When the economy stays in the toilet, small businesses tank and go under, and corporations do everything they can to shelter their assets and profits from U.S. taxation, they will point the finger at unpatriotic businesses who put their selfish interests ahead of the country. The solution for them will be to level punitive taxes on the businesses remaining, further killing the economy and prosperity for everyone.

The Good News! as the professor would say, is that sometime before all this can swing into action is that the American people will probably get pissed off and swing back into favor of free markets and lower taxation, making room for a conservative/libertarian comeback if the relevant political parties can make themselves worth voting for. And the pendulum will swing again, and the circle of life comes back to the beginning. Whether that will be in 2012, 2016, or later, though, who knows? I do know that Democrats have no notions of how to govern a country other than slogans, taxes, and finger pointing. How successful will they be at pining the blame on the Republicans when they are an absolute minority? With a compliant media, who knows.

Did I have a point? I can’t remember.

AW1 Tim,

This scenario is EXACTLY what I’ve witnessed happening in many (Socialist) European countries for decades.

Check books and plastic are seldom used to pay for services. As a matter of fact there are numerous Europeans who keep their asets in cash under the mattress.

WOW. That gives me an idea. I’m going to start up a “small Business” manufacturing mattresses with build in safes!

If you want one………..Cash only!

He hasn’t figured in the cost to the economy when many small businesses close and go underground, off the tax grid.

If Obama is elected I can assure you that a good portion of my income will be removed from the tax rolls and converted to no-paper trail, cash only transactions.

What with the current miserly interest rates paid by the banks, I have little incentive to stash money there, and cash in hand is a powerful tool if we have a sudden bank holiday or some other such occurence.