Jim Hlavac
| Politics Home The Practicalist The Socialist Era Politics Re-Explained Fundamentals Domestic Affairs Economic Theory Foreign Affairs Libertarian Ideas Political Theory Philosophy Royalty & Theology |
Economic Theory
| Economic Theory |
The reason we have bank havens to hide money is not that
complex. It is not because rich bankers want to oppress the poor. We
spend way too much time worrying about what these bank havens do
instead of looking at the reason for their existence. Why do they
exist? What purpose do they serve? Do we really need them?
They exist because of rapacious governments. But there are two
ways government works to create these bank havens. One way is
because of what the government does to individuals. The other is
what the individuals in government do. But the crux of the matter is
that government creates the need for bank havens. They are part of
Natural Economic Activity based on a rational response to government
action.
On the one hand there are the governments which are destroying
the prosperity of their country, so their citizens move as much wealth
outside of the country as possible, and especially to bank havens.
Governments which prohibit certain types of natural economic
activity force those engaged in it to move their money to safe havens.
Governments that excessively tax their wealthiest citizens cause
these people to move their wealth to tax havens.
Governments which oppress certain segments of their populations
cause those people to move their money to bank havens
A Government which rips the people off through various corruption
schemes, mostly involving state owned enterprises, moves its money
to safe bank havens.
If none of these activities were taking place then there would be
no reason for safe bank havens. The Swiss banks could not have gotten
rich from the wealth stashed there over the centuries if the people
who put the wealth there weren't panicked about some rapacious
government, or were part of the rapacious group who used the
government to enrich themselves. But if there was no chance for a
government to get the economic laws and physical violence laws to
affect the economy then the leaders would not be able to rape the
wealth of the nation for their won gain, and stash that in bank havens.
So when government is limited in what it can do, and when
government is limited in the taxes it takes and the restrictions on
economy it enacts, then there will be few if any bank havens.
complex. It is not because rich bankers want to oppress the poor. We
spend way too much time worrying about what these bank havens do
instead of looking at the reason for their existence. Why do they
exist? What purpose do they serve? Do we really need them?
They exist because of rapacious governments. But there are two
ways government works to create these bank havens. One way is
because of what the government does to individuals. The other is
what the individuals in government do. But the crux of the matter is
that government creates the need for bank havens. They are part of
Natural Economic Activity based on a rational response to government
action.
On the one hand there are the governments which are destroying
the prosperity of their country, so their citizens move as much wealth
outside of the country as possible, and especially to bank havens.
Governments which prohibit certain types of natural economic
activity force those engaged in it to move their money to safe havens.
Governments that excessively tax their wealthiest citizens cause
these people to move their wealth to tax havens.
Governments which oppress certain segments of their populations
cause those people to move their money to bank havens
A Government which rips the people off through various corruption
schemes, mostly involving state owned enterprises, moves its money
to safe bank havens.
If none of these activities were taking place then there would be
no reason for safe bank havens. The Swiss banks could not have gotten
rich from the wealth stashed there over the centuries if the people
who put the wealth there weren't panicked about some rapacious
government, or were part of the rapacious group who used the
government to enrich themselves. But if there was no chance for a
government to get the economic laws and physical violence laws to
affect the economy then the leaders would not be able to rape the
wealth of the nation for their won gain, and stash that in bank havens.
So when government is limited in what it can do, and when
government is limited in the taxes it takes and the restrictions on
economy it enacts, then there will be few if any bank havens.