Centralization and the Decline of Europe

“…since 2008…, the 28 countries in the European Union managed combined growth of just 4 percent. And in the subset consisting of the eurozone minus Germany, output actually fell. …most of the Mediterranean periphery has suffered a lost decade. …The unemployment rate in the euro area stands at 9.8 percent, more than double the U.S. rate. Unemployment among Europe’s youth is even more appalling: In Greece, Spain, France, Croatia, Italy, Cyprus and Portugal, more than 1 in 4 workers under 25 are jobless.”

International Liberty

The famous French diplomat Charles Maurice de Talleyrand supposedly said that a weakness of the Bourbon monarchs was that they learned nothing and forgot nothing.

If so, the genetic descendants of the Bourbons are now in charge of Europe.

But before explaining why, let’s first establish that Europe is in trouble. I’ve made that point (many times) that the continent is in trouble because of statism and demographic change.

What’s far more noteworthy, though, is that even the Europeans are waking up to the fact that the continent faces a very grim future.

For instance, the bureaucrats in Brussels are pessimistic, as reported by the EU Observer.

…the report warns of a longer term risk for the EU economy. “As expectations of low growth ahead affect investment today, there is potential for a vicious circle,” the commission’s director general for economic and financial affairs writes in…

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A Lower Corporate Tax Means More Growth and Higher Wages

“Economists at the Australian Treasury crunched the numbers and estimated the economic effects of a lower corporate tax rate … The bottom line is that a lower corporate tax rate leads to more economic output, with workers enjoying higher incomes.”

International Liberty

Yesterday was “Australia Day,” which I gather for Aussies is sort of like the 4th of July for Americans.

To belatedly celebrate for our friends Down Under, I suppose we could sing Waltzing Matilda.

But since I’m a policy wonk with a special fondness for the nation, let’s instead acknowledge Australia Day by citing some very interesting research

Economists at the Australian Treasury crunched the numbers and estimated the economic effects of a lower corporate tax rate. They had several levers in their model for how this change could be financed, including increases in other taxes.

Corporate income taxes are one of the most destructive ways for a government to generate revenue, so it’s not surprising that the study concluded that a lower rate would be desirable under just about any circumstance.

But what caught my attention was the section that looked at the economic impact of a…

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New CBO Numbers and the Simple Formula for Good Fiscal Policy, Part I

“Here’s how Republicans can balance the budget and shrink the burden of government (assuming they’re on the side of taxpayers)”

International Liberty

The Congressional Budget Office, as part of The Budget and Economic Outlook: 2017 to 2027, has just released fiscal projections for the next 10 years.

This happens twice every year. As part of this biannual exercise, I regularly (most recently here and here) dig through the data and highlight the most relevant numbers.

Let’s repeat that process. Here’s what you need to know from CBO’s new report.

  • Under current law, tax revenues over the next 10 years are projected to grow by an average of 4.2 percent each year.
  • If left on autopilot, the burden of government spending will rise by an average of 5.2 percent each year.
  • If that happens, the federal budget will consume 23.4 percent of economic output in 2027 compared to 20.7 percent of GDP in 2017.
  • Under that do-nothing scenario, the budget deficits jumps to $1.4 trillion by 2027.

But what happens if…

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Oxfam: A Leftist Joke, not a Real Charity

“And what awful sins did BVI and the other jurisdictions commit to get on the list? Well, the report suggests that their guilty of helping #taxpayers minimize their #tax burdens … In other words, places with good #business #taxpolicy are ostensibly bad because #politicians have less #money to waste.”

International Liberty

While my colleagues are stuck in the cold of Washington for inauguration week, I’m enjoying a few days in the Caribbean. More specifically, I’m sharing my views today on Trump and the global economy at the annual Business Outlook Conference in the British Virgin Islands.

Yes, another example of the sacrifices I make in the battle for liberty.

But it’s fortuitous that I’m here for reasons other than the weather. This is a good opportunity to expose Oxfam. Many people have a vague impression that this group is a well-meaning charity that seeks to help lift up poor people.

If you take a close look at the organization’s activities, however, you’ll see that it’s become a left-wing pressure group.

Consider, for example, Oxfam’s recent report on “Tax Battles,” which discusses the supposed “dangerous global race to the bottom on corporate tax.”

Based on Oxfam’s ideologically driven agenda…

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Another Welfare-Subsidized Terrorist

Dan Mitchell: “I don’t know how we stop terrorism, but I do know we shouldn’t subsidize it with welfare payments…”

International Liberty

Whenever mass shootings occur, some people quickly jump to conclusions before there’s any evidence.

Folks on the right are occasionally guilty of immediately assuming Islamic terrorism, which is somewhat understandable. Folks on the left, meanwhile, are sometimes guilty of instinctively assuming Tea Party-inspired violence (I’m not joking).

I confess that I’m prone to do something similar. Whenever there is a terrorist attack, I automatically wonder if we’ll find out welfare payments and other goodies from the government helped subsidize the evil actions.

In my defense, there’s a reason I think this way. Whether we’re talking about Jihadi John or the Tsarnaev brothers, there are lots of examples of dirtbag terrorists getting handouts from taxpayers.

It happens a lot in other nations. And it’s now happening with disturbing frequency in the United States.

It’s even gotten to the point where I’ve created a special terror wing in…

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