One industry needs a bailout as a result of government action.
The other is benefiting enormously from government action.
When big business expects the government to carry its risk it also has to pay its way. And that means excess profits taxes are now very firmly on the agenda.
I think you can guess one aspect of the recommendations in the Tax After Coronavirus (TACs) section on corporation tax as a result.
The argument being that software firms – say Zoom, just as an example – have created the tools which enable economic life to continue in these dark times.
Therefore the people who essayed their capital onto the sea of the market must be disincentivised by having their profits excess taxed?
Think on it. The advantage of the market, capitalist, system is that anyone can try anything. And what is fit is as with evolution, it’s the outside environment that determines. So, our environment has just changed. This produces profits for those who mused and risked. This is exactly what we desire of course, that more muse, more risk and we’ll see who benefits from whatever environment changes there are in the future.
Brainbox now decides that those who have profited from exactly the behaviour we’re trying to incentivise should lose that incentive.
To think that this man used to teach economics in a British university.