Tuesday, July 18, 2006

How Not to Run an Economy

The principles of economics remain an absolute mystery to a lot of people, especially politicians. The following story is taken from the Washington Post. It describes the "rich" flight out of France by many of the country's most successful people. France has near double digit unemployment and GDP growth of a fraction of that of the US, but France does not get it. Let me say that again: France does not get it. And for all that they try to protect their "civilized" way of life, they are sentencing hundreds of thousands of non-blue blood youths to unemployment and government hand outs. Ronald Reagan talked about the need for a tax system that rewarded people to get off the wagon and help pull. In France the tax system assures that those pulling the wagon are becoming an endangered species. Please follow this link to the Washington Post. http://www.washingtonpost.com/wp-dyn/content/article/2006/07/15/AR2006071501010.html