Rohan Silva has no idea what he’s talking about

In response to this, the Financial Times:

This sort of thinking crops up whenever society faces complicated, difficult problems. If only taxes or regulation didn’t exist, neither would recessions or financial crises. It has the impression of being proactive — we don’t have time, just cut the red tape and save the economy already! — but is more likely to exacerbate the fractures in our society than heal them.

It will take months and years before we fully understand what happened in the UK last week, but it is highly plausible that this was the backlash of a class of people left behind by globalisation. They have much to be angry about: de-industrialisation; massive tax avoidance; the pain and misery caused by the financial crisis; the concentration of wealth in the hands of a small international elite. If we want to assuage this fury, we might start by better redistributing the fruits of globalisation.

In that context, turning the UK into a global tax haven would be akin to rubbing salt in the wound. Silva seems to imagine the economically disenfranchised people who just plunged the UK into crisis will be content to give him and other business owners more money. It’s not only a stupid idea, it’s a dangerous one that risks inflaming tensions.

There are two things that could be reasonably said about what is going on in Western, developed economies. One is that the rich, mobile people living in our capitals don’t understand the lives of everyone else in society. The second stems from this gap in understanding: those same rich and mobile people don’t seem to have good ideas for fixing things.

 

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