Iceland’s Economic Revolution
Icelanders are a proud stubborn people with more than 1200 years of history, rugged Scandinavian stock, living in one of the most beautiful natural areas of our Earth. In 2001 her government made a colossal series of disastrous decisions that resulted in the worst banking crisis in history.
Prime Minister Davíð Oddsson, enchanted with Milton Friedman’s free market ideas, implemented a course of tax cuts, cut the corporate income tax to 18%, abolished the net wealth tax, lowered the personal income tax and inheritance taxes and privatized the banking system, introducing financial deregulation along the lines of the United States, for a nation with a population of a mere 239,000 citizens. He also entered a free trade agreement with the EU. Oddsson joined the charmed circles of Bill Clinton and George H.W. Bush, who was invited to Rekyjavik to go salmon fishing. He became a regular at…
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