...solution to the very real problems along the U.S.-Mexican border can be found, ironically, in that other part of the world that American demagogues love to ridicule: old Europe.
"Old Europe" continues to have one of the lowest economic growth rates in the developed world.
The average GDP growth rate for the EU, for the period 1994 to 2005 is a pathetic 1.9% for the "old" 15 members of the EU and 1.6% for the whole 25 EU members.
While the figures for the "new" 10 members would appear to drag down the whole (from 1.9% to 1.6%), the individual country figures tell a different story.
Every single one of the fastest growing economies in the EU are all new members and they all adopted flat taxes.
Estonia, avg GDP growth 1994-2005 6.72%
Latvia, avg GDP growth 1994-2005 6.9%
Lithuania, avg GDP growth 1994-2005 5.13%
Slovenia, avg GDP growth 1994-2005 4.07%
Slovokia, avg GDP growth 1994-2005 4.13%
Romania, avg GDP growth 1994-2005 3.53%
Average for the flat tax countries in the EU, 5.29%
Whereas the slowest performing economies in the EU (GDP growth rate 1994-2005) were all "old EU" nations with high tax rates:
Germany, 1.37%
Italy, 1.53%
France, 1.79%
Netherlands, 1.82%
Austria, 192%
Belgium, 1.99%
The fastest growing nation in the "old EU" is Ireland, with 6.13% (average GDP growth 1994-2005). But, it should be no surprise that Ireland has the lowest corporate tax rate in the "old EU", just 12.50%, which is less than half the average corporate tax rate for the "old EU" (28%).
The next fastest growing nations in the "old EU" are tiny Luxemburg (A: 3.43%) and Finland (B: 3.4%) and again no surprise, because they have the 6th lowest (A: 29.63%) and 4th lowest (B: 26%) corporate tax rates and the two lowest top individual tax rates (A: 38.95%, B: 32.5%).
In sum, it is not the "old EU" model, nor wealth transfers to the new EU that is "growing" anything in Europe, it is the rejection of the "old EU" tax model that is creating growth in the EU.
Meanwhile, those nations that accepted the line that iof they just transferred some of their wealth to others, that would stimulate growth and help them as well. Well, they are the worst economic performers in the EU as the table above shows.
The tables above come from data from:
http://epp.eurostat.cec.eu.int/portal/page?_pageid=1996,39140985&_dad=portal&_schema=PORTAL&screen=detailref&language=en&product=SDI_MAIN&root=SDI_MAIN/sdi/sdi_ed/sdi_ed_inv/sdi_ed1110
And: http://www.worldwide-tax.com/index.asp#partthree
So, while the author says: "Immigration issues are always ripe for demagoguery, particularly in an election year." And goes on to add....." But the solution to the very real problems along the U.S.-Mexican border can be found, ironically, in that other part of the world that American demagogues love to ridicule: old Europe." We know exactly who is dealing in "demogoguery"
When the author says:
"So for starters it gave the new states massive subsidies – billions of dollars – to help construct schools, roads, telecommunications and housing, making these nations more attractive for business investment. The idea was to raise up the emerging economies rather than drag down the advanced economies."
We need only look at the EU nation that has received the most subsidies, which began before the latest 10 were added, and that's Portugal and it's average GDP growth rate , 1994-2005 is a paltry 2.26%, compared to the eastern Europe, low tax groups rate for the same period, of 3.93%.
The facts can not even support a claim by the author that the new 10 added nations growth is due to "subsidies", because they have been growin at rates higher than the "old EU", consistently since before they were added. But when its myths you want to make, why bother with facts.
And, its clear that the "larger economic union" has not become one in which "a rising tide floats all boats", because the only boats in the EU that are floating are those who are turing their backs on "old EU" policies.
The "bold" EU plan has demonstrated nothing worth emulating, and inspite of all the diplomatic blather about an "open" EU, they are as protectionist as ever, if its from outside the EU.
There will be no plan of "massive subsidies from the U.S. to Mexico" or any "Tex-Mex Marshall Plan". Mexico can reach a "goal of decreasing" its "disparities" with the U.S. by changing tax, investment, finance, business regulation laws to unlock the economic power of its citizens. And, make a war on its corruption and do some trust-busting with the monopolies of its crony-capitalists.
Those are the things that will foster a "climate riper for investment" and "create more jobs in Mexico", "foster a middle class, homeownership and better schools, roads and healthcare." Not massive subsidies.
Yes, we know about Europe's "continent-wide political institutions for all 25 nations." and we can thank God almighty that Americans are not in favor of limiting their sovereignty under such Marxist behemoths. There is nothing "better" about "larger". Individual nations can make mulitple bi-lateral agreements that are complimentary with subsuming their laws and regulations under a larger entity.
As to: "more Americans also would begin emigrating to Mexico"; if anyone thinks Americans want to go live, in large numbers, under the stifling, foreigner hating laws in Mexico, they are ignorant of the subject and their brain is in dreamland.
You know the author is in dreamland as they conclude with: "In the meantime, the U.S. is missing out on huge economic opportunities while the European Union has grown to the largest trading bloc in the world, poised for the 21st century." Again, it is really pathetic that that "largest trading bloc" of 25 nations has a GDP that is larger than the entire EU and that GDP is 153% larger than the EU on a per capita basis ($44,000/per-capita vs $28,100/per-capita).
In other words, the author does not know what they are talking about.
Like the Italians, the Portuguese are very industrious but much of their industry is not reported. The GDP figures are bogus for Portugal.