Missing the point in pursuit of his own agenda

Chris Berg

This is about what you would expect from a libertine neoliberal ideologue but we shouldn't throw the baby out with the bathwater.

His analysis of the various papers floating around the media as evidence in favour of the redistribution of wealth through the taxation system is cogeant and well expressed. His conclusions are risible.

Does reducing inequality increase economic growth? Questionable. Is it just, fair and desirable? Absolutely.

Picketty paints a bleak prognosis for the world economy of low growth - around 2% - well below the level required to create jobs and reduce unemployment, and that this is an inevitable reversion to historical levels experienced throughout history up until the anomaly which occurred between 1945 and 1970. We witness this occurring now.

He notes the extreme imbalance in the world balance sheet and P&L due to the black economy, tax havens and market-based subversion, and suggests increased transparency be imposed as a matter of urgency. A tax of 1-2% on all accumulated wealth is also recommended.

These things are not a huge imposte but will be fought to the death by the vested elites because the status quo is in their interest.

Our continuing dabble with unfettered free markets as the be-all and end-all of policy is frankly dangerous and inevitably leads to the obscene levels of inequality we now have.

Chris Berg might like to think about these things and write about them on the ABC rather than try to convince the ALP it is barking up the wrong tree.