An alternative to popular faith
4/12/10: “WASHINGTON (AFP) – The US Treasury Department said Monday it would place its remaining holdings in Wells Fargo and five other bailed-out banks on the auction block over the next six weeks. [...] ‘The proceeds of these sales will provide an additional return to the American taxpayer from Treasury’s investments in these banks beyond the dividend payments it received on the related preferred stock,’ said the department headed by Secretary Timothy Geithner.”
If someone repeats a lie often enough, they even begin to believe it themselves. You, dear reader, are a taxpayer, and you will not see one cent of that money. It will not lower your taxes. Nor will it lower your children’s taxes. Nor will it enable the federal government to spend more on other projects. Nor will it have any positive effect on you or the nation, whatsoever.
In fact, that auction will cost you money, because whatever money the federal government receives from the private sector is a de facto tax, and taxes do not add to taxpayers’ money. When those millions (billions?) come out of private hands, they will disappear as notations into federal balance sheets, reducing the total money supply, and inhibiting by some degree, economic growth.
Less growth means less money in your pocket. (Remember, this is the same government that added money to stimulate the economy.)
Any time you hear a government official or media hack say that money is going “to taxpayers,” realize this: It’s a great, big, fat lie, and it’s going to cost you.
Wait! I wonder whether Geithner isn’t lying, but really believes that “taxpayers’ money” nonsense.
Rodger Malcolm Mitchell