Time to Bring Tax Into the 21St Century Financial Era Advisory Group
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https://t.me/finera Labour’s uncivil war Should Chinese investment be welcome? Brazil’s dangerous election How summer holidays hurt children AUGUST 11TH–17TH 2018 Stuckinthepast Time to bring tax into the 21st century Financial Era Advisory Group u;o |-hbm] 1-u; o= ou ou]-mb-ঞomĽv lov|blrou|-m|-vv;||o;uou7;Ѵb v|u-|;]ĵ Leadership Strategy design ccoouuntabili age https://t.me/finera oѴѴ-0ou-ঞoomm Winning Customer Insight Strategy delivery Th e ub]_|Ѵbm;Ť mbঞ-ঞ; bv-1o-Ѵbঞom Ѵ;77 0|; _ uof;1| -m-];l;m| mvঞ||;|o];|_;u b|_Ѵ;-77bm]] Ѵo0-Ѵ]-mb-ou ঞomv 7;7 b1-|;7 |o _;Ѵrbm] ;;1ঞ;v 0ub7| ]; _;;r;mvb;-m7 mruo71ঞ;]-r0;|;;mv|u-|;]7;vb]m-m77;Ѵb;uĺ Learn more at www.brightline.org/people BRIGHTLINE COALITION PROJECT MANAGEMENT INSTITUTE ҋ THE BOSTON CONSULTING GROUP ҋ!"$҃+ !"" & "& $ +ҋ LEE HECHT HARRISON ҋ AGILE ALLIANCE ACADEMIC AND RESEARCH COLLABORATION MIT CONSORTIUM FOR ENGINEERING PROGRAM EXCELLENCE ҋ$ &( !"$+ ! &( !"$+ $+$ )!ҋ! " !"$$&$ Financial Era Advisory Group https://t.me/finera Contents The Economist August 11th 2018 5 7 The world this week United States 30 Property in Seattle Leaders Build, baby, build 9 Taxation 31 Uber in New York Stuck in the past Jammed up 10 Democracy in America 31 Voter purges Sign me up On election day, stay away 10 Brazilian politics 32 Poverty Brasília has a problem Going, going, not gone 11 Foreign direct investment 33 The cost of haulage Labour turmoil The party Prudence not protectionism Keep on trucking is at war over anti-Semitism, 34 Lexington 12 Education failing to hold a weak Down with school holidays Never Trumpers’ forlorn hope government to account and On the cover ducking the biggest political Countries must overhaul Letters issue. Yet it is still in reach of their tax systems to make The Americas power, page 21 14 On Germany, Adam Smith, them fit for the 21st century: the Moon, Democrats, 35 Brazilian politics leader, page 9. Beloved of conscription, Norway, Convict, zealot, bore liberals and economists, George Costanza 36 Colombia land-value taxes have never Duque fakes charge caught on. The time may now be right, page 18. Our new Briefing 37 Bello The perils of Maduro house-price index suggests 18 Land-value tax that in many cities the On firmer ground market is slowing, page 61 Middle East and Africa Britain 38 America and Iran The pain of no deal The Economist online 21 The Labour Party 39 Jerusalem’s holy sites Daily analysis and opinion to Surreal strength Beware of falling rocks Iran American sanctions bring supplement the print edition, plus 22 Welfare policy 39 Canada and Saudi Arabia more agony to an economy audio and video, and a daily chart Poor economics A pointless fight that is already dysfunctional. Economist.com 23 Brexit in the Caribbean 40 Zimbabwe Whether they will accomplish E-mail: newsletters and Beaches and borders Open for chaos anything else is an open mobile edition 23 Brexit and public opinion question, page 38 Economist.com/email No confidence 40 Jihadists in Mozambique Burnings and beheadings Print edition: available online by 23 English schools 7pm London time each Thursday In, out, in, out 41 Congo’s coming election Economist.com/printedition Kabila stops running 24 London’s Koreatown Audio edition: available online Peninsula politics to download each Friday Asia Economist.com/audioedition 25 Bagehot Land of extremes 42 Bangladesh protests High-school vigilantes Europe 43 Tourism in Indonesia Building ten Balis 26 Turkey’s economy How low can it go? 44 An Antipodean tiff V olume 428 Number 9104 Kicking Kiwis out 27 Germany Brazil election Jair Bolsonaro, Far left and right overlap 44 Women in Japan Published since September1843 Toxic test-doctoring a presidential candidate who to take part in "a severe contest between 28 Polish nationalism is second in the polls, is a intelligence, which presses forward, and 45 Polishing Narendra Modi an unworthy, timid ignorance obstructing Buying back the family threat to democracy: leader, our progress." silver The image factory page 10. The outcome of the Editorial offices in London and also: 28 The French and trains forthcoming general election Beijing, Berlin, Brussels, Cairo, Chicago, Madrid, Mexico City, Moscow, Mumbai, Nairobi, New Delhi, A love affair is impossible to predict, page 35 New York, Paris, San Francisco, São Paulo, Seoul, Shanghai, Singapore, Tokyo, Washington DC 29 Charlemagne Street politics in Russia 1 Contents continues overleaf Financial Era Advisory Group 6 Contents The Economist August 11th 2018 China 61 Property prices Housing correction 46 Chinese politics On the Xi side 62 Buttonwood Triple-B movie 47 Ai Weiwei’s studio Bulldozed in Beijing 63 Free exchange Mangonomics International Science and technology 48 Summer holidays Overlong and not over yet 64 Underwater senses Navy seals 49 Posh summer Xi Jinping How to read the School and summer Most Flute or Latin? 65 Aerospace summer grumbles about A breath of fresh air countries’ schools have China’s swaggering leader, 66 Astronomy excessively long summer page 46 Business Aim for the sun holidays, page 48. They are 50 China and Silicon Valley bad for children and for social 66 Wild medicine mobility: leader, page 12 Cheques and balances Scratching an itch 51 Bartleby Time to get in training Books and arts Subscription service 52 PepsiCo under Indra Nooyi 67 Egypt after the revolution For our full range of subscription offers, Coolfizzin including digital only or print and digital Brothers, generals, suckers combined visit 52 Elon Musk and Tesla Economist.com/offers Beckoning the barbarians 68 The history of opium You can also subscribe by mail or telephone at High and mighty the details provided below: 53 Alibaba Enigma variations 69 Icelandic fiction Telephone: +44 (0) 845 120 0983 An isle full of noises Web: Economist.com/offers 53 Oil firms 69 Imagining war with Post: The Economist Too much in the tank Subscription Centre, Foreign direct investment North Korea P.O. Box 471, China’s ability to invest in 54 Danone’s social goals Under a mushroom cloud Haywards Heath, Choosing Plan B RH16 3GY American startups is looking 70 Young people in India UK more uncertain, page 50. How 55 Schumpeter Dreams and nightmares to safeguard national security Sovereign-wealth funds Subscription for 1 year (51 issues) Print only UK – £145 without scaring off Chinese investment: leader, page 11. 72 Economic and financial Alibaba makes a welcome move Philosophy brief indicators Principal commercial offices: to rejig its legal structure. 56 Alexis de Tocqueville Statistics on 42 economies, The Adelphi Building, 1-11John Adam Street, Others may follow, page 53. The French exception plus our monthly poll of London WC2N 6HT Singapore is a model for how forecasters Tel: +44 (0) 20 7830 7000 to reform some of the world’s Finance and economics Rue de l’Athénée 32 most flawed investment 1206 Geneva, Switzerland Obituary Tel: +4122 566 2470 vehicles: Schumpeter, page 55 58 Trade war (1) Is China losing it? 74 Luc Nkulula 750 3rd Avenue, 5th Floor, New York, NY 10017 59 Trade war (2) Under the volcano Tel: +1212 5410500 Metal clashing 1301Cityplaza Four, 12 Taikoo Wan Road, Taikoo Shing, Hong Kong 60 Factor bond investing Tel: +852 2585 3888 Fama and fortune Other commercial offices: 60 Prediction markets Chicago, Dubai, Frankfurt, Los Angeles, Collective oracle Paris, San Francisco and Singapore Trade wars Weak Chinese markets give America the edge, at least in confidence, page 58. Tariffs on steel and PEFC certified aluminium are generating This copy of The Economist is printed on paper sourced some winners, but they are not from sustainably managed quite the success Donald forests certified by PEFC PEFC/16-33-582 www.pefc.org Trump thinks, page 59 Registered as a newspaper. © 2018 The Economist Newspaper Limited. All rights reserved. Neither this publication nor any part of it may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of The Economist Newspaper Limited. Published every week, except for a year-end double issue, by The Economist Newspaper Limited. The Economist is a registered trademark of The Economist Newspaper Limited. Printed by Wyndeham Peterborough Limited. https://t.me/finera The world this week The Economist August 11th 2018 7 that did not previously trouble The left-wing Workers’ Party in girl were killed by a speeding Politics him. His term should have Brazil nominated Luiz Inácio bus. The protests unsettled the ended in 2016. An election is Lula da Silva, a formerpresi- government. Rubber bullets scheduled forDecember. dent, as its presidential candi- and tear gas were fired into the date. He leads in the polls, but crowds and clashes erupted Nigeria’s vice-president, Yemi is in jail forcorruption and will between the students and Osinbajo, who is acting as probably be disqualified. The activists from the ruling party’s president while Muhammadu second-most-popular candi- youth league. Buhari is on holiday, fired the date, Jair Bolsonaro, a right- country’s spy chiefafter wing formerarmy captain, The government ofAustralia masked security men barricad- named a formergeneral, Ham- promised more aid to farmers ed parliament. Dozens of ilton Mourão, as his running- stricken by drought. The entire lawmakers recently switched mate. Last year Mr Mourão state ofNew South Wales, their loyalty from the ruling suggested that the army could which produces a quarter of party to the opposition. intervene to solve Brazil’s Australia’s agricultural output, political problems. was declared to be in drought America reimposed sanctions I’d start worrying after recording its driest Janu- on Iran, three months after The Republicans appeared to Iván Duque was sworn in as ary to July period since 1965.