Globalists Fear Trump Tax Cuts/ Will China Be Richest Nation?

There is much outcry from the globalist left over president Trump’s tax reductions for corporations and for individuals. To understand why look at these two articles, the first one from The Daily Telegraph of Australia:

(Australian prime minister) Malcolm Turnbull promises personal income tax cuts will be announced before the 2019 federal election, running alongside his government’s push for cutting the (corporate) tax rate cut to 25 percent for all businesses.

“How much we can do and when we do it will depend on the budgetary circumstances but we do have the ability to do it,” the prime minister told Sky News on Sunday.

This is a result of the example being set by president Trump in the US. And when the whole world sees the US economy thriving from the tax cuts the world will follow. Now look at this from The Daily Caller:

Australian Treasurer Scott Morrison sounded alarm bells about the impact of the recently-passed American tax cuts on Australia’s economy.

If Australia doesn’t pass its own version of the Trump tax cuts, Morrison fears the country will take a hit to its GDP of up to 1 percent. Morrison initially proposed a $65 billion tax cut, saying it would add 1 percent to Australia’s GDP. After Trump’s cut, however, Morrison warned that the cuts are necessary for the country’s economy not to contract.

Morrison cited treasury analyses showing that Australia “may experience a significant recessionary impact and a potential downgrade in revenues if it does not lower its corporate tax rate from 30 percent to 25 percent in coming years, in response to Trump’s cuts,” according to The Guardian.

Because the United States will no longer be a country with one of the highest corporate tax rates in the developed world, Australia risks being “marooned,” as the country’s Treasury Department said in its analysis.

This means that the world is seeing an alternative to globalism; it is called capitalist competition. And globalism is really just socialism including government control of stagnant economies with high taxes on everything.

This is why the globalists are so upset that president Trump is setting a worldwide example for growth and innovation through lower taxes.

For instance very socialistic Japan is wealthy but it has one of the most lethargic economies in the world. Japan has the highest debt ratio in the industrialized world because Japan has had astronomical taxes and government spending for many decades.

Poland, on the other hand, has low taxes and as a result has the most vibrant economy in Europe.

Globalists favor static government-run economies with people feeling depressed and listless and relying more and more on government programs to just get by, like we had under Obama. This is classic socialism so that the people look up to the globalists for all of the answers like children looking up to adults.

This is also one of the reasons that socialists and globalists want marijuana legalized since it makes people listless and stupid and sick so that they can be easily manipulated, particularly with the super-strong marijuana that is around today.

Now here are some thoughts about China:

There is a lot of chatter about the economic rise of China. Today the figures given out by the World Bank and other surveys show that America has a $20 trillion gross domestic product (annual economic production) while China is second with $12 trillion and Europe collectively has $18 trillion. Japan is $5.5 trillion. The world total is $78 trillion.

And so we are supposed to think that China is going to surpass the US in the next few decades.

Not so fast. Here are excerpts from an article about China by John Hayward writing on Breitbart News. Each excerpt is followed by a Nikitas3.com comment:

Breitbart reports: According to research from the Center for Economics and business Research in London, China will overtake the United States as the world’s largest economy by 2032.

“In 2032, three of the four largest economies will be Asian – China, India, and Japan,” Bloomberg News points out, citing CEBR’s research.

India will pass the United Kingdom and France next year, and will pass Germany by 2027. South Korea and Indonesia will knock G7 nations Italy and Canada out of the Top Ten list by 2032.

Nikitas3.com comment: Notice these are Asian nations where the people are smart and they work hard, unlike people in the US and Europe who are getting lazier and lazier.

Also remember that Asia is growing rapidly using 100% Western technology. NONE of the technology that powers the world today, including Asia, was invented in Asia.

India has 1.3 billion people and Britain has only 65 million. So if the GDP of India and Britain are the same then India remains a very poor place with about 5% of the average living standard per person as Britain. So let’s not worry about India. The ratio of China to the US is about 10% so it also is no threat. China has far too many poor people.

Then it is important to remember that India was much poorer until the 1990s when it rejected its socialist/communist economy for an open capitalist economy under which hundreds of millions of Indians have entered the middle class.

Breitbart reports: Writing at Bloomberg View in October, Noah Smith argued that China has already surpassed the United States economically and is “pulling away.” …Smith suggests the much lower standard of living for China’s much larger population is a deficiency it can correct with relative ease, now that it has accumulated such enormous total economic power.

Nikitas3.com comment: This is just a projection and is very suspect. Increasing global competition is going to slow China’s growth, including competition from other Asian “tiger” nations.

President Trump already is urging that we make more products here in the US that now come from China. This will hurt the Chinese economy since the US is China’s biggest single market.

Breitbart reports: There are those who worry that economic size equates to political or even military power. And there’s something to that but again not much. For that sort of power depends upon how much you can tax off those people in order to pay for that military power. And clearly, the richer people are the more there is to tax them before you push them back down into subsistence again. If it really came down to it, properly mano a mano, the US could mobilise a much larger portion of its economy for such purposes than a poorer country could.

Nikitas3.com comment: That is true. Interesting perspective.

Breitbart reports: Matthew Crabbe, the author of Myth-Busting China’s Numbers …noted China’s economic data is notoriously unreliable due to local corruption and systemic flaws in the central government’s data-gathering techniques, to say nothing of Beijing’s willingness to cook the books.

Nikitas3.com comment: So don’t believe everything that you read. China may only be $8 trillion, not $12 trillion. Or less, like $6 trillion. After all, communists are pathological liars.

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