RS> That book does not have the salvation of us all in an economic sense Paul.

PK> Yes it does, Rod. (I can make bald statements, too!)

Pity mine was accompanied by many pages of detail on how
that book does not contain the salvation of us all, quite
apart from Bobs comments saying precisely the same thing too.

PK> He makes the case that increasing levels of taxation always lead to
PK> a dampening of productive economic activity and a rise in speculation.

RS> Thats a completely silly proposition for starters. In the
RS> times of small government, and much lower overall taxation
RS> we actually saw the worst excesses of speculation. At times
RS> it went completely mad. So much for that silly line.

PK> Yours is the silly line.  When did we last experience small
PK> government, Rod?

Last century Paul. With small taxation too. With nothing remotely like
the elimination of speculation, in fact those times were renown for it.

In the US last century, with small government, speculation was rife.
You want to read up on some of the history of the railway boom and
the South Sea Bubble etc. Time of small government and low taxation,
certainly didnt get the result that that book claims would happen.

PK> We've been mainlining on deficit budgets for 20 years!

And there were times of small government long before that. And we
havent even always had deficit budgets in all of the last 20 years
either. Dont you even remember the recent surpluses ? They actually
blow a great hole thru the claims about what they would deliver too.

RS> It aint a tangent. The history of economics is riddled with people
RS> who claim to have found the holy grail of economic salvation for us all.

PK> The history of economics is riddled with the names
PK> of famous people who HAVE found the holy grail,

Is that right ?  How come economic cycles have been with us for
hundreds of years then ?  You were claiming that that book had
the prescription for their elimination. It doesnt actually exist,
plenty have claimed to have found the answer, none ever did do tho.

PK> that is, if you tax production, you'll have no production;

Pity thats not actually true tho. Have a look at say the US economy. They
tax the production of computers and computer software for example. They
still completely dominate the world on some of that, particularly software.

Ditto say the US fast food industry, taxed, still got production.

Ditto for our say housing industry, taxed, in some ways the problem
is TOO MUCH production.

So much for that silly theory. She's a dud Jim.

PK> if you tax speculation, you'll have no speculation.

Even thats distinctly arguable. Part of the problem with spectacular
profits is that you tend not to care too much about the tax.

PK> But idiots just keep saying that's too simple!

Nope, just say its wrong. It dont work like its claimed to by
utterly simplistic books what dont even get the history right,
let alone their prescription for the future salvation of us all.

PK> They want convoluted solutions.  The best solutions are always simple.

Yeah, but its handy if they work too. That one doesnt, it was actually
tried last century, it didnt work like its claimed it would. Its a dud.

PK> I am interested in a simple fiscal adjustment
PK> to our revenue system, namely slashing taxes.

RS> Yes, without a shred of evidence that its actually going to
RS> work to eliminate economic cycles that you dont like to see.

PK> Try Denmark in the late '50s.

They didnt eliminate economic cycles. Notice you carefully deleted
the second line from that quote of mine, I have put it back.

PK> They went it alone.  When it looked like the Justice Party was
PK> going to get into a coalition government (their revenue policy
PK> was slashing taxes and increasing revenues drawn from land),
PK> these things happened: speculation stopped overnight; unemployment
PK> fell; inflation dropped; people had more coin in their pocket.

Those where the boom times when almost anyone could make their economys
work too. Only a few dorks like the poms made a total hash of it.

And maybe you would like to look at what happened in Aust just
recently, most of those, speculation stopped overnight as the
bubble burst, unemployment fell, inflation dropped to levels that
hadnt been seen for decades, people had more coin in their pockets
as the housing interest rates dropped very dramatically. Funny that.

So much for that economic blueprint the Danish used being
the salvation of us all. Reality is a tad more complicated.

PK> The New York Times featured an editorial
PK> "Big Lesson From a Small Country" all about it.

Yes, thats always been seen, yet another salvation of us all.

They have also written similar glowing reports of how the 'workers
pardises' had solve all the worlds economic problems too. Look back
a few years later and you see they have gone straight down the tubes
in the most spectacular manner. Which should make you a tad sceptical
when you see the next salvation of us all hyperventilated about in the
media. It very likely wont be either.

PK> When the coalition lost power in the early '60s,

Corse there is the tiny matter of why they were tossed out if they
had actually found the salvation of the Danish economy. Funny that.

PK> the incoming government removed the land tax and re-levied the
PK> usual forms of destructive taxes - and guess what happened, Rod?
PK> up, Yeah... Unemployment inflation up, etc - your sort of reality.

Nope, the entire world moved from those boom times to more straightened
times, or the first world anyway.

PK> One example, you'll say.

I dont even believe it is one valid example.

PK> But it was an example that went counter to every country in the world -

Oh garbage, most of the first world economys were seeing just those
booms in those days, us included.

PK> as a result of a decent revenue system.

Nope, fraid not. And if it was such a miracle, how come they never
noticed ?  Coz it wasnt, thats why.

PK> Well why did Denmark kick the system out, do I hear you say, Rod?

Yeah, that thought did cross my mind. No doubt we will get an equally
nutty line of argument as the communist spout when they try to claim

(Continued to next message)

--- PQWK202