Kindergarten: First Day

Hello, Boys and Girls. I’m your Master, so I take the ‘rent’. After I have my rent, what is left is yours. We call this your ‘wages’.

Now, the government needs to build things and to keep them working; such as roads, schools, hospitals, power and water. OK? We call this ‘infrastructure’. Infra-structure: that’s a big word, isn’t it? So, we may need to take a little from your wages to pay for infrastructure.

The bit that comes out of your wages is called ‘taxation’. Taxation is also needed to protect the value of the money, or ‘currency’, that you may have left to spend from your wages. If you don’t have any money left to spend, you may borrow some from a bank. A bank will lend you some.

OK, boys and girls; that’s how things work. So, do you have any questions?