EVERYTHING IS MOBILE; THE MAGINOT LINE FAILED

everything and everyone is mobile. this is a problem for nation states and states. the french built the Maginot Line to block a German invasion after WW I. they used static analysis. it failed. the Germans merely went around it in a flanking maneuver and took France in 6 weeks many years ago i flew from New York to Frankfurt on Lufthansa, business class, non-smoking. the only problem was that what separated non-smoking from smoking was just an aisle. the smoke didn't know it wasn't supposed to go across the aisle and ruin my flight. the UK recently increased the tax rate on "millionaires" from 40% to 50%. this was to increase tax receipts. what happened was that the number of millionaires in the UK declined from around 16,000 to around 6,000 and the total amount of taxes and the % of taxes from this group actually declined significantly. they left. and they probably took their money California recently raised a bunch of their taxes to balance their budget; which is out of balance because expenditures are up by 60%. what do you think will happen? some people will leave. people who have national businesses will focus their growth outside of California. if you had the choice between trying to grow in California or actually growing in Texas; which would you choose? Texas. labor is mobile it will follow the jobs, though there is some friction entrepreneurs are mobile capital is mobile all these elements will tend to flow towards policy that encourages economic growth and value creation, which includes wealth creation and away from those places like california and france that dont. the UK just lowered the rate down from 50% to 45% to lure some of those bad millionaires back we will see