by Joe Jarvis, Activist Post: The government depends on the citizens to produce, to create value from which the ruling classes can leech. They need to keep us working and spending in ways that they prescribe in order to insert themselves into transactions which would otherwise have nothing to do with them. Here are five ways that they keep the tax farm going.
1. Credit Cards and Debt
Credit cards, student loan debt, home loans, and car loans all represent an obligation to work full time. Once you have been saddled with debt, you cannot make the choice to take time off to pursue a business endeavor you are passionate about. You are on the hamster wheel.
The more debt you have, the more you have to earn, and the more taxes you will pay on those earnings. The less freedom you have to be productive in an alternative way.
The housing bubble was no accident; the government doesn’t care if you can afford it, they want you to “own” a home–or rather own a mortgage.
Of course, debt has its place, for instance taking on a home loan in order to have lower monthly payments than rent, and put that money into an asset.
But the problem comes when people take on an expensive home loan because they currently have a great job, ignoring the possibility that the job may not always be there. There are people who take out loans for a car–a clever trick GM started back in the day–in order to keep up with their neighbors or squeeze some momentary satisfaction out of the purchase.
And, of course, credit cards give us a dangerous “solution” to depression: shop therapy! Just like a drug, it can give a momentary high, replaced by an anxious desperation when the bill comes. And all the while you are paying sales tax on almost every purchase.
That is why we must avoid debt at all costs. Spend within your means. Delay gratification by saving before purchasing rather than paying interest after a purchase. And really consider whether a purchase is going to make your life easier, or make you happier, or if you are using it like a drug for a momentary high.
When it comes to college debt, the thing to do is spread awareness of alternatives to college if you think someone you know may be making a big mistake.
2. Full-Time Corporate Employment
Corporate employment is a cycle in itself; it keeps you going for the next raise, for the next promotion, and for all the benefits. Corporations are a creation of government, and would otherwise not exist in their current structure.
Health insurance through work was once an extra incentive to make a job attractive; now it is necessary to avoid a government fine. Better work more than 29 hours to make sure your employer has to cover it!
And when you are self-employed, the government punishes you by making you pay twice the Social Security contribution, since technically you employ yourself.
A corporate job alone is not always a bad thing, it works for some people. But there are plenty of people who push themselves into a job which cannot allow them to reach their full potential. People get a job in order to pay off student loan debt, or in order to get a nice car or to spend more on clothes, alcohol, and novelties.
The government likes this because the entire tax extraction process is designed around this system. Even bonus pay is taxed at a higher rate, like lottery winnings.
But there is a way to use a corporate job as an out. If you can manage to get a nice-paying job, not rack up debt or long-term obligations, and save, then you have the freedom to turn that saved capital into freedom.
This doesn’t work if you save up just to travel or buy a house on the beach to pursue the #SurfLife. It works if your capital is used to create value.
Here’s an example from my own life. My sister worked a corporate job in Massachusetts and took out a home loan to buy an undervalued house. By improving the property, selling it, and moving to an area with a much lower cost of land, she was able to buy a nice chunk of property without needing a loan.
That piece of property is now being used as a mini-farm with various avenues for making money. She is now her own boss and can pursue more personally fulfilling ways of earning a living, which does not always involve fiat currency.
3. Regulations and Laws
Okay, so let’s say you have managed to avoid debt, and have saved up enough from your corporate employment to start your own enterprise. The government creates barriers to competing against their corporate lovers.