Benewing on Nostr: It’s ok, I think you’re partly correct. It’s just that there’s no magic if ...
It’s ok, I think you’re partly correct. It’s just that there’s no magic if you get hard money, where you somehow get all the benefits of a deflationary currency but none of the drawbacks of the government not being able to gain purchasing power to help fund the public sector. Smaller governments can be just as good if they are more efficient, but a small government with the same efficiency as a bigger one will mean less government services, and so you’ll just have to pay for that.
And then there’s the big problem that if the government has no way to raise capital quickly to fight off an invading fiat empire, they will be invaded. Not in the US psyche at all but kind of ironic that they complain about money debasement that contributes to their military strength.
There is a situation like you talk about- large tax base but also deflationary money, although as I said that would be very difficult on a bitcoin standard due to the problem of how to tax encrypted peer to peer transactions. But lets say the US government decided to cap the US money supply or introduce a new hard USD regardless of consequences, you of course could fund a government on direct tax alone and it wouldn’t be much of a loss (say 5-10%of tax base) if you couldn’t also print money. The issue like I said is it would mean the government would have to constantly fire or rehire government employees and programs because they couldn’t print money to avoid bankruptcy.
And then there’s the big problem that if the government has no way to raise capital quickly to fight off an invading fiat empire, they will be invaded. Not in the US psyche at all but kind of ironic that they complain about money debasement that contributes to their military strength.
There is a situation like you talk about- large tax base but also deflationary money, although as I said that would be very difficult on a bitcoin standard due to the problem of how to tax encrypted peer to peer transactions. But lets say the US government decided to cap the US money supply or introduce a new hard USD regardless of consequences, you of course could fund a government on direct tax alone and it wouldn’t be much of a loss (say 5-10%of tax base) if you couldn’t also print money. The issue like I said is it would mean the government would have to constantly fire or rehire government employees and programs because they couldn’t print money to avoid bankruptcy.