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View Diary: Taxing the rich: it's not about "fairness" (182 comments)

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  •  economy needs customers (1+ / 0-)
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    The Wizard

    The economy as a whole is harmed when there are no customers with enough income to buy things. The 1%ers forget that employees are also customers. With jobs farmed offshore, and pay lowered to poverty levels, there is less and less money available for customers. When inequality reaches a certain point, the economy as we know it will collapse. If the 1% don't share profits they will put themselves out of business.

    Of course they will then be Lords and the rest of us peons in a neo-feudal system so perhaps that doesn't look like a bad outcome to them. And it will take a while to happen, as off-shoring jobs creates customers for a while in other countries.

    Anyhow, putting money in the hands of customers is the externality I argue. It isn't socialism to share, just common sense.

    •  Free market economies fail with maldistribution (0+ / 0-)

      It's not just desirable outcomes, it is that the economy is not stable without income directed to the broad consumer base. If you produce $100 worth of goods or services then that has to be consumed. Ideally you would receive $100 in income, thus receiving the benefit of your labor and keeping the economy going by being able to purchase the output of the economy as an aggregate. We have kept the post 1970 economy going by the cycle of wealth and debt.

      In fact, there is no good reason to have wealth above the median. Capital can be formed from broad based savings. The wealthy have simply stolen the labor of the workers and in the process destroy the economy.

      The irony here is that the real tax on the 99% is not from the government but from the top 1%. If Republicans really want the average American to do better and get the heavy yoke of economic oppression off of the people they would insist on an extreme progressive income tax. But that's not what they really care about, is it?

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