Think about it like this. If a >70% consumer economy has a near depression and the government choses to increase spending to give to a genuine bum on welfare, that potential consumption now substituted for taxation could drive a person who has a job in the consumption related industry out of the business. So then that man needs welfare, the government has another deficit and so on...
"God forbid such a day"? Sounds like your head is in the sand also. You're smart enough to KNOW it's coming.
Know what's coming? Default? That's what we're actually talking about here, right? A government wide default on debt. Because we can talk about all the debt the country is taking out and how we're burdening our children with this and that, but at the end of the day, the country will just default, throwing the world into financial chaos. Maybe that's what needs to happen in order to clean the system and get one world currency, etc. Who the hell knows? All I know is that the "future" is far more complex than any of us who claim to know what's coming, can foresee.
Same argument my wife makes. "You don't KNOW you're right"... True, but that's the reason we study history. While we don't KNOW the aspects of "financial chaos", but there are LOTS of historical examples of "government run amok".... always [almost?] leads to print-money, currency destruction, bankruptcy of those whose assets were denominated in the bankrupt currency... So... we just watch sit in front of our big screens watching American Idol, chomp our Big Macs and "HOPE everything turns out OK"?
You are thinking in terms of People rather than Capital. Capital is much less emotional; it goes where it is welcomed & where opportunities exist. Taxes stunt opportunity; it lowers the return while raising the cost of business. At some point, you can choose not to work, structure yourself so that taxes are minimized, etc. You are mush less dependent upon "change, hope or bullshit." The attacks on Lichtenstein (via the Huns) & Switzerland accounts were essentially tightening of capital controls. The gov't knows how capital will react.
Good point, I would also add that besides not to give a damn we know there are other ways to work around the system to lessen any detrimental impact.
Delusional. Unless your assets are out of the destroyed currency, you're still toast. Very, very few will accomplish it.
Many countries such as Belgium, Italy and Japan have (had) debt to GDP ratio's of 100% or higher or are well on their way to blast trough those previous highs. As worrisome those numbers might appear the good thing about it if you will is people in those countries have learned a long time ago to look out for themselves and obtain a healtier balance sheet then their countries either by tax evasion, high savings or a combination of both. I guess this is why some Americans are so cell-shocked about the debtload Uncle Sam is taking on and the same actions get prety much barelly any notion elsewhere. We never know any different just as Americans have always known US debt to be triple A.