Render unto Caesar the things that are Caesar's
“Tell us, therefore, what do You think? Is it lawful to pay taxes to Caesar, or not?”
But Jesus perceived their wickedness, and said, “Why do you test Me, you hypocrites? Show Me the tax money.”
So they brought Him a denarius. And He said to them, “Whose image and inscription is this?”
They said to Him, “Caesar’s.”
And He said to them, “Render therefore to Caesar the things that are Caesar’s, and to God the things that are God’s.”
Matthew 22:17-22
Taxes are back in the spotlight for investors. Whether Trump’s newly announced tariffs are the largest tax increase in US history, or just the largest since 1968, or 1942, this clearly represents an historic shift.
There are times, unfortunately, when politicians become the main characters in the economy, seizing control of the narrative from the capitalists and artists who actually make things that improve the lives of people around the world. And this is one of those times.
As Howard Lutnick ridiculously declared, “Let Donald Trump run the global economy. He knows what he’s doing. He’s been talking about it for 35 years.”
I’m not sure when the tide turned so that conservatives convinced themselves that the global economy should be run by any one man, in particular a man with the temperament and ego of the current President. It’s hard to square that with any serious belief in free markets, which used to be a cornerstone of the political right.
And yet, here we are.
Meanwhile, in Canada, polls suggest that we are set to re-elect the same political party that presided over a lost decade marked by increasing inequality, rampant crime, and declining living standards, led by a man convinced that unless we pay higher taxes and surrender even more economic freedom, the planet faces an existential threat.
North and south of the border, the ideologies differ—but the impulse is the same: more power, more control, more tax. And always in the name of the greater good.
The world is in a precarious and depressing place, with ordinary citizens feeling more and more powerless against the forces that seem intent on using us as pawns in their power grab. Whether it’s about igniting a self-immolating trade war in the US or continuing the economically ruinous policies of Canada’s past 9 years, it’s hard to find anything positive in recent developments around the North American political sphere.
The Eternal versus the Temporal
The things that belong to Caesar are the things of this world - power, material possessions, and financial wealth. These things come and go. You can work toward amassing them over time, but must do so with the awareness that they are not the end game.
Attaching yourself to the things of this world is a vain pursuit because forces out of your own control can seize them from you at any time. In Fragility I wrote about the random nature of ruin. But even outside of forces of nature, the people who rule over us can impose taxes, or change the rules, such that your financial wealth can evaporate in an instant.
We can try to counteract this through seeking safety via diversification and prudent, conservative investing. And that helps, but even that might not be enough. The wealth of this world is temporary and fleeting.
Render to Caesar the things that are Caesar’s, and try not to let the political nonsense disturb your peace or focus. The things that most matter in this life, no government can take from you.
This isn’t defeatism (or at least, it doesn’t have to be). Somehow, knowing that people felt the same way about taxes 2000 years ago gives me some comfort that the world today is just as messed up as it has always been.
The playbook now is to look for opportunities. Shrug your shoulders when some imported goods cost more, and use it as an excuse to buy less stuff and buttress your savings (there will be stocks on sale that you could redirect your new savings to purchase).
A few weeks ago I thanked Donald Trump for ending the era of Canadian complacency. His methods are arrogant and reckless, but sometimes a broken system needs a jolt. Perhaps sooner than we think we will be crediting him for relegating his old economy, protectionist ideals to the trash bin of history, forever.
Caesar will always be there to demand his pound of flesh. Our political leaders will have their time in the sun and flame out, as all do. Let’s not place our faith in them, but in ourselves, and in the wise decisions we can make to guide and protect our families and communities. Ultimately, no politician can make your life better. That is up to you.