Sunday, July 17, 2011

Unintended Solutions

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.


Tyrone said...

San Francisco Courtroom Lay Offs

Jim in San Marcos said...

Hi Tyrone

It's a good place to start cutting. Not sure how it will end up. You could be dead and buried before your case hits the court docket.

Thank you for the link.

Anonymous said...

Australia is a good choice-
Had a chance to visit there.
Everyone speaks English.
They actully like Americans(!).
Crime rates are low.
They do not think that their government should be policeman for the entire world.
Aussies are not big into working long hours. If you go over there with some ambition, and are willing to work hard, you will do very well.

dearieme said...

The cities with the best climates (Mediterranean) are Adelaide and Perth.

frakrak said...

Jim one such country is China, their one child one family policy will have huge influence on their economy in about 15 to 20 years. They will have an even larger ageing demographic than Japan. Lots of oldies and no SS. Governments have a wonderful track record with getting involved when they shouldn't and sitting on their hands when they shouldn't. I do see that Australia and the U.S. having some outstanding opportunities together,its not going to be rocket science to see, so come on down :)

AIM said...

It's not going to be the end of the world. But it will be the end of tricky accounting methods and maybe the end of democracy (due to those tricky accounting methods). Soon everyone will have to face the fact that there really isn't any money. It was all pretend.

The individual is always more sane than the group. Which is basically what I think you are saying about our government and unintended consequences. American youth will flee to Australia, New Zealand, China, Singapore, Costa Rica, Panama, Brazil, etc. (If one of these countries were real smart they would set things up for easy citizenship so Americans can then renounce there US citizenship and disconnect from paying taxes.) This is where I see things heading.

Europe crashes first. Then America. America becomes fascistic (big business and government merge). The youth flee to greener pastures.

From the aspect of evolution... We threw off monarchs for government. What will be throwing off government for?


Jim in San Marcos said...


Australia, New Zealand and Brazil sound good. Panama is way too hot and China might seem like a jail.

I'm not as certain as you about Europe dropping dead first, but we can hope and keep our fingers crossed. The game is pretty much over. Raising the debt limit doesn't raise any real cash to pay these accumulating bills.

I think there is a real problem with our concept of Democracy. It has changed in the last 200 years. The team effort is gone, and the direction we travel changes every election. It could lead to a Fascist state, people have lost faith in their elected leaders. I know I am tired of losing my rights to minorities. The majority no longer rules. Being an American and also being a minority, gives you two votes to my one.

Anonymous said...

What will we throw off government for?

Maybe groups of people in this country will start their own communities with their own currency, etc. and become self sufficient and begin to ignore state and federal government.

Maybe they'll be protests, opposition, skirmishes, etc. and the Feds will be afraid to go into these areas just like they were earlier afraid to go into the mountain areas where there were stills and rum runners. Tax collectors used to go missing or get lynched. For some reason these concepts warm the cockles of my heart.

Texas could secede and become its own country. There are actually people working on that.

raptor said...

You nailed it... I prefer to buy at least most of the electronics and books online, not only no sales taxes, but also in majority of the cases it is cheaper and get delivered back to your door.
What is not to like it ;)