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Sunday, September 11, 2005

If it works there, then why not here?

Why is this cold, rainy land with its stark volcanic landscape, without much in the way of natural resources, one of the wealthiest places on Earth?
Nope, not NZ...
Former Iceland Prime Minister and current Foreign Minister David Oddsson detailed how he took a typical, economically stagnate, Scandinavian socialist welfare state and turned it into an economic tiger by privatizing state industries, freeing labor markets, and reforming the financial structure. Iceland has been engaged in a massive tax reduction (for instance, the corporate tax rate has been cut from 50 to only 18 percent, and the inheritance tax to a maximum 5 percent). Yet government revenues have steadily increased because of the resulting economic dynamism, and the national debt has fallen from 50 percent of gross domestic product to only 15 percent.

One of their greatest success stories was moving from a pay-as-you-go social security system (like that of the U.S.) to a combination of a limited means-tested government system with a private inheritable system, giving Iceland one of the strongest and soundest systems in the world.
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Posted by Chefen | 9/11/2005 06:31:00 am