The government will collapse without the private sector and the private sector will collapse without the government
Not many people realize this, but for a government to function they heavily rely on the private sector to create economic value. The state is simply insufficient in order to hold up an economy which has been proven again and again by history.
The same thing happens with businesses in times of crisis. Because of the division between stand-alone businesses, industry after industry is falling like dominoes.
When people have to stay at home, they get incredibly conservative… money doesn’t exchange hands and the entire economy comes to a halt.
This is the main reason why you see the government bailing out these big companies. They’re not doing it because of the kindness of their heart, they’re just looking out for themselves in the long run.
In times of crisis, the governments are turning to the private sector to keep us alive, for amazon to keep delivering your stacks of toilet paper, for alcohol companies to shift to creating sanitizer and industrial companies to build the tools that our hospitals are lacking because of the poor funding they’ve received in the past.
People are coming together like never before, raising money themselves to purchase masks, suits and ventilators for hospitals, because they can’t rely on the government to do it.
On average 40% of the value that a person creates goes to the government as taxes. The citizens want to see what is being done with that money and in times like this, we get to look behind the curtain and see that most of it goes to paying the salaries of state employees, towards re-election campaigns or get squandered away through inefficient and corrupt programs.
Every hospital out there is underfunded and is lacking the tools they need to do their jobs properly, so the question: Where did our money go?! Becomes more valid then ever. If it’s not available when we actually need it, what’s the point of all this?!
The businesses that paid so much money in taxes are now struggling and are looking for financial support to get through these hard times, but the government is yet again slow to respond.
Just to get things right: These companies are not asking for hand-outs, they’re asking for a % of the money that they paid in taxes to come back to them because they need it in order to keep the employees paid and the economy going.
If it comes to the private sector to save itself, why would they continue to pay the high level of taxes that you say are required, when they can better deploy it themselves to help their business and their communities?
This is part 5 out of 15 about a discussion on the world in the context of the coronavirus pandemic.
You can watch the full video here: