Cutting the Corruption Tax

In the light of the the crisis in Greece and the study which shows that Norways black economy is at 15,8%, which the double of the US numbers. The blog Economist´s View tells:

Corruption and bureaucratic inefficiency act like the worst kind of tax – one that deters economy activity without raising any revenue. In the midst of the current crisis, cutting this tax would be a triple-win. In the long run, it will raise potential output. In the medium run, it will narrow the current-account deficit by reducing the cost of producing goods in Greece. In the short run, it will encourage investment by foreign firms and start-ups, which will bring the economy back toward full employment.

Read the whole story here.