By Leon J Williams
Since the economic crisis Iceland has been on the verge of bankruptcy, it’s banking sector collapsed followed by huge international anger at the government allowing their banks to fail, rather than as with the US and UK which bailed out those banks with taxpayers money.
So since these times how have the three countries fared?
I have taken a little look at unemployment, national debt and tax rates for Iceland, the US and the UK from 2010-2012.
……….Iceland USA UK
Peak 9.4% 9.4% 8.1%
Now 5.4% 7.75% 7.8%
Debt (as % of GDP)
……….Iceland USA UK
2010 123.8 94.2 82.2
2011 99.1 102.9 82.4
2012 97.3 106.5 88.4
Tax Rates (up to)
…………… Iceland USA UK
Income tax 46.24% 15.3% 50%
Corporate tax 20% 39% 24%
VAT 25.5% 0% 17.5%
……….Tax Debt Unemployment
Iceland ↗ ↘ ↘
USA ↘ ↗ ↘
UK ↘ ↗ ↘
Iceland’s unemployment rate has fallen by 4% the most during this period and is the only country of the three whose overall tax has increased and is the only country whose national debt has fallen.
Some will say this is clear that the policy of socialism of increasing taxes for everyone (not just the poor) works and in a sustainable way.
Often the specific type of socialism is referred to as ‘Nordic Socialism’.
Whether or not this is a form of socialism or not it should help put to bed the myth that the right-wing churn out that you must lower taxes so that businesses will employ people which will in turn reduce government debt as less people depend on the state.
The four percent is only relative to one hundred percent (which no one has); the actual drop is around forty percent from 9.4 to 5.4. Impressive.
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Well, it looks like the writer. Leon J. Williams, is wrong again. The US only fails when Democrats, socialistic democrats, are in charge. The tables are now turned and the so-called “myth” from the right turns out to be a reality after-all.