• chonglibloodsport@lemmy.world
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    24 hours ago

    There is a loss though. By instituting this process, even if it was only applied to Tesla, you would crash the entire stock market because investor confidence would be lost.

    You could say nothing would be truly lost in a stock market crash, but real people would still be severely impacted. The market crash would lead to bank runs which would topple the banking system, and then ordinary people wouldn’t be able to buy food or other necessities. It would be a disaster that would cause people to demand the old system be restored.

    • Trying2KnowMyse[they@lemmy.ml
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      24 hours ago

      because investor confidence would be lost

      If investor confidence would be lost by appropriate taxes, then it must be unjust confidence. If the shares can’t be sold without impacting the stock price, then clearly they’re overvalued.

      • chonglibloodsport@lemmy.world
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        23 hours ago

        Their value is based on confidence in the current system. Change the system and the confidence is lost.

        It’s like tickets to a movie. They’re valuable before the movie starts. After the movie’s over they’re worthless.

        Put a total wealth tax on the stock market is like throwing sand into the gears. The whole system will fall apart. You can argue that it shouldn’t be that way but you’re currently in the system. The challenge is not to imagine how it ought to be, it’s how to get there without the whole house of cards crashing down around you.