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This Is How Government Makes Us Poor Made Simple
This story is not copyright; it is public domain.

    Scenerio one. Johnny wants a new widget, so he hires Freddyto produce one and pays Freddy ten bucks for it. Freddy, now richer by ten, decideshe wants his field hoed, so hires fourteen year old Eddie, and pays Eddie ten bucks.Eddie, now richer by ten, decides he wants a resturaunt meal and goes to Frans Delifor the ten-buck eat-all-you-want pig-out-special. Fran, now richer by ten buck,etc. Going around, that ten bucks has already facilitated the creation of a big meal,a field being hoed, and one widget, and it is still going around. In this scenerio,the people have money and a lot of goods and services.

    Now put a little government into it. Freddy earned ten bucksfrom Johnny, but after tax has only eight left. His eight only gets part of his fieldhoed, and Eddie has to pay tax on his eight, leaving only six dollars to go to dinnerwith. Fran gets Eddie's six for the blue plate economy special, but after tax hasonly four left. In this scenerio, produced is a small meal, part of a field beinghoed and one widget--while the government is richer by six bucks.

    And what does the government do with the money? It wastesit! You know it does. Anybody, any organization can do something more efficientlythan the government ever could dream of.

    Put a little more government into it and as the taxes goup the people produce less and less, while government wastes more and more.

    Now, put government into it some more. To help the agrichemicalindustry, the government passes a regulation prohibiting youths under eighteen fromhoeing fields, so child labor won't reduce the sale of herbicides. To help the fastfood industry, government decreed that resturaunts who offer cooked-to-order all-you-can-eatmeals have to have separate seating areas for them, while blue plate specials haveto be served on real, blue ceramic plates, much to the protest of the paper plateindustry, but much desired by the ceramics industry, which had the right connectionsto lobby for their interests. The result--produced: one widget, Freddy (an organicfarmer) has to hoe his own field or go out of business which makes him overworked,depressed and afraid. Under-age Eddie, unable to earn any money at all, goes criminaland steals part of Freddy's crop in the middle of the night and Fran has to chargeso much more for her food that her independent business is destroyed, making herfeel she would be better off with a MacDonalds franchise.

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