Sunday, August 09, 2015

If we are going to squeeze the rich, let us do it at the lowest cost... government bureaucrats are too expensive

I refer to The Economist's "If the world introduces a 'Piketty tax': Squeezing the rich"

Let us be careful since too many rich-squeezers are just out to maximize their commissions from the squeezing.

As Sheriff of Nottingham said, “Squeezing the rich is always good business for some… especially for us"

We need to privatize the squeezing of the rich, to those who will charge the lowest commissions for the service.

Can you imagine a privatization bid to see who offers to redistribute 1% of the wealth of the richest 1% to the poorest 10% every year at the lowest cost… delivering an insurance of adequate compliance for a couple of billions of US$?

Or better yet that offers to redistribute 1% of the wealth of all to all, so that there is no political benefits derived from the distribution, since those are what probably costs us all the most.

That said we must also be careful that redistributing wealth does not concentrate wealth even more... as that could happen if we do not remove some of the distortions.

But of course, in an oil cursed country like my Venezuela, where government coffers receive 97 percent of all exports, the wealth that needs to be redistributed is 100% of the net oil revenues, since governments should work only with resources provided to them by the citizens... so that they have to care a lot about how it goes for the citizens