Monday, December 3, 2012

Government Chaos vs. Free Market Anarchy

Mario Monti is the Goldman Sachs minion the powers-that-be tapped to run Italy. Since in capitalism bankers cannot operate without bailouts, and bailouts require tax receipts, Monti is actively shaking down productive Italians to gather more money for Goldman Sachs.  If they cannot steal it one way, then another.

Like Google, Boeing, Apple, Microsoft, Fiat and countless other businesses, Dolce and Gabbana structured their operations to avoid taxes, according to the law.  They were investigated starting in 2007, and found nothing amiss until Monti became the Italian prime minister.  Now they are on trial.  As the article states:

"Some measures adopted by the government against tax evasion may seem like war measures and, in reality, they are," Mr Monti said last month.
His predecessor, Silvio Berlusconi, was famous for his soft stance on tax evasion, even suggesting that it was justified if tax rates exceeded a certain level.
There you go.  Productive members of society, the ones who generate goods and service in season and out, not matter what happens in Washington or Wall Street, or in the case of Italy, Rome or Milan.  There is no rule of law.  The government brings only chaos to what would otherwise be the spontaneous order of the free markets.  And it is selective enforcement, going after only high profile people, trying to terrorize everyone else (recall the war comment above?)  The tax collectors actually relieved a soccer foreign soccer player of his Rolex watches on some charge of evasion.

In ancient Rome, as it fell, Italians escaped to the anarchy of the barbarian lands.  If they were captured, they were sent back to work their farms or trade, so they could be taxed.  Here is a delightful history by a tax lawyer, who is misapprehends the relationship between taxes and civilization, but is an excellent reporter of the facts.

Our economies are simply a reflection of the health of our country.  We cannot pay back the debts, which means they will not be paid back.  The way out is freedom, but some 54% of the American people scream "more war! more taxes! more surveillance! more free stuff!" because they can always find a job there.  The other 46% knows they will always be outvoted, such is the nature of democracy.  If things get worse, they vote for a strong-man.  And things will get far worse.  The way out is freedom, freedom to contract, freedom from force or fraud, or both.  If you examine any unit of the United States currency, you'll realize it is both force and fraud.

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