Posts Tagged ‘Lewis Hamilton’

George Galloway Interviews on China and Tax Dodging by the Rich

December 6, 2017

This is a very interesting edition of Sputnik, one of the programmes on RT, hosted by media bete noir George Galloway, and a young Asian lady simply called Gayatri. Sputnik was, of course, the first satellite put into Earth orbit by the Russians. The name means ‘fellow traveller’ in Russian, and has come to mean an artificial satellite ever since.

In the first half of the programme, Galloway and Gayatri interview Jeanne-Marie Gescher, a British sinologist, who has been studying China ever since the notorious Tiananmen Square massacre in 1989. Gescher has written a book about the country and its transformation, and describes how she was just about the only western person flying into China after the massacre, when all the other westerners were trying to get out. This, however, gave her a head start of a couple of years over the other academics researching China, when she was one of the very few westerners actually in the country. Galloway talks about President Xi’s party congress, and makes the point that most of it was about ‘socialism with a Chinese face’, rather than economics. He and Gescher also discuss the role of a strong central authority in governing and forming China, ever since its foundation all those millennia ago. They make the point that the role of a strong central authority is so much at the core of the country’s character and government, that it has been said that without it China is like sand. Gescher states that ever since the ancient shamans led the earliest ancestors of the Chinese to settle down, there has been a tension between two philosophies towards government and the natural order. One is that the natural world is too complex for people to understand, and so government is best carried out by a single ‘son of Heaven’ – the official title of the Chinese emperor – who governs autocratically. The other recommends instead that the world be subject to a structured investigation. This is not democratic, but it is wider than the concentration of power in a single autocratic figure. Gescher also describes the way China has repeatedly fragmented over the ages, only to come back together as a single, unitary empire again, with a quote from The Romance of the Three Kingdoms, one of the great classics of Chinese literature. To people of a certain age, the book is best known as the basis for the Chinese swashbuckling tale broadcast by the Beeb in the ’70s, The Water Margin.

They also discuss Donald Trump’s apparent volte-face last week. Before he went to China, he was full of anger at the Chinese and there was much resentment in the American media about perceived Chinese mistreatment. Trump was going to tear them off a strip about it. After he got there, however, and met the President, he ended up praising the country. Gescher states that this has shown the Chinese that Trump ‘flip-flops’. This will worry them, as there is nothing more dangerous than a leader, who so capriciously changes position.

Next on the show is Professor Steve Keen, who has also written a book demolishing economics. Keen’s a former economics professor at Kingston University, though at the end of the interview he states that he has left academia to go his own way via Patreon. Keen, Gayatri and Galloway discuss the infamous Paradise Papers and the tax dodging by the very rich. Keen himself isn’t shocked by the way the super-rich like Bono, Lewis Hamilton and the Queen have deprived the treasury of their taxes. He seems to accept that it’s just part of the pathology of the very rich. He states that they’re terrified of anyone else getting their hands on their money, and so pay enormous fees to people, who tell them how they can legally avoid paying cash.

Galloway is shocked, however, and makes the ironic point that the Queen, in her case, is actually avoiding paying tax to herself. Which is true. He also wonders about the mentality of the rich, who will spend their money on colossally expensive items like luxury super-yachts. Keen states he knows someone, who has actually bought one. This man had a 120-ft yacht, but turned it in for a 140 foot vessel, complete with space for a grand piano. He states that this comes from the sheer greed and sense of entitlement of the rich.

He then talks about the various fake holding companies and offshore accounts that the rich use in order to avoid paying tax in the country where they really make their money. He’s actually been to the Cayman Islands, and seen the office block, where so many multinational companies legally have their headquarters. He states that he read so many of the brass plaques on the building’s walls before he gave up. But it was all a scam. There was no-one in the building. It was all very much a legal fiction.

Keen himself has recommended his own way to stop this. At the moment, the tax on profits allows the rich to dodge paying tax by allowing them to cast their companies as subsidiaries working for a parent organisation somewhere else in the world. To stop them doing that, Keen recommends that there should be a tax on transactions instead, which would bring money back into the treasury and which couldn’t be avoided by setting up fake parent companies.

He also has a very different view of taxation than other economists. He argues that the point of taxation isn’t to pay for government services. Governments, by their nature, create money. They pump it into the economy. What taxation does is take it out of the economy, so you don’t have runaway inflation.

Talking about his decision to leave academia, Keen states that it was forced on him by the government’s effective privatisation of higher education. This has turned students into ‘informed consumers of higher education’. However, the league tables concentrate on the Russell Group, and so the new universities that were created post 1992 are starved of funding. This has led him to break with the university, and start crowdfunding his work. He states that he has a great bunch of people funding him through Patreon, and that he’s learned a lot from them. He is also critical of university tenure, because it creates a very conformist mindset. It’s not supposed to. It’s supposed to do the opposite, but he states that by the time professors have done all the things needed to gain tenure, they are afraid of stepping out of line.

The programme ends with Galloway and Gayatri reading out some of the Tweets they have received on the shows contents. Several people remark that, whatever Trump says, America very much needs China to avoid collapsing. And others are about the Queen and the rest of the rich dodging tax.

This is interesting, as it shows that Galloway is a very good interviewer. I also find it quite a nostalgic experience, as it reminds me of what quality television on BBC 2 used to be like in the 1970s and 1980s. No fancy graphics, just the programme’s host or hosts in the studio and his or her guests, talking. You can see the same approach used by Tariq Ali on his TV show. And while it is talk, it’s very much informed talk by experts, that isn’t dumbed down and reduced to soundbites by programme editors afraid that too much pop videos have left people with an attention-span no longer than a gnat’s.

Keen’s perspective on the rich and their sheer avarice is interesting, as is his proposed solution. I’m also struck by his innovative attitude to taxation. I’ve read similar things like it on Mike’s blog, where he has reblogged material from the Mainly Macro economist. As has the Angry Yorkshireman, Tom Clarke. This looks like a positive approach to the dismal science that will break the Tory orthodoxy about taxation and paying for the welfare state.

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