It is arguable whether Alf Young’s policy prescription, “End inequality to launch prosperity” (Perspective, 16 February) would actually work.
Though the moral objective may be laudable the means to achieve it are politically awkward and of uncertain economic consequence.
What tax rate would need to be levied, not only on “tiny elites of the ultra-rich,” but on other socio-economic groups?
It is doubtful if much redistribution of wealth or income could be achieved through taxation alone.
However, assume government could wave a “magic wand” and substantially redistribute income between top, middle and bottom groups.
Relative prices of goods would change rapidly but, most importantly, there would be a steep rise in food prices.
From the viewpoint of a conservative philosophy, it could be argued that the risk of devaluing money “isn’t a price worth paying”. Haven’t we had in the past bitter experiences of the loss of trust in the stable value of money?
Old Chapel Walk