Here are some proposals to help our children and grandchildren have a better future than what is painted for them now.

First of all, we need to get rid of the credit risk weighted capital requirements for banks. 

These allow banks to hold less capital against what is ex ante perceived, decreed or concocted to be safe than against what is perceived as risky; which allows banks to leverage much more with “the safe” than with “the risky”; which allows banks to earn higher risk adjusted returns with “the safe” than with “the risky”; which means the banks will lend too much to “the safe” and too little to “the risky”; which means the banks are not any longer financing sufficiently the riskier future, they are only refinancing the for the short time being, safer past.

If we are to distort the allocation of bank credit to the real economy, let us at least do that with a good social purpose. In this respect we might benefit from introducing pro-SDGs and pro job-creation capital requirements for banks.

And since I believe that any redistribution of income and wealth managed by governments, becomes just too expensive because of all the redistribution profiteers involved, we should launch, as soon as possible, a Universal Basic Income scheme... a Societal Dividend. 

That would be great: for the wealthy, as they would need to distribute less or at least get more bang for each buck handed over; for the poor, since they will get more much more net result of any redistribution; and for fiscal transparency, since it will help separate the redistribution functions from the ordinary tasks of government.

And finally, if we also fund such Universal Basic Income scheme with carbon taxes, then we will beautifully align the incentives in the fight against inequality with those of climate change.

What are we waiting for?

Helicopter money? Why should we trust the pilots?