Posted on 04/23/2009 1:20:02 AM PDT by Scanian
President Obama's model for spending the nation out of recession is Franklin D. Roosevelt's New Deal. A better example is the Reaganite bearing of post-communist Poland.
In the midst of the global financial crisis, Poland's economy is forecast to grow by almost 1 percent. According to business economists and the Economist magazine, Poland likely will be the only European country with a growing gross domestic product in 2009. Germany's GDP is expected to shrink by more then 5 percent, Britain's by almost 4 percent, France's by 3 percent and the Czech Republic's by 3 percent. With a projected GDP drop of about 3 percent, the United States doesn't look any better.
Poland stands out because of its commitment to free-market policies. Facing down the global economic crisis, leaders in Warsaw have slashed marginal tax rates, cut government spending and temporarily suspended some government regulations.
On Jan. 1, Poland cut its top marginal tax rate from 40 percent to 32 percent - and that's just a start. Last year, Polish Prime Minister Donald Tusk announced plans to move to a flat-tax rate of 19 percent in 2010 or 2011. What Poland understands is the importance of the marginal tax rate. The less you take from each additional zloty (the Polish currency) that people earn, the harder they work, the more they invest and the bigger the economic pie becomes.
(Excerpt) Read more at washingtontimes.com ...
The USA would experience a massive boom, it we did the same.
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Flat taxes work for small states like Poland because their general revenues are generated from a central source and dibursed to the citys and provinces. They might work for an individual state in the US if the regions and locales within it give up those sundry revenue sources.... LOL.. as in Lots O Luck...Hey Mr President ...Here’s a way we can put people back to work....http://www.theusmat.com/natdesksatire.htm
Where there is little, little can shrink.
Name 10 Polish industrial export goods that could be affected by the global economic crisis. Yep, didn’t think so.
And the horn of plenty (EU monies) is still showering Poland as well.
ham, kielbasa, perogies,.....loss of any of these would be a disaster of mammoth proportions..
Could not agree more with that observation! I would add beer and vodka to that list. You know, common sense seems to be in such short supply these days. Whenever I think of government, the phrase addition by subtraction comes to mind. You can’t help but applaud the Polish government, one of our true allies.
i forgot about vodka!!!!!!!!!! there are some fine polish potato vodka’s out there
The public sector in Poland is much bigger than in the US and only a bit smaller than in Germany or France. The law, tax, bureaucracy etc. are generally a disaster. With location in the center of Europe, quite well educated and hard working population and labor costs at ~25% of those in Western Europe It must have been developing quite well. Despite idiotic economical policy.
This year the growth will be at best about 0% - better than in most of other places but simply because If a country, which normally would have +2% goes down to -4% then a country, which should have +6% goes down to 0%.
The decision to lower the income tax was made before the crisis and the current government is desperately looking for excuse to increase the taxes. Public spending are going to be lower because revenues are lower and there's simply no way to borrow more [especially that a lot of old debt must be rolled over (generally making new debts to pay back old debts)] money. With Obama’s madness there's simply not much available capital other governments could borrow... which will literally starve millions in poor countries.
Generally that article couldn't be dumber unless they had written that Poland is covered with ice, populated by Eskimo and main sector of the economy is hunting the polar bears.
“Name 10 Polish industrial export goods”
I heard It is a sack of potatoes and nine bottles of vodka. That’s what was worth $180 billion last year.
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