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FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

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Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#51
post #21
post #4

Earlier quoted context omitted.

yeah regulation in europe is insane. You fire someone in Europe you have to continue paying their full salary for a whole year or until they get a new job. Here its wham bam thank you mam, don't forget your box and enjoy living on $1500 a month that you get from unemployment.

In what country you have to continue paying full salary of a fired employee?

Switzerland is one example - it's not full salary, and there are some caps - but they are both very high (I think something like 80% and 200k respectively - it's been a while since I lived there).

Sweden is another example, but I don't know the specifics. They do offer things like paid 18 months parental leave (yeap, both maternal and paternal).

Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#52
post #30

That's pretty much the case against Barack Obama: Trade (BIG BIG BIG win for McCain), Taxes (small win for McCain), Subsidies (big win for McCain), Healthcare (big win for McCain: got to address cost, not access), and Energy (slight win for McCain). Barack on the other hand is better on avoiding World War III, Big Brother, and Theocracy. It's a depressing choice.

Question. As a non American, I wonder what brings US to a (relatively) extreme position on Health. Technicalities aside, most places consider health as part of the suite of public responsibilities. Does a significant portion of the opposition to the public assuming responsibility for health also oppose the public assuming responsibility for education? I ask because it seems a close parallel.

In general, the idea of "public responsibilities" is controversial. The country was founded so that the government would do the minimal amount necessary to insure the maximum amount of freedom. Freedoms don't mean anything unless they involve the ability to fail. As an example, any American can build their own airplane and attempt to fly it (in the right areas, such as a desert). Freedom to form a startup and make a lot of money is the same as freedom to form a startup and fail.

So governmental power is used to insure freedoms. Traditionally, civic organizations are used to fulfill "public responsibilities" We have groups dedicated to local infrastructure improvement, fostering leadership skills in children, making sure people have eye care, giving healthcare to the poor -- the list goes on and on.

This is changing as more and more politicians and voters want the government to do the good things that civic organizations used to do. But we still have a long way to go to the point where we view government as the tool to handle all of our moral civic duties for us. There is a strong feeling that centralized governmental planning leads to waste, corruption, inefficiencies and the politicization of service delivery.

Education, I was told, was institutionalized after WWI as a way to make sure that soldiers had basic literacy and math skills. So this movement was a part of national defense, not some collective civic duty. (I understand education has a much more storied background. I abbreviate here)

Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#53
post #23

Earlier quoted context omitted.

I agree. We should promote entrepreneurship by doing things like funding universal health coverage -- with the money we save from rolling back the corporate welfare state. Giving more money to companies that are already successful doesn't encourage innovation; it encourages hoarding.

How about we don't "give" money to anybody? Maybe let them keep more of the money they've already earned? Since when did the entire economic output of the country become ours to decide how to allocate? Did I miss the revolution?

The answer as to when some portion of the economic output of the country became ours to decide how to allocate is when a majority of taxpayers approved of it, including some fantastically wealthy folks who earned their money. Those are the breaks of living and doing business in a democratic country.

Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#54
post #53

Earlier quoted context omitted.

How about we don't "give" money to anybody? Maybe let them keep more of the money they've already earned? Since when did the entire economic output of the country become ours to decide how to allocate? Did I miss the revolution?

The answer as to when some portion of the economic output of the country became ours to decide how to allocate is when a majority of taxpayers approved of it, including some fantastically wealthy folks who earned their money. Those are the breaks of living and doing business in a democratic country.

When the question begins with "Since when", I would expect the answer to involve a date. which I believe to be 1913.

The gist of the question was when the default mode of taxation changed to be for social engineering. That answer, of course, is much more complicated.

The point of the question, of course, is that the tax code is a monstrosity and intellectual abortion and to argue that it's broken, but only in these small areas, is to engage in the same idiocy that created the monster in the first place. To understand "when" -- it's roots and history -- is to understand why bickering over details is specious.

Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#55
post #44
post #41

Earlier quoted context omitted.

Of course companies pay VAT, it is the input tax.

The VAT is directly passed on to the consumer in the form of higher prices.

In much the same way tax incidence passes corporate tax on to employees and customers.

Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#56
post #30

That's pretty much the case against Barack Obama: Trade (BIG BIG BIG win for McCain), Taxes (small win for McCain), Subsidies (big win for McCain), Healthcare (big win for McCain: got to address cost, not access), and Energy (slight win for McCain). Barack on the other hand is better on avoiding World War III, Big Brother, and Theocracy. It's a depressing choice.

Question. As a non American, I wonder what brings US to a (relatively) extreme position on Health. Technicalities aside, most places consider health as part of the suite of public responsibilities. Does a significant portion of the opposition to the public assuming responsibility for health also oppose the public assuming responsibility for education? I ask because it seems a close parallel.

I compare public responsibility for health to public responsibility for fire control.

Fires can wreak havoc upon many beyond the fire's point of origin. It's also unprofitable to run a fire department, so given the public benefit, the public foots the bill for keeping a fire department.

Health care isn't the same in that it can be a very profitable business, but because profits are tied to consumption of goods (e.g., medicine) and services (e.g., operations), the industry has incentives to promote overconsumption of both. Meanwhile, the health insurance industry has incentives to deny coverage as much as possible in the name of profit. You might think this would cause the health care industry to operate efficiently, but health care is complex and not easily overseen, and even if the health care industry ran efficiently, the health insurance industry would still have incentives to deny coverage past the efficient rate.

But the effects of letting people who genuinely need treatment go untreated are nevertheless much like fires. Not only does it stand an excellent chance of reducing their productivity and overall employment prospects, the consequences it can have for a family can likewise be disastrous. That doesn't do them any good and it certainly doesn't do our economy any good. So while the health industries might be quite profitable, the net benefit to society is considerably less than if the profit incentives were properly aligned to maximize health instead of consumption and lack of coverage.

But, you know, some folks just have to be sacrificed on the altar of the completely free market, in the name of their own good.

Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#57
post #32

Earlier quoted context omitted.

For proof of that btw: http://www.cnn.com/2008/POLITICS/09/16/dilbert.economy/index... http://www.economist.com/world/unitedstates/displaystory.cfm... "Even among Republican [economist]s Mr Obama has the edge: 46% versus 23% say Mr Obama has the better grasp of the subject

Note also, that on the list "100 Economists for McCain" there are actually only 90 names...

VAT on lists is 10%.

Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#58
post #30

Earlier quoted context omitted.

Question. As a non American, I wonder what brings US to a (relatively) extreme position on Health. Technicalities aside, most places consider health as part of the suite of public responsibilities. Does a significant portion of the opposition to the public assuming responsibility for health also oppose the public assuming responsibility for education? I ask because it seems a close parallel.

We believe that health care is not a right but a privilege. The Constitution does not ensure the right to "life, liberty, the pursuit of happiness, and $10 copays." Moreover, we believe that almost everything the government does, it does poorly. Schools would be a great case in point.

[deleted]

Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#59
post #30

Earlier quoted context omitted.

Question. As a non American, I wonder what brings US to a (relatively) extreme position on Health. Technicalities aside, most places consider health as part of the suite of public responsibilities. Does a significant portion of the opposition to the public assuming responsibility for health also oppose the public assuming responsibility for education? I ask because it seems a close parallel.

We believe that health care is not a right but a privilege. The Constitution does not ensure the right to "life, liberty, the pursuit of happiness, and $10 copays." Moreover, we believe that almost everything the government does, it does poorly. Schools would be a great case in point.

Healthcare falls under "life".

Oh and quit talking for all Americans.

Re: FedEx's CEO on McCain, free trade and the tax bias against capital-intensive industries.

#60

Earlier quoted context omitted.

We believe that health care is not a right but a privilege. The Constitution does not ensure the right to "life, liberty, the pursuit of happiness, and $10 copays." Moreover, we believe that almost everything the government does, it does poorly. Schools would be a great case in point.

Healthcare falls under "life". Oh and quit talking for all Americans.

Humans lived for at least 250,000 years without HMOs. And I'm talking for Americans who are against public health care, which was who the question was addressed to.
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