Comments by "Andrew Sainsbury" (@andyinsuffolk) on "If the government wants growth it should be taxing wealth" video.

@p8700-z5q - Yes and the high tax rich countries (Scandis) are ruthless capitalists who made their wealth first with free markets before they started to tax it highly -- they did not tax themselves to prosperity. In fact with the 'austerity' measures from the likes of Sweden more recently the high tax policy might be looking less than ideal as a long-term strategy.
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The reason that capital acrues a greater return than cash is (mostly) progressive/social-democratic policy. The UK government policy is to de-base the currency by 2% annually. Those who have all the cash they need and put the rest into assets have no other choice. The fact that the state treats demographics differently is the problem and should be unconstitutional. But the statists love spaffing state cash so blaming those who they force to acrue wealth is Orwellian clap-trap. Wealth concentration has no intrinsic political implication -- most people love to have a billionaire move into their circle - it's politians that stir up the problems mainly for their own interest.
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(1) The savings of the wealthy are not hidden under their beds -- they are already doing something useful. If Rich People are coerced to sell their investments - so that consumption can be increased - at the very least their future returns will be reduced forever and their income taxes will go down forever from where they would have been, the income/consumption taxes gain from the 'poor' will just be temporary. If the investments are in the UK most likely there will be a shortage of buyers so total capital valuation may fall and/or the entire productive economy may be disrupted -- or if allowed foreign investors who are not treated as slaves will get these investments on the cheap. (2) Divide the £15T by the number by the population and discover how little wealth the Prof. is talking about. If we only 'do' a trillion the redistribution will probably amount to a cheap car for everyone JUST ONCE -- with no idea what damage will be done to the economy. (...) I won't bore you with the other problems (999) This is the problem with big state thinking. The Prof thinks he can manage everything and everybody and outthink the millions of others making decisions for themselves. It's freedom that creates prosperity for all and the right to own property has proven to be critical -- all the examples in the world from Scandinavia to China indicate more property rights give more prosperity -- the likelihood that the Prof. has found a better path is negligable.
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@Vroomfondle1066 - Thanks I use the common meaning of Statist. I am pro freedom for everyone in everything unless it infringes the freedom of others -- not just free market which is the natural state of man (non-statist). Not sure you understood all my ramblings - sorry. Wealth (property rights) is just another necessary freedom for democratic politics --- the only detrimental affect of wealth inequality is caused by the ruling class & ideological factions, who are mostly fanatical statists and systematically corrupt the electoral, economic and fiscal domains with consideration of wealth for their own interests -- as Richard also wishes to cultivate. There's nothing wrong with the principle of taxation if it respects democracy - requiring equality of treatment by the state (rule of law). The offer from politicians to vote for them and in return they will transfer the wealth of others to you needs very careful constitutional balances -- the statists don't like constitutional constraints - they are all knowing just like the professor.
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This is Mickey Mouse economics. Having Mr Rich putting all his money into the local factory so that everybody has low income for life if they wish it - is not a problem. Redistributing a big part of his wealth every year so that the local population can consume more from his shop, that he can now still afford to own, until his undeserved wealth has been consumed -- means less employment choices for the many, less production by the economy, higher prices. We cannot undermine property rights and increase prosperity -- this does not stop us enforcing political equality which is the bigger problem.
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