In 1948, what you are now seeing in Venezuela -- hyperinflation and general economic collapse -- was happening in Germany and Japan. A review of successful emerging market economies around the world shows a common pattern of a tax revenue/GDP ratio between 10% and 20%. Although developed economies often have a revenue/GDP ratio much higher than this, they do not have high-growth economies. The next question is: what is the best way to generate this level of tax revenue? GDP would quickly grow; and with that, tax revenue would also grow, which would allow a broader range of government services.

Source: Forbes May 03, 2019 13:03 UTC