Category Archives: capital flight

Even if Corbyn loses, millions will have voted for this

Labour’s frightening manifesto

Reading it, Dalrymple realises

how close Britain might be to a catastrophe that would make the Brexit episode seem of minor importance.

If Labour wins,

the party will inaugurate a quasi-totalitarian government. Chávez-admirer Jeremy Corbyn’s deputy, John McDonnell, is an admirer of Marx, Lenin, and Trotsky, whom he has described as the greatest influence on his worldview.

Labour, Dalrymple notes,

lives in a world in which, when you increase taxes, your tax receipts rise in exact proportion to the percentage increase: the taxed do not change their behaviour.

If Labour were elected and tried to put its proposals into practice, there would be

  • capital flight
  • capital controls
  • loss of confidence
  • complete absence of investment
  • forced investment (requiring ever higher taxes)
  • government control over the economy to pay for it
  • emigration of anyone who can earn a living elsewhere

The ensuing chaos and degradation

would swiftly exceed anything previously seen in the UK. The prospect of a military coup, with the support of a large part of the population, would not be far-fetched; nor, if in the meantime the government had managed to suborn or dissolve the armed forces, would be a slide into Venezuelan conditions, in the name of social justice.

Forward into the seventies

Britain, Dalrymple notes, has several very severe problems, and this is evident the moment you leave a prosperous area whose residents are likely to vote Conservative. Among the problems are

  • stagnation of productivity
  • precariousness of income
  • deficiencies in public services
  • low cultural and educational level of much of the population
  • inadequacy of the housing stock

Yet

the only solution heard to these problems is more government expenditure. The Conservatives went in for this — Theresa May refused to rule out tax increases, for example.

Socialist calamity looms

Thus an alarming aspect of the election was

the recrudescence of the politics of envy and resentment.

The Labour party under Jeremy Corbyn

radiated dislike of the prosperous, even the modestly prosperous.

The party’s solutions to the country’s problems were supposedly to be paid for by higher taxes on the richest 5% of the population.

This proposal overlooked the fact that the top 1% of earners already pay almost three times as much in income tax as the bottom 50% combined.

Wealth, Dalrymple points out,

is dynamic rather than static, resembling the bloom of a grape, not a cake to be sliced.

Taxes on capital (in other words, state expropriation) were Corbyn’s obvious next step,

with capital flight the equally obvious consequence.

None of this worried the young,

who had as yet no stake in property, only what are sometimes called ideals. The Labour party offered them and others the beguiling vision of living perpetually at the expense of others — Bastiat’s definition of the state. The Laffer curve meant nothing to them; punishing the prosperous was more important and gratifying than understanding how to maximise tax receipts.

Dalrymple comments:

The election could take Britain back more than 50 years.