FORTIS ET LIBER: IRELAND - THE CASE STUDY OF AN INVINCIBLE ECONOMIC FREEDOM

Viewed from Washington, it's hard to believe the Ireland depicted in the film The Commitments even existed 15 years ago. When the 20-somethings depicted in that movie discussed career opportunities, the inevitable question was: "When are you going?’' As in - to the US for a job. Not any more.

Instead of hampering unemployment Ireland imports foreign skilled labor force today. Irish economic growth is no little or just even a bit, but it increasingly puts world average out of business. Once the sick man of Europe now rapidly became the bite-roaring Celtic tiger, with prosperous future far better than continental economies. In my opinion Irish conventional wisdom went directly to the point and enabled people to pursue their dreams easier. The key instruments for such a welcoming philosophy have been pro-growth and pro-market oriented reforms that let Ireland third-freest economy in the world (Heritage, 2006).

In the previous year Irish economy grew steadily at a rate of approximately 5% which is very much better than the vast majority of world economies. Ireland now remains a U.S. center for foreign investment and it present nearly a third of U.S. investment in the EU. According to close ties with the U.S., Ireland remains world largest exporter per capita. In the last decade Ireland attracted about 25% of fresh and new U.S. investment. The flow of the latter was nearly 9,1$ billion in 2003 which is two and a half times the amount of U.S. investment capital flows into China nowadays.

Ireland is also one of the easiest places to start doing business. It only takes a few days to start it. Very strongly recognized component of Irish economic boom is advanced and competitive financial system. Banking industry is diverse with around 90 banks and other credit institutions authorized to conduct business in 2002, most of which are foreign. Dublin has attracted a number of foreign banks through its International Financial Services Center, which offers banks a corporate tax rate of 12.5 percent. European Commission unfortunately failed when she has treated this very low corporate tax rate as an aid to banking industry. Irish deserves its place among open-market countries. Around 100 banks currently operate in China; most of them are situated elsewhere. Their licensed credit institutions have financial assets that result 400% of Irish GDP which is the second-best such ratio in Europe, only behind Luxemburg (Miles, 2006). Ireland has successfully resisted adopting EU efforts to harmonize taxes at a single tax rate.

Ireland is probably a world record holder when the question takes place in government intervention. Quite remarkably Irish government consumed 14, 4% of the GDP. Only about 2% total revenues were received from state-owned enterprises. Irish cut in government consumption could have been even more impressively improved if Ireland reduced its top marginal income tax rate from its current 42%.

Another increasingly important sustainability of Irish economic growth is flexible labor market and low social security payments. The major origins of Irish dynamic economic growth take place in the early 1990s when Irish government slashed corporate tax down to 12, 5% and continually took other measurements to unleash nation’s competitive entrepreneurial wealth.

Irish judicial and civil service system is continually regarded as fair, highly professional, competent and sound. Foreign and domestic investors can thus be safe that their property will not be expropriated. Even legal obligations take high place in terms of moral values according to Irish strong dedication to Anglo-Saxon way of living. Contractual agreements are safe and judicial staff is of high quality. Corruption is by and large not a serious problem for investors in Ireland. Especially significant effect on Irish competitive market has (compared to EU) less restrictive labor force regulation which lets labor market to be one of the most dynamically flexible among world economies.

My opinion is that free market policies allow economies to absorb financial and other stocks more quickly with less long term negative circumstances. Thanks to this economic flexibility Ireland remains a well-confident friend of economic freedom based upon the foundations of impressive economic growth and enhanced market prosperity.

IN SUPPORT OF HARRAH'S !

IT CAN'T BE TRUE ... BUT IT IS!

You can fool some people all of the time
or you can fool all people some of the time,
but you cannot fool all the people all of the time,
says an old American proverb.

Check out the latest attempt to disqualify new fresh foreign investment in Slovenia. Gosh, it gives me a headache when I read the article listed below...

http://www.finance-on.net/?MOD=show&id=153913

A FEW LESSONS OF HOW ESTONIA BECAME A BITE-ROARING BALTIC TIGER UNDER THE LEADERSHIP OF MART LAAR

"TO HAVE SUCCESS YOU MUST BE FREE AND OPENED TO THE WORLD."

"FREE COUNTRIES GROW FASTER!"

"GIVE US NO AID BUT TRADE!"

"FREE TRADE AND ECONOMIC GROWTH ARE MAKING NATIONS PROSPERIOUS, NOT FOREIGN AID."

"FREE ECONOMIES GROW FASTER AND ARE RICHER."

"TO MAKE YOUR ECONOMY FREE YOU MUST MAKE YOUR PEOPLE FREE!"

PLEASENT IS YOUR NAME: FREE ISRAEL

Israel was not created in order to disappear. Israel will endure and flourish. It is the child of hope and the home of the brave. It can neither be broken by adversity nor demoralized by success. It carries the shield of democracy and it honors the sword of freedom.

PRESERVING LIBERTY...

"To deal with men by force is as impractical as to deal with nature by persuasion."
AYN RAND

"Talk about how various people have been 'winners' in 'the lottery of life' or have things that others don't have just because they 'happen to have money' is part of the delegitimizing of property as a prelude to seizing it."
THOMAS SOWELL

"Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy."
WINSTON CHURCHILL

"In those wretched countries where a man cannot call his tongue his own, he can scarce call anything his own... Who ever would overthrow the liberty of a nation must begin by subduing the freeness of speech."
BENJAMIN FRANKLIN

"Recession is when your neighbor loses his job. Depression is when you lose yours. And recovery is when Jimmy Carter loses his."
RONALD W. REAGAN

"It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinners but from their regard to their own interest. We address ourselves not to their humanity but to their self love, and never talk to them of our own necessities but of their advantages."
ADAM SMITH

"The argument for collectivism is simple if false; it is an immediate emotional argument. The argument for individualism is subtle and sophisticated; it is an indirect rational argument. And the emotional faculties are more highly developed in most men than the rational, paradoxically or especially even in those who regard themselves as intellectuals."
MILTON FRIEDMAN

"Government is a disease masquerading as its own cure."
L. NEIL SMITH

"Individuals have rights, and there are things no person or group may do to them (without violating their rights). So strong and far-reaching are these rights that they raise the question of what, if anything, the state and its officials may do. How much room do individual rights leave for the state? Our main conclusions about the state are that a minimal state. limited to the narrow functions of protection against force, theft, fraud, enforcement of contracts, and so on, is justified; that any more extensive state will violate person's rights not to be forced to do certain things, and is unjustified; and that the minmal state is justified as well as right. Two noteworthy implications are that the state may not use its coercive apparatus for the purpose of getting some citizens to aid others, or in order to prohibit activities to people for their own good or protection. Despite the fact that it is only coercive routes towards these goals that are excluded, while voluntary ones remain, many persons will reject our conclusions instantly, knowing they dont want to believe anything so callous towards the needs and suffering of others. I know the reaction; it was mine when I first began to consider such views. With reluctance I found myself becoming to be convinced of Libertarian views, due to various considerations and arguments."
ROBERT NOZICK

THE TRUTH ABOUT THE 'MYTH' OF SOCIAL JUSTICE

"Social justice is the trojan horse through which totalitarian governments are formed."

Friedrich August von Hayek

THE VALUE OF FREEDOM: THE ESTABLISHMENT OF FREE MARKET ECONOMY AS AN ARGUMENT AGAINST ECONOMIC ERRORS OF SOCIALISM

“The World has never had a good definition of the word Liberty. In fact, we all declare for Liberty, but in using the same word, we do not mean the same thing. Here are two, not only different but also incompatible things called by the same name, Liberty."
ABRAHAM LINCOLN

The very basic premise of socialist thought is that socialist institution can establish entirely just society. The latter argument is totally false as we shall see in the incoming chapters. The experiment of socialism is in general political as well as economic. From political perspective socialism would accordingly be underpinned as an endless community that would pave the road to proletarian apparatus. But in the real sense the latter component is just a shadow that covers-up all the realistic arrangements of socialism that presumably remain the opposition to private property, individualism and economic order of free entrepreneurship.

No legal protection, no responsibility

Free and dynamic system of free market economy demands detailed knowledge of asymmetric market information that will reward each businessman for productive behavior such as risk-taking, entrepreneurship and work. Each free market system first demands an effective protection of property. Milton Friedman, a Chicago economist, firmly underpinned the importance of legal security -“…a dynamic system of free market economy can only be let going where the legal protection of private property is paramount for the state” (Friedman, 2002). There’s a core of Western tradition that shows an important aspect of the rule of law. As the primary objective of classical liberalism remains an expanded world order, the primary goal of neosocialism remains an invisible “promotion” of world disorder. This actually uncovers the truest face of socialism. The ideology of the latter has no taken place in free market economy in terms of economic context. Socialist leaders have granted power only when there has been disorderly caused chaos coming under way. The apparatus that firms socialism’s devastating approach towards the protection of private property remains a wavering bureaucracy that forces entrepreneurs, managers, successful businessmen and other citizen to become a slave of a highly active state that penalizes every productive behavior with bureaucratic procedures that influence each individual in order to put off his vision for the future. By such confusing and the denunciation of private property each neosocialist protects his fear. And after continuing such practice citizen have begun to become feeling very fearful of doing what their truest desire is in order to participate their interest and put it into practice. Neosocialism is afraid of innovations that’s why it firstly shakes the foundations of legal security and secondly produces fear by sending bureaucracy into the eyes of citizen that are aftermath afraid of expressing productive behavior, such as entrepreneurship, work and risk-taking. The most recognized legal feature of neosocialism is that offers no legal security and causes severe disorder of the rule of law, which remains hidden curtain that shows the real legal face of neosocialism – confusion, legal disorder and very weak protection of private property rights. Neosocialists actually don’t deny their opposition to private property, because sovereign protection of it would damage the project of neosocialism.

"A major source of objection to a free economy is precisely that group thinks they ought to want. Underlying most arguments against the free market is a lack of belief in freedom itself."
MILTON FRIEDMAN

Economic basis of destructive economic thinking of neosocialism

In essence, economic ideologists of neosocialism are not pretty much up to research and economic improvement. Their economic ideology mainly consists of economic nationalism as pinpointed in Karl Marx’s writings. Neosocialist basis of economic thought is fully dedicated to the proposition that it is personally impossible for certain individuals to penetrate into the market and organize productive behavior such as risk-taking and competitive entrepreneurship. The underlying of most of their arguments against free market activity is actually a lack of believe in market competition and private initiative itself. Another strong apparatus in the hands of neosocialist policy-makers is their destructive tax system, based upon progressive taxation. Progressive taxation is a key figure when we try to identify the economic policy of neosocialism which continues to be conducted upon strong egalitarianism and extreme progressive taxation which underestimates business success and blames the function of the latter to be the most commonly appeared reason for “social instability” and “social crises”. Neosocialists argue that taxes are totally static issue and have no effect on how things are run. This only shows how staunchly “socialistonomics” denies classical principles of ‘revenue-rate’ relationship usually displayed within the Laffer curve. The most bizarre argument against lowering tax rates, which boost productive behavior, is that it would be too expensive. This faulty argument presents a moral problem. It implicitly assumes that private income belongs to government until and unless politicians decide they can “afford” to let taxpayers the money they earn. Another bizarre argument that is proposed by socialists is the opposition against the flat tax. Socialists often argue that flat tax would hit the poor people and depreciate their revenues. Such a misperception is truly an economic error that reveals strong how economically illiterate neosocialists really are. First, a single flat tax would not lower the tax revenue collected by the government. Increased tax revenues demands wider tax base. The Government can choose what type of taxation will impose. It can choose between higher tax rates imposed on a smaller fraction of population with higher incomes and it can choose pro-growth type of smaller tax rates on a larger tax base. And this is what all is about. Increased tax revenue certainly needs larger tax base. With lower tax rates people start to work rapidly faster and penetrate with productive behavior because more income remains in their own hands. Flat tax would simply eliminate all the coded provisions and provide equal tax treatment for all. Taxpayers would fill their tax returns on a postcard-size form and so they would get rid of hundreds of pages of writing their tax returns. Furthermore, flat tax would boost the economic growth. Especially current uncompetitive tax system is a very discriminatory taxation of savings and investment with reducing rates of growth that devastates jobs and lower personal incomes. A flat tax would not eliminate the damaging impact of taxes altogether, but by dramatically lowering rates and ending tax code’s bias against saving and investment it would boost economy’s performance when compared with the present tax code. Socialists simply put up with this very simply facts. Instead of rational judgment they rather search their basis of philosophy within the textbooks of Karl Marx, John Maynard Keynes and their followers. If Keynes was wrong on just about everything, his followers have been wrong on absolutely everything. One of the strongest economic components of neosocialist economic policy is “so called” system of collective bargaining that makes decision upon which the live style of certain citizens depends. A system of collective bargaining is very harmful to society and destructive to economic growth. It wastes a lot of time that could have been used for penetration onto competitive market by involving highly productive behavior into the process of competitive advantage. It is highly questionable how can few privileged individuals bargain about daily schedules of all employees? In the market economy, each individual is solely responsible for job searching and taking responsibility in his own hands. The only action required to the state is to enforce labor contracts and abolish minimum wage. It’s economically unreasonable to force entrepreneurs to become some sort of “social service” by paying minimum wages. In terms of economic framework, the Government should continue lowering tax rates on both personal and corporate income and allow individuals to rely solely on private charity. Any kind of governmental financial aid to certain fraction of population must firmly underpin its nature of positive externalities. As to tax rates, Government should immediately approve flat tax and allow faster economic growth because flat tax would spur increased work, saving and investment. By increasing incentives to engage in productive economic behavior, it also would boost the economy’s long-term growth rate. Neosocialist policymakers continuously keep talking about growing the economy. Well they evenly missed the point accordingly. Growing the economy demands government intervention, increased regulation and increasingly jumping tax rates. Free marketers take a different and far simpler step. We just let the economy grow instead growing the economy.

"The socialists have a certain kind of logic on their side: if the collective sacrifice of all to all is the moral ideal, then they wanted to establish this idea in practice, here and on this earth. The arguments that socialism could not and would not work, did not stop them: neither has altruism ever worked, but this has not caused men to stop and question it. Only reason can ask such questions - and reason, they were told on all sides, has nothing to do with morality, morality lies outside the realm of reason, no rational morality can ever be defined."
AYN RAND

Another economic demise of neosocialist experiment is their vision of self-managed enterprises and the promotion of workers’ profit participation. Neosocialist simply cannot understand contemporary model of entrepreneurship. Its objective is to maximize the owner’s profit, to increase working productivity, to increase investment in research and development and to restructure the production towards more value-added power. Workers are not able to obtain detailed knowledge of supply and demand so they are also not able to understand how to organize the production by bearing certain measure of risk. If workers truly show their interest then they should show it as consumers and not as owners. The only thing workers as owners want is higher wages without any reflection on business output of each firm. That’s how the philosophy of workers as owners cannot replace rationally understated entrepreneurial decisions. Entrepreneur is always exposed to the question of risk and capital yields so the best way is to let business minds to be in charge of making decisions without government intervention or workers’ ownership.

“The transfer of ownership to the workers of an enterprise by law would create a very rigid economy, especially if they were not allowed to sell their newly acquired property and use the proceeds for themselves. It would not create economic responsibility in the way that is inherent in separate ownership of capital.”
LJUBO SIRC

The economic demise of neosocialism is more than obvious. In fact socialist’s solution to the problem is invariably to create an even bigger monopoly belonging to the Government. Neosocialists are afraid of private education system because essentially neosocialists are afraid of technological revolutions and improvements. The latter would ultimately mean the transformation of public toward productive behavior which is something what neosocialists usually call “dirty neoliberalism”. In fact it is very hard to define the word neoliberalism which is only used by economically illiterate and intellectually unknowledgeable people. Neosocialists (un)fortunately undertake their duties by reading Marx and Hegel. Telling a neosocialist is not difficult at all. That’s someone who reads Marx and Lenin. And telling an anti-socialist is even easier. That’s someone who understands Marx and Lenin. Neosocialist paradigm takes place within the selection of ideas of economic nationalism that express extreme hostility towards foreign investment as “foreign invasion”. Neosocialism is evenly destructive to itself. When neosocialist looses his high-flying hopes, then he becomes the victim of himself. Libertarian initiative offers different path. Instead of pessimism it states the importance of shining optimism and hopeful stream into every new day. Instead of “night parties” we, free marketers suggest hard study and knowledgeable approach into every day ahead. Neosocialists tell themselves to be economic patriots. Well as Samuel Johnson said, “Patriotism is the last shelter of scoundrel”.

Literature


Milton Friedman (2002), Capitalism and Freedom, 40th Anniversary, University of Chicago Press

Friedrich August von Hayek (1978), The Constitution of Liberty, Chicago University of Chicago Press

Friedrich August von Hayek (1991), Fatal Conceit: The Errors of Socialism, University of Chicago Press

Ludwig von Mises (1996), Human Action: A Treatise on Economics, Fox&Wilkies

Karl R. Popper (2002), Open Society and its enemies. Volume 2: From Hegel to Marx, Routledge Classics

Ayn Rand (1986), Capitalism: An Unknown Ideal, Signet

Joseph Schumpeter ( 1962), Capitalism, Socialism and Democracy, Harper Perrenial

Ljubo Sirc (1994), Criticism of Self-Management Still Relevant?, The Centre for Research into Communist Economies

THE ETHICS OF CAPITALISM versus THE MISERY OF SOCIALISM

"Reagan and I knew, too, what did not work, namely socialism in every shape or form. Nowadays socialism is more often dressed up as environmentalism, feminism, or international concern for human rights. All sound good in the abstract. But scratch the surface and you will as likely as not discover anti-capitalism, patronising and distorting quotas, and intrusions upon the sovereignty and democracy of nations."

Margaret Thatcher

The main characteristic of socialism and of communism is public ownership of the means of production, and therefore, the abolition of private property. The right to property is the right to use and disposal. Under fascism man retained the semblance or pretense of private property, but the Government held total power over its use and disposal. Another importantly underpinned characteristic is that Fascism and Communism were not the two opposites. They were two rival gangs fighting over the same territory. But turning to the point, both were just comparative variants of socialism based upon the pure formulation of collectivist principle that man is ought to be a rightless slave of the state. When we talk about Capitalism we discuss about pure, full, free, uncontrolled, unregulated laissez-faire Capitalism, with a staunch separation of state and economics, in the same way and for the same reasons as the separation of state and church. The foremost mistakable interpretation that tries to define Capitalism is an altruist version that Capitalism represents the fittest way to attain common good. The most convincible explanation of Capitalism lies within the layer of of moral justification that Capitalism is the only system being always constant with the rational nature of the man: Another important aspect that finally does set the definition of Capitalism is that protects the survival of the man and that its most systematically ruling principle is Justice. The Ethics of Capitalism does not mainly emphasize a method of how to behave accordingly to fulfill the purpose of Ethics. Relevancy of Ethics of Capitalism sustains guiding principles of how (with the assistance of ethical intercourse) to find the grain of hope that would boost the potential of every individual towards the fulfillment of what he or she wants to achieve. The mainstream of Capitalist philosophy is a spontaneous course that enables every individual to be rewarded accordingly for what he's standing for. Traditionally socialism and its defective program of misery would reject such principles and support altruism instead. And what is the moral code of altruism? The basic principle of altruism is that man has no right to exist for his own sake that service to others is the only justification of his existence, and that self-sacrifice is his highest moral virtue, duty and value. It would be a disastrous mistake to confuse altruism as the basic component of Socialism with kindness, good will or even respect for the rights of others. The irreducible primary of altruism is self-sacrifice which means that self is a standard of evil and selfless is the ruling principle for good. The Misery of Socialism mainly consists of altruism and collectivism. The latter is the miserable theory that collective group has a moral primacy over the individual. Collectivism holds that in human affairs, the society, the community, the nation, the proletariat, the race etc. - is the unit of reality and the standard of value. In fact such units are the most grounding base of Socialism's ideological performance. On the view of the standard of value, the individual has reality only as part of the group, and value only insofar as he serves it. On his own, he has no political or economic grounds. He is to be sacrificed for the group whenever its representative, the state deems this desirable. So Collectivism means the boldest deception that puts subjugation of the individual to a group ahead of vice versa. Wheatear this may be race, class, or state – it doesn't matter. Collectivism holds that man must remain chained to collective action and collective thought for the sake of what is called the common good. In Socialist theory, common good is oftenly compared to and equaled with social justice. Social justice is just a torjan horse which has been established by totalitarian governments in order to assure the survival of their defective propaganda. The essence of Socialism was and presumably remains the denunciation of Private Property, which remains central to Economic Growth and Prosperity. Ethics of Capitalism cannot institute free-thinking individuals, but it can furthermore help them to encourage their mind and follow the goals they have and ambitions that they attain.

"How do you tell a Communist? Well, it's someone who reads Marx and Lenin. And how do you tell an anti-Communist? It's someone who understands Marx and Lenin."

Ronald Reagan

THOUGHT OF THE DAY - FOLLOW ITS WAY

Excellence demands competition. Without a race there can be no champion, no records broken, no excellence - in education or in any other walk of life.

Ronald Reagan

LET FREEDOM RING: GOD BLESS RONALD REAGAN

“Whatever else history may say about me when I’m gone, I hope it will record that I appealed to your best hopes, not your worst fears; to your confidence rather than your doubts. My dream is that you will travel the road ahead with liberty’s lamp guiding your steps and opportunity’s arm steadying your way.”

Ronald Reagan









“...When I saddle up and ride into the sunset it will be with the knowledge that we’ve done great things. We kept faith with a promise as old as this land we love and as big as the sky. A brilliant vision of America as a shining city on a hill. Thanks to all of you, and with God’s help, America’s greatest chapter is still to be written, for the best is yet to come.”

Ronald Reagan, December 1, 1988



"In closing let me thank you, the American people, for giving me the great honor of allowing me to serve as your president. When the Lord calls me home, whenever that may be, I will leave with the greatest love for this country of ours and eternal optimism for its future. I now begin the journey that will lead me into the sunset of my life. I know that for America there will always be a bright dawn ahead."
Ronald Reagan, Nov. 5, 1994

EX SCIENCIA TRIDENS: THE PROPER APPLICATION OF KNOWLEDGE IN SOCIETY

"Honesty is the first chapter of the book of Wisdom."

Thomas Jefferson

In the traditional treatment of equilibrium, analysis is apparently avoided by the assumption that the data, in the form of demand schedules representing individual tastes and technical facts, are equally given to all individuals and that their acting on the same premises will somehow lead to their plans becoming adapted to each other. Since the very beginning of the civilizations, knowledge has comprehensively contributed its major portion to prosperity that has been delivered by men who kept on trying where there seemed to be no help at all. The knowledge as an object of competition in terms of scientific discovery is ultimately the best defense against totalitarian myths and destructive ideologies that put the preference of anarchism ahead of Individual Liberty that insures everyone from the bottom to the top to move ahead and enjoy fuller and happier portion of his or her life. The function of knowledge is one of the most central parts of comprehensive components that determine the prosperity of the future growth and happiness. Ultimately knowledge is indeed a coherent object that grants power granted from Liberty. But the use of knowledge seems to be to some certain extense "the tool of manipulation". Such cases are perfectly displayed in the intercourse of History. Marxism as a source of evil attempted to institute subjective data as a form of "scientific socialism". But as we shall see later, the fittest function of knowledge is to develop it, put it forward and promote it as much as possible in order to assure the sovereignty of individualism and proper Economic order, that is and presumably remains, free entrepreneurial capitalism. It is also impossible to set arguments that try to imply the structure of free market as an outsplit or a kind invention. Free market was nonetheless instituted, developed or set - it evolved. When people began to launch production they indeed felt a need for exchanging goods. The exchange of goods is the most suitable example of how "laissez-faire" can fulfill the happiness and prosperity of freely sovereign individual subjects. The theoretical approach of the interpretation of knowledge shall be begun with the exposition of knowledgeable "general equilibrium".General equilibrium of knowledge widely exists from subjective and objective data. Those significant types of data cause external effects in spreading the hypothetical construction of potential output of knowledge. In fact, knowledge is a magnificent type of scientific discovery and argument. Knowledge is the most helpful institution to avoid clashes and revolutionary violence that most certainly prefer evil and the reshifting of knowledge in order to reinstitute it as a tool for propaganda ("scientific socialism").Communist-driven doctrine emphasized such devolution, most centrally in Law. Law is, according to Aristotle, a reason free from passion. In other words, law is the concentration of morality. But communist leadership modeled law as a propaganda that is always ultimately correct. Despite describing different conceptions of knowledge, communist ideologists reffered that destructive propaganda as knowledge. That's why left-leaning and communist-minded people will never accept the concept of total privatization of education system, because their education model spreads their miserable ideology and dialectical dogmatism that is the most poisenous way to affect free society that leans its consistence on knowledge, sovereignty and individual prosperity.Imre Lakatos adopted an important concept of "identifying knowledge". Lakatos extracted from the point, that knowledge that is not keenly aware of adopting newly generated hypothesis is definitely not knowledge, because philosophically knowledge requires innovative elaboration and pure measurement of its certain extense. According to Karl Popper, Marxism and Psycho-analysis are perfectly settled example of "non-knowledge" or "pseudo-science" and they present the "deadline", because they are both unaware of adopting dynamic elaborations and newly developed consolations of knowledge. Extensive knowledge must be affirmed on certain events and their dynamic analysis and emphasis. The only condition about the necessity of which for the establishment of equilibrium economists seem to be fairly agreed is the "consistency of data." But after what we have seen about the vagueness of the concept of "datum" we shall suspect, and rightly, that this does not get us much further. Knowledge is further more underlayed on its relevancy and irrelevancy. Irrelevancy of knowledge is seen as an unwelcoming approach to put the knowledge in practice, while relevant conception requires certain optimality that consists of proper combination of subjective and objective data, because both desire logical irritatition. But let's not mix the pure logical theory with compulsory reflections of both subjective and objective data that largely create the instance of certain event. Pure logical theory denies the obvious understanding of subjective data, because logical theory as a theorem consists of objective data exclusively. For example, it's impossible for sociology to be accepted objectively, while this is possible for Mathematics that is the basis of all sciences. If knowledge is not having an objective argument that knowledge cannot consist properly. Thus all the applicable elaborations of knowledge require its mathematical approach, subjective and objective platform, if we speak about social science. In terms of social sciences objective platform of knowledge is reduced to a minimum, with a decent exception of Economics that can be partially researched with "naturalist experiment" that was brilliantly defined by Frank Ramsey (1928). Another part of methodology and research represents "subjective economic elaboration" that interprets Economics as Neoclassical, Chicago, Austrian, Keynesian... Of course it depends on certain methodological structures that usually differ in different schools of Economics.Scientific program that is not keenly aware of generating newly adopted and verified hypothesis is called "degenerated program of pseudoscience" that is and presumably remains dogmatic and nonetheless based upon the analytical value of knowledge. Such cases are astrology and Marxism. Most constantly adopted mistakes that demises analytical value of scientific research in certain science is the wrongfulness and the disagreement on framework. Without agreement on framework, it's never possible to verify the agreement on specifics.But of course, there's certainly a problem of division of knowledge almost as similar as the problem of division of labor firstly observed by Adam Smith in his study called "The Wealth of Nations". Each individual must posses clearly certain optimality of knowledge, wheatear it should be practical or theoretical. In order to assure the survival of knowledge it's clearly impossible to speak about the planning of knowledge, because knowledge as itself is not a dogmatic complex of irrational behavior, but it requires innovation and adopting new and freshly recognized hypothesis. As to that subject knowledge following the mind of rational behavior and the fittest combination of subjective and objective data and certain optimality of amount of arguments, will be ready and steady to become a scientific program that will put "the- competition-of knowledge-in-mind" ahead as a scientific discovery of challenging new conceptions and elaborations, beyond which knowledge will adopt its extensive analytically added value upon which the individual distribution of knowledge depends.

Reference:

Friderich August von HAYEK, Economics and Knowledge, Presidential address delivered before the London Economic Club; November 10 1936, Economica IV (new ser., 1937), pp 33-54.

Friderich August von HAYEK, Competition as a Discovery Procedure
http://www.mises.org/journals/qjae/pdf/qjae5_3_3.pdf

Karl R. POPPER, The Logic of the Scientific Discovery, Routledge, 1992

Karl R. POPPER, Objective Knowledge: An Evolutionary Approach, Oxford University Press USA, 1972

Brendan LARVOR, Lakatos: An Introduction, Routledge, London, 1998

Frank P. RAMSEY: Truth and Probability, The Foundations of Mathematics and other Logical Essays, Ch. VII, p.156-198, New York: Harcourt, Brace and Company, 1926
http://cepa.newschool.edu/het/texts/ramsey/ramsess.pdf

Steve PEJOVICH, After Socialism: Where Hope for Individual Liberty lies

Steve PEJOVICH, Law, Tradition and the Transition in Eastern Europe, The Independent Review, v.II, n.2, Fall 1997

GROWTH, JOBS, SIMPLICITY, FAIRNESS AND PROSPERITY: PANEL ON TAX REFORM - THE CASE OF THE U.S. and SLOVENIA

Traditionally, there's a basic aspect that the U.S. and Slovenia have benefited from their process of "tax competition". But there's certain evidence that America and Slovenia are falling behind with their progressively imposed system of taxes. Nations around the world are skipping forward with lower tax rates and reformed tax systems. Indeed, several nations from Eastern Europe impose genuinely adopted versions of flat tax. Estonia was the first to make such an encourages step ahead in 1994. Her incredible metamorphosis from a Soviet-type of economy to a free-market economy was namely a result of seriously principled reforms, launched by Estonian Prime Minister Mart Laar in the early 1990s. Slovakia is the most recent country that followed liberally traced principles, by adopting 19% flat tax on corporate and personal income. Slovakian reforms (Martin Bruncko, Ivan Miklos...) put an emphasis on replacing the old system that included 90 exceptions, 19 sources of untaxed income, 66 tax-exempt items and 27 items with specific tax rates.Unlike the present system, the flat tax is far more efficient and simple, good for growth and suitable for creating new jobs. Instead of ("cane-filling-crap") the 893 forms of tax cards, the flat tax is proposed on two postcard-sized forms, one for labor income and another one for business and capital income. Instead of discriminating treating, the flat tax treats all tax-payers equally, thus certainly fulfilling "Justitia omnibus" or "Equal Justice for all", most prominently etched echo of the legal code. Unlike the present system that punishes productive citizens who contribute much to nation's growth, the system of flat tax lowers marginal tax rates and most importantly eliminates tax bias against productive behavior, such as saving and investment, thus ensuring better and more explosive economic performance in competitive global economy. Admirably, there have been "blueprint" path-breaking attempts to launch the idea of flat, proposed by Hoover Institution economists, namely Alvin Rabushka and Robert E. Hall. While differently proposed, all common flat tax features sustain fixed elements that put equal treating of all taxpayers, simplicity and fairness ahead of unequal and discriminative treatment of tax-payers - a system that indicates that some of the individuals are worth more and some are worth less. Under flat tax, such a violent tax-discrimination would be endlessly abolished. So let me turn to the point of basic features that are proposed with the idea of single flat tax rate.1. SINGLE AND LOW FLAT RATE. German professor of Economics & Finance at Heidelberg University argues that no flat tax should be higher than 25%. Putting the reality on the table, all flat tax rates propose less than 20% flat rates. The low flat rates solve the problem of high marginal income rates that penalize courage and productive behavior, namely work, risk-taking and entrepreneurship.2. FAST ELIMINATION OF SPECIALLY TREATED PREFERENCES. All of the flat tax prosposal eliminate provisions of the code that bestow preferential tax treatment on certain behavior and activities. By getting rid of tax deductions, credits, exemptions and other "loopholes", the elimination of special preferences solves the problem of rigid complexity, allowing individual tax-payers to file their tax return on two postcard-sized forms.3. NO MORE DOUBLE TAXATIONS OF SAVINGS AND INVESTMENTS. Simply imposed flat tax proposals eliminate the tax code's bias against the formation of capital, by complete ending of double-taxation of income that is both, saved and invested. This of course means that there would be no capital gains tax, no double taxes on saving and no double taxes on dividends. By taxing income only once, it will be easier under flat tax to enforce and more conducive to both, job and capital formation.4. THE PRINCIPLE OF TERRITORIAL TAXATION. Certain flat tax proposals are based on the notion of "territorial taxation", simply meaning that governments should only tax income that has been gained inside (within) national borders. By getting rid of "worldwide taxation", a flat will enable U.S. and Slovenian taxpayers and companies to perform competitively on a level playing field around the world, since many other nations already rely on these principles.5. FAMILY-FRIENDLY NATURE OF FLAT TAX. There's another prosperous aspect that firmly underpins, why the flat tax is better than progressive tax rates. Households receive a generous exemption based on family size. In the case of U.S., a family of four would not start to pay tax until their annual income would overreach the annual income of $30 000.GROWTHFULLY SUSTAINABLE ADVANTAGES OF A FLAT TAXMost recently told, there are two most principal arguments for a flat tax rates. The first one is growth and the second one is simplicity. Many "supply-side" economists are literally attracted to the idea of a flat tax, because the current system is relied on high rates and discriminatory taxation of savings and investment, reduced growth, destroyed (non-value added) jobs and lower incomes. Lower incomes are stolen to certain individuals and are transmitted to preferred groups (lobbies), that a regular citizen can never hope to be in such a firm position, where he would receive incomes that were stolen from other individuals that kept on hard working in order to earn as much money as possible to save it for his or her family. A flat tax wouldn't eliminated the damaging impact of all taxes together; but by dramatically lowering rates and ending the tax code's bias against saving and investment, it would boost the economy's performance when compared with the present tax code.For many Slovenians and Americans, the most prospective feature of a flat tax is its simplicity. The complicated documents and manual instructions taxpayers struggle to decipher from every March to October would be replaced by a brief set of instructions and the numerous forms by two simple postcards. This radical and prosperous reform appeals to citizens who not only resent the time and expense consumed by their own tax forms, but also suspect that the existing maze of credits, deductions, and exemptions gives a special and discriminatory advantage to those wield political power and can afford expert tax advisers.If I come to end and enact certain advantages for Slovenia and the U.S. by imposing a single flat tax rate on labor and capital. A FLAT TAX WOULD YIELD MAJOR BENEFITS TO THE NATION, INCLUDING:- FASTER, RAPID AND EXPLOSIVE ECONOMIC GROWTH. A flat tax would spur increased work, saving and investment. By increasing incentives to be engaged in productive-type of economic behavior, it would also (most centrally) boost the economy's engine for long-term growth rate. Even if a flat tax boosted long-term economic growth, by as little as 0,5%, the income of the average family of four after the period of 10 years would still be as much as $5 000 higher that it would be under present system of "tax misery", in case if current tax laws remained in effect.- INSTANT WEALTH CREATION. Harvard economist, Dale Jorgensen says that "tax reform would boost American national wealth by nearly a $5 trillion. The reason for that argument is that all income producing assets would raise in value since the flat tax increase the after-tax system if income they actually generate.To boost growth rate, to create more jobs, to attain tax simplicity, to pursue more liberty, economic prosperity in order to preserve equal treatment for all taxpayers, to reduce political abuses and to cut the influence of lobbies on tax, there's an emerging enquiry to boost nation's economic performance in global economy. If we hold inalienable truths, that all men are created equal, as self-evident as there's a fair deal that must adopt flat tax rate and end progressive rates, that pursue misery, unhappiness and economic devolution. Such a negative aspects would most certainly devastate the nation's growth and bright future that is enacted in the proposal of a flat tax.

HISTORY BROADENS THE MIND: AN APPLICABLE CONTRIBUTION TO THE GOSPEL OF AMERICA'S COMMITMENT TO FREEDOM

"But when a long Train of Abuses and Usurpations, pursuing invariably the same Object, evinces a Design to reduce them under absolute Despotism, it is their Right, it is their Duty, to throw off such Government, and to provide new Guards for their future Security."

The Declaration of Independence




"We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America..."

The Constitution of the United States of America


'Tis folly in one Nation to look for disinterested favors from another; that it must pay with a portion of its Independence for whatever it may accept under that character; that by such acceptance, it may place itself in the condition of having given equivalents for nominal favours and yet of being reproached with ingratitude for not giving more. There can be no greater error than to expect, or calculate upon real favours from Nation to Nation. 'Tis an illusion which experience must cure, which a just pride ought to discard.
George Washington, Farewell Address, September 19, 1796


A people... who are possessed of the spirit of commerce, who see and who will pursue their advantages may achieve almost anything.

George Washington, letter to Benjamin Harrison, October 10, 1784


Harmony, liberal intercourse with all Nations, are recommended by policy, humanity and interest. But even our Commercial policy should hold an equal and impartial hand: neither seeking nor granting exclusive favours or preferences; consulting the natural course of things; diffusing and diversifying by gentle means the streams of Commerce, but forcing nothing; establishing with Powers so disposed; in order to give trade a stable course.
George Washington, Farewell Address, September 19, 1796


In proportion as the structure of a government gives force to public opinion, it is essential that public opinion should be enlightened.
George Washington, Farewell Address, September 19, 1796


Knowledge is, in every country, the surest basis of public happiness.
George Washington, First Annual Message, January 8, 1790


No taxes can be devised which are not more or less inconvenient and unpleasant.
George Washington, Farewell Address, September 19, 1796


Observe good faith and justice towards all Nations. Cultivate peace and harmony with all.

George Washington, Farewell Address, September 19, 1796


The value of liberty was thus enhanced in our estimation by the difficulty of its attainment, and the worth of characters appreciated by the trial of adversity.

George Washington, letter to the people of South Carolina, Circa 1790


There exists in the economy and course of nature, an indissoluble union between virtue and happiness; between duty and advantage; between the genuine maxims of an honest and magnanimous policy, and the solid rewards of public prosperity and felicity; since we ought to be no less persuaded that the propitious smiles of Heaven can never be expected on a nation that disregards the eternal rules of order and right, which Heaven itself has ordained.
George Washington, First Inaugural Address, April 30, 1789


Tis substantially true, that virtue or morality is a necessary spring of popular government. The rule indeed extends with more or less force to every species of free Government.

George Washington, Farewell Address, September 19, 1796


Human nature itself is evermore an advocate for liberty. There is also in human nature a resentment of injury, and indignation against wrong. A love of truth and a veneration of virtue. These amiable passions, are the "latent spark"... If the people are capable of understanding, seeing and feeling the differences between true and false, right and wrong, virtue and vice, to what better principle can the friends of mankind apply than to the sense of this difference?

John Adams, the Novanglus, 1775


Government is instituted for the common good; for the protection, safety, prosperity, and happiness of the people; and not for profit, honor, or private interest of any one man, family, or class of men; therefore, the people alone have an incontestable, unalienable, and indefeasible right to institute government; and to reform, alter, or totally change the same, when their protection, safety, prosperity, and happiness require it.

John Adams, Thoughts on Government, 1776

Each individual of the society has a right to be protected by it in the enjoyment of his life, liberty, and property, according to standing laws. He is obliged, consequently, to contribute his share to the expense of this protection; and to give his personal service, or an equivalent, when necessary. But no part of the property of any individual can, with justice, be taken from him, or applied to public uses, without his own consent, or that of the representative body of the people. In fine, the people of this commonwealth are not controllable by any other laws than those to which their constitutional representative body have given their consent.

John Adams, Thoughts on Government, 1776


Children should be educated and instructed in the principles of freedom.
John Adams, Defense of the Constitutions, 1787


But a Constitution of Government once changed from Freedom, can never be restored. Liberty, once lost, is lost forever.

John Adams, letter to Abigail Adams, July 17, 1775


As long as Property exists, it will accumulate in Individuals and Families. As long as Marriage exists, Knowledge, Property and Influence will accumulate in Families.

John Adams, letter to Thomas Jefferson, July 16, 1814


A constitution founded on these principles introduces knowledge among the people, and inspires them with a conscious dignity becoming freemen; a general emulation takes place, which causes good humor, sociability, good manners, and good morals to be general. That elevation of sentiment inspired by such a government, makes the common people brave and enterprising. That ambition which is inspired by it makes them sober, industrious, and frugal.

John Adams, Thoughts on Government, 1776


As good government is an empire of laws, how shall your laws be made? In a large society, inhabiting an extensive country, it is impossible that the whole should assemble to make laws. The first necessary step, then, is to depute power from the many to a few of the most wise and good.

John Adams, Thoughts on Government, 1776


Wisdom and knowledge, as well as virtue, diffused generally among the body of the people, being necessary for the preservation of their rights and liberties, and as these depend on spreading the opportunities and advantages of education in the various parts of the country, and among the different orders of people, it shall be the duty of legislators and magistrates... to cherish the interest of literature and the sciences, and all seminaries of them.

John Adams, Thoughts on Government, 1776


A morsel of genuine history is a thing so rare as to be always valuable.

Thomas Jefferson, September 8, 1817


All eyes are opened, or opening, to the rights of man. The general spread of the light of science has already laid open to every view the palpable truth, that the mass of mankind has not been born with saddles on their backs, nor a favored few booted and spurred, ready to ride legitimately, by the grace of God.

Thomas Jefferson, letter to Roger C. Weightman, June 24, 1826


At the establishment of our constitutions, the judiciary bodies were supposed to be the most helpless and harmless members of the government. Experience, however, soon showed in what way they were to become the most dangerous; that the insufficiency of the means provided for their removal gave them a freehold and irresponsibility in office; that their decisions, seeming to concern individual suitors only, pass silent and unheeded by the public at large; that these decisions, nevertheless, become law by precedent, sapping, by little and little, the foundations of the constitution, and working its change by construction, before any one has perceived that that invisible and helpless worm has been busily employed in consuming its substance. In truth, man is not made to be trusted for life, if secured against all liability to account.

Thomas Jefferson, letter to Monsieur A. Coray, Oct 31, 1823


Equal and exact justice to all men, of whatever persuasion, religious or political.

Thomas Jefferson, First Inaugural Address, March 4, 1801


For example. If the system be established on basis of Income, and his just proportion on that scale has been already drawn from every one, to step into the field of Consumption, and tax special articles in that, as broadcloth or homespun, wine or whiskey, a coach or a wagon, is doubly taxing the same article. For that portion of Income with which these articles are purchased, having already paid its tax as Income, to pay another tax on the thing it purchased, is paying twice for the same thing; it is an aggrievance on the citizens who use these articles in exoneration of those who do not, contrary to the most sacred of the duties of a government, to do equal and impartial justice to all its citizens.

Thomas Jefferson, letter to Joseph Milligan, April 6, 1816


History by apprising [citizens] of the past will enable them to judge of the future; it will avail them of the experience of other times and other nations; it will qualify them as judges of the actions and designs of men; it will enable them to know ambition under every disguise it may assume; and knowing it, to defeat its views.

Thomas Jefferson, Notes on the State of Virginia, Query 14, 1781


I have sworn upon the altar of God, eternal hostility against every form of tyranny over the mind of man.

Thomas Jefferson, letter to Benjamin Rush, September 23, 1800



I think all the world would gain by setting commerce at perfect liberty.

Thomas Jefferson, July 7, 1785


If a nation expects to be ignorant — and free — in a state of civilization, it expects what never was and never will be.

Thomas Jefferson, letter to Colonel Charles Yancey, January 6, 1816



Is it the Fourth?

Thomas Jefferson, evening July 3; Jefferson died the next morning, July 4, 1826


It is not honorable to take mere legal advantage, when it happens to be contrary to justice.

Thomas Jefferson, Opinion on Debts Due to Soldiers, 1790


It is the duty of every good citizen to use all the opportunities which occur to him, for preserving documents relating to the history of our country.

Thomas Jefferson, letter to Hugh P. Taylor, October 4, 1823


It should be our endeavor to cultivate the peace and friendship of every nation.... Our interest will be to throw open the doors of commerce, and to knock off all its shackles, giving perfect freedom to all persons for the vent to whatever they may choose to bring into our ports, and asking the same in theirs.

Thomas Jefferson, Notes on the State of Virginia, Query 22, 1787


Natural rights [are] the objects for the protection of which society is formed and municipal laws established.

Thomas Jefferson, letter to James Monroe, 1791


No government ought to be without censors & where the press is free, no one ever will.

Thomas Jefferson, September 9, 1792


The boisterous sea of liberty is never without a wave.

Thomas Jefferson, letter to Richard Rush, October 20, 1820


The care of human life and happiness, and not their destruction, is the first and only legitimate object of good government.

Thomas Jefferson, letter to The Republican Citizens of Washington County, Maryland, March 31, 1809


The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. It is its natural manure.

Thomas Jefferson, letter to William Stephens Smith, November 13, 1787


An ELECTIVE DESPOTISM was not the government we fought for; but one which should not only be founded on free principles, but in which the powers of government should be so divided and balanced among several bodies of magistracy, as that no one could transcend their legal limits, without being effectually checked and restrained by the others.

James Madison, Federalist No. 48, February 1, 1788


Equal laws protecting equal rights — the best guarantee of loyalty and love of country.

James Madison, letter to Jacob de la Motta, August 1820


In Europe, charters of liberty have been granted by power. America has set the example ... of charters of power granted by liberty. This revolution in the practice of the world, may, with an honest praise, be pronounced the most triumphant epoch of its history, and the most consoling presage of its happiness.

James Madison, National Gazette Essay, January 18, 1792


No man is allowed to be a judge in his own cause, because his interest would certainly bias his judgment, and, not improbably, corrupt his integrity.

James Madison, Federalist No. 10, November 23, 1787


We have heard of the impious doctrine in the old world, that the people were made for kings, not kings for the people. Is the same doctrine to be revived in the new, in another shape — that the solid happiness of the people is to be sacrificed to the views of political institutions of a different form? It is too early for politicians to presume on our forgetting that the public good, the real welfare of the great body of the people, is the supreme object to be pursued; and that no form of government whatever has any other value than as it may be fitted for the attainment of this object.

James Madison, Federalist No. 45, January 26, 1788

As to Taxes, they are evidently inseparable from Government. It is impossible without them to pay the debts of the nation, to protect it from foreign danger, or to secure individuals from lawless violence and rapine.

Alexander Hamilton, Address to the Electors of the State of New York, March, 1801


History affords us many instances of the ruin of states, by the prosecution of measures ill suited to the temper and genius of their people. The ordaining of laws in favor of one part of the nation, to the prejudice and oppression of another, is certainly the most erroneous and mistaken policy. An equal dispensation of protection, rights, privileges, and advantages, is what every part is entitled to, and ought to enjoy... These measures never fail to create great and violent jealousies and animosities between the people favored and the people oppressed; whence a total separation of affections, interests, political obligations, and all manner of connections, by which the whole state is weakened.

Benjamin Franklin, Emblematical Representations, Circa 1774


Strangers are welcome because there is room enough for them all, and therefore the old Inhabitants are not jealous of them; the Laws protect them sufficiently so that they have no need of the Patronage of great Men; and every one will enjoy securely the Profits of his Industry. But if he does not bring a Fortune with him, he must work and be industrious to live.

Benjamin Franklin, Those Who Would Remove to America, February, 1784



Where liberty dwells, there is my country.

Benjamin Franklin (attributed), letter to Benjamin Vaughn, March 14, 1783



Without Freedom of Thought there can be no such Thing as Wisdom; and no such Thing as Public Liberty, without Freedom of Speech.

Benjamin Franklin, writing as Silence Dogood, No. 8, July 9, 1722


Society in every state is a blessing, but government, even in its best state, is but a necessary evil; in its worst state an intolerable one; for when we suffer or are exposed to the same miseries by a government, which we might expect in a country without government, our calamity is heightened by reflecting that we furnish the means by which we suffer.

Thomas Paine, Common Sense, 1776


Freedom had been hunted round the globe; reason was considered as rebellion; and the slavery of fear had made men afraid to think. But such is the irresistible nature of truth, that all it asks, and all it wants, is the liberty of appearing.

Thomas Paine, Rights of Man, 1791


This new world hath been the asylum for the persecuted lovers of civil and religious liberty from every part of Europe. Hither have they fled, not from the tender embraces of the mother, but from the cruelty of the monster; and it is so far true of England, that the same tyranny which drove the first emigrants from home, pursues their descendants still.

Thomas Paine, Common Sense, 1776

ENSE PETIT LIBERTAM SUB PLACINDE QUIETEM: WHY IS THE SYSTEM OF COLLECTIVE BARGAINING DESTRUCTIVE TO GROWTH AND HARMFUL TO FREE SOCIETY?

It's widely believed that European "example-in-case" of Economic unsustainability will never reach so ever-wanted point, where Europe could become the most growthful Economy in the world. Such a wishful ambition is certainly welcoming. But sustaining current system of Economic destitution, where Europe is pretending itself to maintain such system in order to preserve its unique social system, which is and presumably remains unfit for command. So where's the problem that pushes Europe back. Following classical emphasis, the two main objectives are politically and economically underlayed. Let me first turn to the political issue. Europe has instituted one of the most beneficial systems of welfare through out the History of 20th century. Approximately until the mid-1970s Europe has been catching up with the United States quite instantly, according to economic results. But aftermath, European economic system began to decline rapidly and lagging behind the U.S. Economy. Several efforts lead Europe to such an unadmirable result. First far-reaching consequence is the lack of personal, social, economic and political irresponsibility. Such an intrinsic dimension of socioeconomic devolution was resulted according to European mind of uncritical social thinking that put income equality ahead of freedom, responsibility, growth, prosperity and happiness. But such devolution has been continuing to expand rapidly, after business managers that lead production began to become the hostage of lobbies and trade unions that insisted to impose 7-hour daily work time that reflected the very strong decline in entrepreneurial productivity. European trade unions forced largely expanding European businesses into appointing minimum wage, what made European labor market rigid and inflexible. Another crucially important aspect is that European trade unions insisted strongly to acclaim the promotion of an early retirement that replaced the burden of labor on the most productive individuals. Such a destructive effect of economic policy led to higher taxes. According to the Laffer curve, high taxes imposed on a smaller tax base, will not increase tax revenue, but sooner or later decrease. The most knowledgeable and productive individuals did therefore not accumulate a lot of their human capital, so the measured level of output capacity was lower than in the United States. That's how the most knowledgably recognized and prosperous individuals began to leave European misery and escape into the United States, where they much easily achieved what they seemed impossible to attain in Europe. The most obvious evidence of European economic destitution is seen in countries, such as France, Slovenia, Italy and Germany, also Sweden. Thus, according to Index of Economic Freedom (Heritage Foundation), France is the most bureaucratic monster in Europe. Very rigid labor market forced German investors to remove their production from Germany. Italian health and social security system is about to collapse sooner or later. Highly-regulated financial markets, unwelcoming approach to foreign investment, astronomic taxes, weak protection of private property, pro-rigid labor market and illiberal legislation made the richest of the post-communist economies, namely Slovenia, unattractive to invest. Slovenia's gradual approach to economic policy disabled strong and economic blueprint cooperation between the economy and science, based upon the innovative decision-making establishment. Ljubljana is a beautiful city, but unfortunately the tax system would leave you so little in your wallet, that could be very hardly to enjoy sightseeing, that is offered in Ljubljana.The very first approach to pull Europe out of its trapped misery is to reinstitute personal responsibility that will reward the application of knowledge in society. Speaking how Europe's economic performance is lagging behind, because its society is not based enough on knowledge, is actually funny. Therefore, European policy-makers need to cut government expenses by privatizing social security and health system. European type of public administration is "upside down". According to CATO's Economic freedom of the world 2003, Sweden and Slovenia, have the largest public administration in Europe. Market decisions must not be disturbed by trade unions. Therefore, European policy-makers must not allow trade unions to bargain about salaries and wages for thousands of individuals. It's morally unacceptable to let trade unions to impose decisions that are not resulted in accordance with market-based solution, but remain a political disrespectfulness. For avoiding the collapse, not politicians but entrepreneurial individuals must make decisions and trade unions should not be allowed to bargain and harm the Economic growth. In fact, the best social programs aren't not state subsidies, but only jobs. Political bargaining about salaries and collective contracts will always reduce an agenda for growing Europe, that was written by distinguished Andre Sapir and other distinguished economists. An agenda for growing Europe will hardly be possible, unless there will once be a construction of entrepreneurial philosophy and market decisions, that will put challenge and growth ahead of political misleading. The most suitable way of throwing off the lobbies is to cut the government and privatize pension system and reduce the size of the state into ultra minimal state, where individuals will be more responsible for what they do. At last but not least, there's another prosperously sustaining aspect that is required if Europe will want to rise for the challenge of the bright future. That aspect will be done when the Flat Tax will be imposed. Progressive taxes were elaborated and required in Marx's Communist Manifesto that subjected the worst case scenario of how European economy and society should function. Progressive taxes are harmful to the economy and ultimately enable political abuses, where lobbying is coded within differently imposed tax rates that hurt highly educated and productive individuals that represent the major source of economic growth and future sustainability. There's no accumulation without investment and vice versa. But to take seriously proposed step ahead, European leaders must (!) not allow lobbies and trade unions to be in the position of bargaining and taking destinies of millions of others in their hands. A free society, that I envision, consisting of knowledge, responsibilities, duties, rights, entrepreneurial initiative, rule of law and individual rights as the moral basis of society, I believe is a place of sovereign individuals where everyone, being free to choose, is enabled to move from the bottom to the top to make his or her dreams come true and therefore enjoy a fuller and happier joyfulness of life.

CONCEALED AND FORGOTTEN: CYRIL A. ZEBOT (1914 - 1989)

CYRIL A. ZEBOT

April 8, 1914 (Maribor, Slovenia) - January 11, 1989 (Washington D.C)






Cyril A. Zebot was born and raised in Maribor, Slovenia on April 8, 1914, right in the year when the world plunged into the most devastating war period of that time. His father Franjo Zebot was a vice mayor of Maribor and an imminent politician in the Kingdom of Serbs, Croats and Slovenes (Kingdom of Yugoslavia) on his deputy. Shortly after Germans invaded Slovenia the position of vice-mayor led Franjo Zebot to his arrest and later on sent him to prison. Young Cyril had very soon created his sociopolitical profile and common goals. In 1932 he graduated from the High School of Maribor (Classical Gymnasium Maribor). In 1936 he began studying law and became specialized in economics. After graduating at the University of Ljubljana, Cyril Zebot went on several education trips around Europe. He continued to study and attend specialization in economic sciences in Paris, Milan and Czechoslovak Republic. After coming back to Ljubljana in March 1941 he was appointed docent of economics at the University of Ljubljana. In Ljubljana, Cyril A. Zebot closely collaborated with prof. Lambert Ehrlich and they together prepared several papers concerning Slovenia's economic and political future. One of such mainstreams was so called "Intermarum", a community of independent and sovereign nations between Baltics and Adriatic. In May 1942, prof. Lambert Ehrlich was shot to death by the VOS (communist secret service), assassinated in the communist attempt on his life.. Ehrlich's murder was also the beginning of brutal civil war, inflamed by the Bolshevik movement. In September 1943, when Italy formally capitulated, Zebot withdrew to Rome and found sanctuary in the Vatican, after he learned that the Gestapo was looking for him. While staying in Rome, Zebot immediately organized a few initiatives in order to isolate Slovenia from Tito's socialism. At that time, a majority of allied nations was beginning to recognize, that Tito's Yugoslavia is nothing else but a Soviet-driven "puppet" of Stalin. Zebot worked together with native immigrants for an independent Slovenia addressed to Western allies. Prof. Zebot organized "Action Board for an independent Slovenia". The plan was very simple. The area around Trieste that was namely allied-driven area would became an independent state and soon after also other parts of Slovenia would be unified into independent Slovenia. After Slovenia was deliberately reannexed to Yugoslavia, prof. Zebot immigrated to the United States and became a prominent professor of economics at Duquesne University in Pittsburgh, PA. His academic performance was admired among American professors. Since 1958, prof. Zebot was holding lectures at Georgetown University in Washington D.C. He titled several books and papers that were recognized all across Western Europe and North America. His books, papers and articles were published in important New York-Washington newspapers, such as NY TIMES and WASHINGTON POST. In the latter alone, prof. Zebot published nearly 50 papers and articles that were issued in several publications.

THE ACADEMIC CAREER OF CYRIL A. ZEBOT IN ECONOMICS

After obtaining Bachelor’s degree in Economics & Law at the University of Ljubljana and finished specialization in economic sciences in Milan, Paris and Czechoslovak Republic, prof. Zebot, trained in both Economics and Law conducted various research works. In 1939 he published the book, entitled "Korporativna analiza narodnega gospodarstva" (Corporate Analysis of National Economy) which drew a reflection upon fascist-driven economy. The recent importance of that work was more than just a "few letters on the paper". The introduction of the book was written by prominent European economists Francesco Vito and Francois Perroux. The book was an "establishment of knowledge", that young Zebot instituted, when he was studying economic systems. His research performance could easily be compared with "state-of-the-art" Chicago authors. After coming back to Slovenia in 1939, prof. Zebot became employed in the Chamber of Labor. After promoting forward, prof. Zebot found an employment at the National Bank. In March 1941, prof. Zebot was the appointed docent of economics at the University of Ljubljana and since then he had been holding world-class lectures on economics at the Faculty of Law, at the University of Ljubljana. He issued his last book published in Slovenia at that time called "European Economic Perspectives" After immigrating overseas to the United States, prof. Zebot was an appointed professor of economics at the University of Duquesne in Pittsburgh, PA. In 1958, prof. Zebot found an employment at Georgetown University, Washington D.C. where he had been the appointed professor or Political Economy. On the 275th anniversary of Georgetown University Cyril A. Zebot had been a proud and "world-class" professor at Georgetown University in times when Bill Clinton studied Foreign Affairs there. He had been interested in such topics as integrated theory of inflation, convergence, economic growth, economic systems, economic perspectives, competition and economic coexistence. In 1964, prof. Zebot published "The Economics of Competitive Coexistence: Convergence through Growth", a masterpiece, that reflected upon economic courses within comparative economic systems. Since the very beginning of his Career, Cyril A. Zebot was a prominent part of "golden generation" of Slovenian economists, together with Alexander D. Bilimovich, Ljubo Sirc, Spektorski, Ogris and Eler. His excellent and world class lectures put an emphasis on the integrated theory of inflation in the United States, comparative economics and convergence through economic growth.

POLITICAL PATH OF CYRIL A. ZEBOT

The earliest political participation of Dr. Cyril A. Zebot was his very first membership of the academic club Straza v viharju ("Guards in the wind") that had been instituted upon the staunch anti-communist and pro-Slovene ideas of fulfilled Liberty. Zebot's academic club insisted strongly to oppose communist-driven coalition of Liberation front during the World War 2.


Page of the "Sluzbeni list" (Official Gazette) from Yugoslavia, dated June 21, 1967, whereby Belgrade prohibited to bring Zebot's book into Slovenia.

Consequently, Slovenia under the Communist regime of the great-Serbian Yugoslavia found itself indeed in the greatest state of emergency of its historical existence after WW2. The people in Slovenia, and also the leading Communist class were fully aware of this. However, it was impossible to speak out in a totalitarian Yugoslavia. And even among Slovenians of the free world, Prof. Zebot was one of the very few, who at that time knew and was aware of the critical situation in Slovenia. Against the threatening disappearance of Slovenians, he had no other tools but his visible rank, his great knowledge, and his pen.


Cover and title page of Zebot's book "Slovenija, vceraj, danes, jutri" (Slovenia, yesterday, today, and tomorrow, 1967), which stirred up Slovenia and Yugoslavia at the end of the 60s.

Of course, his books, articles, and even the mentioning of his existence had to be suppressed in the then Slovenia. Besides, being a Catholic, who was teaching at an American university, his figure did not fit well in the Communist "scientific" mould, in sense of which the Faith should have been "opium for the people" (Marx). As a man of faith, Prof. Zebot should have been lagging behind, should have been ingenuous and incapable to understand the very social and economic process of development.

Actually, in the 60s no one in Slovenia believed in the Communist scientific "truth", but there were no examples of a different reality. Thus the fact must have been like a "divine finger" (as Slovenians say), when the knowledge of Prof. Zebot's figure and his endeavours for Slovenia were spread widely throughout the country. In 1967 Zebot's book "Slovenija, vceraj, danes, jutri" (Slovenia, yesterday, today, and tomorrow, 1967) was published by the Mohorjeva Publishing House in Klagenfurt - Celovec (Austria).


As already mentioned above, the bringing of the book into Yugoslavia was prohibited. But even the suppression provoked a great interest for it. Many people made a trip to Celovec (Austria) and brought the book secretly into Slovenia, like a kind of triumph. And the book was sold out in no time.

Among the young generation of Slovenian intellectuals, Zebot's analysis of the political and social situation of Slovenia of that time was very well accepted. It was said, he did not blindly attack Communism and Yugoslavia, albeit he critically took a standpoint toward the leading Communists, whom he called by name (Kardelj, Ribicic...). Prof. Zebot depicted the difficult situation of Slovenia, and in a constructive way he showed the salvation. After his prevision, the Slovenian Communist leaders themselves should have made a stop to the tremendous exploitation that went on in the autonomous Republic of Slovenia by sides of Belgrade.


Zebot's last book "Neminljiva Slovenia" (Everlasting Slovenia, 1988), which could be considered his last will to the Slovenian people.

Prof. Zebot was watching the situation in Slovenia. In the second half of the 80s - during its greatest critical period since the existence of Yugoslavia - his new book called "Neminljiva Slovenia" (Everlasting Slovenia, 1988) was published in Klagenfurt - Celovec (Austria). In this book he quoted anew the Slovenian endeavours for a national identity, which started already since the WW1, and therefore he stated: Only a non-questionable sovereignty of the Republic of Slovenia must become a guarantee for an "Everlasting Slovenia" (p. 489).


In 1991, this message was finally carried out by the Slovenian ruling leadership with the day of the declaration of independence of Slovenia. It was the message, for which Prof. Ehrlich at the beginning of the WW2 was shot in an attempt on his life. Prof. Zebot did not live to see this, because he died in 1989. Some people tend to prefer to not remember him, but I think we should rather maintain and preserve his economic excellence, hard work and extensively knowledgeable literature, that were written by the man who was extremely talented in economics. But his talent was often turned into the struggle to survive in times of winding conditions and dark stages of the bloodiest century of the mankind.

IN THE FACE OF EVIL: REAGAN'S WAR OF HEROISM IN WORD AND DEED

"When action is required to preserve our national security, we will act. We must act today in order to preserve tomorrow, and let there be no misunderstanding we are going to begin to act, beginning today."

Ronald Reagan
First Inaugural Address

He freed a billion slaves from their Communist masters... This is the story of that achievement: of one man’s triumph during the bloodiest and most barbaric century in mankind’s history: the 20th century.

In the Face of Evil: Reagan’s War in Word and Deed is a man and nation’s journey through the heart of darkness—and what that journey means for us today. This film is not a biography of Ronald Reagan, but a hard-hitting look at leadership and moral courage. Based on Peter Schweizer’s acclaimed bestseller, Reagan’s War, the new feature-length documentary film, In the Face of Evil, chronicles the brutal conflict between totalitarianism and freedom as seen through Ronald Reagan’s forty-year confrontation with Communism.

Reagan’s struggle began in direct conflict with Soviet-backed street-level violence during Communism’s attempt to take-over Hollywood during the 1940’s; it continued through his “wilderness years” on the mashed potato circuit in the 50’s, then on to his confrontation with the radicals at Berkeley in the 60’s showing, throughout, his challenge of the Establishment’s policy of détente, his steady rise to power, his rejection by his own party, and his focus on the need for a complete victory over Communism.

More than a traditional war film, In the Face of Evil plays out on an epic scale... from the back-lots of Hollywood, to the jungles of Central America; from the mountains of Afghanistan, to the palaces of the Kremlin; to the Brandenburg Gate in the heart of a divided Berlin...

“I have to believe that the history of this troubled century will indeed be redeemed in the eyes of God and man, and that freedom will truly come to all. For what injustice can withstand your strength?"
Ronald Reagan
Moscow, 1988

In the Face of Evil details, for the first time, with never-before-seen footage, the top-secret plans of Reagan and his inner circle ... and their brick-by-brick takedown of the “Evil Empire.”

... from the oil fields of Saudi Arabia to the streets of Warsaw; from the trading floors of Wall Street to the vast steppes of Siberia... the plan encompassed covert ops, a massive arms buildup, and economic and psychological warfare—all conducted on a scale never seen before.

With the world mired in the beginnings of a new global conflict, In the Face of Evil is more relevant today than ever. The film affords profound insights on the brutality of the last century, and offers a prism through which we can gain perspective on the bloody conflicts that stretch ahead.

“You and I have a rendezvous with destiny. We will preserve for our children this, the last best hope of man on earth...”
Ronald Reagan
1964

As the 21st century’s great conflict between freedom and Islamic Fascism takes shape, In the Face of Evil, and the words and deeds of Ronald Reagan, provide an invaluable lesson for how the U.S., and the free world, must combat the forces of Evil... if we are to survive.

MAKING THE TAX SYSTEM MORE SIMPLE: ON THE PROGRESSIVITY OF TAXES

Various discussions and opened talks among economists wheatear the progressivity really matters for Economic growth and sustainable development, has uncovered some supposingly interesting predications and it gets really cool to see differently advanced economic analysis, concerning the progressivity of taxes. Going through extensive writings and working papers is much more deliverable and essentially effective then listening the leftists and their explosions of neosocialism about how the progressivity of taxes is inevitable. Such a negatively defective way of thinking and considering really has nothing to do with serious "Chicago Economics". So let me turn to the point of the progressivity of taxes and show my own view about it. The Relation between Tax Rates and Economic GrowthEffects of changes in economic growth is a considerable consequence of tax rates. More specifically, supply-side economist Arthur B. Laffer is accredited for offering one of the most convincing explanations on relation between tax rates and tax revenue. The following relation is also called namely "The Laffer Curve". To pursue the facts and correlations above, we need to construct the model of competitive equilibrium with heterogeneity of incomes and tax rates. As to economic growth, the production sector is holding two different sources of Economic Growth. The first source is basically known as "skilled workers" source of growth, while the other one is namely recognized after the portion of skilled labor force, that conducts R&D. Reducing the progressivity of taxes will have a long-running positive effect on changes in economic growth. If tax system is hopefully transformed and progressivity of taxes replaced with single marginal flat tax rate, then of course the progressivity will loose its basic effect on the consumption of human capital. The Flat Tax, namely recently described by Hall and Rabushka presents an experiment of transformation towards the calibrated system of single flat rates of taxes, that indices quantitative effects with an incredible measure of economic efficiency. Also the engine of economic growth has an essential effect on reducing the progressivity of taxes. Seen quantitatively, welfare "subsidies" are undoubtedly higher in the system, where comparative effects reduce the progressivity of taxes and therefore increase the economic efficiency, what actually gives wings to the Economy. In terms of transition costs towards growth equilibrium, more productive individuals rather prefer the system of flat tax rates.Basics and Theoretical ExhibitionLower tax rates increase economic growth. Bob Lucas (1990) applied an endogenous model where human capital is the most central engine of economic growth. In fact tax rates have a long-term quantitatively trivial effect on economic growth. Stokey and Rebello (1995) implied the general model of endogenous economic growth and effective parameters in quantitatively defined direction, where changes in tax rates are oftenly reduced in order to enable the accumulation of human capital and put it into practice. Stokey and Rebello also isolated those effects of quantitative analysis. By implying the "cross country" model of parallel regressions and numerical stimulations, there're considerable influenced implications of taxes on economic growth.Bob Lucas defined that quantitative effects of cutting taxes and reducing its progressivity are present in the model of human capital accumulation, and there's a certain extent on the beneficial and cost side of marginal conditions, known as "decision making". In case of sweepingly established progressivity of taxes, there's a huge influence on the accumulation of human capital. If X in skilled and reasonably productive, then the accumulation of his human capital would increase his purchase power and he'd be tax progressively and therefore he would not be willing to apply larger quantity of accumulated human capital. On the other hand, if the accumulation of human capital is running in the presence of liquidity constraints, then of course the progressivity will reasonably cut the tax burden of the poor, but aftermath the weight of tax burden would be transferred to those who attain high level of productivity and that would definitely present a stoppable effect of putting human capital in practice. Progressive tax rates potentially reduce the consumption of human capital that remains a major part of total factor productivity. The issue of tax progressivity is also a suitable theoretical exhibition. In the OG model, skilled and unskilled workers consume their resources to pay the education for their children. An amount of capable household participants is a key endogenous variable and it presents a value of skills that include endogenously based accumulations of human capital and decisions on the human capital investment. The portion of the workers, employed in R&D attains insightful results on aggregate effects of tax progressivity. Indeed, shifting tax progressivity has importantly implied changes even in specific situations, where the system of tax progressivity is replaced with one single model of proportionally marginal flat tax rate. The welfare under flat tax conditions is not reduced, but furthermore increased, because welfare is in fact an economic agent. The engine of economic growth contains a considerable effect on reshifting or exposing an increased level of the progressivity of taxes, by imposing an external effect and by increasing prices. The engine of economic growth is far more reliable, when tax burden is rapidly reduced, because technological structures will be able to be adopted more easily and dynamically.Writings and discussion, concerning the progressivity of taxes1. Gallorand Tsildon(1997) analyzed important connections of economic mobility, inequality and growth in the general model of capable heterogeneity. Gallor and Tsildon applied the linearity of the human capital function at the same spot in order to simplify the process of aggregation.2. Caucott, Imrohoglu and Kumar (2003) used a simple limit of twin-tracked heterogenesis in order to make the system of aggregation of the human capital more capable on responding to different effects of changes and reshifting shocks, that were primarily described by Andrade (1998).3. Uhlig and Yangama (1996) built the heterogenesis into Overlapping Generations model (OG Model), putting an argument, that shifting outcome capita. tax rates will enable young people to put an emphasis on saving, ahead.4. Blackeneau and Ingram (1999) considered the taxation of differently skilled workers at different tax rates, because there's also "so called " "skill-biased technological change". Blackeneau and Ingram charactirzed specific condtions of the influence of taxing older population according to higher tax rate. This method increases saving of those, whose personal incomes are taxed less, according to reshiftings in tax progressivity. The final effect therefore remains the increase of skilled labor on the labor market. In the following terms, the progressivity is implied functionally through physical capital. Blackeneu and Ingram put an emphasis on the relation-type condition between "capital" and "accumulation", arguing that the whole process holds a secondary imposed role, because the progressivity is reflected directly upon the capital return rate and has a negative effect on the supply of skilled labor. Blackeneu and Ingram hadn't faced the model of endogenous growth.5. Cassou and Lansing (2000) emphasized the local concept of migration regime and the system of marginal flat tax rate according to response functions of growth effects of shifting from progressive towards flat tax rate. Lower progressivity therefore increases the supply of productively skilled labor force, output, investment etc. Cassout and Lansing argue that untaxed earnings present the largest input of the human capital production in increase. They solved a special representative model and configured the progressivity with certain specification of tax rates as an increasing function of income. To understand the implicit inequality, it's central to conduct the scale-model of inequality explicitly separated.6. Caucott, Imrohoglu and Kumar (2003) resolved a special model of specific heterogeneity as a model agent, where inequality is developed according to the process of endogenous concept of capital. Such model can contain certain exogenous shocks of the recent effect of progressivity and premium precise, while representative model is not capable of conducting such issues properly.Calculating the effects of growth on progressivity by imposing a marginal condition (Lucon, 1990) is very similar to some explicit extent. The effects of change are important and require reduced or eliminated progressivity, which should be permanently replaced with the model of one single flat tax rates. But more concise research is reflected upon the model of fully-specific heterogeneous agents.