A functioning modern economy needs respect for property rights; a government that is able to collect taxes and offer a social safety net; banks that allow the payment system to function; markets that allow businesses to raise capital and so on. Once those essentials are in place, whether the right top tax rate is 40% or 50%, the right interest rate is 1% or 5% is largely a matter of trial and error, and of political acceptability. Much is made of the difference between Britain’s “Anglo-Saxon” model and of France’s dirigiste approach, between the British government’s austerity drive, and France’s pro-growth approach. But for all the rhetoric, Britain’s GDP per … Continue reading Buttonwood