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The problem is that to redistribute the pie, you need a strong state that is able to fairly tax the rich. Right now it is trivial for the rich to avoid taxation
by smallnamespace 9y ago
The problem is that to redistribute the pie, you need a strong state that is able to fairly tax the rich. Right now it is trivial for the rich to avoid taxation by shifting their liquid wealth from place to place, and putting states in a race to the bottom on taxes for their more productive assets. That's why in order to build a factory, localities fall over one another to offer the most tax credits, and the owner ends up with zero taxes for a decade.
Ironically, the cure to one of globalization's ills is a strong centralized world government. Good luck ever getting that taken seriously though.
Europe's experience during the crisis shows that economic integration (mobility of capital, labor, and goods) without political integration is a recipe for disaster. Guess what? That describes the current world economy very well.