nodeal
11-09-2011, 09:11 AM
Ron Paul believes that spending is paid for by the government through three ways: taxes, printing money, and borrowing money. As I understand, his argument is that these three means of government spending have an adverse effect on the people for the following reasons:
-- Taxes are an obvious form of theft, where the government forces its people to pay for functions of society
-- Printing money causes inflation, therefore decreasing the value of the dollar and increasing the prices of goods and services
However, I do not understand how borrowing impacts the finances of the individual. I mean, borrowing obviously puts the nation as a whole into more debt, but how does this translate into an immediate (or almost immediate) negative repercussion for you and me the same way taxes and inflation do?
-- Taxes are an obvious form of theft, where the government forces its people to pay for functions of society
-- Printing money causes inflation, therefore decreasing the value of the dollar and increasing the prices of goods and services
However, I do not understand how borrowing impacts the finances of the individual. I mean, borrowing obviously puts the nation as a whole into more debt, but how does this translate into an immediate (or almost immediate) negative repercussion for you and me the same way taxes and inflation do?