If the role of government can be described by saying that it directs assets toward some groups and away from others through the process of taxation, subsidization and legislation, then it would seem to follow that, at least in a heavily financialized society like ours, the government system should be structured to encourage certain types of behavior and discourage others. Our current systems encourages speculation and discourages work and investment. Obviously the whole point of tax incentives is to encourage particular behaviors, but somehow we have turned this activity on its head. We encourage waste in the health care industry, price gouging by the pharmaceutical companies, recjkless and pointless speculation by the financial industry, profits above long term viability in all industries, environmental degradation in the long term in exchange for profits in the short term.
12/13/21
- robby
- December 13, 2021
- Finance Blog