Let’s increase taxes to end the recession!

Sooner or later, there will have to be a reckoning. As the recession drags on, more and more debts will simply become unpayable, whether the government and creditors like it or not. We can either wait for this to happen, and brace ourselves for the economic and social chaos it will bring with it; or we can act now to rebalance the burden.

Calls for wealth taxes and debt write-downs must be seen in this context. They are not about the well-off making sacrifices to help the less well-off. The point is that the least well-off are already making eye-watering sacrifices to maintain income flows to wealthy creditors. If this does not change soon, the UK’s recovery will be slow and painful. Tackling growing inequalities between those who own assets and those who owe debts is no longer simply a matter of justice: it is an urgent economic necessity.

Keynes – sensible chap a lot of the time – and MMT both say that raising taxes in a recession is not a good idea. Even if it is to beat inequality….

Christine Berry is a researcher, writer and consultant

The Lord save us from The Guardian’s economics, eh?

11 thoughts on “Let’s increase taxes to end the recession!”

  1. @Jimmers… Not exactly “the rich”, just those earning a bit more than Grauniad columnists.

  2. So Much For Subtlety

    Whatever the problem, the answer is always the same – more money and power to life’s failures like the author

    The only thing that changes is how they dress it up

  3. If you earn more than a big name Guardian columnist, you’re ‘rich’ by most people’s definition.

  4. “Just out of interest, what is ‘rich’, or what used to be referred to as ‘well off’?”

    It can be generally assumed that ‘the rich’ are defined as someone earning 1.5 to 2 times what the author does. That allows any proposed increases in taxes to fall on others, with a bit of leeway to allow for the author managing to raise their income in some manner on the future.

  5. People – it seems many in number – who meekly gave up their economic freedom and continue so to do, something many of their ancestors gave their lives and welfare to win and preserve, and therefore gave up their ability to earn and pay for themselves should suffer the consequences good and hard.

  6. “They are not about the well-off making sacrifices to help the less well-off.”
    Then “What the h*ll are they about?” must be the question.
    Answer – to punish the “well-off” for making Guardian columnists feel inferior.

  7. “They are not about the well-off making sacrifices to help the less well-off.”

    Perhaps they are actually about all the rest of us making sacrifices to help Guardian columnists?

    Of course if I had to end the recession, I’d simply abolish all the lockdowns and take the coronavirus on the chin. But I always prefer to cheat.

  8. Coronavirus an Opportunity to Change ‘How Wealth Is Distributed’
    “Wednesday on her new podcast, former first lady Michelle Obama called coronavirus an opportunity to think about “how wealth is distributed” to lower-income essential workers.

    Obama noted the “power” that would enable what “we” could do to allow such actions.

    Journalist Michele Norris said, “There’s kind of a new COVID vocabulary, isn’t it. There are also words that have always had some meaning, but that take on different meaning now, the word hero, the word essential.”

    If Obamas want this, they should lead by example and publicly donate their “excess” wealth to US Treasury

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