RE: [Pen-l] Dani Rodriks loves tax havens

["Max B. Sawicky" <sawicky@xxxxxxxxxxx>]

I think the idea is they are host to ultra-risky off-balance sheet
activity that
increases financial fragility and the exposure of taxpayers in OECD
countries.

Plus it's the whole opportunity-in-crisis thing, trying to tap a
revenue source
in a time of pressing need, as you suggest.

Methinks you are a little harsh with Prof. Rodrik.  On balance he's a
positive
influence among the economically correct (sic).  In the ranks of
blame-worthy
economists, he's pretty far down the list.


-----Original Message-----
From: pen-l-bounces@xxxxxxxxxxxxxxxxxx
[mailto:pen-l-bounces@xxxxxxxxxxxxxxxxxx] On Behalf Of Laurent GUERBY
Sent: Sunday, April 05, 2009 8:37 AM
To: pen-l@xxxxxxxxxxxxxxxxxx
Subject: [Pen-l] Dani Rodriks loves tax havens

I was surprised to read:

http://rodrik.typepad.com/dani_rodriks_weblog/2009/03/am-i-being-dense
.html
<<
Am I being dense?
France has threatened to walk out of the G20 summit in London if
agreement is not reached on the important issues.  Bravo!

But wait.  What does France want agreement on?

        "I am absolutely determined, and President Sarkozy has said it
        loud and clear, that we actually eradicate non-cooperative
        centres and tax havens," [finance minister Christine Lagarde]
        said. 
        
        "I know that Chancellor Merkel is very much on that line, I
know
        that Gordon Brown has said that old tax havens have nothing to
        do with this new world. 
        
        "Well, we need to deliver on that and we need to be extremely
        united and strong." 
        

Now can someone explain to me what offshore tax havens and financial
centers have to do with our current mess? 

I suppose some would say this is a tactic to divert attention from all
the other important issues on which there will definitely not be an
agreement on.  If they can at least agree to put the blame on offshore
havens who, after all, will not be sitting around the table, France
and
the others can walk away claiming victory.  Will the media really be
taken in?
>>

My answer on his blog and by email:

<<
"I suppose some would say this is a tactic to divert attention from
all
the other important issues on which there will definitely not be an
agreement on."

While I don't like Sarkozy, I see on this blog you advocate massive
FISCAL spending to get out of the current mess created by the
financial
world.

Now when you talk about FISCAL spending, you talk about future TAXES.

When you talk about future TAXES, you have to ask yourself who will be
the TAXPAYERS.

TAX HAVENS are where rich TAXPAYERS hide their money and so let other
people pay the bill.

So going after TAX HAVENS is the absolute minimum our government can
do
in those time of FISCAL SPENDING.

No wonder economists like you screwed the world.

I hope you will apologize for this.
>>

Laurent




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