Sovereign Debt Crisis and Economic Sustainability
The concept of market economy is in trouble. Economies based on Anglo-American model prospered for centuries under the concept of ‘laissez faire’, thanks to Adam Smith. Although the application of the concept did overcome some challenges in the past, the recent credit crunch the following financial crisis and the prolonged recession have become the biggest threat that we ever had to face. Some even in the pioneer nations such as the UK and USA have begun to question the continuity of the free market concept. The author wonders if it is the end of Western economic hegemony.
The core principles and the philosophy of the market economy concept are, however, not to be ditched. It simply needs to be transformed to suit the emerging needs of the new century. The market economy model still has great potentials if its application is effectively regulated, particularly in the areas of credit and debt factors that essentially fuel the overall operation of the economy. The author would like to see the emergence of some form of a Quasi Regulated Market Economy (QRME) model.
The highlights of the book are mainly the suggested policy propositions as responses to resurrect the failing economies of the West and to sustain the economic hegemony. The highlights come under the following titles:
Nation-state Plc: the Commoditization of the national economy
National Equity: Tax-payer versus Investor Citizen
Income Tax Dilemma: Tax Relief for the Average Wage-earner and the Wealth Equilization Tax
Strategic Firms: Stakes in the Privatized Punlic Enterprises
Corporation Tax: Corporation Tax Reform and the Business Turnover Tax
State Pension Reform: Social Security Fund versus the Grand PONZI Scheme