If anything, government is an optimistic entity that automatically assumes that the economy will always do well, and perpetually and generously fill government coffers with an abundance of tax revenues. However, the decline and fall of the global economy has badly dinged tax collections. If folks aren't prosperous and making money, the plundering government's cut shrinks and shrinks substantially.
Government survives by either brute force or with the voluntary consent of the people because they perceive a value. But what happens when folks no longer perceive a value in government? Well, folks just opt out of the system, go underground and/or overtly or covertly indulge in non-compliance. When this happens, we see headlines and stories like this:
Island authorities denounce attack on tax police
ATHENS, Greece -- Local authorities on the Greek island of Hydra have denounced an attack by a local crowd on tax police after they detained a restaurant owner who did not provide receipts to clients.
The Friday incident happened after the inspectors wanted to transport the restaurant owner to Athens, an hour's ride away by fast boat. They were set upon by a local crowd, which also attacked the boat's crew.
The police, along with the restaurant owner, had to retreat to the island's police station, which was besieged until riot police arrived Saturday morning. Locals cut off the station's electricity and water supplies.
German opposition leader attacks Swiss banks
Gabriel, whose Social Democrats (SPD) have blocked a deal between the German and Swiss governments to levy taxes on German assets in Swiss bank accounts, told Deutschlandfunk that Swiss banking practices in Germany were comparable with organised crime.
"It's a serious crime," said Gabriel, the chairman of the SPD who may run against Chancellor Angela Merkel in the 2013 election. "We're talking about organised crime in Swiss banks (operating) in Germany."
Gabriel, who plans to make criticism of banks a centrepiece of the SPD's 2013 campaign, added the sentence for large-scale tax evasion in Germany could be as long as 10 years in prison.
Italy's tax hunters target super-rich and their yachts off the Sardinian coast
There used to be a time when Italy's super-rich gravitated to the smartest enclaves of Sardinia for a summer of relaxation and luxury. Not any more. In an increasingly austerity-conscious country, the yacht-owning classes are coming under increasing and unwelcome scrutiny, some of which would not look out of place in a scene from the film Apocalypse Now.
"We first spotted the targets with the helicopter's radar and closed in to identify about 50 boats off the two islands," said Italian coastguard captain Pietro Mele, describing a recent raid on yachts suspected of straying too close to the coast.
In a bad and worsening economy, such a situation is the sum of all fears for the government. Not only do governments lack the resources to fund entitlements and public services, they've lost the trust of the people who are waking up to another reality, namely, that a big spending corrupt government wasn't such a good idea after all.
As the world unwinds according to the laws of financial physics and the fictitious fiat monetary paradise implodes, folks will be forced to plunge into raw survival mode as they seek and invent new paradigms of survival that most assuredly won't include trust in government and its army of bureaucratic goons. .
Meanwhile, folks accustomed to feeding off of everybody else will indeed clamor for a more violent and draconian government that will militarily plunder everybody and everything. But there comes a point when there is nothing left to plunder.
The only difference between the murderous and ruthless tactics of Mao/Stalin and Gang who killed 100 million folks during the 20th century alone, and the so-called soft socialism of the west is that the former didn't have the luxury of a wealthy economy to plunder. Well, the plundering class is rapidly running out of options because there isn't much left to plunder which is why the hysteria is now focused on 'tax the rich'. In France, the socialists have passed a law imposing a 75% tax on the rich. What will happen is that what productive capital that remains in socialist France will simply pack up and move to friendlier abodes. The French economy will be deprived of scare financial resources to reboot its ailing economy, the economy will worsen and French misery will intensify. Socialists never think about the future and merely dwell on the immediate and politically expedient that invariably includes class warfare.
At this juncture, it's safe to assume that the west (Europe and America) are going down and it won't be a soft landing. Things are about to get a whole lot worse, it's won't be a pretty sight, there will be massive human suffering and probably violence and massive civil unrest.
However, if folks can just resist the temptation to implement more bad government and thieving central banks, they will finally acquire a bright and prosperous future out of the pile of statist rubble.
Simply put, the glutenous beast that is devouring us must be starved if folks are to survive in peace, liberty and prosperity.