On 25/07/2010 9:41 AM, wrote:
On Fri, 23 Jul 2010 15:13:42 -0400, wrote:

gee. the germans have a world class export based economy that's
HEAVILY unionized.

the US, with NO unions, is not.


Yeah, and such powerful unions they are.
This union factory worker makes $22,000 a year and the government
taxes more than half of that away for things like his "free" health
care.

http://www.bloomberg.com/apps/news?p...M&refer=europe

Amazing how many people think it is "free" and trust government to do it.

On the whole, China is "tax efficient" and that means that while the
Chinese worker makes less, they can purchase services and items that do
not have the high tax load associated with them and has a much lower
cost of living. Lets use a dentist comparison.

If a dentist is taxed at a combined total rate (civic, provincial/state,
federal/sales/etc) of say 50% taxes. They also pay more for supplies
because they have componded taxes in them, the Chinese have the
advantage as:

$1200 for a crown in Canada
$900 for a crosn in US
$200 for a crown in China.

Taxation componds, if I product a product for the dentist, I have to
make more to to pay taxes thus charge more to the dentist. The dentist
in turn has to charge me more. All said and done, the governemtn is the
big winner.

It is why the question:

Does the governments work for us, or do we work for the government?

What has really happened in this depression is people, primarily middle
class people do not have the purchasing power to drive the economy.
Taxes have inflated costs and reduced net incomes. Real goods producers
no longer see the value. Highly paracitical.

And it is why Obama-democrat debt spending is so bad, it is government
on it's last gasp trying to preserve itself in a system it has botched
up completely with too much statist government and debt.

I would say the US is in for Japans lost decades for decades to come.
Until the leasons are learned, peoples standard of living will
depreciate as governmetn gets bigger. Just like Cuba or Venezuela.

--

Government has liberals, idealists and lawyers, but where is the common
sense?