The Perils of Populism

New York that once hosted a thriving financial community (yes, with high salaries and billions in bonuses) had sufficient tax revenues to send abundant sums to the federal government. But now, pushed by public derision of "fat cats" and retribution for "Wall Street Bailouts" the polls have capped pay and threatened to fine bonuses. The obvious result of such a targeted stringency has caused New York and other states to experience massive short falls in their own anticipated revenue streams.
Public rage has its consequences. The price of the politics of anger is too high for a free nation to pay.

If the so called "rich" (try $250,000) don't have an abundance of currency to confiscate how can a Robin Hooded government redistribute it?

The Trend Tracker saw this train wreck coming. When, in anger, the golden egg laying goose is noosed its a tragic day not only for that poor foul but for the hangman as well. Too bad more politicians haven't learned that simple truth. If they had reduced the many government imposed pecuniary burdens borne by businesses large and small, it is axiomatic there would be stimulus aplenty and bigger payrolls resulting in increases in tax revenues.

The poor never have to meet payrolls nor can they invest in new enterprises. Showering them with the treasures accumulated by those who are wealthy enough to do those things will provide only a transient euphoria. When the shower stops (as it necessarily will), when the well runs dry the poor will be just as impoverished as they were before the refreshment.


Instead of punishing and exploiting those who have been successful, wouldn't it be wiser for our politicians to encourage the accumulation of wealth so that it could be used to advance overall economic growth? The fact that the Obama administration and congress seem intent upon waging war on the wealthy and wealth building can almost assure us that our nation is headed for huge insoluble problems. And that is a painful change you can really believe in. This is one trend that is well worth stopping in its tracks.