Jamie Smith @JGS952

@afneil Whether the state mobilises workers and materials to upgrade water pipes, sewage works or reservoirs or the private sector does it is largely irrelevant. Still costs society the same

@NewLeftEViews We should also always question the underlying premise that reducing public debt should be a goal of policy as well. Completely contextual and the debt outcome itself is irrelevant.

@UKDispatchBox @David__Osland Many studies have actually shown that guaranteed employment at a fixed socially inclusive wage "pays for itself" in savings on unemployment and welfare benefits and long run productivity and output gains. The gov's own report this year cost youth employment at £125bn pa!

@David__Osland jobguarantee.org

@it_is_fareed When we retire, there will be more of us and fewer workers. Raising the state pension age is one way to reduce retirement consumption so we don't take too much of what the workers are producing.

@gregory_nico I don't accept that it "damages our economy". It's a perfectly plausible tax to implement and would help. But there are many other policies required to significantly address inequality and economic outcomes.

Proponents of this kind of wealth tax (and I'm one) must recognise that 1) It doesn't provide the state with increased real capacity to spend on public services. 2) It is not designed to do that. 3) It is definitely *not* sufficient to reverse excessive capital accumulation.

The Rest Is Politics @RestIsPolitics

6 days ago

🚨NEW EPISODE🚨 This week on Leading, @campbellclaret and @RoryStewartUK are joined by economist @gabriel_zucman for an at times fiery debate on the case for (and against) a wealth tax on the super rich. It’s not one to miss. Link in the replies 👇

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@argokimetes Yes, I agree. But no, a wealth tax of this kind is not sufficient or necessary. **BUT**, it absolutely is a good idea and one lever among many to help curtail excessive wealth accumulation and reduce inequality and political power. Far more levers need to be pulled though

@gregory_nico My second tweet said that what it does do is complement a suite of policies to restructure our economy and improve sociopolitical resilience (helps to reduce political power of the very wealthy). Nobody should think of it has a one stop shop to a better economy though

@AaronBastani I agree with a wealth tax of this kind. But please @AaronBastani, don't connect it to public services. If the tax has *no* impact on their consumption or investment behaviour, as Zucman's said, it provides *no* additional real spending capacity to gov. Super vital we get this

@PLeonard61032 Yes, but it's not sufficient as Zucman himself states. It would complement predistributive measures such as guaranteed employment to boost labour share of income and universal basic services and social housing to definancialise essentials and "euthanize the rentier".

@AlbaMurray22 @Th_Angelopoulos Where does the inflation come from that you're concerned about? Take water. The state would issue ~£10bn, say (generous!), and acquire water assets. Shareholders, many foreign, will adjust their portfolios but unlikely to boost consumption. Can't see much of an issue?

@AlbaMurray22 @Th_Angelopoulos To nationalise an industry, the state expands its balance sheet, acquiring all ownership rights from shareholders. Do you believe that would be an inflationary shock? Very much doubt it - and if anything, just a one time impulse.

@oxfordjessicas You can inherit £325k tax free and keep 60% of everything above that. £1m threshold if your parents were married. Very sad to lose your dad at a young age but even with possible changes, it's still an immense economic boost to anyone inheriting.

What it *is* is one lever among many to improve the structure and sociopolitical resiliency of our democratic economies. Zucman is spot on that democracy must *always* prevail over private capital. The prosperity of our society is not dependent on individuals with high wealth.

Anyone else absolutely detest the seemingly unstoppable addiction to underhand media briefings all these anonymous sources seem to have? Burnham's team and the PLP should not once consider mentioning *anything* about what may or may not happen. Such a toxic culture.

Steven Swinford @Steven_Swinford

5 days ago

EXCLUSIVE on our podcast The State of It with @patrickkmaguire @lara_spirit * Senior allies of Andy Burnham believe that they have succeeded in stopping Ed Miliband from becoming Chancellor amid concerns that he will become a “lightning rod” for criticism of the new government

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@MoneyHacks16 Because it wouldn't do much. ~£600m pa additional demand for assets would just inflate asset prices. It doesn't induce investment required to actually provision better retirement that drives higher profit flows on those assets.

@cptgrumpus @RudyHavenstein @JonSteinsson That might be true, but that is relative prices reflecting market structure changes and supply evolution. Essentials *are* certainly increasing but inflation is *avg* price level growth, albeit defined from imperfect indices of consumption baskets.

@cptgrumpus @RudyHavenstein @JonSteinsson But not if your nomimal income grows at the same rate, so you're being too absolute and focusing on the purchasing power of one unit of currency when that's irrelevant. Houshold PP depends on income and prices. Now wages *have* stagnated but that's due to a range of things

@RudyHavenstein @JonSteinsson Well I disagree with your analysis. Low investment, weak labour bargaining power, financialised essentials, and the commodification of housing are all far more responsible. Inflation since 2008 has been 2.7% on average yoy, with the covid+ukraine+iran era supply side dominating