Economists at Société Générale recently calculated that in the United States, the income of the highest paid fifth rose by 60% after 1970, while for all others it has fallen by 10%.
You don\’t seriously believe that nonsense do you?
That the income of 90% of Americans has fallen in absolute terms over the past 39 years?
That would indeed be an indictment of any economics system if true, the thing is it\’s manifestly bollocks.
Falling incomes for the majority over more than a generation? No, manifestly crap.
Anyone actually seen that report? Care to unravel what it\’s actually saying?
Oh for fucks sake, this man is thought of as an economic thinker?
The argument on the progressive right is that since the poor suffer the greatest marginal rates of taxation (the bottom fifth of households also pay a greater share of their income in overall taxation than any other group),
Ye can\’t go around comparing average tax rates with marginal tax rates you silly little man!
It is true that some of the working poor face very high marginal tax rates. It\’s also true that the poor face high average tax rates as a result of the regressive nature of the indirect tax and excise system. But the latter does not prove the former nor do they in fact have very much to do with each other.
A far better idea would be to distribute a substantial proportion of the return to the poor via investment vouchers. These vouchers should only be activated in conjunction with others – creating an associative investment pool. With appropriate advice, a whole new class of asset investors can be created at the bottom of society.
Russia tried this, didn\’t they…..worked out well then?
Further, if they invest in ordinary businesses they will only get a standard return. If, however, they choose to invest in social enterprises, their investment will generate both an economic and a social profit. Investment in local shops, for example, will give both a monetary and social stake and return.
Erm, that\’ll be tough, as local shops lose money, they being less efficient and thus attracting less trade than supermarkets.
Money that the poor deposit in their own communities is siphoned off to lend to more creditworthy customers elsewhere. We need to enforce a local monetarism that ensures a greater supply of money remains in our most deprived communities.
Ooooh, joy! Let\’s Balkanise the economy! Yes! reduce the geographic spread of the division of labour…..autarky! Tony Benn will be happy.
Are people within the Conservative Party seriously listening to this man?