Further to our last, it says something about the politicians
of the G-20 that they did not agree a single measure to help business directly
– despite their nominal agreement with the obvious truth that a revival of
business confidence is the only way out of the recession.
On the contrary, this is an early warning to prepare for the
negative effects of at least two of the measures that were agreed.
First, “better regulation” is supposed to be aimed at the
big banks, but experience tells us that bureaucrats always use such appeals to
populism as pretexts to impose what they have long wanted to do to the rest of
us. Indeed, the history of regulation is that its intended targets usually
escape, and the soft targets of small businesses and individuals end up as the
Second, the recession is in no part due to “tax havens”,
but, once again, the bureaucrats have a pretext to do what they like to do:
control. By making capital less mobile, they will have less fear of the
economic consequences of raising domestic taxes.
So, while we can be certain that the seriously wealthy will
still be able to move their money around, those at lower levels will find it
harder – and so will end up paying higher taxes.
Get ready – the really hard times have yet to begin.