Comments on: Chrysler exec makes a visit from Bizarro World http://www.blagnet.net/2008/12/04/chrysler-exec-makes-a-visit-from-bizarro-world/ Discussing libertarian philosophy Sat, 04 Feb 2012 17:24:09 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: John http://www.blagnet.net/2008/12/04/chrysler-exec-makes-a-visit-from-bizarro-world/comment-page-1/#comment-1070 John Fri, 05 Dec 2008 23:24:35 +0000 http://www.blagnet.net/?p=421#comment-1070 But taxation of capital and income hasn't changed drastically in the last few years, or even decades, I think. Statism has been constant for a long time. Everyone knows this. No one was operating under the assumptions of freedom. Given the criminal level of taxes levied by our governments, they were malinvestments. But taxation of capital and income hasn’t changed drastically in the last few years, or even decades, I think. Statism has been constant for a long time. Everyone knows this. No one was operating under the assumptions of freedom. Given the criminal level of taxes levied by our governments, they were malinvestments.

]]> By: anarcho-mercantilist http://www.blagnet.net/2008/12/04/chrysler-exec-makes-a-visit-from-bizarro-world/comment-page-1/#comment-1066 anarcho-mercantilist Fri, 05 Dec 2008 20:46:29 +0000 http://www.blagnet.net/?p=421#comment-1066 "A recession is referred to by knowledgeable, non-Statist economists as a correction, by which they mean people, money, land, and machines ceasing to produce what they used to and switching to more desired, profitable lines of production." This isn't a "correction." The investments, even the malinvestments, are already heavly underinvested due to direct and indirect state taxation (assume it's 80%). Suppose if the central bank uses low interest rates to benefit the automotive industry. Suppose this gives them a benefit of 200% at the expense of other industries. However, the already taxes every industry with a 80% tax. This privileges the automotive industry 3 times but 5 times losses due to 80% tax, which still only gives it only 3/5 the allocation of a free market. So the "malinvestments" are actually underinvested and underallocated because the net taxation of the automotive industry exceeds the privileges granted to the automotive industry by the central banks. In other words, suppose in an anarchic society, individuals would be 5 times more wealthy because the absense of a 80% tax. This would make individuals buy more cars which would expand the automotive industry, even more than the current automotive industry which is heavily privileged by the state. “A recession is referred to by knowledgeable, non-Statist economists as a correction, by which they mean people, money, land, and machines ceasing to produce what they used to and switching to more desired, profitable lines of production.”

This isn’t a “correction.” The investments, even the malinvestments, are already heavly underinvested due to direct and indirect state taxation (assume it’s 80%).

Suppose if the central bank uses low interest rates to benefit the automotive industry. Suppose this gives them a benefit of 200% at the expense of other industries. However, the already taxes every industry with a 80% tax. This privileges the automotive industry 3 times but 5 times losses due to 80% tax, which still only gives it only 3/5 the allocation of a free market. So the “malinvestments” are actually underinvested and underallocated because the net taxation of the automotive industry exceeds the privileges granted to the automotive industry by the central banks.

In other words, suppose in an anarchic society, individuals would be 5 times more wealthy because the absense of a 80% tax. This would make individuals buy more cars which would expand the automotive industry, even more than the current automotive industry which is heavily privileged by the state.

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