Toyota is in trouble with the US Federal authorities. But not because of anything it did or didn't do. Politicians know they can get a lot of free press by stoking the popular perception that Toyota somehow knew the gas pedals were “dangerous,” but installed them anyway. And US automakers are doing everything to encourage this hysteria.
Billionaire investor George Soros says a hard landing for Chinese markets could come, due to a significant increase in supply offset by falling demand, but regulatory authorities have managed the situation well thus far. Soros says lending by Chinese government-owned banks was indeed excessive, but that regulatory decisions to adjust reserve ratio requirements were appropriate.
Here are some financial facts about China:
• No capital gains tax
• No property tax
• No local or state taxes
• A reasonable 35% tax rate for the highest earners
• Corporate tax rates of zero percent for 3 years and 15% per year after that.
So, is China, for all its flaws, more capitalist than the United States now?