The Solution to Sovereign Insolvency, Part I: Taxation History
“An imbalance between rich and poor is the oldest and most fatal ailment of all Republics.”
- Greek philosopher, Plutarch (1st century AD)
Regular readers will be very familiar with this quotation, as I have cited it on numerous occasions. It is my instant rebuttal to right-wing knuckle-draggers, who automatically label any and all efforts at equalizing wealth amongst individuals as “socialism”.
Obviously, a doctrine which was considered “old news” 1,500 years before the birth of socialism cannot be “socialism”. In fact, as I have pointed out previously, Plutarch’s message is one part economics, and one part common sense.
Compare these two scenarios. One society has a small number of very wealthy individuals, with massive hoards of wealth hidden away in vaults, while the vast majority have barely enough wealth to survive.
A second society has the same number of wealthy individuals, but the hoards of wealth are much, much smaller. Instead, that “excess wealth” has been spread amongst all the individuals of society – giving the average individual much more spending power (and savings).
Is there any doubt which of these two societies would have the much healthier and more prosperous economy?
