December 1, 2012

Posted by orrinj at 7:48 AM

EVERY PEOPLE SHOULD CELEBRATE THEIR OWN SOVEREIGNTY:

Sovereignty Day Celebrated in Iceland (Iceland Review, 12/01/12)

Today, December 1, is Iceland's sovereignty day and students of the University of Iceland will celebrate the day with a special program as they have since 1922.

The program begins with a sermon in the university's chapel, followed by laying a wreath of flowers on the grave of Iceland's independence hero, Jón Sigurðsson, in the Hólavallakirkjugarður cemetery.

Posted by orrinj at 7:43 AM

THERE IS NO CONGO:

To Save Congo, Let It Fall Apart (J. PETER PHAM, 12/01/12, NY Times)

Whatever else Congo's various armed groups may be, they are clearly viewed by large segments of some communities as de facto protectors -- a point underscored by the several hundred government soldiers and police officers who recently defected to M23 and publicly swore allegiance to it after the fall of Goma.

If Congo were permitted to break up into smaller entities, the international community could devote its increasingly scarce resources to humanitarian relief and development, rather than trying, as the United Nations Security Council has pledged, to preserve the "sovereignty, independence, unity, and territorial integrity" of a fictional state that is of value only to the political elites who have clawed their way to the top in order to plunder Congo's resources and fund the patronage networks that ensure that they will remain in power.

Despite its democratic misnomer, Mr. Kabila has repeatedly delayed holding local elections since 2005. For years, every last mayor, burgomeister and neighborhood chief in the entire country has been appointed by presidential decree.

Given the dysfunctional status quo and the terrible toll it has exacted in terms of lives and resources, the West should put aside ideological dogmatism in favor of statesmanlike pragmatism and acknowledge the reality that, at least in some extreme cases, the best way to break a cycle of violence is to break up an artificial country in crisis and give it back to its very real people.

People who think themselves a nation are one.

Posted by orrinj at 4:56 AM

WE ARE ALL NEOCONOMISTS NOW:

Let's Talk About X (DAVID BROOKS, 11/29/12, NY Times)

[I]f we're going to simultaneously address our two most pressing needs -- raising revenue and boosting growth -- we're going to have to break free from the 1986 paradigm.

That means asking the basic question: What is the single biggest problem with the tax code? It's not the complexity, bad as that is. The biggest problem is that it rewards consumption and punishes savings and investment.

You can't fundamentally address that problem within the 1986 paradigm. You can address it only through a consumption tax. This idea is off the table right now, but reality will inevitably drive us toward it. We have to have a consumption tax if we want to both grow the economy and reduce debt.

But isn't a consumption tax regressive since poor people spend a bigger share of their incomes than rich people? The late David F. Bradford of Princeton University effectively solved that problem with his so-called X Tax, which has recently been championed by Alan D. Viard of the American Enterprise Institute and others. Under the X Tax, you wouldn't pay the consumption tax at the cash register. Businesses would be taxed on their cash flow, taking an immediate deduction for investments rather than depreciating them over time. Households would pay tax at progressive rates on their wages but would not pay tax on income from savings.

The X Tax effectively taxes the money you spend right now and rewards savings and investment. The government could raise a chunk of revenue this way and significantly boost growth with little or no change in how tax burdens are distributed between rich and poor. Most economists vastly prefer consumption taxes to income taxes. 


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