Jorge Martinez is a well-educated entrepreneur who operated a small business in his home country of Florentina. At the encouragement of his American relatives, Jorge recently immigrated to the United States and applied for U.S. citizenship. "In Florentina, tax rates were very high," Jorge complained. "The government used the taxes I paid to finance all sorts of social programs to help the less fortunate. While this is a noble goal, it has really undermined the profit incentive of individuals such as me. I really feel that these high taxes have stifled economic growth." Jorge's comments illustrate the reason many socialist countries are experiencing a(n):

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Jorge's comments suggest that he is a skilled individual who feels that his ability to make profits has been limited by high taxes directed towards social welfare programs. This is a common gripe in countries with high taxes, where educated and entrepreneurial individuals feel that the government is taking too much of their earnings to support programs that may reduce economic growth. To escape this situation, many individuals with these skills choose to emigrate, leading to a brain drain.

Jorge Martinez Is a Well-Educated Entrepreneur Who Operated a Small