Guess who lampooned Soviet economics this week at the World Economic Forum in Davos, Switzerland:
In the 20th century, the Soviet Union made the state’s role absolute. In the long run, this made the Soviet economy totally uncompetitive. This lesson cost [the Soviet Union] dearly.
Newt Gingrich? Rush Limbaugh?
Apparently, the power-hungry, former KGB Putin understands the value of globally competitive corporations better than the U.S. Congress. This should come as no surprise. As this chart shows, the lessons of the rise of the American economy in the 20th century have finally been learned by the rest of the world. If the top corporate tax rate of 40%, which includes a 5% state tax on top of the 35% federal rate, remains much longer, American companies will find themselves on the short end of the stick thanks to their competitive disadvantage.
That means more people will lose their jobs. That means less wealth for all. That means we need to stop losing at our own game.