Governments worldwide try to run their economies and regulate the interaction of their citizens. Most of the time the people are smart enough or are forced into an action that defeats the State's intended outcome.
We have the European Union of PIIGS trying to get out from under all of the burdening debt. Who gets to pay their bills? How do they get out from under the burden? The young can pick up and move to another country. This exacerbates the problem; these were the very people the countries were counting on to pay future taxes.
Students in the US can’t file for bankruptcy on college loans. Their paychecks are subject to garnishment. Even in death their estate will be used to settle those outstanding student loans. The obvious solution, pick up and move to another country. Our country invests in their future and leaves them only one option; emigrate and escape the chains that bind you.
States raise their sales tax rates. Now, everyone shops the local store to touch and feel the product. Then, they go on-line and buy it out of state. Retailers just love this concept.
Every year in the past, my wife and I got a customary 2 percent pay raise, and that didn’t happen this year. Our wages stayed the same, but just about everything went up in price. California increased the vehicle registration fees, so we sold that third car we hardly ever used. The cable company raised our rates for basic service, so we canceled that service. Raising prices or taxes does not guarantee increased income; you may end up with less. State governments during the Great Depression learned this the hard way.
The nations of our world economy have implemented financial smoke and mirror solutions to our present problems. They have little money saved in reserve. About the only thing we can draw from all of this, is that the expected government results, will not occur. As individuals, decisions will be made that will have far reaching results at the group level that were not anticipated. Net result, the politicians will be scratching their heads wondering where they went wrong.
Australia could become the new frontier for our young adults and anyone with a hell of a lot of student debt. Of course we need our young people to fight our wars and to work to help support our retired people (Social Security contributions). Kind of makes you wonder, where’s the incentive to stick around? Our manufacturing base left for foreign shores, our kids could be next.