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Guns or Health Care?

January 7, 2010
Jake Towne

Throughout time, governments have strong tendencies to simultaneously splurge on both domestic spending and the more sinister business of warfare. This is referred to as the “guns versus butter” economic model. “Butter” is synonymous with domestic spending, while “guns” is synonymous with military spending. As with any economic goods or services, there is always scarcity of labor, machines, raw materials, land, et cetera. Individuals find it very easy to understand that if you want to spend 100% of one’s resources on “butter,” no “guns” can be purchased or vice versa; there is always a trade-off. Steel can be formed into either a refrigerator or a tank; it can not be used for both.

Now, by their very nature, GOVERNMENTS HAVE NOTHING; they must tax, expropriate and leech from either its citizens or tributaries in order to perform any action whatsoever. However, governments have locked onto two monopolies that are the key to their powers. In addition to the monopoly on the use of force, modern governments, through central banking, have monopolized control over the production of money. While, theoretically, governments can create and then spend whatever amount of currency to obtain as much “butter” and “guns” as they wish, practically-speaking they must still obey economic law since scarcity exists.

The story continues …..

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