We have almost always been governed by the “American System”
This is a three part system.
Step 1 – A private elite class of people are put in charge of the monetary system. They always have access to the national treasury and are trusted to keep things in order. (Central Bank)
Step 2 – The central government borrows money from these elites to engage in “internal improvements” or expansionist war. This public debt is the glue that holds society together. (According to Hamiltonian Federalists, just ask one!)
Step 3 – The government puts in place various excise taxes (income tax) on the people to make interest only payments to the elite class, being careful to never pay off the all important public debt.
Who wins with this system?
The Elites win because they can insure a constant growth in wealth and power as long as the public debt is maintained.
The government wins because they don’t have to depend on taxes to fund their expansionist projects. This system allows the government to leverage their projected tax revenues into a credit account which multiplies available money for spending by 20-30 times.
The people are suppose to win because they will be taken care of from cradle to grave.