tag:blogger.com,1999:blog-8817171247555815363.post6852220725155123494..comments2024-03-26T05:57:44.937+00:00Comments on True Economics: Economics 22/7/10: EU stress tests - what do they tell us, really?TrueEconomicshttp://www.blogger.com/profile/07350536454228478974noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-8817171247555815363.post-79008269912210927742010-07-24T22:36:16.053+01:002010-07-24T22:36:16.053+01:00This comment has been removed by the author.TrueEconomicshttps://www.blogger.com/profile/07350536454228478974noreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-91445000044490445482010-07-24T22:35:23.360+01:002010-07-24T22:35:23.360+01:00This comment has been removed by the author.TrueEconomicshttps://www.blogger.com/profile/07350536454228478974noreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-725202376854161682010-07-24T22:34:10.326+01:002010-07-24T22:34:10.326+01:00As per references to three particular names - I be...As per references to three particular names - I believe in giving people credit. <br /><br />I try not to mix this principle with my personal views. <br /><br />I share almost no views in common with, for example Tasc, but I gave them credit before and will always do, whenever they produce good research, such, as for example with their Mapping the Golden Circle report (http://www.tascnet.ie/upload/file/MtGC%20ISSU.pdf)<br /><br />It is my personal point of difference with a sad Irish tradition of not citing or referencing or giving credit to the people who make the original point.<br /><br />Declan Ganley, and others, said before and during the Lisbon I and II campaigns that the EU elites will strive to re-ignite the issue of tax harmonization post-Lisbon. Well, they did turn out to be right.<br /><br /><br />My personal view - it does concern me that the two largest states in the Union should pursue a clear policy of brinkmanship to drive the harmonization agenda. As an economist, I see no virtue in harmonized tax systems, only dangers.<br /><br />Let me give you an interesting anecdote - I stress, it is an anecdote. I just returned from a dinner with some Italian friends of mine. They live in a wealthy Northern Italian town, well run, well managed by a popular mayor who is a Communist. They all are middle class and 'left-of-centre' politically. <br /><br />They are concerned for their kids future because, I quote 'The economy cannot last on 50% tax rates'. I repeat, they are not ideological equivalents of myself - the free-marketeer. They are not business owners (aka greedy profit seekers in Irish Times parlance). They are core socially-conscious typical Italians. And they are concerned that tax rates in Italy are too high - for businesses and people alike - to allow for economic growth. <br /><br />Does anyone, other than staunch socialists with blinders on their eyes, think harmonizing European taxes at German-French averages will be a great idea? <br /><br />I certainly gravely fear that Europe will not survive such a policy choice. It will fall apart, sliding into a trade and investment war which will see no winners - only losers, leaving ageing societies unable to tend for their old and to provide any future for their young.<br /><br />If that happens, China and India and the rest of the emerging world will not feel sad or guilty for Europe's loss. They will not send us aid, or argue in the UN Councils to increase 'humanitarian assistance' to pensionless retirees of Europe. They will take our best entrepreneurial and talented youths and give them work in their economies. The rest of us, well, we'll be relegated to the rubbish heap of history.<br /><br />Forget all the fancy macroeconometric stuff. If a society cannot afford its old and cannot keep its young, it is a failed society. Just as a failed state, it will cease to exist. <br /><br />The only way to avoid this denouement for us in Europe is to create a vibrant meritocratic economy based on entrepreneurship, constant competition. <br /><br />There is no other alternative. For all you hear about the need for public sector, it is private sector that creates the bulk of value added in every economy around the world, save North Korea and Cuba - the two comprehensively failed states. And the private sector that creates this value is the private sector unaligned to state subsidies and supports. The same sector that is being killed off by high taxes (corporate, employment, income, etc - its the overall tax burden that matters first, and its relative distribution across tax heads - second).<br /><br />Tax harmonization, in my opinion, in current environment, is so dangerous to the future of Europe that I would rather 'jump the shark' and be found to be wrong about its encroachment, than risk being 'safe' to find it a reality of the continent one day.<br /><br />Many thanks for the comments and thanks for listening to me and reading my articles.<br /><br />CTrueEconomicshttps://www.blogger.com/profile/07350536454228478974noreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-33616822086038665562010-07-24T22:33:54.206+01:002010-07-24T22:33:54.206+01:00Anonymous S.
Thanks for the comment - my source ...Anonymous S. <br /><br />Thanks for the comment - my source for tax harmonization being brought up, discussed and agreed for inclusion into new reforms agenda, although not finalized, at the French Cabinet meeting, attended by German authorities is WSJ blog (unfortunately, I don't have a link saved), but here is alternative source: http://www.fortune500global.com/news/germany-for-tax-harmonization-with-france/<br />or<br />http://www.canadianbusiness.com/markets/market_news/article.jsp?content=D9H3E0MO0<br /><br />Schäuble attended the meeting in person...TrueEconomicshttps://www.blogger.com/profile/07350536454228478974noreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-1689004233893247932010-07-24T11:44:02.660+01:002010-07-24T11:44:02.660+01:00Hello
Seems your jumping the shark here Dr.?
Wha...Hello<br /><br />Seems your jumping the shark here Dr.?<br /><br />What are your sources for these claims?<br /><br />All I could find is this > http://www.thetrumpet.com/index.php?q=7364.5938.0.0<br /><br />And there they talk about harmonising taxes between Germany and France only.<br /><br />And bringing Declan Ganley into this? I respect you and like reading your blog and listening to your analysis on TV time to time<br /><br />But please dont lower yourself to the level of that US military puppet.<br /><br /><br />Regards<br />Anonymous S.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-2376567617772051112010-07-23T12:12:37.462+01:002010-07-23T12:12:37.462+01:00This may divert attention away from sovereign debt...This may divert attention away from sovereign debt and an intergovernmental stress test which might inconveniently reveal the insolvency of a continent. This surreal situation surely cannot escape the attention of the so-called “Markets”.<br />I can’t believe my brother-in-law is that thick.Furrylugsnoreply@blogger.com