Who has the right to impose taxes on us?

The supply of money (number of dollars in circulation) is probably the least understood and most powerful aspect of the economy.

When the Fed Reserve began printing dollars in 2008, it broke the mold and unleashed massive inflation on every citizen by devaluing the purchasing power of each dollar. The people in charge enacted Modern Monetary Theory without debate, without regard to the devastation they would unleash.

It took a decade, but that devastation is obvious in the inflation we feel today — in other words, in the devaluation in purchasing power of every dollar. This devaluation is the inevitable outcome of the Federal Reserve printing U.S. dollars.

But the story gets worse. In order to balance the excess dollars the Fed printed (Q.E.), the Treasury Department issued treasury bonds. These bonds are debt on every citizen. So not only did the Federal Reserve devalue every dollar in circulation, but the Treasury Department burdened generations with crushing debt. This is our government at work. So much for protecting the individual...

We need to question why our government would do such terrible things. Why put every citizen into crushing debt and why reduce the purchasing power of every dollar that citizens have earned and saved?

The answer is simple: to allow Congress and the president to spend this funny money on entitlements, welfare, student loan forgiveness (debt transfer), and illegal aliens. It is also to get re-elected, so they can remain in a job that amasses power for them.

I think we should view the issue of federal action (laws, regulations, taxes, fines, and the Administrative State) through the lens of the Constitution. According to the Constitution, only those who must stand for election are allowed to assess fines, regulation, laws, and taxes against their fellow citizens.

This constitutional feedback loop (only politicians, who must stand the election process, can asses tax on citizens) is the ultimate method for control of government by the citizen in every election. Control and restrictions on the government are the entire reason for the Constitution. This profound document was created to protect the individual from our own government.

So the regulator, bureaucrat, politician may have good intentions, but he is not allowed, in the Constitution, to exercise any control over the individual. And when he does, his actions are illegal.

Individuals, in order to have freedom, must also take responsibility. Abdicating that personal responsibility to another is a dark spiral to control by another entity. Freedom is not free.

Next time we ask an agency of our government for help, we might want to think about it first. Just maybe the government is not the right place for solutions. The solutions to problems resides within each citizen.

It is fascinating that rational and deep thinkers, over 300 years ago, would have the foresight to provide today's solution.

Jay Davidson is founder and CEO of a commercial bank. He is a student of the Austrian School of Economics and a dedicated capitalist. He believes there is a direct connection between individual right and responsibility, our Constitution, capitalism, and the intent of our Creator.

Image via Pixabay.