Having spent all the money they can possibly borrow, the West’s rapacious governments are, like a drug-addled addict, desperate for more. To that end, taxes are on the up and a mantra of wealth redistribution is at the top of political wish lists.
This is of course a woeful state of affairs as the ability of governments to spend other people’s money wastefully is endless. The ability of governments to spend other people’s money in a useful fashion has always proven limited. The road to prosperity involves empowering innovation, small business and bottom-up growth. Top-down government meddling and rapacious taxes don’t help.
Therefore, from America’s basketballer-in-chief to Francois Hollande, the first custard pie of the Elysee (or whatever France terms him), a delusional race is on for more tax. Wage earners are already being clobbered and await more misery. Meanwhile, EU savers remain in danger of confiscation. The Cypriots have already lost out, while the Hungarian and Polish governments have engineered de facto theft of pension funds. IMF memos are already suggesting the only way to pay down the mountains of European debt will be to steal the people’s savings.