] per capita income in the period prior to
] the late 1950s was right around number three in the
] world, behind the United States and Canada. But by 1984,
] its per capita income had sunk to 27th in the world,
] alongside Portugal and Turkey. Not only that, but our
] unemployment rate was 11.6 percent, wed had 23
] successive years of deficits (sometimes ranging as high
] as 40 percent of GDP), our debt had grown to 65 percent
] of GDP, and our credit ratings were continually being
] downgraded. Government spending was a full 44 percent of
] GDP, investment capital was exiting in huge quantities,
] and government controls and micromanagement were
] pervasive at every level of the economy. We had foreign
] exchange controls that meant I couldnt buy a
] subscription to The Economist magazine without the
] permission of the Minister of Finance. I couldnt buy
] shares in a foreign company without surrendering my
] citizenship. There were price controls on all goods and
] services, on all shops and on all service industries.
] There were wage controls and wage freezes. I couldnt pay
] my employees more or pay them bonuses if I wanted to.
] There were import controls on the goods that I could
] bring into the country. There were massive levels of
] subsidies on industries in order to keep them viable.
] Young people were leaving in droves. Rolling Back Government |
