The financial crisis has promoted some bad ideas about economic reform, European Central Bank Governing Council Member Yves Mersch said Tuesday.
Mersch, who is also governor of Luxembourg’s central bank, singled out the so-called Tobin Tax as a “scurrilous idea” during an economic conference in Brussels.
I think the last person I’d like to trust right now regarding managing the economy is a banker.
I think I would expect a banker to at least *know something* about the economy. Politicians, not so much.
A banker does know about the economy. At least, they know how to make a profit; ask politicians to bail out their risks, and get a huge bonus at the end of the year. They know incentives quite well, and probably know how to get politicians to do their bidding.
As an investor, I’m more likely to trust a banker who knows profits are more important than people. I’m less likely to trust that a banker cares about the common good. He wouldn’t then be a very good banker.
A politician who cares about the common good is a good politician. Perhaps not a great economist.
John – you can always send more money to the U.S. Treasury if you are desirous of paying more taxes. Since my family is already paying over 50% of our income when all taxes are added up, I think I’ll pass.
Well Branford, you’re absolutely right. I’d actually prefer not to pay any taxes. I’m pretty selfish and would rather spend it on my own things. I’d rather other people pay for everything.
I do think I’m far more rational than other people, especially the government, even though the evidence indicates that people and markets are not as rational as they seem. I don’t usually care about evidence, so yes give me the money so I can spend it far more wisely.
However, I believe that citizenship is more than just an idea, a symbol, or a song, but about governance. It’s not easy, but worthy. In our government, the majority rules. Government balances corporations, which are naturally self-interested. But it’s no replacement for social service organizations or religious institutions. Those institutions, however, also fall short. Most people, alas, are selfish and require some coercion – they easily become free-riders.
But I understand your frustration. As long as a good portion of your taxes get spent on war (say – its one million dollars per soldier per year), blowing things up, imprisoning people, and subsidizing agriculture, I can see how you feel shortchanged. After all, if we hadn’t gone into Iraq, we could have paid for everyone’s health insurance during that time, probably saving a few hundred thousand lives.
But look at it this way: if you were in any other western country, you’d be paying more taxes. Although I do know that some free-marketeers have been cheering the loveliness of Somalia.