By Charles Hugh Smith
Dear internal leadership: here’s the regulation for long-term success.
A Great Migration of the Tax Donkeys is underway, still very much under the radar of the mainstream media and required economists. If you are assured no such emigration of those who compensate the bulk of the taxes could ever occur, greatfully consider the long-term ramifications of these two articles:
- Stanford Says Soaring Public Pension Costs Devastating Budgets For Education And Social Services
- Which American Cities Will File Bankruptcy Next?
Allow me to promulgate for those who aren’t too squeamish: a lot of cities and counties are going to go broke, slicing services and jacking up taxes, all to no avail. The promises done by corrupt politicos can't presumably be kept, despite consistent assurances to the contrary, and those awaiting services and taxes to sojourn inexperienced will be repelled by the large cuts in services and the equally large taxation increases that will be imposed in a misled bid to “save” politically absolute constituencies and fiefdoms.
These dynamics will energy a Great Migration of the Tax Donkeys from unwell cities, counties and states to some-more frugal, well-managed and tiny business-friendly locales. I’ve sketched out the emigration in this graphic: the move by those who can from incompetently managed and/or corrupt cities/counties/states to some-more innovative, open, spare and better managed locales.
Unlike Communist regimes which particularly control who has permission to send residency, Americans are still free to pierce about the nation. This creates a very Darwinian foe between sclerotic, corrupt, overpriced one-party-dictatorships whose hubris-soaked domestic category is assured the violent housing prices, tech unicorns, abounding services, and a high-brow enlightenment ruled by an artsy chosen are overwhelming to everyone, and locales that are low-cost, manageable to their Tax Donkey class, welcoming to new tiny businesses, employers and talent, unbeholden to a politically-correct persecution and conservatively managed, i.e. not headed for insolvency.
Not everybody can move. Many people find it radically unfit to pierce due to family roots and obligations, poverty, secure employment, kids in school, and countless other constrained reasons.
However, some people are means to move–typically the self-employed eccentric forms who can no longer means (or tolerate) anti-small-business, high-tax municipalities and their self-satisfied snob care that’s some-more into virtue-signaling than formulating jobs and a small-biz gainful ecosystem. (Giving lip-service to small-biz doesn’t count.)
Memo to hubris-soaked politicos and elites: in case you haven’t noticed, an augmenting series of the many gifted and gifted workers can live anywhere they greatfully and contention their outlay digitally. In other words, they don’t have to live in Brooklyn, Santa Monica or San Francisco.
This is the indication for many half-farmer, half-X refugees I’ve described elsewhere: people who are moving to homesteads with the networks and skills indispensable to earn a part-time vital in the digital economy. In a reduce cost area, they only need to earn a third or even a fourth of their former income to live a much some-more fulfilling and rewarding life.
Not that hubris-soaked politicos and elites have noticed, but only the top few percent of households can means to own a home in their burble economies. Paying $4,000 a month in lease for a one-bedroom container in San Francisco may strike the elites vital in mansions as a superb deal, but to the people who have surrendered all wish of ever owning anything of their own to call home–not so much.
Though this draft is formed on inhabitant data, there are many informal variations. When it takes a year just to obtain a assent to open an ice cream shop (in San Francisco), how much will the ruined “owner” have to charge per ice cream cone to make up a year in hyper-costly lease paid for zero but the payoff of being a neglected peon in a city ruled by payoff and stable fiefdoms?
Dear Rest of the Country: you have a once-in-a-generation event to eat the lunch of all the overpriced, corrupt, bubble-dependent locales that are assured they are overwhelming to the cultured, artistic class. Many of those folks would actually like to own some land and a residence but sacrificing everything, including their health and family.
Dear internal leadership: here’s the regulation for long-term success: welcome talent from everywhere in the U.S. and the world; make it inexpensive and discerning to open a business, and inexpensive to work that business; make open spaces free, protected and well-maintained; insist on a transparent, manageable supervision spooky with portion the open as scantily as possible; support a domestic category drawn from people with real-world craving experience, not veteran politicos, lobbyists, etc., and provide incoming collateral well–not just financial collateral but intellectual, social and human capital. Focus on building partnership between preparation and enterprise–foster apprenticeships not just in the trades but in every margin of endeavor.
Provide all these things and success will follow; omit all these in preference confirmed elites and fiefdoms and go pennyless as those profitable the taxes confirm to save their sanity, health and future by getting out while the getting’s good.
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