Innovation: The iPod and mp3s and the stuff to support it are innovative and they are also electronics and computer industry examples. Perhaps the best way to describe it is that US innovates better in ares where no one has any idea what to do, while Japan and Europe are better at improving things that have been done a million times. The walkman and the Playstation are high quality and involve some innovation, but are really examples of making everything work well together.
Those are interesting figures about the US health budget. The US spends about 13% of GDP on health, Australia 9%. The US government spends 56% of US money while in Australia our government spends 70%. I had thought the US government share would be lower.
It\'s funny how people like to target negative gearing as causing the housing bubble. The other factor is the lack of tax on people\'s primary residence. If capital gains tax were to apply even partially to family homes this would also cause a shift in housing funding.
There are some positives about home ownership for developing things. A large percentage of small business loans are made with housing as security.
As for choice, well, we have chosen political parties that like to tax and spend. Although the Liberal Party appears to be serious about tax reform.
Taxation always skews economic activity. It\'s inevitable. The government creates stable conditions and a branch of it sets interest rates. Government always intervenes in the market. It\'s just a question of doing it well or badly.
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