Good example
The Gotham Gal wrote about the amazing success story of Estonia, which is great because the NY Times keeps this story for paying customers only. This is a story about naive leadership that was impress with Milton Friedman, partially because:
Laar liked what he read and particularly liked that the Soviet Union hated Friedman. So, he decided to take those theories and put them to use in Estonia.
The Estonians understood that simple tax code is just, and they understood that minimizing the involvement of the government in the market prevents corruption. Therefore they established a free market and laissez-faire.
He basically abolished almost all tariffs, welcomed foreign investment and privatized most of the Government functions. He did this with the help of his privatization czar who used to be the manager of the band Abba. I love that part. He cut taxes on businesses and individuals and instituted a flat income tax of 26%.
The results of this "cruel capitalistic" policy are, not surprising, a budget surplus, less corruption and blooming economy. Moreover the neighboring states start adopting the same policies. One can only wonder how long it will take the ripple effect to effect Western Europe and then the USA…
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