Tuesday, July 12, 2011

The Greatest Inventions

Most people, if asked to name the two greatest inventions in human history would no doubt point to fire and the wheel.

I wouldn't.

To me the two greatest are obvious – money and taxation.

Money, most of us would agree, is something both convenient and essential. Money eliminates the necessity of paying the dentist with live poultry or hookers with nuts and berries.

The invention of money has led to the establishment of trust between strangers. You and I both believe the green piece of paper has more or less the same value to us, so when I hand a stack of them to you, you happily accept them and hand me the iPad I don't really need from the trunk of your car. And we both walk away happy, me however briefly.

Capitalism and credit are based on trust between strangers, something that never occurred in the millions of years of pre-human history. They are the sign of the ultimate optimism.

But what about taxation, the annoyed reader asks between clenched teeth?

Let us take a brief look back in time, using British history as an example:

Three hundred years ago in Britain there were more than 30 different crimes punishable by death – everything from pick-pocketing to poaching the King's deer (..all the deer were the King's deer.)

Why did the Brits back then execute so many people for what we would regard today as minor crimes? Were they crueler and more sadistic than Newt or Rush today?

No. It was because they had no prison system. Why did they have no prison system? Because they couldn't collect enough taxes to establish one. Why couldn't they collect etc ect?

Because the vast majority of people had no money, only chickens – and the wealthy aristocrats wouldn't cough up money but would instead arm their reluctant serfs and send them out to fight the King's wars in place of taxes. Kings had dungeons to hold their well-off and ransom-paying hostages, but they never housed or fed poor prisoners. There were too many of them.. and so the chopping block.

But once capitalism kicked in, trade and the middle class increased, so did taxation. And so prisons and schools (same thing?) and hospitals, police and fire departments were established. Taxation made civilization possible. It paid for the disposal of waste, the more successful fighting of wars, eventually the protection of the environment, minorities, free thought and free speech.

In doubt? The Danes, for example, are known to be the heaviest taxed people in the world, with income taxes averaging 46% and sales tax at 25%. New cars have a 200% tax. Yet poll after poll taken by outside observers have shown the Danes to be the happiest people on Earth?

Why the happiness despite the massive taxation?

Because the 5 million Danes, by pooling their money have bought themselves an army, a navy, an air force, free schools, universities and medical care, pensions for all and housing for the homeless.

Danes are happy and proud because they know they live in a decent society where no one will be left to starve or die for the sole reason they have no money.

Look at any map and you'll see that the countries who tax the most have the most advanced societies. Afghanistan takes in little tax money and suffers, and the Greeks are experts at avoiding the tax man, which has brought their country to near-collapse.

Can taxation get out of hand? Of course. One only has to look at a communist country like North Korea where everyone works for the state, the ultimate taxation, and surpluses are never produced or true incentives allowed.

But a look at Scandinavia will show many things, all signs of truly civilized thinking: high taxation, extremely low church attendance and superstitious beliefs, the greatest degree of free thinking, free speech, and free personal behavior – as well as strong and responsible capitalism and extremely low political and financial corruption.

And all proving that an effective system of taxation and a wise use of taxes leads to the building of strong and free societies..

Paradoxically, Right Wingers not only want to keep your taxes low, they want to make sure you get nothing of real value from your tax dollars. Their gift to us is the freedom to go to hell all by your lonesome.

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