ezrider
Member
Food, shelter, natural resources, manufacturing and labor. These are the things that bring new wealth into the society. Newly grown fruits and vegetables enter the economy as new wealth with a monetary value. The tree in the forest becomes a house. The tree as monetary value enters the cycle as new wealth when it is cut down. Labor continues to bring added value to this tree, as it is transported, as it is milled, and as it is made into a structure. Taxing the things that create new wealth pay against the debt.
But we do not have that type of capitalism anymore, one based on real capital. That was back when we were more of an agrarian society, when agriculture and manufacturing comprised over 80% of the nations GDP. And government and service sector jobs, like teachers, and medical and banking comprised less than 20% of the GDP. Service sector jobs don't create real new wealth. With service sector jobs salaries often payed for by tax dollars, taxing their income provides no real relief in paying down the debt.
The dollar was once upon a time backed by gold. Now it is backed by what, the good faith and credit of the American people? The strength of the dollar changes daily against other currencies, how does that happen.
Perhaps if the dollar and the other currencies were based something real. Gold was a finite resource held by few. But as you said, to take part in the economy, one must consume. That is a common characteristic for all of mankind, we need to eat. What if the dollar, and the pound, or the yen were all valued based on a bushel of wheat, or a bushel of corn? A natural resource grown and consumed across the globe.
