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Old 09-04-2019, 12:14 PM
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Quote:
Originally Posted by Wrenching Spanners View Post
If you want an end to poverty, itís going to depend, among other things, on globalisation, innovation, and investment, not wealth transference. Some of that innovation is being done by start-ups with young smart people who hope to become rich. Some is being done by mega-corporation with investors who are already rich and want to become richer. The investment is going to be done by people who believe there are profits to be made in emerging markets, or companies that can connect to global markers. Globalisation is going to provide the networks to connect the poor people who want to make their labour more productive and more exchangeable for goods and services with the corporations who are going to provide them with jobs, goods and services.

Is a wealth tax of 1%-3% above $50 million going to stop the above from happening? No. What it will do is take money out of the system which will limit the investments and the money going into the R&D that produces the innovation. Check out Fiverr, a company that had its IPO back in June. (Itís Israeli based, but listed on the NYSE.) Their goal is to create a gig economy for professional services by connecting freelancers to companies with demand for those services via the Internet. If theyíre successful, and if they connect to a supply market of freelancers in the developing world, theyíve got the potential to generate a lot of positive activity, both economic and social. However, despite their stock price, it might be years before they generate a profit. Theyíre not going to be paying a dividend any time soon. Although their initial investors may have diversified a bit, most of them are maintaining their stakes. Itís a company that depends on long-term investors. And if any of its investors, such as the venture capitalists who enabled the companyís expansion to where it could have an IPO, are wealthy US investors, then a wealth tax on shares is going to eat away at their holdings. Theyíll be having to cash out before they want to, which discourages further investment, and will demand dividends to pay that wealth tax earlier than the company is ideally ready to pay them.

So hereís a company thatís poised to help the developing world that could potentially have its growth decelerated by a wealth tax. Itís more complicated than ďrich have money and poor donít have money; letís switch.Ē Thatís why conservatives donít like wealth taxes.
No offense but Fiverr sounds like a bunch of fucking assholes who are not going to "help the developing world" so much as "take advantage of people who need work and/or money" and "help other people take advantage of people who need work and/or money". Uber isn't "helping the developing world"; Uber is taking advantage of people who need work and/or money.