It’s time to update St Maggie about other peoples’ money

Margaret Thatcher, famously, said “The problem with socialism is that you eventually run out of other peoples’ money”. The actual quote is “Socialist governments traditionally do make a financial mess. They always run out of other people's money.” That’s how quotes work, often enough, after the initial statement a certain amount of reorganisation happens in the societal memory to heighten the pithiness.

We should update that. For here’s a demand:

A global wealth tax on billionaires would raise as much as $250bn (£200bn) annually, according to a report by a Left-wing French economist for the G20.

Around 3,000 people would be liable to pay an annual charge amounting to 2pc of their worldwide assets, said Gabriel Zucman, a French economics professor.

We should violate everything we know about deadweight costs and taxation in order to achieve what?

Global GDP is around the $100 trillion level. So, this would bring in revenue of 0.25% (yes, that’s a quarter of one percent) of GDP. A pittance.

The tax-to-GDP ratio varied significantly between EU countries in 2022, with the highest shares of taxes and social contributions as a percentage of GDP being recorded in France (48.0 %)

It wouldn’t even touch the sides, would it?

So, why? Well, yes, there is that obvious point that Zil-lanes don’t just pay for themselves you know. But if a system is already eating just under half of everything then another quarter of one percent isn’t going to aid in any significant manner.

Except - the problem with social democracy is that you eventually run out of other peoples’ money. Until and unless we start saying “That’s enough there, no more” then the demands for ever more to micturate up the wall simply will keep coming.

So, we should say “That’s enough there, no more”. And if not now then perhaps 50 years ago? 100?

Tim Worstall