Under this COVID-19 rescue package, the UK government is effectively handing free money to rich people. It's a magic money tree for the rich, but nobody can tell.
Here is what's happening:
Here is what's happening:
Normally, companies pay wages to workers; workers pay most of their wages on rents/debts/bills to rich people; and rich people, who have discretionary spending power, buy things from companies. But this flow of money has been interrupted...
Now, the government is giving money to companies to pay wages to workers; workers are still paying rents/debts/bills to rich people; but rich people aren't buying from companies (because companies are closed). So the money is flowing to the top and pooling there, with the rich.
It is an indirect cash transfer from public coffers into the hands of rich people, who will then use it to drive asset prices up, making life even worse for ordinary people (just like after 2008). This will *significantly* exacerbate inequality.
The only way to prevent this from happening is to pay for this rescue package with money from rich people. In other words, with a wealth tax. Otherwise this "rescue" amounts to little more than a heist.
