and harder
one rich man went to buy donkeys from a nearby village. He increased the price per donkey from $10 to $100. Almost every one in the village sold his donkey. Then the rich man announced that he is now paying $140 per donkey but he is going to the city to bring the money. He left the donkeys with his assistant and ordered him to sell the donkeys. The assistant (not known to the village people) offered the donkeys to people of the same village with a price $120 per donkey. The village people thought this is a life oppurtunity to buy donkeys low ($120) and sell them high ($140).
They started to buy the donkeys back hoping the rich man will come back with money and pay them $140 per donkey. Some borrowed money, others used their life saving to buy donkey. The assistant was able to sell all the donkeys and then he left. weeks and months went with out any body appearing. The village people were left with their donkeys in peace but with lots of debts and with a financial crisis.
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Anastasha - 2/5/2009 4:06:25 PM
?
Wasn't inflation and taxes and debt around even before America I mean taxes do go on useful things sometimes...RK is right in some ways but there are things like structural changes for exmple UK in 1970-1990 like other countries went through deindustrialisation which brought on high unemlployment as industries were closing and inflation went up because people demnded new goods that could notbe provided straight away...well the rich and the govt still have some blame to bear
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Bruceforge - 2/5/2009 5:23:22 PM
The three forces of taxes, debt, and inflation
Governments do not have any money except that stolen from its citizens. It was, among other things, taxation without representation that drove thousands of people to leave their birth homelands and embark on a long, dangerous journey, to start life again in a new land.

Think: How much government would we have if each so called service had to earn its budget by selling that service to the public directly? This concept helped New Zealand resolve many of its problems over the past few years.

Example: There was a problem with deer destroying crops and causing other damage in the countryside. Under government protection, the agency responsible for deer control was losing ground in the "fight" even though spending ever larger sums of money to "fix" the problem. The solution came when the government got out of the way and turned the deer over to the local farmers as a cash crop. No more deer problem, yet the herds were protected against destruction by the farmers. More income for the deer farmers. Elimination of another bloated government agency.

So, without increasing taxes, incurring additional debt, or inflating the currency, New Zealand was able to resolve the matter by eliminating government interference. America grew as well as it did because the early government was hands off as much as possible. Not because a strong central government designed and executed some master plan.

It is hard to be honest when your only income comes from theft.
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camilovega80 - 2/5/2009 6:01:25 PM
struggle clear
Ok then taxes cut one of your legs, debt cut the other, and inflation cut one of your arms..., and now you only have an arm to work. I think that is struggle clear.
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mygenie - 2/5/2009 6:31:55 PM
Clearer to me now
I think it's easy to see how taxes, debt and inflation make getting ahead hard work. What I think is less understood is the reconciling of mixed messages. Our country was fought for because of out of control taxation, but now it's patriotic to pay taxes? Debt is bad, but every other advertisement is about credit cards, refinancing and doodads you just can't live with out? And finally inflation, well the price of mouse traps always goes up even though it takes fewer and fewer resources to make them.
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mikesmullin - 2/5/2009 7:02:29 PM
discussion links not working
the links from the flash paper to the relevant forum threads to discuss questions are no working for me. i have to click on the sticky note and find them myself manually. just fyi in case you are not getting as much feedback as before.
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mikesmullin - 2/5/2009 7:10:02 PM
crystal clear
wow you opened my mind to a perspective i'd never thought about before. i've thought about the consequences of taxes, debt, and inflation before--separately. but to put them all together in the same category here the way you do really puts it all into perspective about why these forces exist and persist in our lives. to benefit the rich.

this is so much like the matrix its scary. i mourn for those who just wanted to do the right thing and are led like sheep to the slaughter. as lemmings to steep cliffs.

the foxes guard the hen house today.

what can we do?
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davidhumbert - 2/5/2009 7:16:06 PM
Hidden System
When I was reading your book, I feel to live in ''a Matrix'', I think all of the information on taxes, debt and inflation is not clear, actulally it's hidden. I agree with your mission to let know as much people as we can on those subjects.
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jerome fazzari - 2/5/2009 7:47:21 PM
tax, debt, and inflation-very clear
I think it is very clear, any middle class person can see in their daily lives that they spend most of their pay check on taxes and debt. This chapter makes it crystal clear if people couldnt already see it.
I've never heard inflation called the "silent tax" but it is very true, most people don't realize their money is worth less than it used to be unless they think back long term and by then the cause for the inflation is long forgotten.
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