.@TheAusInstitute will EU finance ministers welcome 15% British company tax?

If the Australian Institute’s analysis of company tax cuts is to be believed, European Union member states must be rubbing their hands in glee at the extra tax revenue that will flow to them because of Britain’s plans to cut its company tax rate to 15%.

Their analysis is a company tax cut in Australia, or in this case Britain, will simply mean more taxes will be paid in the home country of the foreign investing owned company when it repatriates dividends.

Ireland was relentlessly bullied over its 12.5% company tax rates by the rest of the European Union. Facts speaks louder than words and the Australia Institute economic analysis.

You do wonder why losing finance ministers complain about lowering of company taxes as a race to the bottom. They are complaining because they are losing foreign investment to lower company tax jurisdictions.

What’s Wrong with the EU? Part 1

David Glasner's avatarUneasy Money

Since the Brexit vote last week, I have been trying to sort out my disparate thoughts about the EU. In doing so, I have been thinking about the early history of the EU and its origins in the early 1950s and the convoluted process by which Britain came to join what was then called the European Common Market. In the process I have also been thinking a lot about the fascinating but disturbing figure of Enoch Powell who became the foremost opponent of Britain’s entry into the Common Market and the reasons for his opposition. What follows is my reconstruction of the early process by which the Common Market came into existence and Britain’s entry into the Common Market in 1972 and Powell’s role in both Britain’s entry and in the first attempt only a few years later to undo that entry. I will try to carry the story a…

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Where do ISIS foreign fighters come from and why?

ISIS foreign fighters are not driven by economic deprivation or inequality. In What Explains the Flow of Foreign Fighters to ISIS? (NBER Working Paper No. 22190),Efraim Benmelech
and Esteban F. Klor found that many foreign fighters come from countries with high levels of economic development, low income inequality, and highly developed political institutions.

Foreign ISIS recruits come largely from prosperous, ethnically and linguistically homogeneous countries. As Alan Krueger explains in a discussion of terrorism is an occupational choice:

One of the conclusions from the work of Laurence Iannaccone—whose paper, “The Market for Martyrs,” is supported by my own research—is that it is very difficult to effect change on the supply side.

People who are willing to sacrifice themselves for a cause have diverse motivations. Some are motivated by nationalism, some by religious fanaticism, some by historical grievances, and so on. If we address one motivation and thus reduce one source on the supply side, there remain other motivations that will incite other people to terror.

Malcontents join the jihadists today for the same reasons they joined the Red Brigade, the Japanese Red Army Faction and Baader-Meinhof gang in the 1970s and 1980s. Plenty of young people were attracted to communism in previous generations as a way of sticking it to the man.

Now as then economic conditions were good as were political freedoms. Italy, Japan and Germany were all at the peak of recoveries from war. Japanese incomes are doubled in the previous decade. Germany and Italy were rich countries. As Alan Krueger explains:

Despite these pronouncements, however, the available evidence is nearly unanimous in rejecting either material deprivation or inadequate education as important causes of support for terrorism or participation in terrorist activities. Such explanations have been embraced almost entirely on faith, not scientific evidence.

Each generation has its defining oppositional identity. Radical Islam is the oppositional identity of choice for today’s angry young men and women. Mind you, they have to buy Islam for dummies to understand what they’re signing up for.

In previous generations, it was communism, weird Christian sects, eco-terrorism, animal liberationist terrorism and a variety of domestic terrorists of the left and right with conspiratorial motivations. Look at the level of diversity of the angry young men and women on the domestic terrorists list of the FBI.

One jihadists when interviewed said that 30 years ago he would probably have become a Communist as his vehicle for venting his frustrations.

The best defence of free speech is by Oscar Wilde

Image

Syria ~ Map Update dd July 3 2016

Will there ever be self-drive cars?

An astute commentator on the technology Sub-Reddit pointed out that commercial aircraft fly on autopilot but active involvement of pilots is expected. No one ever contemplates the contrary.

image

The autopilot on a plane has a far less challenging environment than a self driving. Planes do not have to navigate passed other planes within a fraction a second of collision, along with pedestrians and bicyclists.

Planes do not have the follow hyper-accurate maps and turn and swerve almost continuously to avoid a collision as distinct from turbulence or an error that is quickly corrected by pilot before any danger is encountered.

As far as self drive cars will go, I think they will be confined to driver assist functions  with a driver always having to have his hands on the wheel.

A peculiarity of self drive cars is the brand name of Googleand Tesla are so strong that they have been able to hold off the usual Luddite reaction to new technologies.

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