Sunday, December 17, 2017
The Greek Experiment: Can an Economy Be Wiped Out by Taxation?
December 16, 2017
Greece has confirmed that a nation can spend itself into a fiscal crisis.
And the Greek experience also has confirmed that bailouts exacerbate a fiscal crisis by enabling more bad policy, while also rewarding spendthrift politicians and reckless lenders (as I predicted when Greece’s finances first began to unravel).
So now let’s look at a third question: Can a country tax itself to death? Greek politicians are doing their best to see if this is possible, with a seemingly endless parade of tax increases (so many that even the tax-loving folks at the IMF have balked).
At the very least, they’ve pushed the private sector into hospice care.