General government net financial liabilities as % Portuguese, Italian, Greek, Spanish and Irish GDPs

I had borrowed a lot of money from scratch after 2007. Greece borrowed a lot of money of its own accord from 2010. Italy always owed a lot of money. Spanish do not know all that much money considering their dire financial circumstances.

image

Source: OECD Economic Outlook June 2016 Data extracted on 01 Jun 2016 12:57 UTC (GMT) from OECD.Stat

@TheAusInstitute has not heard of Ireland’s 12.5% company tax and European tax harmonisation

The Australia Institute has been running the line that cutting the Australian company tax rate just means more tax revenue for offshore tax departments. They will tax the larger after-tax Australian dividends in the home country of the foreign investor if Australia were to cut its company tax rate.

image

Source: David Richardson, Company tax cuts: An Australian gift to the US Internal Revenue Service How a cut to the Australian company tax rate would result in a windfall for the United States Treasury. Australia Institute (May 2015).

The Australia Institute obviously has not picked up on the relentless bullying that Ireland was subject to by the rest of the European Union over its 12.5% company tax.

The Irish company tax rate of 12.5% was initially on export profits. To finesse European Union member state complaints about that 12.5% company tax rate on discrimination grounds, the Irish government extended that low rate to all companies in 1995.

I am yet to see  a minister of finance welcoming a company tax cut in a competing jurisdiction, rubbing his hands in anticipation of greater tax revenues on the foreign profits of companies headquartered in his country.

If there is no race to the bottom in company tax rates, you must wonder why there is substantial efforts within the European Union on tax harmonisation regarding company tax?

France and Germany are pushing plans to introduce a minimum corporation tax rate across the continent, it was reported today, in a move that could result in higher taxes on British companies.

European officials will debate plans to set a EU-wide floor on corporation tax in order to crack down on tax havens such as Ireland and Luxembourg, it emerged.

If there is an ounce of sense in what the Australia Institute said about foreign taxmen benefiting from low company taxes in Australia, high corporate tax rate countries such as Germany, France and the USA should welcome low company tax rates in destination countries for foreign investment originating in those countries but they do not. Rather than seek tax harmonisation, high tax country should welcome low company taxes in competing investment destinations but they do not.

About $2 trillion in profits is held offshore by American businesses because they do not pay company tax in the USA until they actually repatriate the profits to the USA. This is common. You wonder what the purpose of tax havens is if a company tax rate cut in Australia is so easily captured by the IRS?

Studies of the company tax in the USA suggest that a cut in that company tax would lead to large inflows of foreign investment into the USA boosting wages significantly.

Actual and synthetic real per capita GDP and real per worker GDP in the 1973 EU enlargement

image

Source: How rich nations benefit from EU membership | VOX, CEPR’s Policy Portal.

Employment status of sole parents in UK, USA, France, Italy, Australia, Ireland and New Zealand

Despite supposedly having stingy welfare states, both New Zealand and Australia have a lot of sole parents who do not work at all. There is no separate breakdown of full-time and part-time work status in the USA. About 72% of sole parents in the USA either work full-time or part-time.

Source: OECD Family Database.

Tertiary education premium by gender in the English-speaking countries, 2012

There are large differences in the education premium between English speaking countries and also by gender. The tertiary premium in New Zealand is pretty poor compared to the USA, UK or Ireland and is still mediocre when compared to Australia and Canada.

image

Source: Education at a Glance 2014.

British and Irish real housing prices since 1975

image

Source and notes: International House Price Database – Dallas Fed June 2015; nominal housing prices for each country is deflated by the personal consumption deflator for that country.

French, German, Italian, Irish and Spanish equilibrium unemployment rates, 1968 – 2016

Figure 1 shows large contrasts in time path of equilibrium unemployment rates. For example, French and Italian equilibrium unemployment rates haven’t changed much since about 1986.

Figure 1: equilibrium unemployment rates, France, Germany, Italy, Ireland and Spain, 1968 – 2016

image

Source: OECD Economic Outlook June 2015 via OECD StatExtract..

Figure 1 also shows some fortuitous ups and downs in the German equilibrium unemployment rate. This estimate was available only from after German unification.

The equilibrium German unemployment rate rose from 6% to above 8% on the eve of the global financial crisis. Fortunately for Germany, major labour market reforms brought the equilibrium unemployment rate down as Germany moved into the global financial crisis.

The Spanish equilibrium unemployment rate had been terrible since about 1980, started to fall in the 1990s, then skyrocketed even before the onset of the global financial crisis – see figure 1.

There have been ups and downs in the Irish equilibrium unemployment rate – see figure 1. It was as high as 14% at the end of the Irish great depression of the 1970s and 1980s. The equilibrium Irish unemployment rate was 8% at the heyday of the Celtic tiger then slowly rose in the lead up to the global financial crisis.

Scotland already has its own currency ripe for a currency board?

Since 1844, the Bank of Scotland, Clydesdale Bank and The Royal Bank of Scotland have been allowed to issue banknotes in denominations of £5, £10, £20, £50 and £100.  Only the Royal Bank of Scotland continues to issue a small volume of £1 notes. Two Northern Irish banks have similar prerogatives.

These Scottish banknotes are not legal tender in England. No banknotes have legal tender status in Scotland, whether issued by Scottish banks or the Bank of England. The Bank of England says:

Scottish and Northern Ireland banknotes are fully backed at all times by ring-fenced backing assets partly held in Bank of England notes and UK coin, and partly as balances on accounts maintained by the issuing banks at the Bank of England.

Consequently, holders of genuine Scottish and Northern Ireland banknotes have the same level of protection as that available to holders of genuine Bank of England notes.

The acceptability of any means of payment, including banknotes, is essentially a matter for agreement between the parties involved in a transaction in Scotland.

Bank of England keeps control Scottish bank notes in issue by stipulating that the issuing bank hold in their reserves the same amount of UK money (either in cash or on deposit at the Bank of England) as the Scottish notes they issue. These reserves could easily be converted to a currency board.

  • A currency board issues local notes and coins anchored to a foreign currency (e.g. Sterling) backed by government bonds with 1 pound sterling  pound sterling and British government bonds for every Scottish pound currency note issued.
  • A currency board issues domestic notes and coins only when there are foreign-exchange reserves to back it. In the case of a Scottish currency board, there would be pounds Sterling reserves to back any Scottish pounds and currency notes on issue.

The Hong Kong currency board has operated successfully through 30 years of financial turbulence and radical constitutional change. There is no reason why a Scottish currency board could not do likewise, guaranteeing the convertibility of a Scots pound, initially at parity with the English pound sterling.

After independence, Ireland acted effectively as a currency board until the 1970s. Currency boards were commonplace throughout the British Empire and were highly successful.

  • On the independence of the Irish Free State in 1922, the introduction of an independent currency was a low priority because 98% of exports and 80% of imports were with the UK.
  • British banknotes and notes issued by Irish banks circulated (but only the first were legal tender) and coins remained in circulation.

Under the Currency Act 1927, the Saorstát Pound (Free State Pound) was created at parity with the British Pound Sterling. A Currency Commission kept British government securities, sterling cash, and gold to keep a 1:1 relationship between the two currencies.

Although a Central Bank of Ireland was created in 1943, the Irish punt remained linked to sterling with the central bank operated as a de facto currency board policy until joining the European Exchange Rate Mechanism in 1979.

A currency board has no capacity to act as a lender of last resort to a Scottish banking system.

Child poverty rates in single parent and couple families, Anglo-Saxon countries

Figure 1: Child poverty rates by family type, Anglo-Saxon countries, 2010

image

Source: OECD Family Database; Poverty thresholds are set at 50% of the median income of the entire population.

The impact of parental employment on child poverty in couple families, Anglo-Saxon countries

Figure 1: child poverty rates in couple families by employment status, Anglo-Saxon countries, 2010

image

Source: OECD Family Database; Poverty thresholds are set at 50% of the median income of the entire population.

The impact of single parent employment on child poverty rates, Anglo-Saxon countries

Figure 1: Child poverty rate by employment status of single parent, Anglo-Saxon countries, 2010

image

Source: OECD Family Database; Poverty thresholds are set at 50% of the median income of the entire population.

The reverse gender tertiary education gap for ages 25–34, Anglo-Saxon countries

Figure 1: % population who have attained at least tertiary education, age 25 – 34 by gender (2012)

image

Source: OECD family database.

Figure 2 shows that the stark reversing of the gender gap in educational attainment shown in figure 1 was somewhat more recent in the US, UK and to a lesser extent in Ireland and Australia. In the UK and USA, educational attainment by gender was pretty equal for the earlier generation of graduates as compared to today’s 25 to 34-year-olds. The reversing of the gender gap in educational attainment dates back several decades in Canada and New Zealand.

Figure 2: % population who have attained at least tertiary education, age 45 – 54 by gender (2012)

image

Source: OECD family database.

Gender wage gaps for tertiary educated and high school educated full-time workers in Anglo-Saxon countries

In another blow for the inherent inequality of bargaining power between workers and employers, and for the patriarchy, the wage gap is larger for tertiary educated female full-time workers aged 35-44 than it is for female full-time workers who just finished high school.

Figure 1: gender wage gap for mean full-time, full-year earnings for tertiary educated workers aged 35 – 44, 2012

image

Source: OECD family database.

To add insult to injury, the gender wage gap further tertiary educated female workers is quite large in the USA but quite small for high school graduates.

Figure 2: gender wage gap for mean full-time, full-year earnings for  below upper secondary educated workers aged 35 – 44, 2012

image

Source: OECD family database.

Canada seems to be a bit of a patriarchal hellhole while New Zealand does pretty well in gender wage gaps.

The gender gap  in figure 1 and in figure 2 are unadjusted and calculated as the difference between mean average annual full-time, full-year earnings of men and of women as a percentage of men’s earnings.

What are the Anglo-Saxon gender wage gaps for the bottom, median and top deciles?

If there is an inherent inequality of bargaining power between workers and employers, as we are so frequently lectured by those in the self appointed know, why is the gender wage gap so small at the bottom of the earnings distribution?

Figure 1: % Gender gap in full-time earnings at the bottom decile of earnings distribution, 2012

image

Source: OECD family database

Figure 2: % Gender gap in full-time earnings at the median decile of earnings distribution, 2012

image

Source: OECD family database

Figure 3: % Gender gap in full-time earnings at the top decile of earnings distribution, 2012

image

Source: OECD family database

The gender gaps are unadjusted, and are calculated as the difference between the earnings of men and women for their respective earnings percentile.

What are the Anglo-Saxon gender wage gaps?

Figure 1: % gender gap in median earnings of full-time employees, 2012

image

Source: OECD family database

Previous Older Entries Next Newer Entries

BooksIcon.com

Reading lists

Climate Audit

by Steve McIntyre

New Discourses

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Green Jihad

Your source that tells the truth about the environmentalist movement's holy war against mankind

New Historical Express

(Formerly Hatful of History)

Bowalley Road

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

History of Sorts

WORLD WAR 2,EIGHTIES,MUSIC,HISTORY,HOLOCAUST

Notes On Liberty

Spontaneous thoughts on a humble creed

Tudor Chronicles

News, reviews and talk all about the Tudors

The Logical Place

Tim Harding's writings on rationality, informal logic and skepticism

Karl du Fresne

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Great Books Guy

Reading The Classics

Velvet Glove, Iron Fist

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

@STILLTish. Gender Abolition

Examining Gender Identity ideology and its impact on Women's Sex based rights and Gay Rights. d protections. Exploring how this has taken such firm root in Western societies (Cognitive & Regulatory Capture).

200-Proof Liberals

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

What Paul Gregory is Writing About

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Kids Prefer Cheese

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Offsetting Behaviour

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

JONATHAN TURLEY

Res ipsa loquitur - The thing itself speaks

Adventures of a Tudor Nerd

Exploring the 16th Century and Beyond

Weapons and Warfare

History and Hardware of Warfare

Conversable Economist

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Barrie Saunders

Thoughts on public policy and the media

The Victorian Commons

Researching the House of Commons, 1832-1868

Coyote Blog

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

The History of Parliament

Blogging on parliament, politics and people, from the History of Parliament

Catallaxy Files

Australia's leading libertarian and centre-right blog

Books & Boots

reflections on books and art

Legal History Miscellany

Posts on the History of Law, Crime, and Justice

Sex, Drugs and Economics

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Vincent Geloso

Economics, History, Lots of Data and French Stuff

Climatism

Tracking Anthropogenic Climate Alarmism

Point of Order

Politics and the economy

FREEcology

Libertarian environmentalism

Doc's Books

A window into Doc Freiberger's library

Newmark's Door

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Media Myth Alert

Calling out media myths

Uneasy Money

Commentary on monetary policy in the spirit of R. G. Hawtrey

European Royal History

Exploring the History of European Royalty

Tallbloke's Talkshop

Cutting edge science you can dice with

Marginal REVOLUTION

Small Steps Toward A Much Better World

%d bloggers like this: