how empires collapse;

Again, the events above are not taught to schoolchildren as being of key importance in the decline of empires, even though they are remarkably consistent with the decline of other empires and what we are seeing today. The very same events occur, falling like dominoes, more or less in order, in any empire, in any age:

1. The reach of government leaders habitually exceeds their grasp.

2. Dramatic expansion (generally through warfare) is undertaken without a clear plan as to how that expansion is to be financed.

3. The population is overtaxed as the bills for expansion become due, without consideration as to whether the population can afford increased taxation.

4. Heavy taxation causes investment by the private sector to diminish, and the economy begins to decline.

5. Costs of goods rise, without wages keeping pace.

6. Tax revenue declines as the economy declines (due to excessive taxation). Taxes are increased again, in order to top up government revenues.

7. In spite of all the above, government leaders personally hoard as much as they can, further limiting the circulation of wealth in the business community.

8. Governments issue bonds and otherwise borrow to continue expansion, with no plan as to repayment.

9. Dramatic authoritarian control is instituted to assure that the public continues to comply with demands, even if those demands cannot be met by the public......read more.......