I wonder if we are all trapped in the same game. We want more help from our governments, but we do not want to pay higher taxes. We want good schools, healthcare, safe streets, but also lower bills. I am just as guilty. I like cheap services and extra support too. Who doesn't?
We already pay too expensive taxes to receive services which aren't proportional to the costs in counterpart. To raise taxes doesn't mean better services, but more spendings from governments on public agents' wages and benefits (executive, legislative and judiciary).I don't want good schools and healthcare from government, but only security. Regards the another aspects, I want to have enough money to afford it myself, having freedom to choose what school I want to attend to and what healthcare service I want to hire.
At same time, of course I want lower bills, because it gives me more autonomy to destiny my money to where I consider to be important and useful. I don't want a government doing it for myself.
I wonder if we are all trapped in the same game. We want more help from our governments, but we do not want to pay higher taxes. We want good schools, healthcare, safe streets, but also lower bills. I am just as guilty. I like cheap services and extra support too. Who doesn't?
But after reading more about the global economy as a new hobby of mine, I see a problem. The richest countries are spending and borrowing like never before, even when things are calm. For example, countries like the US, UK, Japan, they all owe more than their entire yearly income (Japan owes double!). But nobody seems to care much. We keep getting tax breaks, handouts, help from the government. Governments keep borrowing money to make us happy. It feels good, but deep down, I know it is not free. And interest payments alone are as big as military budgets
Half of all this debt comes due soon, in just a few years. If interest rates go up more, there is no easy way out. The system works only if people trust it. If that trust breaks (through a political fight or money crisis, ANYTHING) everything can change overnight
People just want more services, but not higher taxes or less help. Politicians promise both, and then just borrow more. In my own life, I benefit from this too: cheaper healthcare, more support, but I know someone will pay for this later. Maybe our children
Is it fair to leave this bill to our kids, just so we can have comfort now? I do not have a perfect answer
But after reading more about the global economy as a new hobby of mine, I see a problem. The richest countries are spending and borrowing like never before, even when things are calm. For example, countries like the US, UK, Japan, they all owe more than their entire yearly income (Japan owes double!). But nobody seems to care much. We keep getting tax breaks, handouts, help from the government. Governments keep borrowing money to make us happy. It feels good, but deep down, I know it is not free. And interest payments alone are as big as military budgets
Half of all this debt comes due soon, in just a few years. If interest rates go up more, there is no easy way out. The system works only if people trust it. If that trust breaks (through a political fight or money crisis, ANYTHING) everything can change overnight
People just want more services, but not higher taxes or less help. Politicians promise both, and then just borrow more. In my own life, I benefit from this too: cheaper healthcare, more support, but I know someone will pay for this later. Maybe our children
Is it fair to leave this bill to our kids, just so we can have comfort now? I do not have a perfect answer
If money is spent on useful projects, like building infrastructure that moves people and goods around (highways, railways, bridges, etc.) then it can actually improve the efficiency of the country, so may be worth it in the long run as long as good estimates are made on the return over a long time. When money is spent on bloated public services or an attempt to buy goodwill off the public before an important election, instead of taking hard decisions like raising tax which can be necessary but are hated by the population, then it is wasteful debt. Inflation will gradually inflate away a portion of the debt if done over a long time, so it can actually be a wise investment if structured correctly.
I wonder if we are all trapped in the same game. We want more help from our governments, but we do not want to pay higher taxes. We want good schools, healthcare, safe streets, but also lower bills. I am just as guilty. I like cheap services and extra support too. Who doesn't?
Who wouldn't want to live an easy life without having it be the cost of an arm and a leg? It is not surprising. But the issue is having to pay taxes but not seeing good things come from it. For example, in my country. We are a third world country. Politicians are accused of stealing and not paying taxes. Healthcare is expensive. Not enough free education. Infrastructure is inefficient. And yet. People still need to pay taxes.I wouldn't mind having to pay huge amounts of money in taxes if I am living good. A lot of people do not want to pay taxes because they do not have anything to pay it for. They can barely survive. I just think it is not proportionate to increase taxes without improving the state of your country.
The richest countries are spending and borrowing like never before, even when things are calm.
This is only true if you take absolute numbers.Debt rates in comparison to the countries' GDP (in real terms, not nominal terms) are stagnating or sinking in most cases. Most of the recent increase of spending/borrowing can be explained by COVID, and since then the debt rates as percentage of GDP have lowered.
Some examples (2020/2021 to 2024):
- Euro Area: 97% to 87%
- Japan: 225% to 216%
- US: 130% to 125%
- Brazil: 85% to 76%
- India: 58% to 56%
The most significant outlier is China where public debt grew, but on a very low level (20% to 26%).
(Sources: Statista and Ceicdata.)
I don't say that the current debt level is healthy. I'd always opt for a small but gradual debt decrease policy in "good times". But Japan shows you can live highly indebted for decades. So I don't see any collapse in the near future. It's something Bitcoiners seem to like to overdramatize to promote BTC to "fix it" (even Satoshi in some ways did that in his famous on-chain message). But I think Bitcoin doesn't need a financial collapse to thrive, it can thrive even if fiat is doing well for decades more.
Is it fair to leave this bill to our kids, just so we can have comfort now? I do not have a perfect answer
I never understood why people have kids tbh, it's lifetime of maintenance and subjecting kids to life's randomness (maybe reading Schopenhaur has given me this mindset — but I did find his reasoning logical).
I wonder if we are all trapped in the same game. We want more help from our governments, but we do not want to pay higher taxes. We want good schools, healthcare, safe streets, but also lower bills. I am just as guilty. I like cheap services and extra support too. Who doesn't?
It’s different here in our country; we’re overtaxed, yet the government fails to provide decent service. Part of our taxes end up in the pockets of our politicians, and there are no checks and balances or accountability.
Our people have been burdened by numerous taxes, mainly due to our internal and external debt, and these taxes have been imposed on almost everything. This is the sad reality of living in a third-world country: you are paying a lot of taxes, and yet you lack better services from the government.
Is it fair to leave this bill to our kids, just so we can have comfort now? I do not have a perfect answer
Wonderful visualization from visualcapitalist