Monday, June 16, 2014

Guest Post: The Great Separation

Guest Post: The Great Separation | Zero Hedge:
What do Scottish independence, UKIP, self-employment, cryptocurrencies and the black economy have in common?
The neo-liberal establishment wont fix itself, so for those fed up with banging their heads against policy brickwalls, there’s only one direction. 
Separate.
...If the vested interests of the establishment represent an enormous inertia for any meaningful societal or economic change, there is one even more important barrier. 
The nature of monetary dysfunction is becoming more apparent, though its position as the ‘lynchpin’ of the various interconnected systemic malfunctions is perhaps not yet as clear as its should be.
....Finally, what of the black economy.
Traditionally, good citizens have seen ethical value in paying their taxes.
This fellow-feeling solidarity is based on a fundamental gut feel appreciation of fairness.
Orthodox economics has progressively hollowed out this sentiment, and replaced it with ‘enlightened self interest’, in the process legitimising selfish behaviour.
At the same time corporations globalise their operations to avoid paying any tax; and citizens are increasingly critical of the misallocation of their tax dollars.
We are dangerously close to seeing the taxation rationale completely dismantled. 
It is not uncommon to hear baby boomers who have willingly paid taxes throughout their lives express deep disaffection and an inclination to evade.
Why should a median income worker in Ireland pay 52% marginal rate tax, while Apple pays 2%?
A generation ago the Black Economy was the habitat of choice for criminals; unless some progress is made with regards to inequality, fairness and inclusion, it may well be the habitat of choice for all of us in the future.

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