What happens if everyone fails to save any money? Obviously there is going to be a scarcity of capital. As much as everyone would like to believe that the federal government is a god or a magician, the truth is that government officials cannot produce savings or capital. In fact, the government, through its spending, taxation, and inflation of the currency, is the great destroyer of savings and capital. When government taxes more and inflates more, people have less to save. Conversely, when taxes are low and money is sound, people save more.
For the past several decades, the American people have been taught that the key to rising standards of living is consumption...
What they fail to understand is that there is no way to fix a system that is inherently defective — that is, one that confiscates capital and discourages savings...
The only real answer to this mess — the answer that, alas, the mainstream pundits still do not want to consider — is a restoration of libertarian principles to our land. That means a completely different economic paradigm, one based on the principles of economic liberty and limited government that once guided our nation. That means: no more income tax, no more capital gains tax, no more inheritance tax, no more Federal Reserve, no more paper money, no more welfare system, no more overseas empire, no more drug war, and no more interventionism. Herein lies the key to the accumulation of capital, along with rising wage rates and rising standards of living.
What about Savings?
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