Americans Have Been Renouncing Citizenship In Record Numbers - Some Europeans Also. Where Are They All Going?
According to the Associated Press, a total of 2,999 Americans renounced their US Citizenship and passports in 2013. That might not sound like a large number when you consider the population of the United States to be in excess of 300 Million. However, it is very noteworthy of a new trend, as previously the annual average number of persons renouncing citizenship was about 200 to 300 per year, more or less. But of course it is not just the Americans that are looking for a second passport and a new country to call home. A number of Europeans are also getting our of the EU, seeking refuge elsewhere. The common denominator of course is a trend we predicted about 15 years ago, whereby we opined it was very possible we will see the middle class and small business owners opting out of the high tax (and broke) social welfare state nations and opting in for the less expensive and growing emerging markets.
Of course some of the world's best and brightest throughout the course of history were often expatriates, for a variety of reasons. However, the common and most prevalent reason was political discord in their previous home country often enough caused by economic mismanagement of the country by the government at the time. However we can certainly expand the list to include war, political upheaval, economic crisis (often because of or that caused the political upheaval), persecution and so on. In fact, those individuals involved in politics or economics often enough were the precursor to the modern day whistle blower, speaking truth to power when they saw erroneous or misguided policies. But what if they all had a dual citizenship or a second passport before the problems in their home countries began? What if they already had their wealth and assets tucked away in another jurisdiction (or a few) for safekeeping? Here is a list of some of the more noteworthy and well known expatriates (well known for who they were or what they did, not because they were expatriates): Albert Einstein, Jean-Jacques Rousseau, Ludwig Von Mises, Friedrich Hayek, Gustave de Molinari, and Ayn Rand. Modern day or current expatriates include Gerard Depardieu, Eduardo Saverin, Tina Turner, Jim Rogers, and Marc Faber. Interesting enough while Eduardo Saverin of Facebook fame and Gerard Depardieu, the well known French actor, expatriated for tax reasons specifically, a report from The Associated Press highlighting the exponential increase in the number of Americans renouncing US citizenship goes on to write that: The renouncers – whose ranks have swelled more than five-fold from a decade ago – often contradict the stereotype of the financial scoundrel - Many are from very ordinary economic circumstances. And so there you have it. The politicians in the countries going broke (the US, EU, UK) often want to paint the expatriates in the press and in their speeches as selfish and greedy ultra wealthy tax dodgers shirking their so-called moral and social responsibility. Our opinion is even a faithful and obedient pet canine will escape if he is beaten and abused enough. Why do they think anyone in their right mind would want to hang around to see their country fall into both economic and political decay brought about by those very same politicians throwing out the criticism? And it was George William Curtis that said: A man's country is not a certain area of land, of mountains, rivers, and woods, but it is a principle; and patriotism is loyalty to that principle.