Man\’s badly misinformed:
The measures suggested in this chapter are forms of capital control: they are intended to make sure that capital is accountable wherever it is. This is essential if the inevitable increase in the rate of return to capital that has been a characteristic of the last thirty years, and which has been so harmful to the world economy, is to be corrected.
Increase in the rate of return to capital? Where?
There\’s been an increase in the rate of return to human capital, education, most certainly. But capital as capital?
Thirty years of the free flow of capital has resulted in at least 5% of world GDP shifting from labour to capital.
This just isn\’t true.
He\’s making the mistake of actually believing research from the TUC.
Has the labour share of income fallen? Yes, it most certainly has? Has the capital share of income risen over the past 30 years? No, actually, it hasn\’t.
What has risen is the amount of tax governments are taking off people. And, given the way that GDP is measured using the income approach, this is what explains the falling labour share. Specifically, there\’s been a significant rise in both employer paid social security taxes and in taxation on consumption: specifically, VAT. Those two are what explains the falling labour share. Must be, as the capital share hasn\’t budged.
It\’s not just that his solutions are wrong, it\’s that his basic facts about the real world are.
Payments for investment purposes, whether for direct investment or portfolio investment will all require prior consent for payment.
Payments for speculation will be subject to quota allocation, which could be withdrawn at any time.
And his solution is entirely fascist. You only get to send your money where The State thinks it appropriate that you do. Quite apart from anything else he\’s entirely missed that the past 30 years of the free movement of capital have at the very least coincided with, although I would insist caused, the greatest reduction in human poverty in the history of our species. He would undo all of that just so that he could tell rich people what to do with their money.