Where do we find the nations with the highest tax levels? In the mid-90s the answer was quite clear: in Western Europe. Both Denmark and Sweden had a tax rate of 49 percent of GDP in 1996, followed closely by Finland with a 47 percent level. The tax burden was somewhat lower in France, Belgium, Austria and Italy, where rates ranged from 42 to 44 percent of GDP. Thanks to its oil-wealth Norway could afford a Nordic welfare model with 41 percent taxes, the same level as the Netherlands which had recently slimmed down its welfare system considerably. These Western European welfare states were the nine OECD countries with the highest tax rates. The tenth country was Eastern European Hungary with a rate of 40 percent. read more »
California's economy may be on the mend, but prospects for continued growth are severely constrained by the increasing obsolescence of the state's basic infrastructure. Once an unquestioned leader in constructing new roads, water systems, power generation and building our human capital, California is relentlessly slipping behind other states, including some with much lower tax and regulatory burdens.
The indications of California's incipient senility can be found in a host of reports, including a recent one from the American Society of Civil Engineers, which gave the state a “C” grade. read more »
There’s general agreement that inequality will be the big issue of this election year. But to understand how this will play out you have to go well beyond the simplistic “one percent” against everyone else mantra that has to date defined discussion of inequality. read more »
Much has been written, often with considerable glee, about the worsening divide in the Republican Party between its corporate and Tea Party wings. Yet Democrats may soon face their own schism as a result of the growing power in the party of high-tech business interests. read more »
There’s been so much ink spilled over Detroit’s bankruptcy that I haven’t felt the need to add much to it. But this week the judge overseeing the case ruled that the city of Detroit is eligible for bankruptcy. He also went ahead and ruled that pensions can be cut for the city’s retirees. Meanwhile, the city has received an appraisal of less than $2 billion for the most famous paintings in the Detroit Institute of the Arts.
A couple of thoughts on this: read more »
Generally speaking, we associate the quest for central government control to be very much a product of the extremes of left and right. But increasingly, the lobby for ever-greater concentration of power – both economically and politically – comes not from the fringes, but from established centers of both parties and media power.
Recently, for example, an article by Francis Fukuyama, a conservative-leaning intellectual, called for greater consolidation of federal power, most particularly, the Executive Branch. Ironically, Fukuyama's call for greater central power follows a line most often adopted by “progressive” Democrats, who seek to use federal power to enforce their views on a host of environmental, economic and social issues even on reluctant parts of the country. read more »
The cultural and political division of America, the gap between “red” and ”blue” with respect to economic and social liberalism or conservatism is a constant and dominant theme in American discourse. Here’s some narrowly specific measures of social liberalism based on actual votes by citizens or legislatures, not polls or broader indices available. read more »
A new year is upon us, here’s a look back at a handful of the most popular pieces on NewGeography from 2013. Thanks for reading, and happy New Year. read more »
President Obama’s most-recent pivot toward the issue of “inequality” and saving the middle class might be seen as something of an attempt to change the subject after the health care reform disaster. As the Washington Post’s reliably liberal Greg Sargent explains, this latest bit of foot work back to the “old standby” issues provides “a template for the upcoming elections, one that allows Dems to shift from the grinding war of attrition over Obamacare that Republicans want to the bigger economic themes Dems believe give them the upper hand.” read more »
Confrontation and conflict are the favorite dispute resolution tools of Baby Boomers, who were born in the aftermath of WWII and grew up in the rebellious ‘60s. In stark contrast, members of the Millennial generation, born 1982-2003, bring a spirit of collaboration and consensus to solving any problem they encounter. read more »