The Tax, service, inflation trilemma

Modern democracy is based on the following system:

  • Low inflation
  • Tax rates to cover services
  • Services provided for no additional at point of use

You can have all three of these, and people love having low inflation and services provided for no additional charge. Highways without tolls, city parks without a fee to enter, everyone loves these. It is a good deal.

But the Republican party’s thought process is low inflation, paying basically nothing in taxes, and getting services for free at the point of use. Republicans I know regularly will use the freeway instead of the toll  road as they complain about taxes when there is a choice. If every road is free and the government doesn’t collect taxes, either the service will have to drop in quality or the government will have to print more money to cover the costs. Printing money forever, not just in a counter-cyclical manner, will cause inflation.

Fox News needs to change their tune, either accept that your government services are going to stink, there will be a hyperinflation, or you will have to pay taxes

There is no free lunch.

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