Today in Capital Matters: Taxes and Russian Economic Turmoil | National Review

Today in Capital Matters: Taxes and Russian Economic Turmoil | National Review

Daniel Pilla on President Biden’s claims about the U.S. tax code from the State of the Union:

These claims are made in so many different fora by so many leftist politicians that people no longer even challenge the merits of the statements. The media in general and the public at large merely accept the idea that our tax code is unfairly weighted in favor of high-income people to the point where the rich don’t pay while the load is carried by middle- and low-income citizens.

But that’s just not true. And the fact that it is not is so easily shown that it’s astonishing to me that so few in the legacy media even challenge the claim. . . .

Desmond Lachman of the American Enterprise Institute on how Russia affects the world economy:

A more immediate way in which Russia is causing liquidity for the emerging markets to dry up is by having led the West to impose crippling sanctions on the Russian financial system, including its central bank. As those sanctions have caused the Russian ruble to plummet, the stock market to be shut down, and bank runs to begin, emerging-market investors in Russian paper have sustained large losses as the specter of a Russian sovereign-debt default has reappeared. That in turn is causing emerging-market investors to become increasingly risk-averse to the rest of the emerging-market asset class.

In a more challenging global liquidity environment, we should brace ourselves for the wave of emerging-market debt defaults about which the World Bank has been warning. This would be especially the case in those highly indebted countries that are also large energy and food importers. Such a wave of defaults could have serious consequences for the world economy, which will no longer be able to count on the emerging-market economies to be its main engine of economic growth.

Dominic Pino is a William F. Buckley Fellow in Political Journalism at National Review Institute.

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Tony Beasley
Tony Beasley writes for the Local News, US and the World Section of ANH.