It would cause a run on Citibank, a well deserved run. That's what happens when businesses fail, people do business with other firms instead. That's not very complicated. Boosting "confidence" isn't the governments prerogative, particularly not faux confidence by bailing out failed corporations. That's well outside the scope of government and has created bubble after bubble. This kind of nonsense by government has created the mess we're now in. I never suggested "no public works", you just made that up. I never said it. For you, trying to engage a debate without making strawman arguments is like trying to fight with your hands tied. You just don't seem to know any other approach to a discussion. I never said "flat taxes". You just made that up too. However, yes, I think taxes should be much flatER, as they are throughout most of the developed world.
so endorse some public works? Then you are suggesting the top does need some involvement. Central planning is sometimes needed? There are only 6 first world countries with personal taxes less than ours, and this counting Mexico. How much flatter do think you we need to be? Really?
"Public works" is not central planning. "Public works" are generally funded and administrated locally, not federally. I didn't say anything about taxes being higher or lower, I said FLATTER, and the vast majority of developed nations have FLATTER taxes than the USA. What is wrong with you? Are you continuing to try to make things up which I haven't said to support your argument, or are you really that illiterate? Do you not know the difference between LOW taxes and FLAT taxes? Are you really this stupid?
The guy who doesn't know the difference between LOW and FLAT, or "public works" and "central planning" now wants to cast aspersions about historical familiarity... LOL!! That's priceless.
Ad hom...... Now, can you get back the debate? No? Well, okay Ill help you. A fiat currency requires confidence in that currency to work. The government could not let C fail for that reason.
Local governments get that money from the feds, again, study. Flatter? In a country with the 6th lowest personal income tax rates in the world, how do you flatten this out further?
They often do, but they should be getting it from local property taxes and the like. Collected locally by the users and spent locally for the users.
We would talking about a scenario where taxes are down because revenues are down because employment is down. When that happens, should the government say, "good luck with that" or should they do something?
Most "public works" are funded from local gas taxes, property taxes, and sales taxes. "Again study". It's hard to have a serious discussion with someone who's too stupid to know the difference between "flat" taxes and "low" taxes. If everyone's taxes are flat, at 88%, those are not "low" taxes, but they are still flat. Go contemplate on this profound and sophisticated concept. LOL!!