I do think this argument has legs but it slightly misses the point of the "tax the rich" policy push. The current inflationary environment is cyclical but the "tax the rich" narrative is aimed at addressing structural issues.
In that light, the redistribution of wealth's main effect is higher neutral rates. One might argue that wealth redistribution would materially improve demand side conditions which anaemic economies like UK and DE could benefit alot from.
Fair point regarding the cyclical shortfalls of this policy position though.
There are clearly ways that taxing the rich could work, but I just wouldn’t trust politicians to be sensible in the way they did it.
The most interesting thing for me would be whether this sort of process could stimulate supply growth, eg if a gov used the process to fund a SWF as opposed to squaring the increasingly costly welfare system + defence + infra needs circle
I do think this argument has legs but it slightly misses the point of the "tax the rich" policy push. The current inflationary environment is cyclical but the "tax the rich" narrative is aimed at addressing structural issues.
In that light, the redistribution of wealth's main effect is higher neutral rates. One might argue that wealth redistribution would materially improve demand side conditions which anaemic economies like UK and DE could benefit alot from.
Fair point regarding the cyclical shortfalls of this policy position though.
Hey Moses, I think we’re on the same page.
There are clearly ways that taxing the rich could work, but I just wouldn’t trust politicians to be sensible in the way they did it.
The most interesting thing for me would be whether this sort of process could stimulate supply growth, eg if a gov used the process to fund a SWF as opposed to squaring the increasingly costly welfare system + defence + infra needs circle