In 2012, the world’s 100 richest people became $241 billion richer.
Duncan Keeling ?@DuncanKeeling
Bang Goes the Theory - "In 2012, the world’s 100 richest people became $241 billion richer" http://bit.ly/102E4pY Follow on @GeorgeMonbiot
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http://www.monbiot.com/2013/01/14/bang-goes-the-theory/
How they must bleed for us. In 2012, the world’s 100 richest people became $241 billion richer(1). They are now worth $1.9 trillion: just a little less than the GDP of the United Kingdom.
This is not the result of chance. The rise in the fortunes of the super-rich is the direct result of policies. Here are a few: the reduction of tax rates and tax enforcement; governments’ refusal to recoup a decent share of revenues from minerals and land; the privatisation of public assets and the creation of a toll-booth economy; wage liberalisation and the destruction of collective bargaining.
The policies which made the global monarchs so rich are the policies squeezing everyone else. This is not what the theory predicted. Friedrich Hayek, Milton Friedman and their disciples – in a thousand business schools, the IMF, the World Bank, the OECD and just about every modern government – have argued that the less governments tax the rich, defend workers and redistribute wealth, the more prosperous everyone will be. Any attempt to reduce inequality would damage the efficiency of the market, impeding the rising tide that lifts all boats(2). The apostles have conducted a 30-year global experiment and the results are now in. Total failure.
Before I go on, I should point out that I don’t believe perpetual economic growth is either sustainable or desirable(3). But if growth is your aim – an aim to which every government claims to subscribe – you couldn’t make a bigger mess of it than by releasing the super-rich from the constraints of democracy.
(More at the link.)
