The Cooperative Society by E.G. Nadeau Luc Nadeau

Author:E.G. Nadeau, Luc Nadeau [E.G. Nadeau, Luc Nadeau]
Language: eng
Format: epub
ISBN: 9780998066233
Barnesnoble:
Publisher: Emile G Nadeau
Published: 2018-10-01T00:00:00+00:00

We also can learn from the lessons provided by countries that historically have done a better job of keeping economic and political inequalities at a low level – the Scandinavian countries, for example.47 In addition, on an international scale, trade and aid policies by more-progressive countries can be used to provide incentives to, and impose sanctions on, countries that foster inequality, authoritarian rule and/or carry out other domestic policies harmful to their citizens.

3. Reduce inequality in household income and wealth

In 2015 and 2016, Bernie Sanders centered his campaign to become the Democratic candidate for president of the United States on the issue of inequality. He didn’t win the nomination, but he did have a significant influence on shifting the political dialogue in the U.S. toward a much greater concern about the level of inequality.

Thomas Piketty received broad international attention for his book, Capitalism in the Twenty-First Century, first published in 2013, in which he analyzed wealth and income around the world, especially during the latter half of the 20th century and the beginning of the 21st century. His analysis concluded that the main cause of worsening inequality is the greater ability to increase future wealth through the investment of current wealth, rather than through wages and salaries. He recommended that the best way to reduce the concentration of wealth would be to tax it uniformly in all countries of the world.48

Such a joint world-wide taxation scheme does not appear to be a realistic option. However, on a country-by-country basis, voters and elected officials could institute progressive tax reform that eventually would approximate the kind of worldwide impact that Piketty calls for.

There are two main issues related to wealth and income: within-country inequality and international inequality. Each has to be looked at very differently.

Within a country, the taxation system and the array of economic and social support programs are the key factors that influence income and wealth inequality. Progressive income and wealth taxes reduce the gap between the rich and the rest of us. At the same time, they generate revenue that can be used to improve the economic conditions of a large majority of citizens through a variety of means: access to affordable health care; education; food and housing assistance payments; and retirement benefits. Several northern European countries have done a very good job of creating societies with relatively low inequality and a high quality of life, with progressive taxes playing a key role.49

International inequality is a more difficult problem to address. How do we go about reducing the inequality between the citizens of France and those of Burkina Faso? Part of the answer derives from trade and aid policies between the two countries. Does their trade agreement provide reasonable access by Burkina Faso to French markets? Does the aid relationship better prepare Burkina Faso and its citizens to compete in the international marketplace?

These types of questions need to be asked for all kinds of bilateral and multilateral relationships between and among poor countries and wealthy ones. There is no “one-size-fits-all” answer.

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