According to Chinese proverb, the success of wealth or financial management on a micro and macro level respectively lies behind two keys – resourcefulness and austerity (Mandarin: 开源节流). Briefly explained, the Chinese believe that financial discipline avoids profligacy and contributes to deficit reduction, whereas the diversification in income sources sustains massive spending appetite, and more importantly help steering a financial state from toxic to healthy, commonly known as growth.

To any Chinese language learner, Chinese proverbs are famous for the attentiveness in construction. In the aforementioned proverb, the Chinese prioritised resourcefulness over austerity because they believe the former is a more effective financial management tool.

Now, when we look at the West currently engulfed by the abundant misery supplied by the sovereign debt crisis, we also see that apart from the United States, governments in the troubled areas have resorted with a vain hope to financial discipline, or the clichéd austerity, to improve their credibility and then to stimulate the much needed financial support from market to fund their ever ballooning debts.

The Chinese proverb certainly disagrees with the austerity focus. However, I am not discrediting the intelligence of policy makers in the beleaguered countries. It’s no easy job at this economic tough time. Potential financial pipelines everywhere have been so firmly shut it is now near impossible to diversify income sources.

Bearing in mind also is that with individual finances so tightly squeezed, no political party struggling to receive devoted support would ever fire the most powerful financial ammunition of a government – raising tax. Nonetheless, the dire economic situation has forced governments to tactfully experiment this instrument with caution. One domestic example would be the VAT rise by the UK government.

And recently, there was a new addition to this tax raising episode – the Hungarian government is considering the introduction of  Hamburger Tax.

My personal scepticism and general public consensus reckon that the introduction of a fat tax like this is more than just the Hungarian government’s concerns over its citizen health issues. It essentially is a new form of budget revenue. It is a legally intolerable deprivation of personal freedom. And frankly enough, it is indirectly speaking to its citizens that they are not intelligently capable in distinguishing what is harmful to them.

However, buzzing apart, in this example, like it or not, the Hungarian government’s approach has demonstrated the spirit of our Chinese proverb perfectly – generating alternative (tax) income via the introduction of new tax and at the same time driving the population to a healthier living that would eventually reduce the monstrous national health care expenses. Brilliant!

Given the intricacies in implementing such tax – which food to tax, how much to tax, people’s reaction (through the ballot boxes) – I very much doubt its future success. However, if miracle does occur, I am almost certain the UK government would be the first follower.

The number of people severely overweight has tripled over the past thirty years in the UK. This has prompted a costly revamp on the ambulance fleet in the country to up to a whopping £90,000 per fleet so that obese patients could be ferried safely. No kidding! If you were the government policy maker, surely this would be an attractive incentive for the imposition of similar Hamburger Tax.

Forget about whether this is a long term solution to a long term obesity problem or a short term solution to a medium term insolvency hardship, I personally do support such tax to a certain extent. It’s challenging to punish individual’s misbehave as it’s very subjective, especially when it involves liberty right. But if this really does raise the awareness on the health risks associated with obesity, then perhaps this shouldn’t be interpreted as an extreme tax harvesting deception. And if we still remember our Chinese proverb, it could induce saving at micro level too.

Nevertheless, like my friend suggested, I still want to be able to pick up a pack of crisps when I want to, without having to feel guilty, or worry financially.