None of this matters one whit. The “Fiscal Cliff” — at least in terms of what is talked about breathlessly by the Republicrat and Demopublican Parties and their shills in the MSM — is a mirage, a fantasy on the same level as the Tooth Fairy, Santa Clause and the Easter Bunny. It’s meaningless outside of a prop for political posturing.
Our monetary system is based on debt. Therefore, in order for any growth to occur anywhere debt must continue to expand. Otherwise money is destroyed as debt is either repaid or written off as unpayable.
Government debt will continue to expand. Private debt will continue to expand. Until they can’t anymore due to the nature of the exponential function. Then, those in control of the money supply will make their exit and hit “reset”, bringing in a new monetary system and screwing the vast majority of people in the process.
Eddie — your taxes will go up irregardless of what happens here. Unless you happen to be a hedge fund manager or a bank executive who is compensated for creating money out of pixie dust — in which case you’ll make out just fine. When I’m talking about taxes here I’m referring to income taxes, property taxes, payroll taxes, sales taxes, and the hidden tax of inflation. While one party favors certain taxes over others, the one constant is that for the overwhelming majority of people, taxes go up no matter the party that is in control of government.
Taxes are what we pay for increased complexity in society. Our controlling institutions have gotten where they are through increased complexity. They’re going to continue down that path even as the returns diminish. What I’m writing here isn’t anything new — read Tainter’s “The Collapse of Complex Societies” for a much more in-depth discussion.
In short, if you don’t like higher taxes of any kind, be prepared to give up a good bit of the complexity that we’ve all become conditioned to expect as normal.
I’m familiar with the concepts you’re bringing up.
And actually, the problem I have with taxes is not the dollar amount I pay (which is usually enough to support 4 to 6 families for a year at the median income of this country) but rather the (a) waste and (b) inequity of the system.
I agree that the so-called “fiscal cliff” is all smoke and mirrors. But the tax increases that are now arriving are going to grind me down, and they are going to grind down the entire upper middle class. We are the ones doing the heavy lifting now.
I think eventually we will suffer the fate of the Romans, who were taxed right off their land. This is an unacceptable outcome for me. I can live without much currency, but I want to hang on to my land and my other property.
I would gladly trade down to less complexity for lower taxes…in fact, that’s a win/win in my book.