Utilities, taxes, public debt

Utilities

One by one, the government was forced to take these services on their own. Teachers, doctors and many others became public servants.

Few were satisfied with their work in the state. Receiving a reasonable wage, but lost their identity. They became small cogs in a giant machine.

No room for personal initiative, little recognition for effort, their income was fixed and only rose when a superior retired or died.

Taxes desperation, the governors decided to seek the advice of Fabian. He was considered very wise and seemed to know how to solve money matters.

Fabian listened to them explain all their problems, and finally answered, "Many people can not solve their problems themselves - they need someone to do it for them. Surely you will agree that most people have the right to be happy and be provided with the basics to live. One of our great sayings is "All men are equal" - is not it? "

"Well, the only way to balance things is to take the excess wealth of the rich and give to the poor.

Introduce a system of taxation. The more a man has, the more you pay. Collect taxes from each person according to his ability and give to each according to his need. Schools and hospitals should be free for those who can not afford them. "

Public debt He gave a long talk about high ideals and finally said:

"Oh, by the way, do not forget you owe me money.'ve Been borrowing for long. The least I can do to help is, as attention to you, I only pay the interest. We leave the capital and debt only pay the interest. "

They went out and without much discussion of the philosophies of Fabian, introduced the graduated income tax - the more you earn, the higher your tax rate. No one liked this, but they either paid the taxes or went to jail.

The new taxes forced traders to raise prices again. Wage earners demanded higher wages which caused many businesses closed, or to replace men with machinery. This caused additional unemployment and forced the government to introduce more welfare schemes and unemployment insurance.



source: economia.com.mx