Noah Cecil Tuesday, October 14, 2014
Economics 1A Mr. Kennedy Tuesday, October 14, 2014
Economics Research Essay
Monaco, a tiny country (2 sq km) bordering France on the Mediterranean coast, is a popular attraction for tourists because of its casino and pleasant climate. The principality (technically called "The Principality of Monaco") also is a huge banking center and allows for the diversity of small, high-value-added, industries. The state has no income tax and unbelievably low business taxes and is well known as a tax haven both for individuals and businesses that seek to set establishments in this location. Monaco, is not a tax-free shelter as many would believe; residents are charged around 20% value-added tax, stamp duties, and companies face a 33% tax on profits unless they can show that three-quarters of profits are generated within the realm of the country.
The country's purchasing power parity (or GPD) is estimated at $6.213
billion and is composed of 10% industry ad 90% services. With a small growth rate of 0.9%; Monaco is simply put, a party place for wealthy individuals seeking to hide away funds or have a good time. Monaco is also known for their drastically low crime rights and inflation rates (both close to 1%). Even the unemployment rate is a shocking 2%.
The median age for inhabitants of Monaco is about 51 years of age. 35% of the inhabitants are between the ages of 25-54 and 29% are older than 65 years of age. Some people retire to Florida, but the really fortunate retirees move to Monaco. This city like country also has virtually no poverty because of the high cost of living and social requirements of living in such an area. With the entire land of Monaco ranging about 7 sq km and...