custom ad
OpinionNovember 10, 2010

Raising taxes and expecting economic growth is like cutting food rations to a beef herd and expecting the herd will continue to grow and produce the same amount of meat. Such reasoning is ridiculous. Statists insist we accept the lie that government produces everything, when, in reality, a healthy economy is produced by active, profitable commerce...

Raising taxes and expecting economic growth is like cutting food rations to a beef herd and expecting the herd will continue to grow and produce the same amount of meat. Such reasoning is ridiculous.

Statists insist we accept the lie that government produces everything, when, in reality, a healthy economy is produced by active, profitable commerce.

Active commerce depends on the feed supply, cash flow, which is supplied by consumer spending. Consumer spending depends on good jobs, and job creation depends on business investment. The government is starving the economy through excessive taxation. Big government wants to take even more food away from the producers.

Receive Daily Headlines FREESign up today!

The FairTax, a consumption tax to replace the income tax, turns the beef herd analogy right side up. The FairTax stops the government from interrupting, intruding and confiscating half the feed supply. To use the same analogy, the beef supply would be greater since the anemic herd would have its full rations of feed restored.

This same analogy translates to our national economy. Tax revenue is generated by increased consumer spending which increases business cash flow. This in turn promotes business expansion, which produces more jobs, which produces more consumer spending and the cycle keeps going, growing and expanding.

Isn't it time we band together and demand our government leaders acknowledge this simple lesson in economics?

JOHN McMILLEN, Sikeston, Mo.

Advertisement

Connect with the Southeast Missourian Newsroom:

For corrections to this story or other insights for the editor, click here. To submit a letter to the editor, click here. To learn about the Southeast Missourian’s AI Policy, click here.

Advertisement
Receive Daily Headlines FREESign up today!