The U.S. tax rate is 15% for long-term (i.e. over 12-month) capital gains. This means that those who invest early in highly risky investments (like Google stock when it went public at $85), get to keep most of what they earn when things grow. If one is skeptical of this claim, look at what happened in the 1960's when JFK reduced the capital gains rate, or in 1982 when Ronald Reagan reduced it to 15%. In both cases, venture capital and new corporate formation soared. We are still living in an era where venture capitalists receive and invest over $30 billion per year. In Europe, by contrast, there are no Bill Gates, Steven Jobs or Larry Ellison's. The reason? European taxes are confiscatory, discouraging capital accumulation. Mitterand famously said that he wanted "Steve Jobs without the money (Hornby, 2006)."
Secondly, the U.S. has let its industries 'die.' The famous claim that we've exported all our car jobs is not true -- we still have 2 million U.S. auto workers; many of them now work for Toyota, Mercedes and Honda in the U.S., rather than Chrysler, GM and Ford. Thus even the 'dying' industries are, through free-market forces, able to retain employment and increase productivity.
The U.S. has lost significant number of jobs in a lot of industries: carpet-making, cloth mills, even shoes manufacturing moved offshore in the past decades. One of the issues when an industry becomes less competitive is that the layoffs are concentrated in a geographic region or amongst a certain number of companies -- which can create political problems for the representatives in that district or state. In Europe, problems with cloth mills, shoe manufacturing and olive oil production have met with massive government subsidies to keep those businesses running -- despite being uneconomic. This means that the resources are diverted to less-productive areas, and change is delayed.
Do Europeans Want Innovation? No!
Do Europeans want innovation? This author argues that, on balance, those in "old" Europe would rather protect...
European Economic Crisis -- Greek Government This paper provides a deep insight into the European economic crisis and the events which eventually lead up to Greece debt crisis. It explains the causes which were responsible for the chaotic and poor financial situation currently prevalent in Europe. It also analyses the current tools used for stabilizing the situation in Greece and the shortcomings in them. It also highlights certain steps and measures
European Tour Operators External Analysis European Tour Operators European Tourism Industry Tourism plays a key role in the economy of the European Union. This sector contributes 5% to the gross domestic product of Europe. The European tourism industry consists of 1.8 million enterprises and these enterprises employee almost 5.2% of the total workforce of the European Union. The tourism industry of the European Union consists of a wide variety of products and a
European Union - Business in Europe European Union * Competitive advantages of a European area in a chosen Industry and Porter's Five Forces * Personal impressions and reflections on what was learned? The European Union is made up of several countries, and all these countries have one single aim, which is to promote and develop business relationships within Europe and also with the rest of the world, in today's world of globalization. When one wishes
2007 Economic Crisis on American Car market Effect of the 2008 global economic crisis on automotive industries Crisis in the United States Crisis in Canada Crisis in Russia Crisis in European markets Crisis in Asian markets Effects by other related crisis events In this paper, we will review the effects of 2008 global automotive crisis. Our main focus will be on the American car manufacturers and the negative impact they suffered due to the crisis. We will
GDP went down due to weak domestic demand, which went further down after a decline. Somehow, it again rose by 0.1% in the first quarter and appeared to have pulled the economy out of recession. But Portugal retained big trouble. In the last quarter of 2002, its GDP plummeted.8% from the third quarter and in the last quarter, it contracted by 1.3% from the previous year until the.3% in
political framework of EU and OCT European Union (EU) and Overseas Countries and Territories (OCTs) are in association with each other via a system which is based on the provisions of part IV of the Treaty on the Functioning of the EU (TFEU), consisting of detailed rules and measures which are laid down in the document issued on 27th November 2001 title Oversees Association Decision. The expiry date of this
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now