Dan J. Harkey

Master Educator | Business & Finance Consultant | Mentor

All Governments Have the Propensity of Robbing Peter to Pay Paul

All governments, from democracies to dictatorships, employ organized and systemic redistribution to maintain power. This is evident in the allocation of government funds, tax policies, and social welfare programs, all of which are designed to maintain the status quo and prevent social upheaval.

by Dan J. Harkey

Share This Article

Listen To This Article

Summary

At the same time, the government will claim that its actions are for the benefit of the people, but in reality, they are only for the benefit of a few at the top. The remainder of the people are economically enslaved, only allowed to enjoy a few temporary privileges that can be revoked at the whim of the ruling elites, highlighting the stark power imbalance.

Article:

The people are on an economic treadmill where inflation constantly nips at their heels.  The attempt to earn more and pay more taxes results in prices going up, while their assets rise in value; however, this is all cancelled by the reduction in the purchasing power of their hard-earned dollars.

The government creates new money out of thin air, meaning by the trillions. They did nothing to earn it other than retain power, as lords, over the economic system. The top tier generates profits from inflation through a combination of financialization and leverage.  If all goes well, they earn profits and keep them.  If all goes wrong, they dump the losses on taxpayers in the form of bailouts, as evidenced by the Dodd-Frank bill of 2010.

Robbing Peter to pay Paul is a concept with deep historical significance dating back to 1380 AD.

https://www.youtube.com/watch?v=FhgsGHuJDHo

https://www.youtube.com/watch?v=01Tn0EgGUF4

https://en.wikipedia.org/wiki/To_rob_Peter_to_pay_Paul

A government that robs Peter to pay Paul can always depend on the support of Paul.

If people submit themselves to being controlled by others, this treadmill will continue, unabated.  The system is a giant Ponzi scheme, but it functions while keeping ordinary people trapped in stress and debt, trying to keep up.

Since the entire system is corrupt, many people respond with their form of corruption as a counterbalance.