The System Is Inherently "Corrupt"

[Keith Maitland]

Commentary

The Panama Papers’ Sprawling Web of Corruption

"Corruption" is a misleading word, because it implies that a non-corrupted state has become corrupted, that the system which is supposed to serve society has failed.

The truth is that the system is doing the job it has always done of facilitating society's SELF-exploitation to the personal advantage of its ruling elites and favoured (especially wealthy and academic/formerly priestly) clients, at the expense of society at large.

When the truth is revealed, as in the present case of the Panama Papers, our political elite acts surprised and indignant, perhaps with sincerity, but if so, with little understanding of how and for whom the system works.

Why have academics (and political editors), who are paid good money as authorities on understanding the system, not recognised its true nature?

Like their medieval predecessors and counterparts, academics (and editors) are privileged clients and employees of the state, i.e. of the system, with a massive personal self-interest (subconscious more than conscious) in rationalising and defending its role, self-image (as our "nation") and ideologies (social, political, economic and ethical), on which the state bases its claim to moral and knowledgeable authority.

Current academic (and editorial) understanding of the system is on the level of Ptolemaic astronomy or Galenic medicine, because still stuck in a pre-Darwinian dark age, as a consequence of a previous generation of academics having made a taboo of viewing their own species from a Darwinian perspective, it in overreaction to the Nazis having hijacked and abused the half-baked ideas of social Darwinism.

[Nearly Sane]

Is this actually written by you? Because it seems even more bizarrely emotional, while shouting 'I am rational, so rational, rational, rational' than normal?

[The Accountant, OBE, KC]

I agree that the system allows corporations to make profits without paying tax on those profits in the country where the profits were made - through the use of transfer pricing via companies registered in tax havens. Given that those corporations use local infrastructure and resources to sell their goods or services it only seems fair to pay taxes to contribute to the upkeep of the local infrastructure and resources.

Not having to pay local taxes on profits gives those corporations an unfair pricing advantage compared to local businesses who price their goods and services to take account of the tax they have to pay.

Governments allow this to happen to be competitive to attract money and business into the UK economy rather than have it go to another country with a more favourable tax regime.

The only way to stop this is  if all countries toughened up their tax regimes so multinational companies or wealthy individuals could not benefit from tax havens - which would let the governments have access to and control most of the wealth of their citizens, rich or poor.

The problem is that many people don't trust their governments and many people don't see the point of working hard to create wealth if they don't have a degree of autonomy in how they spend their money - if you can be looked after by the State whereby life is relatively comfortable and your basic needs such as housing, health, education, food, spending money are met by the State, why work and pay most of the extra money you get from working to the State? The government want to incentivise people to create personal wealth through business.

If they don't, at some point the deficit will be so huge they will have to go back to something like a tax haven system to attract companies to pay at least some taxes and employ people.

[Sebastian Toe]

Is this actually written by you? Because it seems even more bizarrely emotional, while shouting 'I am rational, so rational, rational, rational' than normal?

Don't hold your breath if you are expecting an actual reply from the post-and-run master!