What happens when the money runs out? our federal government has been spending money at unsustainable pace for decades now.
now one can say “that’s ok, we will just tax the rich; they dont pay their fair share!” I really cannot speak to that except that the rich(whoever they are) can provide themselves with enough shelters and tax lawyers and lobbyist to keep what they have. We cannot tax the poor because frankly they are not tax producers but rather tax consumers (beneficiaries of tax entitlement programs). So that leaves the poor middle class to shore up revenues by raising the rates and remove the few tax benefits left to them.
The trouble is that while the Middle class has the means to bear the tax burden (for now). they are the consumers of goods and services that the economic engine desperately requires to keep running and its base is shrinking because the “income” the governments( Federal, state and localities) increases, and is redistributed to programs for entitlements and to keep the governments running which is fine if their growth was static but its not the case.government spending budget keep increasing and needs to be funded.
Government might increase the sales tax or impose new fees (a tax without calling it a tax) which takes more out of an individual middle class family budget which reduces the amount of discretionary income that t a family might spend for consumption which will amount the amount of growth of consumption which the economic engine need to keep growing. since the engine that requires ever increasing sales to keep growing. it start to sputter when there is less of the fuel it need. companies that sell goods consider the possibility and shrink the workforce accordingly. Those people lose their jobs, they have no income and not only do they stop being income producers but might require those them to become an income consumer and the cycle starts into a cycle.
The point is that government must have the ability to shrink and grow in terms of way the economic engine grows and shrinks; right now it cannot because of rules law and entitlements. The best it can do is grow or cut spending and decrease or increase taxes. it can also drop people from the entitlements but it is painful and collectively, governments are reluctant to do so; especially in election cycles. I think we see this all too well in current events. We have unsustainable government growth and a shrink revenue base and a government unable or unwilling to do much about it.
I really doubt that anybody has read the post to this point and I think that it largely the problem. We all know something is wrong but all we collectively do is “kick the can down the road” and do what we can in the short term, blame the other side and ignore the long term problems with the appearance we are doing something.