Here's just a couple of places where tax money has huge benefits to economic growth in most rich countries:
1) R&D.
Almost all major discoveries and developments, especially in high tech industries come at public expense. From computers to aircraft to modern drugs, they all rely on years of publicly funded R&D to get to the point at which a commercially viable product is visible. The funding comes mainly through university, medical and military research. Spending tens of millions of pounds over 10-30 years on a research topic that has no obvious application or no certainty of success is not a practice that the private sector will enter in to any significant degree. The amount of tax money that goes into these schemes is truely huge.
2) Public works projects
A lot of improvements are simply out of the realistic economic stretch of the private sector or are unlikely to yeild sensible returns for the money spent on them. Interstate highways, train lines, subways, etc. the wide scale benefits of these can be immense. There is also massive government subsidy of a large range of industries to keep them going because the private sector is incapable of realistically achieving the desired goals. A lot of the richest people get their money from government supported businesses. This includes businesses from defence firms to farmers.
3) To Big to Fail
Large companies can take large risks because either they succeed and get loads of money or fuck up and the government bails them out. This free insurance plan for the ultra rich costs tax money.
4) A Happy Proletariat
Tax money is spent on a wide range of things that make the lives of the peons better. If tax money doesn't pay for them, either businesses will be forced into it or the mass populace will get pissed off enough to use their democratic power to force changes upon the rich. Ultimately there's more of them than there are rich folks, so make them unhappy enough and they'll use their democratic power to benefit themselves.
1) R&D.
Almost all major discoveries and developments, especially in high tech industries come at public expense. From computers to aircraft to modern drugs, they all rely on years of publicly funded R&D to get to the point at which a commercially viable product is visible. The funding comes mainly through university, medical and military research. Spending tens of millions of pounds over 10-30 years on a research topic that has no obvious application or no certainty of success is not a practice that the private sector will enter in to any significant degree. The amount of tax money that goes into these schemes is truely huge.
2) Public works projects
A lot of improvements are simply out of the realistic economic stretch of the private sector or are unlikely to yeild sensible returns for the money spent on them. Interstate highways, train lines, subways, etc. the wide scale benefits of these can be immense. There is also massive government subsidy of a large range of industries to keep them going because the private sector is incapable of realistically achieving the desired goals. A lot of the richest people get their money from government supported businesses. This includes businesses from defence firms to farmers.
3) To Big to Fail
Large companies can take large risks because either they succeed and get loads of money or fuck up and the government bails them out. This free insurance plan for the ultra rich costs tax money.
4) A Happy Proletariat
Tax money is spent on a wide range of things that make the lives of the peons better. If tax money doesn't pay for them, either businesses will be forced into it or the mass populace will get pissed off enough to use their democratic power to force changes upon the rich. Ultimately there's more of them than there are rich folks, so make them unhappy enough and they'll use their democratic power to benefit themselves.