[karlwig]

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The problem with government is that people with money can easilly make more money, while poor people rarely get richer.

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Under capitalism, all a poor person has to do to become richer is produce more than they consume and save the extra.

Government make sure this is impossible by taxing the poor so heavily that it is very difficult to produce more than you "consume" (including the paying of taxes), so that it is impossible to save, and the poor are made to be dependent on government "services". Taxing the poor outright isn't very popular though (although it is done; the 15.3% FICA taxes, for example), so it's best to do it with hidden taxes and taxes that weigh more heavily upon their standards of living, like inflation, embedded taxes in goods and services, gasoline taxes, property taxes, sales taxes on food and clothing, etc.

And the only way for a rich person to make more money under capitalism is to employ it satisfying the needs wants and desires of others, most importantly the poor; who collectively have far more purchasing power than the rich. Ask WalMart. There is far more productive capital employed producing Fords and Toyotas than is employed producing Ferraris and Lamborghinis.

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I don't quite get what you're saying. Is there a problem having a goverment? Would everybody be better off if there was no tax? If you think so, I'm really interessted in knowing what sort of society that would be. Of course there would be no public schools, making it very difficult for poor peaple to get a real education in order to MAKE money.
There would be no police, or are you suggesting a free market-ruled police force? What about the military?

I really hope we agree that to SOME degree, it's important to have a goverment that controls things.

Of course you're right in all the positive sides of a free market. Just so you know, I'm not arguing for not having capitalism. But one of the downsides of capitalism is that it makes huge gaps between rich and poor. Therefore I think it's important to combine capitalism and socialism in order to create wealth and growth for all people.