Politics, Policy, Economics - Since 2010

Originally from The Telegraph by Allister Heath Given that today’s fashionable economic ideas tend to become tomorrow’s government policies,...

Thomas Piketty's bestselling post-crisis manifesto is horrendously flawed

Originally from The Telegraph by Allister Heath

Given that today’s fashionable economic ideas tend to become tomorrow’s government policies, it’s not looking good for the future of free-market capitalism. Consider the current bestselling book in America, Capital in the Twenty-First Century, a hugely important work that has already become the defining post-crisis manifesto. Its ground-breaking research on historic patterns of wealth ownership is second to none, but its conclusions are horrendously flawed.


Its author, the French economist Thomas Piketty, advocates an 80pc income tax rate for those earning more than £300,000 a year. For good measure, he also floats a range of other even worse ideas, including an internationally coordinated progressive wealth tax, hitting anybody with at least £165,000 in assets and peaking at a crippling 10pc a year on billionaires, a windfall tax on private capital, a dose of inflation and a war on inherited wealth. It’s the kind of hardcore message to warm the hearts of your average British socialist, circa 1976 – and yet it is being embraced as the latest, cutting-edge thinking.


Even more fantastically, this assault on private property and wages would supposedly have no meaningful negative side-effects. Piketty writes that “the evidence suggests that a rate [of tax] of the order of 80pc on incomes over $500,000 or $1m a year would not reduce the growth of the US economy but would, in fact, distribute the fruits of growth more widely while imposing reasonable limits on economically useless behaviour”. Instead of being laughed out of town, Piketty is being treated with the sort of adulation usually reserved for a rock star.


At this point, I could cite some of the many peer-reviewed studies that show — unlike the author’s own research — how high marginal tax rates reduce work and effort, remind readers that eating capital is the best way to impoverish a nation, reduce productivity growth and keep wages down, or point out that societies where the most successful entrepreneurs are rewarded by the state seizing their assets don’t prosper.


Instead, let me consider Piketty’s big idea, which he believes justifies his policies of “confiscatory” taxation – to him, a positive term. He believes that in a peacetime free-market economy, the returns on capital — dividends, interest, rents and capital gains — inevitably grow faster than the overall economy. The owners of capital will therefore end up grabbing an ever-greater slice of the pie, leaving workers with less and less.

- I could not agree more. To read the full article, and review/ debate, please visit the article here

Originally (more fully  Maundy ceremony ): the ceremony of washing the feet of a number of poor people, performed by royal or other eminent ...

Maundy - Easter - Passover 2014

Originally (more fully Maundy ceremony): the ceremony of washing the feet of a number of poor people, performed by royal or other eminent people, or by ecclesiastics, on the Thursday before Easter (see Maundy Thursday n.), and commonly followed by the distribution of clothing, food, or money (now hist.); also in extended use. Later (also Royal Maundy): the distribution of gifts of money to a number of chosen recipients by the British sovereign on Maundy Thursday.

For the full article read here - http://www.oed.com/view/Entry/115188

Chaganomics Easter 2014
Happy Easter to Atlanta and London - CSH





Previously   published  at AllBusiness.com After sitting in the captain’s seat long enough you will find that even when businesses or dep...

The Pivot: When Startups Change Direction and Try Again

Previously published at AllBusiness.com
After sitting in the captain’s seat long enough you will find that even when businesses or departments fail, rarely do they fail completely. You always learn from the experience.
Down the road you tend to hope that you need to learn less and that you will make more on ventures, but the safety net of being able to come back stronger and more focused is a reality if planned and detailed enough. In fact, learning should never stop. To be a career entrepreneur and business owner you need to know the scene, or hire people who do.
When a business changes course, what do you do? Why did the venture change course? Perhaps the ventures is dead in the water; perhaps you need to take a step back…
Pivoting is an obvious term. When the idea doesn’t work — or possibly does not gain traction after a set time — the idea and venture must be retooled. Anything I have been involved in has involved capital, time, and skilled labor. No back turning here. If the first leg falls through, just retool it. Gather the resources from the original idea and see what you can come up with for phase II.
Famous pivots include Twitter (which began as Odeo), Instagram (which began as Burbn), and even Wrigley.
I was involved in a restructuring years back. It was a horrendous upheaval, as proper due diligence was not executed, and human resources was more of a dream department than a reality. It was horrible but I learned a great deal — a crash course MBA experience — and developed vital skills that I will never forget.
Pivoting naturally alters the flow of the venture idea. Original partners may elect to leave, resulting in a leaner, more direct model, or perhaps develop into an entirely new venture on the wings of the original folded idea. If you have a great team, putting a venture on ice often helps the nature of the business (it sinks or swims in other words) and sharpens the identity of the company.


After sitting in the captain’s seat long enough you will find that even when businesses or departments fail, rarely do they fail completely. You always learn from the experience.

Down the road you tend to hope that you need to learn less and that you will make more on ventures, but the safety net of being able to come back stronger and more focused is a reality if planned and detailed enough. In fact, learning should never stop. To be a career entrepreneur and business owner you need to know the scene, or hire people who do.

When a business changes course, what do you do? Why did the venture change course? Perhaps the ventures is dead in the water; perhaps you need to take a step back…

Pivoting is an obvious term. When the idea doesn’t work — or possibly does not gain traction after a set time — the idea and venture must be retooled. Anything I have been involved in has involved capital, time, and skilled labor. No back turning here. If the first leg falls through, just retool it. Gather the resources from the original idea and see what you can come up with for phase II.

Famous pivots include Twitter (which began as Odeo), Instagram (which began as Burbn), and even Wrigley.

I was involved in a restructuring years back. It was a horrendous upheaval, as proper due diligence was not executed, and human resources was more of a dream department than a reality. It was horrible but I learned a great deal — a crash course MBA experience — and developed vital skills that I will never forget.

Pivoting naturally alters the flow of the venture idea. Original partners may elect to leave, resulting in a leaner, more direct model, or perhaps develop into an entirely new venture on the wings of the original folded idea. If you have a great team, putting a venture on ice often helps the nature of the business (it sinks or swims in other words) and sharpens the identity of the company.More Sharing S