As developed (bankrupt) governments take more desperate measures to confiscate money from citizens to maintain their power and perks, real capital for growth will continue to erode, dragging down the economy and incomes. The resulting decline in tax revenue will prompt the govt to print more money to pay the bills, further eroding the purchasing power of citizens. The inability of citizens to put food on the table will continue to drive more crime and the growth of the crime-prevention business (including the “public-private” prison business).
There are many examples of the social unrest and crime that is caused by economies struggling with high debt and youth unemployment, and below are just a recent few:
– The number of “sliders” (and other brazen criminals) will increase as unemployment starts to rise again by 2016.
Govt always sees the crisis as an opportunity to bolster their power to reverse the trend, instead of possibly realizing they are the cause of the trend. Their predictable attempts to play God and economic engineers will only make the problems worse and increase the crime and revolts.
If politicians could ever consider themselves as the source of the problem, then we might have a chance. Unfortunately, they never will until they end up imploding the system, which produces a unpredictibale new govt that’s born from revolution.
Imagine a world of NO tax on income and a govt that only spends what it is able to collect in consumption taxes. Imagine if politicians were constrained by term-limits, and had to live within the laws they pass. The simplest of changes would unleash the creativity that made this county great…and we the citizenry can demand it!
Bill Still discusses the Direct Democracy movement in Ireland. Yes, it can work and it’s time!