Posted 5 years ago on Jan. 30, 2012, 1:03 p.m. EST by asauti
from Port Orchard, WA
This content is user submitted and not an official statement
I wanted to post a few words from Alan Greenspan's essay that he wrote in 1966.
"...the welfare state is nothing more than a mechanism by which governments confiscate the wealth of the productive members of a society to support a wide variety of welfare schemes. A substantial part of the confiscation is effected by taxation. But the welfare statists were quick to recognize that if they wished to retain political power, the amount of taxation had to be limited and they had to resort to programs of massive deficit spending, i.e., they had to borrow money, by issuing government bonds, to finance welfare expenditures on a large scale."
Further, "...But government bonds are not backed by tangible wealth, only by the government's promise to pay out of future tax revenues, and cannot easily be absorbed by the financial markets. A large volume of new government bonds can be sold to the public only at progressively higher interest rates."
If you would like to read the 4-page essay in its entirety, look up "Gold and Economic Freedom" by Alan Greenspan.