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Letters by a modern St. Ferdinand III about cults

Gab@StFerdinandIII -

Plenty of cults exist - every cult has its 'religious dogma', its idols, its 'prophets', its 'science', its 'proof' and its intolerant liturgy of demands.  Cults everywhere:  Corona, 'The Science' or Scientism, Islam, the State, the cult of Gender Fascism, Marxism, Darwin and Evolution, Globaloneywarming, Changing Climate, Abortion...

Tempus Fugit Memento Mori - Time Flies Remember Death 

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Tuesday, January 17, 2006

Manly countries lower taxes and increase wealth

The femininization and destruction of society has gone far enough

by StFerdIII

In recent reports we see yet again that Canada’s standard of living is 80% of US levels and Europe’s even lower. There are four key areas in which Canada and Europe lag the US and why reform is needed: limited government, limited taxation, higher productivity and a culture of virtues as described by Max Weber, Adam Smith [who was a moralist as much as an economist] or George Gilder in ‘Wealth and Poverty’. In today’s modern welfare state none of the above is interesting. Big government is directly linked with morality; all manners of fees, premiums, taxes and fines are stolen by politicians from citizens; virtues mean nothing with the daily and weekly insertion of ‘values’ as political and ideological tools the norm; and productivity is barely mentioned by anyone as being important, except for scary little men with horned rimmed glasses and ‘secret agendas’ at world domination – in sync with the horrifying Jews and Americans of course. Manly countries build their societies around these 4 key concepts; effeminate nations keen on feminine compassion and uber-tolerance smack their lips only at more welfare; more programs; more caring; more rights; more gays; and more values that demand tears and feeling pain, embedded in national-socialism and all its attendant ugliness. We have witnessed in fact the creation of a girlie culture in the West and this is why Europe and Canada are falling behind.

There is a direct link between what Weber and others would describe as the cultural virtue of say the Protestant work ethic and wealth. While virtue and culture in our western nation states is under unremitting attack and is quickly being torn down two other important elements stand out in the creation of wealth and they are linked; lower tax rates and higher productivity. Sadly these two aspects are rarely discussed and debated. Historically it is clear that lower tax rates stimulate economic growth and higher productivity establishes ever higher levels of societal wealth, job creation and investment opportunities. Both concepts decrease poverty and raise up the standard of living.

Lots of silly analysis by labor groups and even ‘The Economist’ dispute the direct relationship between tax rates – productivity – and wealth. But the relationship is obvious. The following illustrates why. In Canada from 2000-2005 Canadian per capita GDP growth was 1.5 % vs. 2.5 % in the US. Labor productivity in Canada was 1.2 % against that of 2.4 % in the US. These differences have accelerated the 30 % standard of living gap that the US enjoys over Canada. What stimulated the US economy in the past 5 years when the Americans are fighting 2 wars; suffered 9-11 and a multitude of natural disasters? The US since 2001 has effected a U$1.5 Trillion [12 % of its GDP] tax cut which has stimulated the economy to grow by 3.5-4.0% per annum and has actually increased US Federal tax revenue by 15 % per annum. Contrast this with Canada which has seen overall taxation rise by 10 % during the same period and its economic growth at half the US levels. The relationship between tax and wealth is clear in the following table as well.

Table: 1rst column: GDP per capita average growth 1980-2004; 2nd column: 2004 real GDP per Capita growth [NBER US Gov’t] and 3rd column: Average productivity rate growth 1995-2005:

United States: 2.0 -3.4 – 2.2
Canada: 1.7 - 2.0 – 1.5
Belgium: 1.7 - 2.7 – 1.4
Denmark: 1.6 - 1.9 – 1.8
France: 1.7 - 1.7 – 1.7
Germany: 1.6 - 1.6 – 1.9
Italy: 1.6 - 0.2 – 0.7
Netherlands: 1.6 - 0.8 – 0.6
Norway: 2.3 - 2.3 – 2.2
Sweden: 1.7 - 3.1 – 2.3
United Kingdom: 2.3 - 2.8 – 2.1

The US outperforms Canada and the EU in all countries except for Sweden which posted a 2.3 % productivity growth rate from 1995-2005 slightly outpacing the US level. For instance in 2004 Canada had a negative productivity level of -0.2, GDP growth of 2.0 % and stagnant incomes. The US experienced 3.5; 3.7 and 6 % increases in the same categories – thanks in part to the $1.3 Trillion 2003 Bush tax cuts. The connection between lower government and greater productivity and growth is obvious. Due to Sweden’s high tax rates its economic growth is far below the US and as a Swedish institute reported [The Timbro Inst.], Sweden would be the poorest US state if it was in the union.

Look at it another way. In the past 10 years the US economy has grown by 40 % and the EU with a population of 457 million [vs. 300 million in the US] has per capita GDP at 70% of US levels. The US economy is now closing in at $12 Trillion in total GDP with Europe at $11.6 Trillion [CIA fact book 2004]. The greater prosperity of America is reflected in the following: GDP per capita in the US is at $41.000 with the EU at about $31.000 and Canada at $28.000. To say that there is no correlation between lower taxes; economic growth and productivity is just plain nonsense. The EU with 1/3 greater the population is 1/3 poorer and struggling.

Keep in mind as well that Canada has a free trade deal with the US. Without this deal the growth from 1995 to the current day would NOT exist. The same is true for the European common market. It is rather easy for Canada and say Norway, Holland, Denmark or Sweden, to hide punishing tax rates and government theft through confiscatory taxation when they can sell into a market that is 10-20 times their population size. Without NAFTA and the EU, the welfare states of northern Europe and Canada would be in colossal disrepair and tatters.

In general we can state 2 obvious ‘laws’ regarding the link between taxation and productivity and hence wealth:
1) Productivity declines as the tax rate increases, as people choose to work less. The higher the tax rate, the more time people spend evading taxes and the less time they spend on more productive activity. So the lower the tax rate, the higher the value of all the goods and services produced.
2) Government tax revenue does not necessarily increase as the tax rate increases. The government will earn more tax income at 1% rate than at 0%, but they will not earn more at 100% than they will at 10%, due to the disincentives high tax rates cause. Thus there is a peak tax rate where government revenue is highest. The relationship between income tax rates and government revenue can be graphed on something called a Laffer Curve.

Most studies indicate a negative relationship between government ownership of the economy at above 30 % of GDP and real income; productivity and wealth creation. This would seem obvious. The more power you give to politicians and union led civil servants, the less productive and wealthy your economy must be. In Canada and Europe governments take approximately 45 % of GDP in revenues and fees. It is clear then that the population and their elected officials must find a way to eliminate about 1/3 of government and associated over-taxation.

Unless of course you want your society to become poorer – financially and morally.

Calculation of productivity:
Y = A F(K,N) where Y is output (real GNP), K is the stock of physical capital (plant and equipment), and N is labor (the number and hours of people working). The letter A measures productivity. If A is higher your society produces more net wealth.

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