Re: the future long term financial apocalypse of the USA

On 5/25/2024 1:54 PM, D wrote:

  On Sat, 25 May 2024, Scott Dorsey wrote:
 

D  <nospam@example.net> wrote:

On Thu, 23 May 2024, Scott Dorsey wrote:

D  <nospam@example.net> wrote:

>
And yet here we are, and China is more prosperous than ever, while europe,
the master of regulations is sliding down into socialism.

>
Yes, and yet China has become famous for manufacturing unsafe knockoff
products.  Perhaps prosperity isn't everything?  The Chinese government
values prosperity over individual safety, that is certainly clear.

>
I think you'll find if we remove your prosperity, that to the contrary,
safety isn't everything. Also from a quality of life and wealth point of
view, china has been doing pretty well. You should read up on the trickle
down effect and I recommend you Johan Norbergs The Capitalist Manifesto.
Read it and it will revolutionize your world and you will no longer be
able to follow socialism in a serious way. =)

>
I mentioned this much earlier in the thread.  Yes, the trickle-down effect
exists, but it doesn't work the way the laissez-faire crowd thinks.  If
you give money to rich people, they just get richer and richer and if there
is no motive for them to invest it in the economy, they don't.  It only
works when there is an actual incentive for them to invest it and make it
work.

 Even if it just sits in the bank, it is still doing good.
 

That's how Haiti got to be an isolated set of compounds owned by a few
multimillionaires, who had to buy helicopters to visit one another
because they didn't want to spend money to fix the roads. (Eventually
it got to they point that they just all left the country and took their
money with them.)
>
This is what I see happening in the US today and it's a bad thing because
it doesn't take much change to make capitalism actually work well.
--scott

 The trickle down works over time. By zooming in to a specific country over a few years you won't see it as clearly. Zoom out and check economic development over let's say 50 years, and you'll see if globally.

Make the effective tax rate on the wealthiest too high and you encourage
capital flight.
https://en.wikipedia.org/wiki/Capital_flight
It doesn't help a country much if that money is in a bank in a tax haven. If you are an 800-lb gorilla like the USA, you just declare
all money an American earns anywhere taxable {with some exclusions.}
[ https://www.irs.gov/individuals/international-taxpayers/figuring-the-foreign-earned-income-exclusion ]
--
Kevin R
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