Squeal01 Jul 2003
So, the tax cut is coming a year earlier, and the Union is sqealing like a pig because, like I said a week ago, it's caught between a rock and its campaign promises of a year ago. Schröder has outfoxed them again. The Union has to say yes, and Schröder will get the credit.
What strikes me about the budget issue is that the discussion is very superficial. Despite allusions in the press to Reagan and Thatcher, noone is asking whether the state can or should continue to do all the things it has done up to now. The government is cutting corners, not programs. The budget tree is being attacked with a nailfile rather than an axe. And noone is mentioning that simplifying the tax system, cutting tax rates and subsidies such that the revenue effect is zero, is in and of itself a good thing, since it makes rational desicions easier. In the economic sense, it allows me to use my time more efficiently to make money and create jobs rather than to find tax loopholes. Sometimes I think that politicians in Germany are missing some basic economic training. I used to teach freshman economics, and thanks to Kurzarbeit I have some time. Give me a call.
What struck my wife was that the picture of the ministers sitting outside in lawn furniture looked just like the midsummer commercial for Ikea, like a tree was just ready to fall on the table and break all the dishes.