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Title: Stocks Of Socialized Countries Have Outperformed U.S. Since Reagan Era
Source:
huffingtonpost.com
URL Source: http://www.huffingtonpost.com/2011/ ... countries-reagan_n_882270.html
Published: Jun 22, 2011
Author: Alex Wagner
Post Date: 2011-06-22 22:23:39 by Godwinson
Keywords: None
Views: 44274
Comments: 67
Stocks Of Socialized Countries Have Outperformed U.S. Since Reagan Era Alex Wagner First Posted: 06/22/11 02:49 PM ET Updated: 06/22/11 03:35 PM ET American traders aren't likely to take kindly to the suggestion that big government might be good for the stock market. But data from a paper on the job- and income-growth of top earners shows that stock prices in some socialized countries, relative to themselves and adjusted for inflation, have done considerably better than those in the U.S over the last two and a half decades. Specifically, during the twenty five years after Ronald Reagan took office -- a pro-market honeymoon that Ryan Chittum of the Columbia Journalism Review this week termed "the ascent of laissez-faire economic policies" -- French stock prices have performed significantly better than Americans ones, according to the report by Jon Bakija, Adam Cole, and Bradley Heim. A further examination of the 39-year period extending from the end of the Nixon administration until 2008 shows the Swedish economy, known for its high taxes and heavy regulation, growing at a significantly higher rate than the US. The authors conclude that big government might not actually stand in contradiction to a productive economy: "Countries with typically high levels of government involvement in the economy, such as Sweden, Denmark and Canada, do not appear to have experienced stifled economic growth relative to countries where government involvement is more limited, like the US," the report says. With bastions of socialism -- Sweden Canada and France -- outpacing American market prices, does this mean it's time for Wall Streeters to start calling croissants "Freedom bagels?" Probably not. According to Jacob Funk Kirkegaard, a research fellow specializing in European economies at the Peterson Institute for International Economics, the disparity between the American and European markets might have more to do with the period in question than governmental forces. "In 1981, [Francois] Mitterand was elected president of France, and the first thing he did was to nationalize a bunch of French businesses and most of the banking system," Kirkegaard explained. "But going forward, France has moved quite dramatically towards a market-oriented economy, though not anywhere near the scope of market and economic freedom as perceived in the U.S." If Swedish and French markets have shown considerable strength compared to American ones, Kirkegaard posited that "these countries benefited from a more rapid shift to a market economy than in the U.S. over this period. The starting point was much more hostile. That’s what you see in the growth." That said, Kirkegaard also dismissed the traditional American capitalist contention that socialism is bad for market growth: "A lot of the finger-pointing we do at these countries is totally misleading. It's a myth." Kirkegaard says that many socialized governments provide critical support for business growth, including first class infrastructure built by the public sector, retraining of workers and public education systems that result in better-prepared workforces, comparative to the US. "There are a lot of areas where the role of government is a benefit for the businesses in these countries." "The idea that they are socialists and condemned to living in these bread bin-style housing complexes is illusional," he said. "It's ideological slander." Compare the stocks of Japan, France, and U.S., or get the report here: 
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Begin Trace Mode for Comment # 48.
#38. To: Godwinson (#0)
From a discussion I'm having on the Huffington Post about this article: America also has one of the most complicated tax systems in the world, over 8,000 pages long, which drives up the cost of determining what taxes one has to pay. Americans spend about $500 billion a year just to figure out what taxes they owe. That's enough to run GM, Ford, and maybe Chrysler put together. It's crazy stupid. Sure, politically favored companies who can afford to make the right campaign contributions and hire the right lobbyists can get away without paying much. Obama's buddies over at GE are a good example. But other companies get screwed. This is the problem. The answer is to get rid of most tax deductions and dramatically lower tax rates. This would vastly simplify the tax system and encourage investments in innovation and productive capacity. Obama's deficit commission proposed to do just that. Unfortunately, Obama didn't have the vision, real-world experience, or cajones to promote it. How did the no-nothing left treat Obama's deficit commission proposal? With demagoguery as usual. Yes, some ultra-partisans like Hanity on the so-called "right" did the same thing. They all make me sick. From the government monopoly schools, to unsustainable entitlement programs, to corporate welfare, to the federal tax system, America's system is very, very sick. Most people understand this, yet few politicians have the courage to do something about it. It's doesn't bode well for our future.
So? Adopt Socialistic France or Germany's model. As shown, they out perform the post Reagan American model. You admit that the Socialistic Europeans economies are better than the current American ones.
Early in the modern computer age, a famous computer scientist (Alan Turing) came up with what is now known as the "Turing Test". The Turing test is a test of a machine's ability to exhibit intelligent behavior. You failed. No matter what the input, your output is exactly the same, perhaps just phrased slightly differently. It would take me about 4 hours to write a Gooberbot that could respond to any question on this board. No one would know the difference between you and the bot.
Try and fog up the facts all you want but the Reaganesque model of society you advocate for is outperformed by the socialistic mixed market economies of the West. You worship a failed god.
Oh the irony....lmao
#49. To: Badeye (#48)
You wouldn't know irony if it starched your shirt...
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#39. To: jwpegler (#38)
America also has one of the most complicate d tax systems in the world,
#41. To: Godwinson (#39)
(Edited)
You admit that the Socialistic Europeans economies are better than the current American ones.
#42. To: jwpegler (#41)
#48. To: Godwinson (#42)
Try and fog up the facts all you want
Replies to Comment # 48. Oh the irony....
End Trace Mode for Comment # 48.
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