this post was submitted on 26 Mar 2025
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In the current pseudo-capitalist world economy, the rich do help in pushing a circular economy, in a variety of industries. If the rich are too taxed they'll more easily leave the country and move elsewhere. Your country loses a lot of its GDP. It's a bit of a chicken and egg problem, but it's also how the government of today runs, where everything is run on credit and paid for later.
Lean-governments are possible, but in such a case a government can never spend more than its GDP produces. No government would go that way right now, mainly because people aren't educated enough to make a decent argument for it, verbally or otherwise.
Your country either welcomes the rich, or answers to the IMF.
In summary//TL;DR: In a credit-based, credit-ran, loan-promised economy, greatly successful small and medium businesses are not enough to keep GDP high enough to pay off national debt.