Since the revenues of Taxation issue from previous public expenditures, present revenues indicate the success of previous outlays of capital. Thus, one errs in estimating present or future expenditures constrained by the returns garnered from the past.
$10,000 Economics Challenge Blog
The means whereby governments achieve their objectives differ greatly from those of business. However, the objectives of profit or benefit are not. Each entity makes an investment intent upon a profitable return.
Taxation in all its forms fosters a discernible reluctance to engage in worthy economic undertakings. Taxation is by nature a penalty or fine. The intention with its employment should be to discourage or prevent, not to encourage or induce.
What if government could no longer expropriate funds, but had to borrow them with a capital charge? Does this become a beneficial undertaking or a detrimental one for a nation?
There are grave problems in economics – found not within its framework, but rather within the assumptions, postulates, and definitions upon which this framework is erected.
A superb illustration of perhaps the worst efforts of government can be found in the relentlessly inept, futile, and prodigal initiatives to combat and eradicate certain narcotics habitually indulged in by an unfortunate few.
The Keynesian prescription has always been to engineer an increase in aggregate demand for an ailing economy. The flaw in this reasoning is not found in aggregate demand, which can be easily manipulated by the dearth or superfluity of money, but rather in aggregate supply.