
Recently, I've become less of a fan of democracy. Although I've been brainwashed growing up in the U.S. that democracy is the best political system, I'm having second thoughts. Now I feel like as long as there is a free market/capitalist system, the politics do not matter.
Singapore and Hong Kong are fine examples of this. Singapore only has 1 political party. However, the country is always ranked number 1 in economic freedom. Hong Kong was basically ruled/governed by the British, but the region thrived based on no duties, free trade, free market principles. Most people in Hong Kong pay no taxes or very little taxes. The top tax rate is only 20% in Hong Kong. The U.S. is 45%. The maximum tax rate in Singapore is 20%. Korea is around 30%.
Another example is Dubai. No tax and free education. However, Dubai is ruled by a king.
In 2008, Hong Kong's government has a budget surplus of $13.5 billion. What did the government do with the surplus? They reduced property taxes and cut personal income taxes by 50% to give it back to the citizens. In 2007, Hong Kong had about a $7 billion budget surplus. Maybe their political system with economic feedom isn't so bad? When was the last time the U.S. or Korea had a budget surplus. And did the democratic government return the money to the citizens by reducing taxes or giving it back to the people?
I'm slowly coming to the conclusion that I don't care about politics or government. Just give me economic freedom. A democracy doesn't necessarily help citizens, but economic freedom seems to do fine under any circumstance.
Perhaps the reason for higher tax rates in democratic countries is because there are so many politicians that are greedy, and because the governments are so huge.
Based on my research, one of the best times for U.S. companies and stocks is when there is a Democratic president and a Republican congress. The theory is that nothing can get accomplished, so government cannot hurt anything. Businesses are left alone to thrive without dumb new laws or government intervention.
If democratic governments were good at management, then public universities and public education would be the best in the world. However, most people prefer private universities and private schools. Communist Cuba invests 10% of GDP for education. Maybe that's why they have so many doctors. For Korea and the U.S. it's between 7-8% of GDP.


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