Essentially, this is the way events unfolded:First, as the central government became more wasteful, it increasingly relied upon “bread and circuses,” or entitlements and public entertainment to placate the people. As the cost for these increased, taxes had to be raised on the productive members of society to pay the bill. This amount eventually became insufficient, as the number of recipients grew. Additionally, the government debased the currency by steadily removing silver from the denarius and replacing it with copper. But this solution was ineffectual, as it only served to create inflation, so more had to be done.
Throughout this period, the government also borrowed money whenever possible. As debt increased, more tax dollars were needed to pay for the ever-increasing interest.
With each false solution, the burden for keeping the failing system going was placed on the shoulders of the merchant class and all those who produced goods for profit. Eventually, the burden became so great that unrest became prevalent.
Draconian laws were instituted to keep the taxpayers in line. Restrictions on freedoms were implemented to assure that taxpayers found it more difficult to escape the system.
And the behavior of the tax collectors became more Neanderthal in exacting the tax.
At this point, the tax demands were so great that the producers no longer had sufficient wealth to expand their businesses, so business stagnated, whilst Rome steadily demanded more.
And, here, an interesting development occurred that’s not often related in history books: Rome, as a result of diminished tax receipts (which it had caused) discovered that they could no longer pay the mercenary soldiers that they were using as tax collectors. They cut the soldiers wages repeatedly which, of course, the soldiers were not happy about. Whether officially or unofficially, the soldiers were advised that they might make up for the shortfall by exacting further payment from taxpayers on their own behalf.
This, not surprisingly, led eventually to looting, destruction and rape, etc. by the soldiers. Each time their wages were cut, the usury increased.
And each time this occurred, more merchants and farmers left Rome for the relative safety of the north. By this time, the “barbarians” were behaving in a more civilized manner than the “civilized” Roman government and its mercenaries.
By the fifth century, the situation was so dire that tax riots and rebellion were the order of the day for those who had remained in Rome, but even this did not stop taxes from rising and more people being provided with largesse by the government.
It’s been written that “those who lived off the treasury were more numerous than those paying into it.” (An eerie occurrence, as we too have now reached that point.)
It’s significant that the decline took so long to play out. In the beginning, only those who were most incensed at the usury and/or who were the most courageous, made an exit. Then, when the next level of usury was introduced, another small percentage departed.
This is human nature. Different people have different breaking points. Had the entire producer-class risen up all at once, it’s likely that the government would have reversed its policies, but historically, that almost never happens.
Invariably, those who are the first to leave are the first to begin improving their lives. They have the initial hardship of starting over, but their self-confidence and work ethic soon make up for that. And, as can be understood, those that fare the worst in such a situation are those who repeatedly delay their exit and are often trapped when a collapse in the system eventually occurs.
