Retail Revenue and Government Corruption

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I work in retail. That means the business I work for makes money by buying stuff and selling it at a higher price to people.

In order to make more money, retail companies focus on revenue. Yes, profit is important, and vital, but revenue is how you get profit. If a retail company does billions of dollars in revenue, and makes a 1-2% margin on that, then that is hundreds of millions in profit. If the same company did hundreds of billions in revenue, then it would make tens of billions in profit.

When analyzing a market, it’s vitally important to figure out how much money there is. For instance, we won’t go into the selling pork to Kosher Jews market because there’s simply very little money there. If we managed to some how sell it at all, it would only be a few hundred dollars worth, with profits of a few dollars. Pointless. So we completely avoid that market.

But selling toys near Christmas? Selling groceries and deoderant? Selling shoes and microwave ovens? These are markets where hundreds of millions, and sometimes much, much more is sold in revenue. Capture a good chunk of these markets, and you make millions upon millions in profits.

The same is true in government. If there is a government with a limited budget, then, surprise, surprise, there are no lobbyists. Lobbyists don’t show up at some unknown county of population 50. Why? Because even if you taxed those people to death, you’d probably make only tens of thousands of dollars. And out of that money, you could probably only transfer a small percent to your pocket.

But if you have a government with millions or hundreds of millions of people, all who can be taxed to the tune of billions and trillions of dollars, why, belly up! A small percent of that is enough to set you for life.

The solution to this problem is rather simple. All we have to do, as a people, is limit the size of government.

Imagine a federal government that took Articl 1, Section 8 seriously. Imagine a federal government that had a cap on taxing and spending, a cap set so low that there was barely enough money to fund the military and federal courts. Would you have international lobbyists clamoring to get a piece of that action?

No, or at least, there would be far fewer doing so.

We, the people, have ultimate control over our governments. If we demand that they limit spending and taxes and thus limit the size of the government, they will do it.

However, we must ensure that we are not “on the take” ourselves. We must severe our finances from the government’s finances. That is, if our livelihood depends on the government growing each year, we are part of the problem, not the solution.

In a very short time, probably 2 years, Social Security will go bankrupt. Medicare is already bankrupt. The problem is that we cannot sustain the level of spending because no one in the entire world is willing to loan us the money. We have long ago left the point where we can fund government operations on taxes alone, so once people stop loaning us money, we will be forced to dramatically cut spending.

You may have experienced this in your personal finances, or someone close to you has experienced it. You live the good life until your income drops or you are spending more than you earn. Then the banks and credit card companies offer to help you make ends meet until your earning can match your spending. But eventually, they stop loaning your money and start demanding you pay back what you promised. You are forced to stop spending because you no longer have the power to buy.

My point is that if you depend on government spending for your livelihood, whether that is Medicare and Social Security, or a government job, or a job funded by government spending, you will eventually be cut off. So rather than wait for that crash to come, it’s better to cross the line, leave the government business, and demand that government dramatically cut spending and taxes to the point where lobbyists disappear.

One of the best side-effects of having government dramatically cut is that the private industry blossoms and is soon outpacing all of the most positive outlooks.

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