Another big fall in world markets, billions will be wiped off and Greece is tottering on the brink of total economic collapse. Good morning!
Some European countries which were supposed to be examples of how society ought to distribute wealth more equitable are now being lined up to fall like a row of dominoes set up on the dining table of good and well intentioned but un- equitable sharing of the rich Euro baked pork dish with crackling good social security till the grave.
What went wrong? Was it the apple sauce?
The answer might well come from the dining table itself. The excessive ladling out of all those goodies without balancing it to an equal generous increase in taxation revenue was always dodgy. The expenditure didn’t match the income. A classic case of economic delusion that one can live beyond means was always a premier lesson at the kindergarten of economics. If you keep scooping the sand out the sandbox will finally be empty.
The lure of getting more with less income seemed to have overtaken the world of capitalism. Election after election the sound economic principles of setting expenditure to income was eroded away. The voters swallowed it like marsh-mellows on a stick held above the fire of greed and avarice. Right wing governments took over with the promise of more for less and we were all seduced by this ugly Judas kiss. And look at us now? Will there be blood on the streets once again?
With Portugal and Spain queuing up after Greece with youth unemployment at a staggering fifty percent it seems to be hovering on a similar precipice into economic collapse.
In Australia we keep rubbing hands together with glee in how we seemed to have escaped the GFC turmoil with our scooping up of mineral resources. In the process we seem to forget that this is due to luck much more than sound economics. Take out China, and we too would be lining up at soup-kitchens.
Are we too taken in by the lure of more for less? Notice the upheaval in the suggestion of raising taxation on our resource mining companies. Notice how the Three hot headed Musketeers of our resource companies have taken on Australia and its citizens daring to utter getting paid a fair share of the economic resource pie. Notice too, how the principal of taxing those that defile our environment is fought against tooth and nail. Millions are being spent in advertisement opposing this very sound and principled way of making the environment spoilers pay for it. We too are cruising for a bruising being taken in by the fairy floss of more for less.
At least in Europe there seems to be a return to the left with new governments willing to find a solution in bringing the rich back to the kitchen table of give and take. In France, the rich will have to pay much more tax and many are questioning how anyone should have more than they can possibly need. Capitalism has gone berserk and the masses are paying for the sins of the rich. The poor, for too long have been denied a share for which they have worked just as hard as the rich, which, in the majority of cases inherited the wealth enabling them, with the regimes of lower and lower taxation, to keep on exploiting handy taxation loopholes and fattening themselves on the pork crackling of lenient taxation laws.
It is not for nothing that the collapsing economic capitalist world is looking anew at Scandinavia. They were always looked at askance and with suspicion. How could a taxation regime of over fifty percent continue to thrive giving its citizens a world of social welfare that would sooner or later end in total collapse and disaster? Well, the Scandinavians did not and now seem to own the only beacon of light and insight in perhaps having a solution for those countries on the brink of economic disaster.
We should perhaps look anew at those prophets of lower taxation being the only way forward. Just look how, with the new budget, we have delayed Foreign Aid? We have the top three wealthiest in our society owning over 30 billion. Or is it 40 billion now?
How just is our society and how moral when we can’t support foreign aid anymore and at the same time support not raising taxation for the obscene wealthy?