Zebo
Elite Member
Originally posted by: Skoorb
I enjoyed reading that...does Mexico have a significantly less socialist system and/or lacking in much of the way of progressive taxation?Originally posted by: Zebo
How do we help Mexico not suck? I
Redistribution of wealth of course. Some people call it "empowerment" but all that means is redistribution of something. Even a small business or FHA loan is redistribution. Mexico has plenty of Billionaires and most mired in poverty. Why?
Because here's how the real world works as proven time again thoughout history even here in the USA in the robber barren era and the 1930's again and about to be proven again. Unregulated capitalism moves wealth from the labor that creates it to the owners who accumulate it. A fair "original distribution" would divide the profit between the labor that produces it, and the ownership that organizes and manages the operation. If that is how it actually worked everything would be great. right!
But that's not how it works. When dealing with a landless and destitute workforce, owners tend to get it all by thier control of capital. And thier control of capital enables them to control politics, slash benefits, pay subsistance wages and eventually you have a work force fighting for staving wages because there's more workers than capital. You get what we had in the early 1930's and Mexico has today, namely a depression economy, where demand has disappeared down the toilet of economic collapse. Owners have succeeded in "getting it all" and no one is employed. Like mexico.
Thus in any economy where one side of the equation reaps all of the surplus of labor, and the other side is left with barely enough to get by, the trajectory is toward a world where almost all of a society's productive assets are controlled by a small elite who then work to make sure that things stay just the way they are. What you get is fabulous wealth on the one hand, and destitution and misery on the other. You get economic stagnation and political repression because for wealthy elites in such a lobsided economy, they have no where to go but down.
The way to fix this is to establish mechanisms to move wealth from the top back to the bottom. One simple way to do that is labor unions. The other simple solution is progressive taxation. Lo and behold, our modestly unionized, progressively taxed economy from the end of the war into the mid-1970's was just amazingly prosperous almost to the bottom of society. Lo and behold, every richest country has capitalism with strong socialistic undertones.
All I'm saying is you need balance similar to what we have..
Mexico has none of the things we take for granted in this country and the extreme liabertarians what to take us back to. No SS, No capital gains tax, no public school funding to speak of, no social safty net, no government subsidized loan programs like FHA or SBA, no rural electricfication, no National Labor Relations Act, no Fair Labor Standards Act, etc etc etc which american feel everyday whether they relise it or not. Remeber we used to kill labor organizers too.
And a small group of Spanish families own all the oil fields and banks. Here is thier tax policy.http://www.solutionsabroad.com/d_mexicantaxlaw.asp
Notice all the taxes are primarly on workers little on capital. All these taxes like VAT, income hit the working class disproportionatly so. While the capital class (those who don't work but own) pay little while reaping tremendous profit on thier proletariat/uneducated work force.