Globalization, Inequality, Say’s Law, and Fiscal Globalism
AbstractThis is a brief note maintaining that financial globalization has been faster than the integration of the remaining sectors of the world economy, thus encouraging wealth inequality, under-production, and under-consumption in line with Say’s Law. Financial investment has become more profitable than real investment, discouraging production ventures, and weakening labor’s relative income position and purchasing power. Moreover, this article works out a model of international government indirect tax competition as a policy means against increasing inequality. The mentality under which this tax policy paradigm is put forward is that the competition of nation states in a fiscal globalism fashion crystallizes the optimal level of centralization under globalism; optimal, that is, from the viewpoint of safeguarding against the manipulation of world markets by financiers. View Full-Text
Share & Cite This Article
Soldatos, G.T. Globalization, Inequality, Say’s Law, and Fiscal Globalism. Challenges 2017, 8, 17.
Soldatos GT. Globalization, Inequality, Say’s Law, and Fiscal Globalism. Challenges. 2017; 8(2):17.Chicago/Turabian Style
Soldatos, Gerasimos T. 2017. "Globalization, Inequality, Say’s Law, and Fiscal Globalism." Challenges 8, no. 2: 17.
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.