Showing posts with label panama papers. Show all posts
Showing posts with label panama papers. Show all posts

23 Apr 2016

(No) Sympathy for the Rich

Christian Michel


In wake of the recent publication of the so-called Panama Papers, the French libertarian writer Christian Michel advises that we resist the urge to howl with predictable moral outrage and instead express our gratitude towards those who are wealthy enough to be able to afford to significantly reduce their tax bills.

In other words, we should sympathise with the super-rich, not curse them. Michel writes:

"It's hard to be rich. I pity the billionaires who, with a bit of hard work and an immense amount of luck, have managed to offer us products and services we want to buy. The public brings billions to their coffers. Then the public unfairly blames them for amassing those billions.

Of course the rich don't pay more taxes than they are required to; they are just like you and I. Who writes a check to the NHS for a treatment that comes free? Or pays TfL full fare when one is entitled to a discount? We don’t believe in paying government bodies more than called for and it so happens, when it comes to taxes, that legal opportunities exist to minimise the burden.

Thus this is not a moral issue. When some politician admonishes corporate executives on their greed and immorality they threaten all our freedom. A government function is to produce legislation. What the legislation allows is no longer the remit of government.

Commentators may choose to debate the perfectly legal behaviour of individuals, but government officials should not do so. That’s a condition of our security. If zoning laws state that you may build a house up to ten meters high, the council’s mission is to check the highest tile is not higher than 10 meters. That’s all. It is not their business to discuss your taste in decoration, or whom you choose to share your home with.

Likewise, if the rich choose to make use of perfectly legal tax havens, that's their business and their right to do so. Some people may resent it, but the law affords protection to all - even the rich.

Cheating, of course, is a different matter. There exist so many ways to mitigate taxes legally that you wonder if it is laziness or simply stupidity that makes some cross the line that separates tax avoidance from tax evasion. (Of course, it may be the source of the funds that's the decisive issue here, but that's another question.)

Ultimately, everyone - rich or poor - wants to protect their own interests and maximise their own advantages and we should not only acknowledge this fact, but encourage it and celebrate it as fundamental to the workings of a mature, liberal society."

Now, although I'd not describe myself either as a liberal, or a libertarian, I'd pretty much agree - perhaps to Christian's surprise and the disappointment of others - with what's said here. It's not that selfishness and greed is good, but rank hypocrisy and politicised moral ressentiment is worse and arguably more dangerous in the long run.

Having said that, it would really stick in my craw having to express sympathy, gratitude, or admiration for the 1%. That's simply not going to happen. In fact, like Joe Strummer, I don't wanna hear about what the rich are doing and I don't wanna go to where, where the rich are going. For great wealth - like great poverty - deforms and makes ugly at last. And wanting to be rich is a sign of low vitality.  


Notes

Christian Michel is a London-based, political theorist and activist; un homme de lettres et un homme de la ville. He teaches courses on economics and is regularly asked to speak at international events as a leading figure within the libertarian movement. Christian also organizes a twice-monthly salon at his West London home known as the 6/20 Club and facilitates the Café Philo at the Institut français on Saturday mornings. His text, which has been slightly edited, is used with kind permission. 

Joe Strummer was the lead singer of British punk band The Clash. The lines quoted are from a song written by Strummer entitled 'Garageland' which appeared on their eponymous debut album (CBS, 1977). Click here if you want to hear it.