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Ukraine: Two Great Options Dan Mitchell Style

August 10, 2014 By Richard C. Young

Ukrainian election maps from 2004 to 2012.

The Cato Institute’s Dan Mitchell delivers the goods.

(Option#1) Secession: The two greatly different parts of Ukraine could arrange an amicable divorce.

(Option#2) Decentralization: You know, copy the Swiss model of radical decentralization.

Dan Mitchell has a policy reason, as do I, for supporting weaker national governments. Simply stated, there is strong evidence that decentralization means more tax competition. When governments are forced to compete for jobs and investment, the economy is less likely to be burdened with high tax rates and excessive redistribution. Doesn’t sound very Krugmanesque, does it?

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Richard C. Young
Richard C. Young is the editor of Young's World Money Forecast, and a contributing editor to both Richardcyoung.com and Youngresearch.com.
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