Published June 15, 2022 | Version 1.0
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State loan to CAC 40 companies, Pandora Papers and the impoverishment of the single mother: the deviances of an amoral contemporary welfare

  • 1. SCImPULSE Foundation

Description

It's bad to be women in a State that substitutes welfare with resilience... According to the latest france Stratégie report, of October 2021, the tax reform implemented in recent years has not had the expected results[1]. There is no measurable effect of the trickle-down theory... in fact, there is an enrichment of the richest and a pauperization of the poorest.  The invalidity of this theory was already noted in the past: the IMF acknowledged in 2015 that this theory was not based on any objective scientific fact[2]. It has been observed on several occasions that the more tax allowances are introduced for the wealthiest, the richer they become without anything benefiting the most modest, even as the negative impact of inequality is now widely known[3]. The reason is simple: give money to the most modest, they will consume and reinject the money received into the real economy. Exonerate the richest from taxation and they take out of the monetary circuit values, preventing its circulation from one actor to another. Nevertheless, according to Keynes, criticizing Say's theory, wage is not only a cost, but also a determinant of demand because the amounts paid are then reinjected into the economy through the mechanism of consumption. This was already an intuition of Ford, used very pragmatically to shape the personal mobility market demand.

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