In past years, a few football clubs have dominated the European Champions League. Whenever the semifinal stage is reached, only clubs from the big leagues of Germany, England, Spain, and Italy are left. Not too long ago, this was not so straightforward. Continue reading
For centuries have academics and politicians debated the merits and demerits of central planning. Central planning (or economic planning, or planned economy) is a mechanism that directly allocate resources. A central authority decides how and where stuff is produced and consumed. It contrasts with its ideological counterpart, the market mechanism, in which resources are allocated indirectly by buyers and sellers who make decisions within regulated marketplaces. Continue reading
A few weeks ago I got published with an article I wrote about the role governments can and cannot play in stimulating innovation. I responded to a piece that Rutger Bregman posted for the De Correspondent about the biggest inventor and innovator in the world: the government. He claims that governments are responsible for all major technological breakthroughs in the past 100 years and that they are the ultimate venture capitalists. The government should take a stronger role as a technological innovator at the expense of the free market.
Dangerous nonsense. Continue reading
If governments face a budget deficit that is deemed to be too high, two actions can be taken: government spending is lowered, or government income is increased. The lion’s share of government income comes from taxes; increasing government income as a way of reducing budget deficits therefore translates to increasing taxes. But taxes are not increased, really; tax rates are increased.
But what few people know is that in certain situations raising tax rates will actually reduce government income from taxes.