By taxes pay the salary of the

By obtaining revenue for our country the federal government practices 3 main methods that assist with situations of finance through a moral responsible conduct. Presently they legally require citizens to hand in their currency under the threat of coercion, the government also borrows amounts of money in which they issue bonds to those who give it to them promising to reimburse the money with quantity of interest in return, and printing money to put into the government’s account either directly or indirectly.First what do taxes do? Well there are many viewpoints on this and some might say they do nothing, some might say they do more harm than good but the reality regardless of your position, taxes pay the salary of the people in government, it also provides infrastructure like roads, nutrition labels, and public schools. Taxes come in a variety of shapes and sizes, the ones that affect us the most are the federal income tax that is based upon the income you’ve earn annually. Generally the more money you make the higher percentage of taxes you have to pay, however that is not always the case of course they’re are loopholes and secrets like Mitt Romney who finds concealed methods therefor he doesn’t have to give so much away. Property tax is also a technique that gathers wealth through a requirement. Paying taxes is our civic duty without it we would not be able to pay our politicians, our salaries, our active military that fights our battles and keeps citizens safe, or the public education system that is responsible for developing the young minds for our future. It is stated in the 16 amendment which passed “the congress shall have the power to lay and collect taxes on incomes from whatever source derived without apportionment among the several states and without regard to any census or enumeration”. This provides the evidence that tax collection is a requirement towards populations and it is a right that needs to be served from individuals. The government has at least 4 millions source where they borrow their money from the federal reserve,  private american citizens, companies, federal accounts, and foreign institutions. Each has its own definition of borrowing money for example the federal accounts is the money where the United States treasury has borrowed from themselves. The government has certain taxes that can only fund certain programs like social security these programs run a short term surplus and the treasury uses that money to pay other types of federal spending this money is called debt held by federal accounts which makes close to ? of the federals debt another ? of the US federal debt is owned by international investors by purchasing US treasury bonds as investments. However, you may be wondering why don’t we print more money to pay off debt or requirements that are needed publicly? The truth is that if we print more money prices will rise and soon we will be in the same exact situation we were before the printing. To begin, what is money? Money may seem valuable but in reality it carries no intrinsic value, it only perceives as worth because we believe it is supported with great value. This is called the tinkerbell effect, it is use to describe something that only exists because we believe it exists and this is the case with money. If people suddenly started to believe that money had no value it wouldn’t have any value. Basic economics tells us that an increase in supply results in a fall and demand therefore a fall in price. So the more money in the economy the lower the value of each dollar meaning other countries can purchase more dollars in exchange for their currency. A second supply and demand conjecture shows this leads to a rise in prices more money in the economy causes a shift in the demand curve for goods and services but since this isn’t matched by in increase in economic output prices must rise.This is not just because of an economic theory that we know, printing more money is bad idea, there’s several examples throughout recent history. Zimbabwe who in 2008 suffered extremely high inflation due to printing money. This was the result of some awful decisions by president Robert Mugabe when the economy took a turn for the worse Mugabe printed more money to pay the government expenditure. This caused inflation to skyrocket and in mid November 2008, Zimbabwe’s inflation peaked 6.5 sextillion percent. It got so bad that prices doubled every 24 hours. The government tried to solve its problem by printing more and more money with higher denominations, they also kept knocking zeros off the end by re-valuing the Zimbabwean dollar 3 times going through 4 different types of currency with 4 different ISO codes. Before the final re-denomination they were printing 100 trillion dollar bills. However, in 2009 the Zimbabwean dollar was abandoned and to this day they still have no national currency, their people use currencies such as the US dollar, the Pound Sterling, and the Euro. Ultimately, the government worries about inflation which is “a persistent substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency.”


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