Or at least, liberals don't seem to understand this. This just came up in another topic, and I can't take it anymore, so - YES, there are people struggling to make a living while CEOs collect their $9 million paychecks.
But those $9 million are meaningless.
There's this huge myth that there are billions of dollars sitting in banks right now that could be used to pay for this, that, and whatever else. It's just not true. A dollar is a share in the country's productivity.
You can shift more of an economy's productivity to be spent on one area rather than another, but you can not actually help anyone with dollars.
Because of the way prices are set, those 9 million shares in the nation's economy do not exist. Every rich guy collecting billions of dollars he won't spend is making every one of your dollars WORTH MORE.
Actually, the money is being used by the government - a little for the poor, a little for various pork barell projects, a lot to pay for war equipment. The difference is that instead of getting it through taxes, it is loaned to the government through treasury bills, which means we will have to pay the loans back, plus interest.
Deficit financing is just tax hikes delayed.
