Where Does The Money Come From? Part 2

A couple of weeks ago I asked the question. Now it’s time for the results.


A. People don’t know where the money comes from to run our government.

B. People don’t care where the money comes from to run our government.

C. People don’t care to leave a comment in answer to the question: where does the money comes from to run our government.

So, times up.  I need to give you the answer.

All money that our government spends comes from the people.  And the people are you and me.

Taxes, fees, all have to come from somewhere and you and I are the only ones that have money to give.

The problem is, most people do not understand this, mostly because the federal government is financially broke and living on loans that will come due sometime in the future.  And because of the complex financial system we have in the United States, we will probably never run out of cash, because the Feds can always print more.  However, the value of the printed money is questionable.

As long as we continue to accept that a dollar is a dollar, we will continue.  Problem is we have received loans and investments from foreign countries and if they stop accepting that premise, we are sunk.

Don’t believe me?  Look around and you’ll see how at the State and City level of government, they have to balance their books or they have to cut expenditures.  California is a great and sad example of this right now.

For those of you who say we should increase business or corporate taxes, you apparently are not aware of where those businesses get their money to pay their taxes.  They get it from their customers, namely you and me.  If they didn’t get it from us, they would have to reduce their profit margins and it is easier to simply pass the tax to the customer.  In some businesses, it is the only way for them to survive.

Higher costs for doing business always have to be passed on to the customer as higher prices that you and I pay.  Not just taxes, but energy costs, raw material, employee wages, etc, are all reflected in the prices we pay for the things we spend our money on.

So, as you ask for more from your government, just remember who is paying for more.

You and me, my friend.  If you are willing to pay more in exchange for more “free” services from the government, please remember these words.  Your comments are always welcome.


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