[yt_dropcap type=”square” font=”” size=”14″ color=”#000″ background=”#fff” ] I [/yt_dropcap]f there’s an economic idea that Donald Trump and his economic advisers continually reiterate it is that slashing taxes inevitably leads to economic growth. Let’s see how true this idea is.
“After a decade when GDP growth averaged only 2%, Treasury Secretary Steven Mnuchin has suggested that the proposed tax cuts will raise the economy’s sustainable growth rate to 3%. This is ailed as progress. But the question is this: is there an obvious correlation between lower tax rates and faster economic growth?
As chart 3 below shows, labour force growth actually slowed in the aftermath of both the Reagan and Bush tax cuts. Productivity growth also slowed following the Reagan tax cuts, although it did briefly accelerate following the Bush tax cuts.”
Labor force growth actually slowed following the most recent U.S. tax cuts. So, there is little obvious correlation between lower taxes and faster GDP growth, despite the, “suggestion that the reduction in tax rates in the early 1980s was followed by faster economic growth in the second half of the 1980s.
Chart 5 would suggest that economic growth actually accelerated further in the 1990s, against a backdrop of rising tax rates.
Taxes were rising as GDP grew in the late-90s. Also, it is well known that US corporate profits tend to fall when tax rates rise. It strains credibility to argue that the tax rate fall was an important driver of the rising profitability.” An increase in corporate profitability, and in turn business investment, is seen as the main driver of higher economic growth following tax cuts.
Warren Buffett and strategist Tom Lee, among others, have both cast doubt on the idea that lower tax rates would necessarily provide a competitive advantage to either corporations or investors.
At the Berkshire Hathaway annual meeting Buffet stated that “it’s certain that some of a lower corporate rate would be competed away.” Lee said that “at the single-stock level, lower tax rates are very quickly discounted by investors.”
In an interview with The Economist this week, on the other hand said that he thinks the 3% growth the administration expects to follow a tax cut is “low.” Who is right? Hard to tell, especially now that the erratic president hardly mentions those economic proposals any longer. He is too busy dealing with the scandals of his administrations. But let’s not forget that Trump took a course with the Wharton Business School of Economics at Pennsylvania State University and then wrote a book titled The Art of the Deal. At least he says he wrote it even though he does not read more than a page memorandum and hi span of attention is 30 seconds. Surely he still thinks he knows best on the subject, as in so many other things. Reality will eventually supply the right answer.
Fight against human trafficking must be strengthened in Ethiopia
Throughout Ethiopia’s Tigray, Afar and Amhar regions, women and girls are becoming increasingly vulnerable to abduction and sex trafficking as they flee ongoing armed conflict, a group of UN-appointed independent human rights experts warned on Monday.
The protracted conflict in the three northern regions have heightened risks of trafficking for sexual exploitation as a form of sexual violence in conflict, the experts said in a statement.
“We are alarmed by reports of refugee and internally displaced women and girls in the Tigray, Afar, and Amhara regions being abducted while attempting to move to safer places,” they said.
“We are concerned at the risks of trafficking, in particular for purposes of sexual exploitation, including sexual slavery.”
Women and children in crosshairs
Amidst abductions and displacement, the UN experts raised serious concerns over Eritrean refugee women and children being at particular risk of sex trafficking.
“Urgent action is needed to prevent trafficking, especially for purposes of sexual exploitation, and to ensure assistance and protection of all victims, without discrimination on grounds of race or ethnicity, nationality, disability, age or gender,” they said.
Meanwhile, the hundreds of children who have been separated from their families, especially in the Tigray region, are particularly vulnerable, warned the independent experts.
“The continuing lack of humanitarian access to the region is a major concern,” the experts continued, urging immediate national, bilateral and multilateral measures to prevent all forms of trafficking of children and to ensure their protection.
They added that sufficient measures were not being taken to identify victims of trafficking, or support their recovery in ways that fully takes account of the extreme trauma being suffered.
“The failure to provide accountability for these serious human rights violations and grave crimes creates a climate of impunity, allows trafficking in persons to persist and perpetrators to go free,” underscored the six UN experts.
They urged all relevant stakeholders to ensure that victims of trafficking can adequately access medical assistance, including sexual and reproductive healthcare services and psychological support.
The experts said they had made their concerns known to both the Governments of Ethiopia and neighbouring Eritrea.
35 years of Cultural Routes: Safeguarding European Values, Heritage, and Dialogue
A Europe rich in history, heritage, dialogue and values: the Council of Europe Cultural Routes’ programme celebrates its 35th anniversary, on the occasion of the 11th Advisory Forum in Minoa Palace Hotel, Chania, Crete (Greece) on 5-7 October, with a special event to highlight the relevance of Cultural Routes for the promotion of cultural diversity, intercultural dialogue and sustainable tourism.
The Forum is organised by the Enlarged Partial Agreement on Cultural Routes of the Council of Europe and the European Institute of Cultural Routes, in co-operation with the Hellenic Ministry of Culture and Sports, the Hellenic Ministry of Tourism, the Greek National Tourism Organization, the Region of Crete, the Municipality of Chania, the Chamber of Industry and Commerce of Chania, and the Historic Cafes Route. The 2022 edition will be the opportunity to underline the growing relevance of the Cultural Routes methodology and practices in promoting Europe’s shared cultural heritage while fostering viable local development.
Deputy Secretary General Bjørn Berge will participate in the high-level dialogue, together with Minister of Culture and Sports of Greece Lina Mendoni, Minister of Tourism of Greece Vassilis Kikilias, Parliamentary Assembly (PACE) Vice-President and Chairperson of the Greek Delegation Dora Bakoyannis and Chair of the Statutory Committee of Cultural Routes Ambassador Patrick Engelberg (Luxembourg).
Over three days of workshops and interactive debates, three main general sessions will be explored:
- Promoting European Values and Intercultural Dialogue;
- Safeguarding Heritage in Times of Crisis;
- Fostering Creative Industries, Cultural Tourism, Innovative Technologies for Sustainable Communities.
The Forum will discuss trends and challenges in relation to Cultural Routes, providing a platform for sharing experiences, reviewing progress, analysing professional practices, launching new initiatives and developing partnerships across Europe and beyond. Participants range from managers among the 48 cultural routes to representatives of national ministries, International Organisations, academics, experts and tourism professionals.
Little progress combating systemic racism against people of African descent
More than two years since the murder of George Floyd by a police officer in the United States sparked the global Black Lives Matter movement, there’s been only “piecemeal progress” in addressing systemic racism, the UN human rights office (OHCHR) said on Friday, in a new report.While more people have been made aware of systemic racism and concrete steps have been taken in some countries, the Acting High Commissioner for Human Rights called on States to demonstrate greater political will to accelerate action.
“There have been some initiatives in different countries to address racism, but for the most part they are piecemeal. They fall short of the comprehensive evidence-based approaches needed to dismantle the entrenched structural, institutional and societal racism that has existed for centuries, and continues to inflict deep harm today,” said Nada Al-Nashif, who will present the report to the UN Human Rights Council on Monday.
The report describes international, national and local initiatives that have been taken, towards ending the scourge of racism.
These include an Executive Order from the White House on advancing effective, accountable policing and criminal justice practices in federal law enforcement agencies; an Anti-Racism Data Act in British Columbia, Canada; measures to evaluate ethnic profiling by police in Sweden; and census data collection to self-identify people of African descent in Argentina.
The European Commission has issued guidance on collecting and using data based on racial or ethnic origin; formal apologies issued, memorialization, revisiting public spaces, and research, to assess links to enslavement and colonialism in several countries.
‘Barometer for success’
The report notes that poor outcomes continue for people of African descent in many countries, notably in accessing health and adequate food, education, social protection, and justice – while poverty, enforced disappearance and violence continues.
It highlights “continuing…allegations of discriminatory treatment, unlawful deportations, excessive use of force, and deaths of African migrants and migrants of African descent by law enforcement officials”
“The barometer for success must be positive change in the lived experiences of people of African descent,” continued Ms. Al-Nashif.
“States need to listen to people of African descent, meaningfully involve them and take genuine steps to act upon their concerns.”
Higher death rates
Where available, recent data still points to disproportionately high death rates faced by people of African descent, at the hands of law enforcement, in different countries.
“Families of African descent continued to report the immense challenges, barriers and protracted processes they faced in their pursuit of truth and justice for the deaths of their relatives”, the report says.
It details seven cases of police-related deaths of people of African descent, namely George Floyd and Breonna Taylor (US); Adama Traoré (France); Luana Barbosa dos Reis Santos and João Pedro Matos Pinto (Brazil); Kevin Clarke (UK) and Janner [Hanner] García Palomino (Colombia).
While noting some progress towards accountability in a few of these emblematic cases, “unfortunately, not a single case has yet been brought to a full conclusion, with those families still seeking truth, justice and guarantees of non-repetition, and the prosecution and sanction of all those responsible,” the report says.
Ms. Al-Nashif called on States to “redouble efforts to ensure accountability and redress wherever deaths of Africans and people of African descent have occurred in the context of law enforcement, and take measures to confront legacies that perpetuate and sustain systemic racism”.
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