The U.P. Eleven boldly cut through the crap, reminding us that a simple increase in VAT rate, althought not social engineering will stave off a fiscal crisis. See Economy on the Cusp. Excellent paper.

But my anarchist proclivities keep whispering in my ear that such a fiscal crisis has the potential of disrupting the current treadmill where the rich get richer and poor get poorer. Guess who has the most at stake in staving off such a crisis?