Though Piketty concedes that the global wealth tax he recommends is a “utopian” dream, he also says a confiscatory tax rate of more than 80 per cent on earnings exceeding $1m would work. In fact, he continues, such a rate was in place for five decades before the presidency of Ronald Reagan, and would curb exuberant executive pay without hurting productivity. “It did not kill US capitalism then — productivity grew the fastest during that time,” he notes. “This idea, according to which no one will accept to work hard for less than $10m per year . . . It’s OK to pay someone 10, 20 times the average worker’s salary but do you really need to pay them 100 or 200 times to get their arses in gear?”
The eurozone crisis, according to Piketty, reflects a deeply flawed governance, where only two leaders decide who calls for “a democratic overhaul of European institutions . . . It’s purely because we are unable to organise ourselves politically that we’re in deep shit,” he says.
“From a macroeconomic point of view, Greece is insignificant.”
The eurozone is following the example of the UK, he says, which spent the 19th century paying down its huge debt pile inherited from the Napoleonic wars with budget surpluses. It worked — but, he continues, it took 100 years, during which the UK neglected its education system.
Posted from Diigo. The rest of my favorite links are here.