Reminder that Eliminating excessive wealth (“taxing the rich”) and funding social care are two very important but ultimately completely separate objectives that undermine each other when correlated.
As Randall Wray pointed out. In 2008 the banks didn’t make their bailouts dependent on a tax. That would have been immensely politically foolish. And so is making public purpose dependent on tax revenues.
https://twitter.com/dehnts/status/1435504174406553601
Politicians advocating for this approach are stuck in the gold standard, when the government fixed the value of the £ against gold/or $ and therefore had to worry about the convertibility of reserves to a commodity/currency it did not issue.
The gold standard/ fixed exchange rates presented huge problems for public welfare and the problems it caused arguably played a big role in the rise of Thatcher and her dogma: "there is no such thing as public money, only taxpayers money". Which helped undermine public purpose.
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