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>There isn't a physical problem with taking wealth away from people, that part is very easy to execute. The problem is the 2nd order effects where it will turn
by tsol 4y ago
>There isn't a physical problem with taking wealth away from people, that part is very easy to execute. The problem is the 2nd order effects where it will turn into an unfair confiscation and do substantial damage to the ability of the host country to invest and prosper, bringing general ruin to us all.
But this does not apply to us when we seize Russian assets? By your very logic if seizing wealth is so problematic, well we just seized a whole lot of wealth. I don't think this example actually works here.
- throwaway09223 4y agoNo, because the goal with sanctions is explicitly to cause this kind of economic damage by denying capital to the country under sanctions. It would be bad if we did this to ourselves. We do it to our enemies to hurt them.
- tsol 4y agoWe want to damage ourselves by sanctioning others? You said that taking others wealth makes people lose trust in you and therefore hurts yourself. So I don't see why we would do that on purpose.
- throwaway09223 4y agoI think you're confusing me with someone else. I didn't say anything about trust. But, I suspect the other guy was referring to trusting in economic stability. I don't think there's any reason why sanctions against bad actors like Russia might undermine trust in American investments.