Essential Economics for Politicians
- Thread starter Bruddah IZ
- Start date
-
- Tags
- finance too
Hüsker Dü
DA
Irony alert!
Bruddah IZ
DA
No. It was a cut and paste.
Hüsker Dü
DA
That a boy! I'm proud of you now! . . . back to what you know.
Bruddah IZ
DA
What is known. Like Denmark being a capitalist country with social programs that are protected by market principles.
Bruddah IZ
DA
The ACA has been bashing itself since day one.
Hüsker Dü
DA
Many people have hated Obamacare since inception, but at the same time, the same people like what the ACA has done for them . . . that's the mentality we are dealing with here.
Bruddah IZ
DA
How did people go from hate to like?
Bruddah IZ
DA
Scandinavia Is No Socialist Valhalla
https://fee.org/articles/scandinavia-is-no-socialist-valhalla/
Addressing Harvard University last year, Danish PM Lars Løkke Rasmussen tried to set the record straight. “I know that some people associate the Nordic model with some sort of socialism," he said. “I would like to make one thing clear. Denmark is far from a socialist planned economy. Denmark is a market economy.”
Indeed, viewing Scandinavian countries as socialist – or even left-wing – overlooks an essential truth about how their economies are organized. While these nations do have high taxes and generous welfare, in many respects, their markets are unusually free, adopting exactly the kind of policies that the British Left, with its rigid adherence to central planning and intervention, spends its time fighting against.
https://fee.org/articles/scandinavia-is-no-socialist-valhalla/
Addressing Harvard University last year, Danish PM Lars Løkke Rasmussen tried to set the record straight. “I know that some people associate the Nordic model with some sort of socialism," he said. “I would like to make one thing clear. Denmark is far from a socialist planned economy. Denmark is a market economy.”
Indeed, viewing Scandinavian countries as socialist – or even left-wing – overlooks an essential truth about how their economies are organized. While these nations do have high taxes and generous welfare, in many respects, their markets are unusually free, adopting exactly the kind of policies that the British Left, with its rigid adherence to central planning and intervention, spends its time fighting against.
Bruddah IZ
DA
Friday, June 30, 2017
Same link
Scandinavian Government vs. British Government
Last week, the Labour Party pledged a minimum wage of £10 that would apply to all workers, including those aged 16-18. This policy would, if implemented, carry hugely perverse side-effects – with young and unskilled workers all but priced out of the job market.
In contrast, the very concept of central government setting a “one-size fits all” policy to cover all jobs and sectors is utterly alien to the Scandinavian economies. Neither Sweden, Norway, nor Denmark actually has a minimum wage. Instead, wages are decided by mutual agreement between unions and employers, which usually vary according to the industry or occupation in question. In this respect, Scandinavian labor markets are far more flexible and decentralized than Britain’s.
Same link
Scandinavian Government vs. British Government
Last week, the Labour Party pledged a minimum wage of £10 that would apply to all workers, including those aged 16-18. This policy would, if implemented, carry hugely perverse side-effects – with young and unskilled workers all but priced out of the job market.
In contrast, the very concept of central government setting a “one-size fits all” policy to cover all jobs and sectors is utterly alien to the Scandinavian economies. Neither Sweden, Norway, nor Denmark actually has a minimum wage. Instead, wages are decided by mutual agreement between unions and employers, which usually vary according to the industry or occupation in question. In this respect, Scandinavian labor markets are far more flexible and decentralized than Britain’s.
Bruddah IZ
DA
Corporate tax rates in Scandinavia compare favorably with those of overtly capitalist countries. Sweden and Denmark’s are among the lowest in the EU 15, while Finland’s, at 20 percent, is on a par with Britain. Norway has the highest rate of the five countries, but, at 27 percent, is still significantly lower than America’s (nearly 40 percent).
Bruddah IZ
DA
Meanwhile, Sweden’s education system – inspired by the ideas of that well-known socialist thinker Milton Friedman – allows parents to top-up the cost of private schooling with government-funded vouchers, and has led to a surge of choice and competition in schools.
Bruddah IZ
DA
What about Norway?
Norway, another nation often held up as an example of a “better way” by the British Left, is also something of a red herring.
It is hard to exaggerate the importance of Norway’s vast oil reserves to its economic success; these have allowed it to build up the largest sovereign wealth fund in the world (predicted to reach $1 trillion by 2020). This gargantuan fund holds around 1 percent of the world’s shares, and owns more than 2 percent of all listed companies in Europe, as well as a vast property portfolio.
Norway, another nation often held up as an example of a “better way” by the British Left, is also something of a red herring.
It is hard to exaggerate the importance of Norway’s vast oil reserves to its economic success; these have allowed it to build up the largest sovereign wealth fund in the world (predicted to reach $1 trillion by 2020). This gargantuan fund holds around 1 percent of the world’s shares, and owns more than 2 percent of all listed companies in Europe, as well as a vast property portfolio.
Bruddah IZ
DA
Thus is Norwegian “socialism,” ironically, funded by investment in capitalist projects around the world. The historically sound investments made by the fund are a large part of the reason why Norway has proven so resilient in the face of fluctuating oil prices in recent years. Last year, for the first time ever, Norway’s government took more money from the fund than the fund itself derives from oil revenues, due to the worldwide slump in the commodity’s price. It is a crucial buffer that allows the nation to maintain its high spending and generous welfare programs.
Conversely, Scandinavia’s prosperity has only ever been threatened when its nations have embraced genuinely socialist policies
Conversely, Scandinavia’s prosperity has only ever been threatened when its nations have embraced genuinely socialist policies
Bruddah IZ
DA
How Did Sweden Get Here?
In the 1970s, the size of the Swedish state began to expand in earnest under successive socialist governments. Punitive taxation, including effective marginal rates that topped 100 percent in some cases, prompted a mass exodus of wealthy citizens and entrepreneurs, including, famously, the filmmaker Ingmar Bergman and IKEA founder Ingvar Kamprad.
By 1993, when public spending had reached 67 percent of GDP, Sweden had dropped from being the 4th richest nation in the world in the 1970s, to the 14th. Both Swedish and Danish citizens have since begun to reject “tax and spend” at the ballot box and recent years have seen a growth in support for center-right parties, promising fiscal restraint.
It is easy to see why Scandinavia is so often mythologized by adherents of socialism.......and uninformed members of the socal soccer forum. Its citizens enjoy some of the best universal healthcare and education in the world, which receives high levels of government funding and remains (largely) free at the point of use.
But don’t be fooled by the high tax rates. The success of the Nordic Model hinges on its embrace of free-market capitalism, competition and defense of private property – a far cry from the centralized planning system espoused by the socialist Left.
In the 1970s, the size of the Swedish state began to expand in earnest under successive socialist governments. Punitive taxation, including effective marginal rates that topped 100 percent in some cases, prompted a mass exodus of wealthy citizens and entrepreneurs, including, famously, the filmmaker Ingmar Bergman and IKEA founder Ingvar Kamprad.
By 1993, when public spending had reached 67 percent of GDP, Sweden had dropped from being the 4th richest nation in the world in the 1970s, to the 14th. Both Swedish and Danish citizens have since begun to reject “tax and spend” at the ballot box and recent years have seen a growth in support for center-right parties, promising fiscal restraint.
It is easy to see why Scandinavia is so often mythologized by adherents of socialism.......and uninformed members of the socal soccer forum. Its citizens enjoy some of the best universal healthcare and education in the world, which receives high levels of government funding and remains (largely) free at the point of use.
But don’t be fooled by the high tax rates. The success of the Nordic Model hinges on its embrace of free-market capitalism, competition and defense of private property – a far cry from the centralized planning system espoused by the socialist Left.
Bruddah IZ
DA
Why is Milk in the Back of the Store?
https://fee.org/articles/why-is-milk-in-the-back-of-the-store/
Safety First
Finally, there are apparently safety issues, as commenter Evan Downie noted in an Econtalk episode I did on this topic with Mike Munger of Duke University:
Though I’m not a designer, nor engineer, I do install automated control systems in large commercial properties. There are a variety of factors in placing a refrigeration system such as thermal load (windows and other heat sources), humidity, and other environmental issues. But in my experience there are basic determining facts surrounding placement that I will try to briefly sum up.
Most commercial refrigeration systems tie together to one location. Because of this all displays and storage units are placed close to that central location. Which reduces runs of lines and cables, and simplifies labor. This is the first factor of placement, to reduce initial cost. Installation of refrigeration systems represent one of largest initial expenses in this type of construction. The second factor is accessibility/serviceability. Very important in reducing long term costs. The third, and most important, factor is safety. Safety above all determines where displays are located.
Refrigerant as well as being an environmental hazard, is also a poison. It travels at extreme temperatures, under pressure, through the system. So the goal is for the lines, and equipment, to be as isolated from the general public as possible, but also accessible to service personnel in the event of a leak. Thus the back of the store is the most practical, and safest, location for the support equipment to retail milk.
https://fee.org/articles/why-is-milk-in-the-back-of-the-store/
Safety First
Finally, there are apparently safety issues, as commenter Evan Downie noted in an Econtalk episode I did on this topic with Mike Munger of Duke University:
Though I’m not a designer, nor engineer, I do install automated control systems in large commercial properties. There are a variety of factors in placing a refrigeration system such as thermal load (windows and other heat sources), humidity, and other environmental issues. But in my experience there are basic determining facts surrounding placement that I will try to briefly sum up.
Most commercial refrigeration systems tie together to one location. Because of this all displays and storage units are placed close to that central location. Which reduces runs of lines and cables, and simplifies labor. This is the first factor of placement, to reduce initial cost. Installation of refrigeration systems represent one of largest initial expenses in this type of construction. The second factor is accessibility/serviceability. Very important in reducing long term costs. The third, and most important, factor is safety. Safety above all determines where displays are located.
Refrigerant as well as being an environmental hazard, is also a poison. It travels at extreme temperatures, under pressure, through the system. So the goal is for the lines, and equipment, to be as isolated from the general public as possible, but also accessible to service personnel in the event of a leak. Thus the back of the store is the most practical, and safest, location for the support equipment to retail milk.
Bruddah IZ
DA
Many people have hated Capitalism since inception, but at the same time, the same people like what Capitalism has done for them . . . that's the mentality we are dealing with here.
Daft bit of reasoning you're pointing out...
How many folks at or below the 50% level employ anybody, except perhaps themselves?
How many jobs are created by folks at or below the 50% level?
How much federal income tax is paid by the folks at or below the 50% level?
Buffet just called in his B0fA shares, he's making in the neighborhood of $12 billion...
How many jobs did Buffet save and how much money do you suppose trickled down from his investment?