Yearly Archives: 2013

Hong Kong Wrong [2006]

"Though a colony of socialist Britain, Hong Kong followed a laissez-faire capitalist policy, thanks largely to a British civil servant, John Cowperthwaite. Assigned to handle Hong Kong's financial affairs in 1945, Cowperthwaite was so famously laissez-faire that he refused to collect economic statistics for fear this would only give government officials an excuse for more meddling. The results of his policy were remarkable. At the end of World War II, Hong Kong was a dirt-poor island with a per-capita income about one-quarter that of Britain's. By 1997, when sovereignty was transferred to China, its per-capita income was roughly equal to that of the departing colonial power." Continue reading →

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Abolish All Government Economic Data Collection

"Government data collection gives an impression that the state is the overseer of the economy, and it provides an opening for central planners to meddle with the marketplace. Opportunities abound for the Paul Krugman's of the world to put together 'models,' and to prescribe 'policies' based on them. The marketplace needs to be freed from these meddlers. If companies or entrepreneurs desire economic data, let them pay for it (with their own money) in the market. Let private companies gather up the data, and have their reputation hang on its accuracy. Government worries not about its reputation. It lies constantly." Continue reading →

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The ‘sharp decline’ in U.S unemployment was actually a glitch

"US jobless claims fell sharply last week mainly due to technical problems that affected some states supplying data, the government said Thursday. Initial claims for unemployment benefits dived by 31,000 to 292,000 in the holiday-shortened week ending September 7, the Labor Department reported. The sharp drop in claims reflected technical problems in some states in collecting claims data, the official said. The drop was due to upgrading of computer systems in two states that resulted in fewer claims being processed, as well as the Labor Day holiday, analysts noted." Continue reading →

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Employment: Trending Down

"Charts and data provided by longtime correspondent B.C. reflect what many know from first-hand experience: employment is trending down. The growth rate of employment is declining over time, as positive growth weakens and recessionary declines deepen. Though the 3-year average annual change has improved to near-zero, the 5-year (i.e. longer-term trendline) is still solidly negative. There are two other trends in employment: 1. Decline of full-time jobs and the rise of part-time jobs 2. Stagnation of high-wage employment and increases in lower-wage job sectors." Continue reading →

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The future of work: on to a freelance model?

"If work is changing and freelance-like work is on the rise, bringing with it increased freedom, autonomy and diversity but also probably added unpredictability in terms of steady incomes, then we’ll probably also need a societal change and start questioning our need to own things and how we approach borrowing and lending money. For many, facing all this change can seem daunting, which was probably why at some point of our interesting dinner conversation my friend suggested that for a couple maybe one could pursue a project-based/entrepreneurial activity of some sort while the other could guarantee some 'stability' from a 'traditional' job." Continue reading →

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California Governor Calls for Legislation that will Increase Unemployment

"Gov. Jerry Brown says he supports a bill in the Legislature that would boost the California minimum wage next year and in 2016 by a total of $2 an hour, reports LaTi. The bill would raise the current $8-an-hour minimum wage to $9 on July 1, 2014, and to $10 on Jan. 1, 2016. The Governor, displaying a total lack of understanding of basic economics, said: 'The minimum wage has not kept pace with rising costs. This legislation is overdue and will help families that are struggling in this harsh economy.' What it will do is cause an increase in unemployment. Prices can't be regulated, wage prices or otherwise. It is basic supply and demand economics." Continue reading →

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Why I renounced US citizenship

"I flew to Switzerland and was hired by two large international firms at the same time within a few weeks, both offering double the pay and with better benefits. I had to choose. Months later, my spouse joined me there. 11 years later, I learned that Swiss banks were rejecting little people simply because they had US citizenship and as a result of US policy. It was clear that the US citizenship had to go. Overall, I find that the American job market is often trigger-happy, overreacting to strongly to non-issues. In Switzerland, I’m trusted, my skills and motivation are respected and appreciated and my minor human errors are forgiven. To anyone thinking about working in America: think again." Continue reading →

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FATCA Hassles: Feds Cracking Down on Overseas Tax Evasion

"Switzerland, which has strict privacy laws protecting customers’ confidential financial information, has effectively declared American citizens personae non gratae as far as their banks are concerned. Banks are shuttering accounts, refusing mortgages and refinances, and refusing to open accounts for Americans living abroad. The rules create an incentive for foreign employers to cease investing in America, avoid hiring Americans, or both. And in some cases, Americans have been refused employment or promotions at foreign companies because the job description requires them to be signatories on the company’s account." Continue reading →

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Bern’s backing of FATCA ‘hits financial sector’

"Walter Boss, a tax lawyer with Poledna Boss Kurer AG in Zurich, said uncertainty was 'one of the worst enemies in the financial world.' But more clarity could come at a steep price, even for banks that maintain they have done nothing wrong. Forced to cough up US client records, they are basically being 'deemed guilty until proven innocent,' Boss said. Hornung was even more critical. 'It's not really an agreement, but more of a dictate from the United States,' he said. And after suffering the onslaught from Washington, the biggest danger could lie ahead if European tax authorities decide to take the same route as their American counterparts, Hornung warned." Continue reading →

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