Posted on 08/29/2005 10:58:59 AM PDT by SirLinksalot
The Democrats are deeply saddened.
Can't happen. The Buchanan Kool Aid Cavaliers say so.
Well, that must mean we won the war on terror, got rid of illegals and closed the border so our nation could thrive.
Interesting thank you for posting
In other news, sun rises in the East.
bttt
Actually this is a warning to all those Americans who are trying to heed the siren call of Democrats who want the USA to be more like Europe with its inflexible Labor unions, socialized health care, forced 35 hour work weeks, and high taxation.
That is interesting... I had not thought ahead about how the " one child policy" would effect the aging population. Their economy may boom but it will be upside down in a few decades with a huge number of old people and a small number of the young trying to support it.
Sounds like the Germans have a defeatist attitude.
(We must do everything to reverse current tendencies by mobilizing our assets: our infrastructure, our capacity to undertake research and development, our "rules of law," the depth and effectiveness of our financial markets, and the importance of saving levels ... We must develop all of these elements to the maximum in order to compensate for our handicaps: stagnant demographics and a lack of flexibility in our social structures.)
It's noteworthy that the author does not recommend what is urgently needed: change in the socialist model. Instead, he treats "lack of flexibility in our social structures" as a handicap that nothing can be done about. As such, you can be sure that Europe will not fix its problems. Worse, the recommendation is to "mobilize our assets". This is code word for the French dirigist socialist model. It has served them so well so far!
Except for one thing - the analysis on China is wrong. I fully believe they will experience a Japan-style collapse of the banking system. Same ole, same ole asian style economics - focus on cash flow, cheap loans and market share instead of profit. What happened to Japan ? "They were going to buy the whole US... etc etc". What were they actually doing ? Buying hard (secure) assets in order to whether the storm that's still going 10 years later, with their deflationary cycle. They have 0% interest rates and all the economy could do is to eke out 1% growth!
By some estimates Chinese banks have as much as 30% of their loan portfolio as non-performing - ie, BAD. And - the foreign investment in China is drying up (certainly from the US and EU, where the *real* smart money is). Their current foreign investment's coming from the rest of Asia. And look what happened to the other economies. It's slowing and the bubble will pop relatively soon. Then look out - the Commies have broken their compact with the people, and base their right to rule only on continued economic prosperity. When the down cycle comes (and it will, it always does), it'll make for some interesting watching.
Now that's an interesting little tidbit. Haven't seen that anywhere else but I'll dig around a little. The implications are extremely interesting. They still should have plenty of raw numbers to support a manufacturing economy, but I don't see them trending toward a service economy in that time, as other aging populations have done. Their social services aren't on a European level but it will still be interesting to see how they cope. I wonder if Logan's Run was translated into Chinese?
The FairTax is promoted as a tax plan that will lead to stronger economic growth for the U.S. economy than under existing tax policy. That is definitely true. The elimination of taxes on business income (some of which is taxed two or three times) will definitely lead to stronger economic growth. It will also encourage investors from other countries to increase investments in this country. Economists can argue about the magnitude of the increase in economic growth, but there is little dispute that the economy would grow faster.
The FairTax is not the only tax reform plan that would produce stronger economic growth. President Bushs plan to completely eliminate the double taxation of dividend income would produce stronger economic growth. Eliminating the corporate income tax completely without changing other portions of the federal tax system would also give a strong boost to the economy. Eliminating estate taxes could be done under the current tax system. Other major tax reform plans that are consumption-based income tax systems, such as the inflow-outflow tax system, would not tax savings and investments and would result in stronger economic growth.
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