Marc Faber :
In order to exercise control over the population, governments throughout history have made people dependent on government largess.
A government can make an increasing number of people dependent on its generosity by providing more and more benefits to a larger and larger share of the population. Because of these “freebies,” people will go along with the government’s enlargement as a percent of the economy.
The masses believe in their free lunch and because the business elite knows it can profit from the growth in government. However, there comes a point at which the “nanny state” becomes unviable. Raising taxes to pay for the freebies become problematic. Fortunately for the governments, they have a Treasury and/or a central bank that can print money and monetize the government’s debts.
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
