In trying to reassure all of us that the banking system is sound, the government has said that it will see to it that everyone who deposited money in the recently failed SVB will be able to get their money. This covers all deposits even above the $250,000 per deposit that has been advertised by the FDIC as the limit to such protection. But our president assures us that this financial hit will not be paid for by the taxpayers but by the banks that will just put more money into the FDIC fund to cover this unexpected need.
But wait a minute. Banks can’t print money. They can only get additional funds from their customers (also known as American taxpayers) so various fees will go up, interest rates on deposits may be lowered, and all the other ways banks have of getting money from their customers will change. The net result: we the average taxpayers will in fact pay for this.
This is the same as every time we increase taxes on businesses. They can’t print money either. The only way they can get more money to pay for additional taxes is to charge the consumers more or cut back on what people get for their money. Again, when the dust settles, all this new tax money comes from each and every one of us.
Every dollar the government spends can only come from us the citizens even if it takes a torturous path through the pockets of others. Any politician who says something additional will not cost the average citizen anything is lying, dumb or delusional or some combination of the three.
Dick Sakulich, Doylestown
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