Kevin Wayne Williams wrote:
> Declan Murphy wrote:
> 
>> Kevin Wayne Williams wrote:
>>
>>> Kevin Gowen wrote:
>>>
>>>> Kevin Wayne Williams wrote:
>>
>>>>> Wait until you move somewhere that truly has an underclass. This 
>>>>> place is proud of its nearly 100% employment rate, but doesn't seem 
>>>>> to notice that over 90% of the population only takes home about 
>>>>> $10K a year per job. 
>>>>
>>>> Why do you suppose that is? Could it possibly be because they are 
>>>> unskilled workers?
>>>
>>> Absolutely.
>>
>> Nah. I bet you six pints of Guinness and a Midleton that a 30 year old 
>> barber in Bonaire cutting the hairs of 200 customers a week, will earn 
>> more than a similarly skilled/experienced barber in Bangladesh, but 
>> substantially less than a similarly skilled/experienced barber in 
>> Tokyo. The comparative skill level of individuals in such 
>> circumstances is not as relevant as the actual circumstances.
> 
> True on an individual level. But a skilled work*force* will get more 
> than an unskilled work*force*.

Sometimes, and even then only if *all* other things are equal. The 
emphasis on skills is usually an oversimplification. Per capita GDP at 
PPP is entirely dependent not on the skills of the workforce, but on TFP 
and national human capital (using an economist talking head's definition 
of human capital, not some bizness talking head's definition). If the 
cumulative individual skills of a nation/communities' workers results in 
a highly skilled overall work*force* (to use the layman's term), it will 
still not guarantee higher GDP per capita, either in USD/Euro or PPP 
than an overall less skilled workforce, since those skills are only a 
small component of both TFP and aggregated human capital. Similarly, a 
place such as San Marino does not average per capita income of USD$34K+ 
because it's workforce (50%+ working in tourism) is somehow three times 
more productive than those in the Netherlands Antilles. Naturally there 
is a correlation between national and individual income - as you have 
confirmed on an individual level. For the same reason, a freshly minted 
university graduate in Atlanta will earn a lot more than a freshly 
minted university graduate in Bangalore, even though the latter is 
probably be better at his/her job, smarter, more productive, more 
motivated etc.

>>> It's a tourism dependent place, and gets caught in the trap that most 
>>> such places fall into: the only jobs available to the locals are 
>>> service jobs at hotels and restaurants, and there is nearly no way 
>>> for the locals to rise from those jobs to be able to afford to buy 
>>> the hotels and restaurants. 
>>
>> What are the schools like? 
> 
> Pretty standard up to about 8th grade. After that, you are able to 
> specialise in tourist guidance, hotel management, or restaurant management.

I assume they would have to leave the island for further study 
(university etc)?

>>> I did get one of your favorite wishes though: a flat tax. 
>>> Unfortunately, it's 34.5%.
>>
>> Flat taxes on direct income are a silly idea, especially at that rate, 
>> even though a small island country/territory is probably the only 
>> place on earth where such as policy could work (sort of). How large is 
>> the tax free threshold before the 34.5% rate cuts in as a marginal rate?
> 
> Zero. It's rigged by setting the trigger as earning money from a 
> business that you own, not a dollar level. That way, natives are nearly 
> universally exempt, but immigrants are hit nearly universally.
> KWW

That should work OK up to about USD$18-20K per capita income levels.

Are you getting much time off to go diving and so on or is it nose to 
the grindstone? Any website yet (of the business or just having fun etc) 
we can have a squizz at?


-- 
Non gratum anus rodentum