How Not to Be a Leader
umair haque

Good stuff.

Simple solution.

Link taxes on the rich to the economic outcomes of the poor; as the IMF has argued, “think of taxes on activities with negative externalities paid mostly by the rich (perhaps excessive risk-taking in the financial sector)”, page 4.

Hopefully they got my email suggesting that banker income tax be dynamically set with monthly unemployment figures:

Top-rate income tax is 10 times the percentage unemployment rate, and the bank-0levy (UK) is simply the cost to the state of paying Jobseekers Allowance (unemployment benefit).

This marries the financial sector to the real economy, and as big business is bypassing banks for cheaper finance direct from the market, it leaves the banks with only on avenue to reduce unemployment; honestly priced finance to SMEs.

“Formal SMEs contribute up to 45 percent of total employment and up to 33 percent of national income (GDP) in emerging economies.”

and they are pretty important in developed economies as well.

Prof Danny Blanchflower agrees with me!

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