Voters frequently support measures that sound noble and beneficial but end up causing serious mischief — and often hurt the very groups the measures were intended to help.
A well-known example is price controls, which include minimum wage laws and rent control. These can cause unemployment among low-skill workers and apartment shortages for those without connections.
But that’s not all. Not by a long shot.
Headline from the China Daily:
“China reigns in brutal police tactics” (9/9/03)
This hilarious misspelling causes China’s widest circulating English-language newspaper accidentally to have a true headline.
Moldova, a country of 3.5 million on the brink of bankruptcy, risks becoming a failed state. This would increase instability on the EU’s eastern borders by handing Russia another opportunity to extend its influence in the former Soviet-sphere, as it lures Moldova into its “Eurasian Customs Union”.
“You ought not to forget that the credit system and the tax apparatus remain in the hands of the workers’ state and that this is a very important weapon in the struggle between state industry and private industry….
The pruning knife of taxation is a very important instrument. With it the workers’ state will be able to clip the young plant of capitalism, lest it thrive too luxuriously.”