LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

Socialism not good for US economy: White House warns in a report

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Updated: Tue, Oct 23, 2018
10:22 pm
PTI
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

America's GDP will drop by 19 per cent if it implements socialism of Nordic countries, the White House said Tuesday in a report which argues that India and China were able to elevate a large number of people from poverty only after making policy changes away from socialism.

The major report titled 'Opportunity Costs of Socialism' warns the dangers of socialism and has come two weeks ahead of pivotal mid-term elections.

"Although socialist policies are ostensibly implemented to reduce poverty and inequality, it was the end of highly socialist policies in China that brought these results on a worldwide scale," the White House said.

China's major reforms began in 1978, which is about the time that the poverty rate in China, and therefore world poverty rates and world inequality, began a remarkable decline, said the report brought out by the White House Council of Economic Advisors.

"Policy changes in India also coincided with reduced poverty in that country, although it is debated whether the early Indian policies were socialist," it said.

The report comes out at a time when there is increasing debate in the American political discourse about the benefits of socialism, a model that poses a grave challenge to capitalism.

Without naming any politician, the report said that American socialists were envisioning moving US policies to align them with those of the Nordic countries in the 1970s, when their policies were more in line with economists' traditional definition of socialism.

"We estimate that if the United States were to adopt these policies, its real GDP would decline by at least 19 per cent in the long run, or about USD 11,000 per year for the average person," it said.

According to the report, replacing US policies with highly socialist policies, such as Venezuela's, would reduce real GDP at least 40 per cent in the long run, or about USD 24,000 per year for the average person.

It said the experiences of the Nordic countries supported the conclusion that socialism reduces living standards.

"In many respects, the Nordic countries' policies now differ significantly from what economists have in mind when they think of socialism," the report said.

They do not provide healthcare for "free"; Nordic healthcare financing includes substantial cost sharing, it added.

Marginal labour income tax rates in the Nordic countries today are only somewhat higher than in the US, and Nordic taxation overall is surprisingly less progressive than US taxes, the report said.

The Nordic countries also tax capital income less and regulate product markets less than the United States does, the report said.

"However, the Nordic countries do regulate and tax labour markets somewhat more; thus, American families earning the average wage would be taxed USD 2,000 to USD 5,000 more per year net of transfers if the US had current Nordic policies. Living standards in the Nordic countries are at least 15 per cent lower than in the United States," it said.

The report asserted that a large body of evidence shows how the high tax rates, state monopolies and centralised control of socialism disincentivise effort and innovation and substantially reduce the quantity and quality of a nation's output.

It noted that even Cuba, China, and the erstwhile USSR, and other highly socialist countries eventually permitted private enterprises both in and outside the agriculture sector to coexist with the state-owned enterprises.

"With the exceptions of Cuba, North Korea, and Venezuela, all the highly socialist countries eventually transitioned to primarily private economies," it said.

 

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Economy
RELATED NEWS
Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details Infosys Chairman Nandan Nilekani on India's Digital Economy I Kotak Institutional Equities highlights details
Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities Digital economy to outpace GDP growth, will result in 'competitive advantage period' for leaders in digital space highlights ICICI Securities
#GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here #GSTMakeItEasy: Facing GST related issues? Big initiative by Zee Business - Tweet your problems now! Check all details here
India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global India’s economy picking up steam, estimate recovery at 10% in FY22: S&P Global
RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21 RBI Monetary Policy: Governor Das says repo rate unchanged, sees GDP at 10.5 pct for FY22, inflation at 5.4 pct for Q4FY21

LATEST NEWS

IRCTC Share Price Outlook: Anil Singhvi predicts Rs 2500 target, lists out reasons to buy

JEE Main 2021: RUSH! March registration ends today—Here is how you can apply

Airbag for front-seat passenger made mandatory from THIS date

Trinamool candidate list 2021: Over 20 MLAs, ministers dropped from TMC candidacy for upcoming Assembly polls

TMC Candidates List 2021 - Names of 291 candidates announced for West Bengal Elections; See Complete List Here

Exclusive: JBM Auto focusing on manufacturing electric buses, ED Nishant Arya tells Anil Singhvi; scrappage policy to benefit company, he says

Ethanol from sugar will lower dependency on Crude import, create jobs and improve earnings of farmers

NEET 2021 exam: Check here the latest update on dates and all you need to know for registration before appearing in the test

7th Pay Commission: Central Government Employees' Dearness Allowance (DA) to become 25 pct from April 2021?

Indian economy outlook 2021: This is why FY 2021 GDP performance will be better than projection—Finance Ministry EXPLAINS

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved