Bitcoin and Big Government

Although re-written and edited by a human being, the information in this article was generated by ChatGPT and is based on an original transcript from the ever informative YouTube channel called Bitcoin University - the link to the original video can be found here: https://youtu.be/LUW6Pw14qUQ?si=mYBcoULkkhMXjrF0

I'd like to discuss how Bitcoin addresses the issue of oversized government. One way we can characterize "big government" is when it wields a substantial influence over the economy due to its significant portion of GDP spending. The trend of federal spending as a percentage of GDP in recent years, hovering between 20 and 30 percent, signals a government's considerable impact on the economy. Such a scenario can be indicative of an excessively large government.

But how is this "big government" funded in the Fiat era? The method might surprise you – it's not solely through taxes, as commonly thought. Raising taxes can be a politically challenging endeavor, leading to public discontent. In contrast, increasing the money supply via money printing requires little effort. The Federal Reserve (Fed) prints new money to buy U.S. debt issued by the U.S. Treasury. Though some intermediary banks are involved, the core process involves printing more U.S. Dollars, which are used to monetize the federal deficit spending. This mechanism, often referred to as "revving up the money printers," occurs without public knowledge, as such details are typically absent from government education.

The consequence of a large government can be problematic. As government spending assumes a significant portion of the economy, it becomes possible for individuals to manipulate the government to resolve personal issues. This phenomenon engenders a highly political environment, leading to government intervention in every facet of citizens' lives. The enticement of wielding a centralized, potent government encourages individuals to employ it as a weapon against adversaries or as a means to support their projects.

Consider the example of medical treatments. By leveraging government mandates, people can enforce medical requirements for employment or education, extending government influence. This governmental overreach manifests in other areas as well, such as agricultural subsidies and nutritional recommendations. The U.S. government subsidizes crops like corn, soy, and wheat, which later appear as staples in dietary guidelines. The disconnect between government actions and their implications on health and well-being is evident.

The central issue is that government opinions matter disproportionately to some, despite the government's frequent shortcomings in various domains. Government mismanagement, as seen in areas like the postal service and road maintenance, underscores the need for skepticism toward its opinions. Yet, in the Fiat era, a significant number of people value government opinions for two reasons: wielding the government for personal projects or succumbing to government-sponsored education and media manipulation.

Another critical issue revolves around renewable energy, as intermittently available sources such as solar and wind create grid instability. When solely reliant on these sources, grid reliability becomes untenable. Combining intermittent sources with natural gas and nuclear power becomes essential for grid stability.

Furthermore, the military-industrial complex highlights the extent of Fiat-based funding for perpetual wars. If the U.S. government were required to fund its wars through tax revenue rather than printing money, the financial burden would be more evident. For instance, the war on terror, which cost an estimated eight trillion dollars, demonstrates the government's ability to engage in extensive conflicts without direct financial accountability.

In contrast, under a Bitcoin standard, governments must convince or force citizens to contribute Bitcoin for funding. Printing money becomes unfeasible, and governments may need to mine Bitcoin or provide valuable services to obtain it. Consequently, Bitcoin defunds government overreach by restricting its financial resources.

In summary, while governments play a fundamental role in safeguarding society, their size has become problematic due to Fiat-based funding. Bitcoin's emergence offers a solution by constraining government funding, encouraging economically viable projects, and curtailing excessive political intervention. A Bitcoin standard could usher in an era of balanced government involvement and ensure that economic decisions align with broader societal needs.