Based on the dismal data from the Minneapolis Federal Reserve (as well as our own experiences), we know Obamanomics doesn’t work in the United States.
But we also know bigger government doesn’t work in France. And we know itdoesn’t work in Japan. We know it doesn’t work in Spain. We know it doesn’t work in Argentina. We know it doesn’t work in Greece.
I could continue, but I think you get the point.
But some people never learn. The President of Mexico has unveiled a new scheme to increase taxes to finance bigger government. Here are some details from the New York Times.
President Enrique Peña Nieto proposed on Sunday a sweeping overhaul of his country’s tax system, intended to collect billions of dollars to finance new social programs. …Mr. Peña Nieto described the broad outlines of his plan, which would eliminate many loopholes and exemptions that favor the richest Mexicans. He proposed new taxes on capital gains, carbon emissions and soft drinks, and increased income taxes for those making over about $39,000 a year.
But give Senor Nieto credit. Unlike most politicians, who claim that higher taxes are for deficit reduction, he freely admits that he wants to expand the welfare state and create more dependency.
…the revenue it would generate would pay for a new universal pension for all Mexicans over 65, a new unemployment insurance scheme and more spending for schools and infrastructure.
Amazingly, there are some who think a bigger burden of government spending will improve Mexico’s anemic economy.
…he is trying to swiftly inject some dynamism into an economy that has failed to grow any faster than 2 percent a year, on average, since 2001.