Over the last two decades, Western economies have been increasingly driven by debt. A significant contributor to the 2008 stock market crash was unsustainable debt.
How did we fix the problem? We loaned even more.
Since then Western nations have doubled the national debt levels. The Covid crisis makes it even worse. Governmental rescue programs are on rapid escalation with a huge decline in national fiscal income. This will have to be financed by either more loans, taxes or a combination thereof. Who or when to pay for it all, is quite unclear, but there will be no escape for taxpayers. A Wealth Tax (WT) is a recurring hot topic in crises, but a novelty to the UK.