 dl211 says: Heavy government controls at home, along with an income-leveling social policy couched in economic-recovery terms, is no way to run a railroad. At the simple stroke of a computer key, world investment flows to its most hospitable destination. That includes a reliable currency. But in President Bush's last year and President Obama's first, the United States has become a less hospitable destination for global capital. That should worry everybody. But let's first look to the China story. We know that China is already our principal banker, to the tune of nearly $1 trillion. As President Obama's record spending and borrowing continues -- he'll be the greatest bond salesman in American history -- our financial reliance on China grows daily. But that's not all. Fortune magazine recently reported that the number of U.S. companies in the world's top 500 fell to the lowest level ever, while more Chinese firms than ever made the list. Thirty-seven Chinese companies now rank in the top 50 Incidentally, our 40 percent corporate tax rate is already almost 15 percentage points higher than the corporate rates in most of Europe. Washington's enormous expansion of the state-, local- and federal-government spending share of gross domestic product to over 40 percent -- including Bailout Nation, TARP and takeovers in numerous industries -- is eerily reminiscent of Old Europe's old policies. And in an ironic twist, Europe seems to be moving toward a lower tax-spend-and-regulate, Reagan-type approach, while the United States is regressing to the failed socialist model of Old Europe. This makes no sense. Higher tax rates undermine the incentive model of growth. At the margin, investmen... Here's the clincher: Year-to-date, Dow Jones stocks are off 8 percent, while China stocks are up 71 percent. The world index is up 4 percent. Emerging markets are up 25 percent. They're all beating us. None of this is good. We're going the wrong way. That's why stock markets are not voting for the United States any more. Excellent article dl, thanks |
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