Riots in US streets.

Discussion in 'Economics' started by brokenmarkets, Dec 16, 2010.

  1. what would happen if the US gov't cease all gov't welfare programs no unemployment insurance, no gov't healthcare...

    the gov't is broke. basically borrowing money to pay for gov't deficits..

    nobody cares since nobody bites the hands that feeds greek and ireland the day of reckoning will come...

    also the US military budget is 500 billion per year and theire isn't even a real war going on.
  2. Just pay with printed money ..... problem solved.
  3. i hope there are riots in the US streets because the government stops giving free money to half of our population (the half that pays precisely 0$ in taxes) - it would mean we are moving in the direction towards success-- luckily everyone loves a loser so i'm safe being near the cubs
  4. all scams and house of cards end badly and people will pay... consumers are already paying...the day of reckoning.

    inflation is 25% per year. you;ll have riots like when corn price rose in mexico.

    that is at the extreme doomsday scenerio... the dollar would be worhless if it's prints too much..

    look at what happened to zimbabwe, the country doesn't even have a currency.

    the US dollar is strong because there are more f#cked up countries far worse than the US.

  5. CET


    Mods, move this idiotic BS to chit chat.
  6. zdreg


    idiotic response. as $US becomes less those receiving entilements will demand and will receive more ie gov't workers and welfare recipients and unemployment benefits.
  7. piezoe


    Just a small correction. It is commonly thought that those with low incomes pay no income tax, they get it all refunded. This is technically correct but misleadng. (Of course they do pay into entitlements, and they don't get that back, nor should they.)

    However, consider the hidden tax of inflation that both the poor and the rich pay. If you accept that, in general, deficit spending leads eventually to inflation, you can see that substituting borrowing for direct taxation via the income tax, will, in almost every case, lead to inflation. In other words, inflation is a substitute for the income tax not paid. You can see this very clearly if you consider the difference between the government taking two dollars of the ten dollars in your pocket as income tax, versus making the ten dollars in your pocket have only eight dollars buying power via inflation. What is the practical difference? There is none!

    Now back to the poor. We define it here as those not paying any net income tax, but nevertheless paying the inflation tax. What is the percent of "inflation Tax" paid by the poor relative to their gross income. I have no idea, but I am certain that it is a much larger percent than the wealthy pay, even though, of course, the wealthy pay a much larger amount of inflation tax in nominal terms. So in this sense it is not true that the poor pay no income tax, but they pay it covertly via the inflation tax. And not only that. They pay a higher percentage of their gross income in the inflation tax then do the wealthy.

    This penchant for indirect taxation that the U.S. has succumbed to, is in my opinion a root cause of the shrinking middle class and the growing wealthy and poor classes in the US. At the same time, it is, I believe, partly accounting for the growing disparity between those well off and the lower middle class in the U.S., and I don't think this is a good thing for either the wealthy or, of course, the lower middle class.
  8. zdreg


    this thread is not bs. the questions was poorly phrased but that is not a reason to move the thread.

    the US is bankrupt. phrase the question anyway u want.
  9. BSAM


    What's wrong with you dude?

    All that matters is that our 535 "dear leaders" are rich, fat, and happy.

    They will keep looking out for our best interests.
  10. Riots plus lax gun controls = Mad Max plus Escape from NY.

    I believe in the right to bear arms but I don't want to be around if angry guys with AK47s and shotguns start to riot.
    #10     Dec 16, 2010