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Pridružen/-a: 05.03. 2016, 04:35
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Economy needs both reform and investment
tax code is at the heart of a system of institutionalized, legal corruption. The code is so vast because companies, industries and lobbying groups receive special preferences in return for campaign contributions, a cash for favors scheme that Washington would denounce as crony capitalism in any Third World country.
You can see the corruption at work in the fierce opposition to efforts to lower the corporate tax rate. After demanding this reduction for years, companies are now lobbying hard and spending heavily to retain their own special tax breaks, which is what drove rates up in the first place. Fortunes of greek changed because their wealthy rich don subsidize their govt. anymore. They have plenty of opportunities to park their cash somewhere else in the world. In fact, that happened in many countries of the world. Now those bloated pensions have to go. Simpson bowl already made a package for your article. All president and congress have to do Wholesale Air Max 2016 Black Red Online is accept it.
May 23, 2013 at 1:34 am Reply
Its interesting the mention of glory days, you do realize that corporate taxes were much higher in those days. Corporations and special interest groups have done nothing but attack the middle class since then, check it out, the 1950 and 60 had much higher tax rates for corporations. Then they became people, for all intents and purposes corporations are recognized as This trickle down idea has done nothing but make the rich richer and the middle class poorer. Tax reform is absolutely needed, the IRS should have an outside group go in and Nike Air Max 2016 Womens Nike Air Max 2016 Womens put things in order, so the American public gains at the same rate as these After all where are they making their money but at the expense of the American taxpayer. Trickle down my eye.
May 24, 2013 at 3:56 pm Reply
Keynesian economics is not a panacea. If it were, Zimbabwe would be the richest country in the world. Structural reforms, geared to making the economy as efficient and low cost as possible, is the only thing that will help in the long run.
Where money printing, or stimulus (call it what you want) Cheap Air Max 2016 White Pink Online would help, is in buying time to put those structural reforms in place, to avoid major dislocation while those changes happen. Stimulus, whether monetary or fiscal, has it own costs, and cannot be sustained indefinitely without itself causing major economic damage.
So here the problem. America has chosen to go almost entirely towards the stimulus route, and perhaps because of political gridlock, has implemented virtually no structural reforms. In effect, they wasted a huge amount of time and money. The lack of reforms means that the present tepid level of economic growth can never be self sustaining.
Europe, on the other hand, has in fact implemented structural reforms in a lot of areas, but has done so in a self defeating way by not allowing for any transition. They will be fine in the long run, but the short term pain is causing major dislocation in a lot of places. That bad too.
So yes, you need both stimulus ans structural reform, but it important to understand why. Stimulus can only buy time, until the real economic and business efficiencies are implemented.
May 27, 2013 at 8:25 am Reply
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