The eighty/twenty rule is, of course, a generality. In the UK the most recent information is that 15% of taxpayers pay 64% of all taxes; this would translate more like a twenty three/seventy seven rule.

If countries worked like companies, then the people paying the most taxes would have the most say on how the country was run; however, in democracies, – after the lobbyists, the newspapers and individual political donors ( who of course,as a group, primarily run the country) the people who pay the least amount of taxes have the most say in how the country is run   This very fact means that – after satisfying  this group’s demands (i.e. continuously finding new wars to wage to keep the armaments factories running and profitable, etc)  – the majority of citizens are forever demanding services and benefits that the country’s fiscal income cannot ever afford. The government’s in power, in an attempt to get re-elected by caving in to these demands find the solution is to just keep printing or borrowing money to pay the bills until such time as you cannot borrow OR print any more money; an example of the borrowers are the PIIGS and the printers of money are the countries who can: The USA and the UK, etc. al.

The U.S.A. is so addicted to printing money that – like a junky –  their current total taxation income cannot even pay the interest on their 16.7 TRILLION dollars of debt and the only way to stay alive is to keep raising the debt ceiling so that they can get another FIX. The city of Detroit has just declared bankruptcy, can the USA be far behind ?


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s