How much austerity, for whom?

Surprisingly, after four years of the current crisis, the UK's "officials are nervous that slow growth appears persistent and the (UK) government might have to prolong or deepen its austerity drive" http://link.ft.com/r/S4XZQQ/U1G60H/3K7L/AM75LS/FKEKUH/VU/t?a1=2011&a2=9&a3=22

Meanwhile, as we all know, Greece is unveiling further adrastic usterity measures, including massive cuts to pensions and public sector salaries
http://link.ft.com/r/S4XZQQ/U1G60H/3K7L/AM75LS/R3L3V6/VU/t?a1=2011&a2=9&a3=22

What we do not yet know is what austerity measures are going to be required by the public sector in all middle-income countries as their growth stalls.

China and other export-dependent countries are going to be badly hit.

Commodity producers and exporters are also going to be hit.

It is only the rich who will carry on regardless - but only if rising taxation does not catch up with them.

That is why the rich all over the world are watching tax-related developments with keen interest - as they should. Much wealth built up over the last two decades or so because of the decline in taxes collectable from the rich. Sphere: Related Content