Election success for a politician becomes jeopardized upon the slightest mention of a tax increase due to the simple reason that such a policy seldom receives popular approval, so consequently the inevitable result is to find an alternative strategy to sustain spending. There exists a less painful way to attain the same objective without the associated risk from proposing a tax increase and that is done by simply issuing Government debt. Upon issuance there are only two choices available in the future to pay for this debt, either more revenue will be raised through taxation at that later date or else a deliberate choice will be made to default instead. It is easy to assume that every politician knows that future leadership will never opt to default therefore a tax increase will be imposed once no other option is available. Citizens across the nation will be outraged once they realize this eventual reality, but that is of little concern to current politicians as they continue spending and buying votes. This is perfect for the political establishment, they are relieved from the risk of proposing a tax increase by way of borrowing the money needed to finance their spending agenda, and better yet, the burden for its later repayment falls on the taxpaying citizens versus the non-taxpayers. It provides the perfect situation of effortless funding for Governmental centralized planning while simultaneously advancing the objective of redistribution. This borrowing has gone largely unnoticed through the decades until recently due to the debt having reached such a perilous level. Many people will profess their lack of concern for the debt claiming that we can grow our way out of it through higher revenue in the future, however our history fully demonstrates that we will just spend any additional benefit from growth as well. There have only been a few years over the last several decades where any progress in paying down the debt has been achieved, so it is difficult to believe that this solution will ever be viable going forward. Upon eliminating the legitimacy of the growth argument along with a general aversion for a future default, only one option remains, that being a tax increase of which politicians are certainly aware. Therefore Government borrowing inevitably becomes a tax increase at a later date, and taxpayer consent becomes irrelevant once their impending financial devastation comes into focus. It once again illustrates how elected officials skillfully manipulate the citizens for their own benefit. It is the embodiment of that old maxim stating that it is better to ask for forgiveness than ask for permission.
Filed in Politics on Aug.03, 2011