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Fixing America's economy: Nine global ideas

Discussion in 'Economics and Financials' started by Topdawg13, Jun 10, 2011.

  1. Topdawg13

    Topdawg13 New Member

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    Eshlemon likes this.
  2. Eshlemon

    Eshlemon Well-Known Member

    Some interesting theories, some comments on them and an opinion on how I think whether or not they are viable:

    Not going to happen, possibly not necessary
    Germany: Minimize Mortgages-Only 46% home ownership
    Any attempt at putting tighter restrictions on mortgages, requiring higher down payments, eliminating mortgage tax breaks, etc. is going to be politicized as an attack on the poor and middle class. Also we just have a lot more space to work with, Germany has 80 million squeezed into an area less than California (37 million) and expect the home lenders can be more restrictive because of tighter supply. Also, while the ease of ownership may be part of the problem, its not without a bigger correlating problem IMO. Ownership has increased from 62% in 1970 to 69% in 2007, that is a lot more homes. But as we've gotten fatter, our homes have too, 1500 square feet in 1970 to 2500 in 2007 (compared to Germany 1345 square feet). For the first time in decades last year believe there was a large decrease in new home size. Granted some of this is recession, but also think the rising energy cost will force down-sizing.

    ?
    Brazil: Pay the Poor
    We have a lot of social programs including those listed as new in Brazil so not sure how much more they are spending. We spend 16% of GDP on public social welfare. And a total of 26% of GDP including both public & private spending. The OECD average is 19 & 22.

    http://www.oecd.org/document/9/0,3746,en_2649_34637_38141385_1_1_1_1,00.html

    Should be partially doable
    Turkey: Open the Doors
    We are a lot closer to Greece than Turkey on the bureaucracy side of business that hurts things but overall have a hard time seeing Turkey as overall more inviting. As for tax breaks for companies to come here? How about tax breaks for domestic companies to stay here? Or an elimination of the business tax all together.

    Not going to happen
    Canada-worthwhile tax (hate that name)
    Would get support from flat tax crowd but about equal negative from the anti-regressive tax crowd. Politically, ask George "read my lips" Bush how a tax increase worked out in a small recession.
    Although given growing concerns of the debt, could see a sell as a national debt tax having a small chance of success.

    China-Go Green
    Have no argument against this as I think energy is a huge concern for us and everybody else in the next century. Just don't see us matching the money China is putting up unless other areas of spending are decreased a lot (defense, social welfare, etc.). Or charging a tariff on countries with huge trade imbalances. Or maybe we'll just steal any advancements on this after they spend all the money as China has stolen a lot from us.

    Australia-Give kids a break
    For the first part, not sure of the this and probably definition cross ups, what do pensioners have to do with kids?
    The second from the Harvard just seems like one of those insane academic things get thrown out from business schools every once and a while. I definitely bet all his students are for this. Not only paying a progressive tax on income but on age. Plus, politically I just don't see the old foggies backing a law they pay more taxes than those whippersnappers making the same amount of money.

    Thailand-Cheap Rooms!
    Would definitely help the travel industry a lot better than the tax break to purchase RV's.

    Singapore-Keep people working
    Pay companies not to fire people. Just seems a more restrictive and less fluid version of our paying companies to hire people.

    Israel-Swords for Software
    Given our government handles our defense department contracts, while interesting, not confident in their ability to do this at all.:lol:
     

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