Skip to main content

Abroad thoughts from home

A sunny Aberdeenshire- a sight guaranteed to gladden almost any heart. A pleasure to be amongst "ma ain folk"- and my cousin is now well and truly married. The weather was so good, that we were able to hold the ceremony outside- and it almost felt like Benachie was a guest at the wedding.

Arriving at Dyce, the previous day, I found Donald Trump's rather knackered looking 727 business jet parked across the runway- a big deal, apparently, but given his track record of considerable failure, as well as his talent for vulgarity, I am somewhat cautious as to the real chances of his bloated golf course project for Balmedie. Since he has not even submitted even an outline for planning permission, and his project may conflict with the planned off-shore wind farm in the same area, there may be trouble ahead Still, at least it is ambitious, and I do detect a spring in the step of many people in the North East.

In the clear, bright light that seems unique to Aberdeenshire, it seems appropriate to question many things. The implosion (however temporary) of the Labour government has not been matched with a corresponding advance for the Conservatives. I think that people are rather sceptical about what they get if they simply swap Red for Blue. The similarities between the fag end of John Major and the current position of Tony Blair may be only superficial, but they are sufficient for the voters to get pretty bored with both sides. So, I think the Liberal Democrat contention that changing the government is not enough, we need to change the system of government is finding some resonance.

Mind you, after I raised the issue of the Laffer curve in a letter to the Liberal Democrat News, I am a bit irritated by the response. If tax yield falls after an increase in marginal rate of tax as Laffer predicts, it can hardly be said that increasing marginal rates will help promote government expenditure programmes. From my work in Central and Eastern Europe, I can see quite clearly the validity of Arthur Laffer's work, and I am slightly resentful of comments that suggest that since I support cuts in the marginal rates of income tax, that therefore I am undercutting the alleviation of child poverty. NO! If there is less money in the kitty, how can it be said that this is a good thing? Furthermore, I am morally opposed to taxes of more than half of anyone's income and oppose a government budget of greater than 50% of GDP. Liberalism sets limits to the state, and in my opinion these are the absolute maximum limits that the state should be permitted in the economy. This does not make me a right wing nutter- it just means that I can count and understand a basic level of economics.

I am preparing to go to Japan- and looking forward to exploring such rich sites as Kyoto, Nara and Nikko- anyone out there with any better recommendations?

Comments

Tristan said…
I find some of the thinking on taxation somewhat disturbing too.
I think Laffer was correct (to me it makes total sense), especially when you take into account the increased incentives for the rich to avoid tax (and indeed, be given loopholes by the government).

Another factor of high income taxes is it discourages investment. Who's going to take the risk of investment if half or more of the returns are taken by the state? Its better just to keep your current wealth safe.

I get the sense, there's some work to be done in removing the collectivist/socialist assumptions by many in the party, plus the fact that talking about lower taxes sounds too Tory...

There is also a case for investigating whether what the state does now is best done by the state, but to suggest some things is heresy...

Popular posts from this blog

Concert and Blues

Tallinn is full tonight... Big concerts on at the Song field The Weeknd and Bonnie Tyler (!). The place is buzzing and some sixty thousand concert goers have booked every bed for thirty miles around Tallinn. It should be a busy high summer, but it isn´t. Tourism is down sharply overall. Only 70 cruise ships calling this season, versus over 300 before Ukraine. Since no one goes to St Pete, demand has fallen, and of course people think that Estonia is not safe. We are tired. The economy is still under big pressure, and the fall of tourism is a significant part of that. The credit rating for Estonia has been downgraded as the government struggles with spending. The summer has been a little gloomy, and soon the long and slow autumn will drift into the dark of the year. Yesterday I met with more refugees: the usual horrible stories, the usual tears. I try to make myself immune, but I can´t. These people are wounded in spirit, carrying their grief in a terrible cradling. I try to project hop...

One Year On

  Head vabariigi iseseisvuspäeva! Happy Estonian Independence Day! It is one year since I stood outside the Estonian Parliament for the traditional raising of the national flag from Tall Hermann tower. Looking at the young fraternities gathered with their flags, I was very sure that Estonia too would soon be facing the aggression of the criminal Russian regime. A tragic and dark day. 5 eyes intelligence had been clear: an all out invasion was going to happen, and Putin´s goals included- and still include- "restoration" of Russian imperial power across Europe, even to the Atlantic. Yet there was one Western intelligence failure: we all underestimated the guts of the Ukrainian armed forces, the ZSU, and its President and people. One year on, Estonia, and indeed all the front line states against Russia, knows that Ukraine saved us. Estonia used that time to prepare itself, should that "delayed" onslaught ever be unleashed, but equally the determination of Kaja Kallas, ...

A Hard Frost

  After a week of slush and damp, tonight there is a hard frost in Tallinn. The general election campaign has started with the parties submitting their lists of candidates and announcing their programs. The polls seem to show a polarization of views. Although the Liberal Reform party of PM Kaja Kallas is set to remain as the largest party in the 101 seat Riigikogu, the steady rise of the far right EKRE seems to place them firmly in second place, replacing the Social Liberal Centre Party, who seem set to lose several seats. In addition to the Conservative Isamaaliit and the Social Democrat SDE, there is a fair likelihood that a new party will join these in Parliament, namely the Business/Green minded Eesti 200. The Greens and the Libertarian "Right wingers" look like they will struggle to gain seats. A Moderate Reform/SDE/E200 coalition would be a good outcome, but the numbers will have to fall just so, otherwise there remains the chance of another Centre/Isamaa/EKRE coalition...