Ineffective economic structures in industrial nations

The economic structures of industrial nations are failing to close the gap between their economic potential and their actual performance. Protectionism, including agricultural, industrial and other subsidies reduce competition in national and international markets for goods and services. High marginal taxes, currency restrictions, financial market regulations, discriminatory tax rates applied to similar transactions, and excessively steep progressive income tax rates restrict capital flows. Centralized collective bargaining, employment regulation, social security restrictions, and government control of training and education have created rigid labour markets.

1. Economic underdevelopment
2. Economic inefficiency

1. Distortionary tax systems

1. Underutilization of labour force
2. Structural rigidities in labour markets
3. Segmented labour markets
4. Prohibitive labour costs
5. Lack of time flexibility in the labour market
6. Labour hoarding by employers
7. Diminishing capital investment in small communities
8. Declining economic productivity
9. Arrested development of labour potential

1. Unimaginative vision of existing international economic structures
2. Tax discrimination against non-residents of a country
3. Tax discrimination against investment in a foreign country
4. Rural unemployment
5. Restrictions on foreign access to capital bond markets
6. Obsolete deliberative systems
7. Inequitable tax treaties
8. Excessive demands of labour
9. Economic isolationism
10. Distortion of international trade by selective indirect taxes and import charges
11. Distortion of international trade by restrictive controls on movement of labour
12. Autarky
13. Absence of a long-range, world-wide capital flow plan

1. Unorganized labour potential

1. Increasing international economic cooperation

1. Uneconomic
2. Ineffectiveness