Following up on Nawaz Sharif’s 10% Disaster Economics – Sayem Ali explains how Nawaz Sharif’s economic plan so closely resembled G Bush vision which lead to the world financial crisis in the US history after WW II
“I received some interesting responses to my previous article titled, ‘Nawaz’s 3E formula’. Dr Abbasi in his letter to the editor defended Nawaz Sharif’s 3Es policy of massive tax cuts to big business and the top 10 percent income earners. According to Dr Abbasi, similar tax cuts to big business encouraged higher investment spending and created more jobs in Europe and the US. Hence, Dr Abbasi suggests Nawaz Sharif’s 10-percent tax formula will work in Pakistan. I strongly disagree.
The tax cuts implemented by George Bush for big business and wealthy taxpayers led to the worst financial crisis in the US since World War II and caused record unemployment and sharp rise in poverty. Corporate tax rate was slashed from as high as 39.6 percent down to 15 percent and hefty tax breaks were doled out to wealthy individuals. These tax cuts were supposed to encourage higher spending by big banks, oil companies and multinationals for new job creation. Instead, big business and wealthy taxpayers used the money to bet on the stock markets and real estate, leading to a flush of liquidity in speculative investments. Instead of investing in the real economy and creating jobs, the money from the tax cuts created asset bubbles. When the bubble burst in 2008, the whole world was left reeling”
Pakistan’s rich & famous will NOT behave any differently
The News: Bushonomics in Pakistan – Sayem Z Ali
– shared on Facebook by Awab Alvi