The Green Gap

In the Cold War, we feared a Missile Gap was a strategic weakness. Nowadays, we must awaken to the fact that the Green Gap is true strategic weakness: the nations whose economies will thrive in the coming years will not be those with the biggest factories, but those with the most sustainable, efficient, and ecological markets. What we require is a Strategic "Green Reserve" of ecological design to weather the coming changes that both climate and resource scarcity will force on the international economy.

Monday, 25 April 2011

Taxes: an Addendum to the Addendum

No quicker have I said my piece about taxing the rich than the Economist quotes S&P regarding the USA's unwillingness to tax the rich, and how that may lower its AAA credit rating!

The Economist:
"Of course, our ability to pay isn't the issue. S&P lowered its outlook because it questioned our willingness to pay."

...and S&P:
"We note that the President advocated the latter proposal last year before agreeing with Republicans to extend the cuts beyond their previously scheduled 2011 expiration. The compromise agreed in December likely provides short-term support for the economic recovery, but we believe it also weakens the U.S.'s fiscal outlook and reduces the likelihood that Congress will allow these tax cuts to expire in the near future. We also note that previously enacted legislative mechanisms meant to enforce budgetary discipline on future Congresses have not always succeeded."

Both agree with me, it seems...

Also, just a note, I love Canada:
"Meanwhile, Canada, the only sovereign of the peer group to suffer no major financial institution failures requiring direct government assistance during the crisis, enjoys by far the lowest net general government debt of the five peers (we estimate it at 34% of GDP this year), largely because of an unbroken string of balanced-or-better general government budgetary outturns from 1997 through 2008. Canada's general government deficit never exceeded 4% of GDP during the recent recession, and we expect it to return to below 0.5% of GDP by 2013."

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