Crisis in Venezuela

[kandrathe]

Mujica has been a gift. He's become the most extraordinary icon of Uruguay for the world. I was skeptical when I was there (I thought it should have been Astori leading the Frente), but I think they clearly made a hell of a choice. Though, of course, the hard work of actual social reform takes talents other than being popular internationally, and Mujica has been good about letting sensible people actually try and improve things in the long run, rather than Venezuela-style grandstanding and populist absurdity.

Uruguay in many ways reflects the kind of "unholy alliance" pragmatic approach to economy practices in much of the world's Social Democracies, including most of Europe and the US. Whilst from one side of their mouths denounce industry and capital, from the other favor it in their tax codes instead relying on taxing the wages of the working classes. Here in the US, we instead doublespeak the opposite, denouncing the evils of those -isms yet fully embrace our expanding social spending.

In Uruguay, corporate taxes (without loopholes), peak at 25%, while personal income now with tax reform is up to 43%. The lower middle pay 21% to 27% on average. While Mujica didn't "rock the boat" economically and is an amazing story, I wonder how much was in place due to Tabaré Vázquez and remained throughout.

That said, I do applaud governments that do not to kill their golden geese and work to expand rather than contract their economies. I'm in favor of fair systems that work to empower the average person, without taking it from those common people who earn it. Living in a peaceful, and just society does have a price, but 25% to 50% of your labor annually just seems too steep to me. Industry needs to shoulder more of their fair share, rather than getting political favors, and government needs to become more efficient and effective at all levels (spending less).

Until the world becomes small enough to enact some global corporate (tax and regulatory) equality, it will be the commoners struggling to survive that bear the greater (tax and social) burdens.