That is why liberals think that if they grow the government, the economy will grow.
It doesn’t.
The money to pay for the gov employees must be removed from the economy to pay them, therefore shrinking the “pie” that’s left in the private sector.
Here’s a simple explanation:
If all people, 100%, worked for the government, who would pay the taxes to pay them?
Remember, the government HAS NO MONEY of it’s own.
It must either tax the people or print money which becomes worth less and less until it become worthless. Zimbabwe is a prime example................
Oooh, Oooh! I know, I know! Pick me! Pick me!
"We'll just print more money!"
"It must either tax the people or print money which becomes worth less and less until it become worthless. Zimbabwe is a prime example..."
Awww, you already gave the answer.
In 1920 John Maynard Keynes wrote:
“By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”
Please don’t play an economist, you might hurt yourself.
Your point is not that government employees do not pay taxes (they do), it is that the taxes do not increase real revenues to the government. The taxes paid by government employees just move the money from one pocket of the government to another. The employees DO have their net wages reduced by the amount of income taxes (and other taxes) withheld from their gross wages. To put this another way - the employees have thier gross wages reduced by the taxes withheld, but their is no new revenue to the government.