Friday, November 18, 2005

More Taxes Bigger Government =decreasing life satisfaction.

In the Carboniferous Epoch we were promised abundance for all,
By robbing selected Peter to pay for collective Paul;
But, though we had plenty of money, there was nothing our money could buy,
And the Gods of the Copybook Headings said: "It is all work until you die."

Rudyard Kipling



This week treasury provided briefing papers to the Finance Minister recommending tax cuts,better qualitative measurement,and a leaner Government.

The usual diatribe resulted from Cullen,which is only he knows how to use your money.There is no meaningly objective described by the government for you to work harder,to be more productive ,or to save more.The rewards are only provided to the subsets of their electoral vote and not to the majority of taxpayers therefore reducing incentive to succeed.This also stifles savings and wealth accumulation meaning you work life quality wiil be simarly affected.IE You are going to work ,longer and harder to retire later just to maintain your present QOL

Surprise ,surprise a RED QUEEN EFFECT from a red queen government.

"Well, in our country," said Alice, still panting a little, "you'd generally get to somewhere else — if you run very fast for a long time, as we've been doing."
"A slow sort of country!" said the Queen. "Now, here, you see, it takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that!" http://en.wikipedia.org/wiki/Red_Queen



Cullen states that no money remains to provide tax cuts,it has already been spent buying votes and funding non productive parts of goverment!It would require 4 world cups per year to move NZ into the top half of the OECD by 2011.

The Government is stifled by a lack of innovative thought,ingenuity,original policy or forward planning.It is restricted by a history teacher whose contribution to Academia was to report what happened yeaterday,not what can happen tomorrow.

The entire CINQVIRIATE of Government is only concerned by their own subsets of interest,Pork barrel politics at best,corruption at worst.

Bigger government is described as inversely detrimental to life satisfaction in a cross-section of 74 countries in this recent qualitative analysis.

This provides a test of a longstanding dispute between standard neoclassical economic theory, which predicts that government plays an unambiguously positive role for individuals' quality of life, and public choice theory, that was developed to understand why governments often choose excessive involvement and regulation, thereby harming voters' quality of life. Our results show that life satisfaction decreases with higher government spending. This negative impact of the government is stronger in countries with a leftwing median voter.

http://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID830545_code333298.pdf?abstractid=830545&mirid=3

You make up your mind.If you are allowed.

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