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Archive for November 4th, 2011

Politicians in Europe have spent decades creating a fiscal crisis by violating Mitchell’s Golden Rule and letting the government grow faster than the private sector.

As a result, government is far too big today, and nations such as Greece are in the process of fiscal collapse.

But that’s the good news – at least relatively speaking. Over the next few decades, the problems will get much worse because of demographic change and unsustainable promises to spend other people’s money.

(By the way, America will suffer the same fate in the absence of reforms.)

Here’s on stark indicator of why Greece is in the toilet.

Look at the skyrocketing number of people riding in the wagon of government dependency (and look at these cartoons to understand why this is so debilitating).

By the way, Greece’s population only increased by a bit more than 16 percent during this period. Yet the number of bureaucrats jumped by far more than 100 percent.

And don’t forget that this chart just looks at the number of bureaucrats, not their excessive pay and bloated pensions.

With this in mind, do you agree with President Obama and want to squander American tax dollars on a bailout for Greece?

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Most of us are aware that America has a punitive corporate tax system, but here’s a sobering bit of analysis. Corporations pay more money to governments than they do to their shareholders.

Here’s a chart from a recent Tax Foundation analysis.

Now here’s something even more important to understand. Corporations don’t actually pay all those taxes.

Yes, they collect the taxes and forward them to various tax authorities, but the burden of business taxes is borne by workers, consumers, and shareholders.

Something to keep in mind as the moochers and looters demand higher taxes on companies.

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