Monday, June 27, 2011
Paul Krugman: It's Not Fair That Some People Are Rich: To the Contrary
When it comes to deciding what type of Economic System a country should have, there some things that have to be decided first. What's the best Economic System for your particular country and you can look at other countries for ideas as well. But that doesn't mean what works in another country will automatically work in your country. What works in Canada, or America or Sweden might not work in France, Brazil or Mexico. You need to figure out how much freedom and ability if any, your willing to give your population to deicide what type of life they are going to have and how much quality of life they'll be able to achieve. And how much taxes they are going to pay if any, how much assistance from government will be provided if any, for people who at the time can't quite make it on their own. How much regulation if any your going to have, the Rules of the Road that individuals and business's will have. Will you have a Private Sector or not or a combination of a Private Public Sector Economy, that Europe has.
Personally I believe in the Economic System that America had up until ten years ago where people were able to make as much money as their skills and production would allow legally. Where people paid taxes based on their income, the more you made the more you paid essentially. And where government regulated how individuals and business's interacted with each other to prevent and punish abuses. And where we made things in America instead of shipping jobs oversees. To now where we have a system where the more you make, the more taxes you can escape from paying and get the biggest benefits in Tax Cuts. And where we have now a free and unfettered market thats not regulated very well, take Wall Street for example. A big reason for the "Great Recession" of 2008 that we are still struggling from. But I'm also not in favor of a Socialist Economy, whether its Classical Socialism. Where the State owns the Means of Production in Society and there's very little if any Economic Freedom for the people and there isn't any Private Sector. Take North Korea more of a 4th World country then a 3rd World country and easily one of the poorest countries in the World. I'm also not in favor of a Democratic Socialist Economy, where even though there is a Private Sector. But where its Highly Taxed by American Standards and Highly Regulated again by American Standards. And where the Central Government essentially collects all of the revenue in the economy and passes out its benefits to the people it feels needs its the most. To finance an expansive Welfare State, where you can essentially make a good living collecting Unemployment Insurance, take Sweden for example. But even Sweden is rethinking their Welfare System.
The best Economic System for America is and why we did have the strongest economy in the World not just the largest ten years ago. Is where everyone has a shot at a good education and can go out in the Private Sector and make as much money as their skills and production will allow. And pay taxes based on how much you make, where the economy is well regulated but not over regulated. Where the people are expected to be able to take care of themselves but where there's a Safety Net for people who fall down to help them get up. Thats what we had from 1981-2001, except for a couple of recessions and it resulted in the best economy the World has ever seen. Which is why so many former Socialist Economy's have moved in our direction instead of the former Soviet Union's.
Click on the link of the blog to see a video with Paul Krugman