Chapter 17 [The gap between rich and poor is determined not by funds but by assets] Part 2 of 3 - How a country can address capitalism's wealth gap

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[James: Origins and Today] Chapter 17 - How a country can address capitalism's wealth gap, Part 2 of 3 (03/014/2023)

In capitalism, cash does not increase value. Only assets can increase value. Capitalists own assets and workers own cash. The government's thinking is only based on cash, which cannot solve the gap between rich and poor. Therefore, the income tax deducted by the government means that you pay taxes on your income, but capitalists usually have no jobs and no income, so they do not need to pay taxes. The assets of capitalists have widened the gap between the rich and the poor because of the government's wrong monetary policy, or a necessary evil monetary policy, making cash less and less valuable and assets more and more valuable. This is the root cause of the widening gap between the rich and the poor in capitalism.

A rich man who owns assets does not have to work at all. He owns stocks, and the stock market will continue to rise. When workers work harder, the stock market will rise even more. Capitalists will gain the appreciation of assets, while young people have no assets. Without ancestral property, all they get is cash wages that will depreciate. If young people do not know how to convert cash into assets, they will be deprived twice. Therefore, the main cause of the gap is assets, not funds. In order to eliminate the gap between rich and poor in capitalism, government taxation should not be based on income tax, but should be based on asset tax.

When a company's employees receive dividends and obtain stocks and receive dividends from the company's growth, why can't citizens across the country receive national stock dividends? The economic growth of all countries should be at the expense of national resources and the environment. People across the country should receive dividends from national asset shares. There should be the concept of national asset index. The state should expropriate part of private assets, expropriate part of the value of land and house owners and stocks of stock issuing companies, and hand over the assets to the national index fund management company to establish a The National Asset Index Fund issues securities, and allocates part of these securities to proletarian young people, stipulating that they cannot sell them until a certain number of years. The assets will continue to increase in value, allowing them to become the most basic capitalists and share the dividends of national growth, just like tenant farmers can own their own land and will not be deprived of it from generation to generation. (Taiwan’s original National Government had a 375 rent reduction and a concept of land to the tiller. However, now that capitalism and democracy are integrated, politicians and capitalists are one, and it is impossible to nationalize some assets or share part of the dividends of national development with all the people).

Therefore, the state has to collect shares in the stock market, the company has to issue additional shares to the national asset management company, real estate transactions need to pay 50% capital gains tax, and 50% tax is levied on rent, which is regarded as the capital of the national asset management company. That is to say, part of the increase in the value of all assets should be shared by all people. This is what the founding father originally said when prices increase, return it to the public.