The generation effect is the apparent drifting of the definition of “Normal” due to the reference bias of each new generation.“It has always been this way”.
In other words - the set of values that you are born with become prime reference for the rest of your life.
In the early 1980’s in California, waitresses did not have to pay taxes on their tips.
In the mid 80’s a new law was passed and from there on waitresses had to include their tips in their income taxes.
This was not “normal” for anyone of that generation.
However, the next generation grows up with this new criteria and accepts it as the norm.
“It is normal to pay taxes on your tips” becomes the new status quo.
This has a debilitating effect over time.
Applied to our present government - it (among other things) ENABLES politicians to keep gradually raising taxes indefinitely.
Sometimes known as “salami tactic” - to gradually take something away -one slice of salami at a time - until there is nothing left. If the “slices” are kept small, the current generation does not notice and is more likely to accept the loss.
A similar analogy is the “Frog in boiling water”:
If you toss a frog into a pot of boiling water – he will immediately jump out of it.
However, if you put the frog in a pot of cold water, and slowly heat it up to the boiling point – he will stay in the pot until he dies.
If we take a look at our social security system you can see how our present day politicians are exploiting the generation effect to effectively apply the salami tactic to our taxes.
Because our politicians constantly devalue our dollar with dubious tax schemes and an even more dubious “Federal Reserve” the buying power of the dollar decreases over time.
If that isn’t bad enough – we now add one more negative dynamic on top:The present method to pay off debt , is to borrow money from the Chinese.So to pay off last year’s debt, our politicians borrow more money and INCUR MORE DEBT.DEBT ON TOP OF DEBT = MORE DEBT in an ever increasing spiral upwards.The net effect of this is that the next generation has to pay the last generation’s debt.The politicians therefore “project” what they need for next fiscal year – which is more new taxpayers to pay for the last round of delirious borrowing.In simpler terms – they are paying off one credit card with another.The very sad thing about this is:They are ENSLAVING future generations that aren’t even born yet to the debt machine known as our fiscal policy!
In order to counter this, more and more NEW taxpayers are needed. So in effect, the next generation has to pay for the previous generation, because the previous generation’s money has devalued over time.
This need for a perpetually growing pool of new taxpayers is what the politicians call “growth” and it is nothing more than a pyramid scam over time.
If time is the horizontal axis, the pyramid lays on its side as in diagram below:
Any system based on “growth” is a pyramid scam.
Growth in a politician’s mouth is nothing but newspeak for Pyramid Scam.
This is what’s happening in present day America.
Taxes are constantly being raised, and new taxes and fees are constantly being made.
This, all to combat the devaluation of our money due to:
- politicians misuse of taxes
- misappropriation of funds
- The Federal Reserve
- And many more
The real criminal part about this is the absolute failure of our politicians and so called "leaders" to address this FAILURE.
Raising taxes is indicative of a broken system.
When politicians obey the laws of nature (like a gold standard for our money) and practice sound fiscal policies (just google Ron Paul) there is absolutely no reason we cannot beat or entirely control inflation and the resulting devaluation of our currency.
The best analogy for this is the “Flat Tire Syndrome”.
A bicycle has a flat tire, you can:
- pump more air into it
- fix the hole
2. If you fix the hole - problem solved.
What we are doing is 1. constantly pumping more air into a tire with a hole in it - “System Defect”.
Instead of fixing the hole - we are constantly asking for more air - from the taxpayer. And then more air, and even more air on top of the air as the hole gets larger and larger (due to inflation etc.).
This method is ignorance of the defect, and can only work temporarily for a short time.
And that is exactly the problem - Refusing to fix the problem:
TOTAL DENIAL OF REALITY