Interesting viewpoint but there are some major areas that were unaddressed that are required to form the complete picture. First is the intent of taxes; are these dollars productive for the economy? The point of collective taxation in a free society is to address areas where the value capture of the free market can’t be determined where …
Interesting viewpoint but there are some major areas that were unaddressed that are required to form the complete picture. First is the intent of taxes; are these dollars productive for the economy? The point of collective taxation in a free society is to address areas where the value capture of the free market can’t be determined where a collective need exists, or where cost externalities exist but are to dispersed to be covered by the those capturing the value. Think roads or other basic infrastructure as an example. However, governments, having their own interests are often pushed to expand into areas where a private market solution already exists. When that happens, entrenched interests form and consolidate political power. Large corporations often use this to their advantage to keep new competitors at bay. As government takes over large swaths of the economy, the benefits of completion receed and the ability to increase value and lower the cost at the same time disappears. What remains is large pools of funds collected by the government used inefficiently to the benefit of the politically connected. The second part of the picture not addressed is the role of central banks and the money supply. The wealth creation and the widening wealth gap around the world (and the subsequent rise in populist appeal) is due to the long period of Zero Interest economic stimulus. Free money. When there is no cost to capital, risk taking goes way up and the over investment creates large asset bubbles. And who benefits from rapid appreciation is asset values? Asset owners. Who who are the asset owners? They are disproportionately the wealthy. In rue last decade there has been more than a 5 fold increase in billionaires. Well over 2500 around the world. There is a positive rail wealth effect to this as for every billionaire created there are x number of millionaires, and so on. But for the most part, this lengthening of the pyramid was not true economic productivity but just more dollars chasing the same assets.
The true solution is simply the tax code. Take away the places for people to tax advantage of the tax code to legally pay less taxes. This also reduces the advantages of the politically connected. A simplified tax code that does change frequently also provides certainty that clears the road for steady investment. Next is to reduce the size of government to where in doesn’t compete with the private sector where it doesn’t need to. Let the private sector innovate to provide solutions and let the market forces work to improve products and services while lowering the cost. Less Marx and more Millie.
I am a fan of economic theory. But most economic theory is co-opted by politicians for their own agendas. If it's popular then it gets enacted. Keynesian theory was in line with.public mood in 1940s. Milton in the 1980s... and MMT in 2020s? Remains to be seen. There is never a.right answer.... just a politically popula answer
Interesting viewpoint but there are some major areas that were unaddressed that are required to form the complete picture. First is the intent of taxes; are these dollars productive for the economy? The point of collective taxation in a free society is to address areas where the value capture of the free market can’t be determined where a collective need exists, or where cost externalities exist but are to dispersed to be covered by the those capturing the value. Think roads or other basic infrastructure as an example. However, governments, having their own interests are often pushed to expand into areas where a private market solution already exists. When that happens, entrenched interests form and consolidate political power. Large corporations often use this to their advantage to keep new competitors at bay. As government takes over large swaths of the economy, the benefits of completion receed and the ability to increase value and lower the cost at the same time disappears. What remains is large pools of funds collected by the government used inefficiently to the benefit of the politically connected. The second part of the picture not addressed is the role of central banks and the money supply. The wealth creation and the widening wealth gap around the world (and the subsequent rise in populist appeal) is due to the long period of Zero Interest economic stimulus. Free money. When there is no cost to capital, risk taking goes way up and the over investment creates large asset bubbles. And who benefits from rapid appreciation is asset values? Asset owners. Who who are the asset owners? They are disproportionately the wealthy. In rue last decade there has been more than a 5 fold increase in billionaires. Well over 2500 around the world. There is a positive rail wealth effect to this as for every billionaire created there are x number of millionaires, and so on. But for the most part, this lengthening of the pyramid was not true economic productivity but just more dollars chasing the same assets.
The true solution is simply the tax code. Take away the places for people to tax advantage of the tax code to legally pay less taxes. This also reduces the advantages of the politically connected. A simplified tax code that does change frequently also provides certainty that clears the road for steady investment. Next is to reduce the size of government to where in doesn’t compete with the private sector where it doesn’t need to. Let the private sector innovate to provide solutions and let the market forces work to improve products and services while lowering the cost. Less Marx and more Millie.
I am a fan of economic theory. But most economic theory is co-opted by politicians for their own agendas. If it's popular then it gets enacted. Keynesian theory was in line with.public mood in 1940s. Milton in the 1980s... and MMT in 2020s? Remains to be seen. There is never a.right answer.... just a politically popula answer