G20: how they got their goals wrong.

The G20, the 20 most prosperous nations, just finished their latest conference. At the end a Communique was issued. This document called for a 2.1% additional growth by 2018. It is not until you look at the details that you see this as the "same old...same old."

By now we know how to grow a prosperous economy: 1. you let private individuals invest to produce and 2. you let them keep as much of the proceeds as practicable so they keep doing it That's it. Those who argue for State control are simply wrong. Experience shows us that private individuals do the best job in using resources. When government agencies acquire the power of issuing permits and have the power to regulate, corruption results. Whether it is the subtle corruption such as in this country (where campaign contributions can buy you a lot) or as in the Ukraine, where you have a list of bribes and amounts, corruption is made possible by the power of the government. Simply put: economic growth is reduced by substituting political considerations for economic considerations and paying people without them contributing work.

So, how does the G20 Communique look in light of this? Not that good. First, the G20 will try to promote the pulling of 100M women into the work force. This is obviously a political move. Second, the G20 rails about reducing corruption, without reducing the economic power of the State over the economy. And third, the G20 wants to reduce "tax evasion" by equalizing tax rates. I was present in Hungary at a very tragic time. When? When Parliament was voting on the income tax. I tried to explain that people should take up arms because a horrible crime was being perpetrated against them. The income tax would be reformed, simplified, made more fair and made (you put in the words) - all these were euphemisms for raising the tax. Alas, I wasn't heard. What am I saying?

The G20 is trying to raise taxes, have governments control the economy for political reasons and "invest" in infrastructure. The same old. Like the Porkulus bill that Obama got through Congress to spend a Trillion dollars for "shovel ready" projects that turned out to be politically motivated projects. And that is not the way to grow the economy.