Everything is connected.
If you raise taxes, people have less to spend.
They buy less.
This means that the producers produce less.
If the producers produce less, they don’t need so many workers, so they ‘let some go’.
The workers without work are now receiving benefit.
The government must get more money.
It raises taxes.
You see how this goes?
The whole money thing is a trick and it only works as long as we agree to raise the debt – our debt. When we don’t do this, the system starts unwinding since we start to spend less and you’re back in the vicious circle, simplified (I admit) above.
So, since about 2008 or 2009 it’s all been about ‘austerity’. And, look where that’s got us. Austerity means reducing debt. Reducing debt means spending less. And so on and so on.
The countries are run by ignorant fools. Them or the economists. Either way they’re all stupid.