That carrot is no carrot if you paid cash for a house
As always thank you for starting an important thread.
There is another solution that is not mentioned. Slow down the growth of government spending at all levels, immediate eliminate deficits in federal budgets in Europe (and the US)
and actually begin to pay down the debt. Instead of trying to destroy small savers, slow down the growth in the money supply and bring back a saving rate on savings accounts of about 3%.
Oh, and stop all government policies that reduce economic growth of real GDP to just above 1% or just below -1%.
Insanity.
Taxing wealth means taking a percentage of savings each year. They start with 1%. Not a tax on interest. Not a tax on earnings. A tax on the amount that is in an account. Your life savings. You worked for that. You already paid taxes on it.
When 0 hears of it he’ll be sure to want it for the USA.
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1) Reductions in savings leads to reduction of the demand for labor by business firms in comparison with what it would otherwise have been, and thus either the wage rates or the volume of employment that business firms can offer or both. For it deprives business firms of the funds with which to pay wages.
2) By the same token it deprives business firms of the funds with which to by capital goods.
3) In addition, it reduces the degree of capital intensiveness in the economic system and thus its ability to implement technological advances.
All of these together powerfully reduces the incentive to introduce new and better products and improve methods of production. They also undermine capital accumulation and the rise in the productivity of labor and real wage rates and thus the standard of living of everyone.
Now that the big boys are all fattened up on cheap cash, the government is going to come in and take it all away from them as a "wealth tax"?
You reap what you sow, boys. You reap what you sow......
And when you run out of the wealthy who’re you gonna go for?
Hmm... I guess it is not my money after all but the bankers.