Where does the money go?

[kentuck]

Our country is about $14 trillion dollars in debt, or so they tell us.

What did we spend it on? Once we spent it, did it just disappear? Did it go in a black hole? No. Somebody put it their pocket or in their bank account.

They tell us that Medicare is going to be $28 trillion dollars "in the hole" in few short years. We cannot afford Social Security, they say. But we can afford a $3 trillion dollar military every 3 years?

Where does that money go?

Contrary to what some may think, that money doesn't disappear. It is simply taken out of circulation. It is taken out of the circle.

We must change this "black hole" economy into one where the money continues to circulate. How do we do that?

How do we put $28 trillion dollars going to Medicare back into the circle where it benefits the people? In my opinion, government money, taxpayer money, that is received by any entity, doctors or defense contractors, should be taxed at a higher rate than average earnings. That rate should at least be 50%. Of course, average soldiers and average healthcare workers would be exempt from that rate. It is the millions and billions that must be taken back for the people.

In twenty years, the military defense establishment will take out $7 trillion dollars and much of it will go into the "black hole" economy. These tax dollars, when received by defense contractors or private contractors, should be taxed at a higher rate than average earnings. This would keep the money in the circle and help pay for the benefits that people need to survive.

Just my opinion.

But we need to stop the hemorrhaging of tax dollars out of our economy.

To be honest, I never expect such a reform of our tax system.

[PBS Poll-435]

1. .

:rofl:

[TBF]

2. The money goes to the rich - war is just an easy way to get it there. nt

[kentuck]

3. And then, where does it go?

:shrug:

[TBF]

4. Off-shore accounts. nt

[kentuck]

5. Stock market?

?

[TBF]

7. Some of it, yes. Not high risk though usually - bonds and that sort of thing. nt

[unhappycamper]

6. It goes to the MICC

* to buy more mercenaries
* to waste shitloads of bucks buying new toys
* to drone more people
* to 'preserve jobs'
* to pay for the occupations
* to 'spread democracy'

[sendero]

10. Assets..

... like real estate, companies, etc.

I would take a minor quibble with your OP. A lot of money did "just disappear". When people own houses that are worth $250,000 one year and $200,000 the next, did the $50,000 move from one pocket to another? No, it simply evaporated.

And that evaporation of wealth/value, caused by a bubble in which the value never *REALLY* existed anyway but gazillions of people assumed it did and acted accordingly, is at the root of the current financial crisis.

The government, on behalf of the banks, is DESPARATE to reinflate the housing bubble because it might be the only way to actually save the big banks - - - (don't fall for the "the banks are profitable" nonsense - you can have a net family income that is positive for a month and still have debts you cannot pay, the big banks are there right now and the only way they are getting away with acting like nothing is wrong is their avoidance of mark to market accounting - i.e. they are still claiming worthless paper has worth) - - - but that is not (reinflating the bubble) going to happen because jobs/incomes won't support it AT ALL. Acutally let me revise that, I think TPTB have figured out that reinflating the housing bubble is not in the cards so they are looking for Plan B.

So, to return to your main point, this debacle has served to migrate a lot of money from the middle class to the banksters and other oligarchs, by way of taxpayer funded bailouts (also don't buy the nonsense that the money has been paid back, bullshit) and Zero Interest Rate Policy which is currently ripping off every American with savings that is smart enough to not put it into the rigged stock market.

[deminks]

8. I think it is a form of money laundering.

They say it goes to the war, but no one can ever account for it. Every year, there are stories of money going to Iraq or Afghanistan and then goes missing. Gawd forbid we should ever investigate it, or anything else for that matter. It might be embarrassing.

[PBS Poll-435]

9. Canada on Strike!

:yoiks:

[Golden Raisin]

11. Well, $12 billion

shrinkwrapped and flown in on pallets to Iraq in 2003/2004 just v-a-n-i-s-h-e-d. No records of where it went or who got it. That's $12 BILLION.