In the last meeting of the World Economic Forum in Davos over 250 billionaires and millionaires urged the political leaders to implement wealth taxes in order to fund improved public services globally.
In an open letter entitled “Proud to Pay More” the richest people told the world leaders “Our request is simple: we ask you to tax us, the very richest in society. This will not fundamentally alter our standard of living, nor deprive our children, nor harm our nations’ economic growth. But it will turn extreme and unproductive private wealth into an investment for our common democratic future.”
It appears that the topic did not resonate with the world leaders who gathered in Davos, as there was no mention of it being discussed. The news also garnered limited news coverage, which is unsurprising considering the common ownership of global media outlets by affluent individuals. One hopes that these 250 multimillionaires have planted a seed that will grow and flourish.
It is quite a paradox that in this era of instant global communication where the world is interconnected, economic inequality continues to rise. Those in privileged positions do very little to eliminate inequality and much less to champion policies that would benefit society at large, eventually leading to a more equitable distribution of wealth.
The increasing wealth of the affluent and the plight of those on the fringes of society are endangering the wellbeing of humanity. Economic inequality brings about social unrest, education disparities, undue political influence, economic instability and elevated crime rates.
Over the past decade Malta’s economy has undergone a significant transformation. When measured in terms of GDP, economic growth has frequently ranked among the highest rates in the European Union. However, the other side to the coin is that this wealth is not shared equally in the Maltese community. The Gini coefficient reveals that Malta’s inequality has recently surpassed that of the EU. Almost one in every five members of Malta’s population is living in a state of misery and poverty.
Rising incomes do not lead to better living conditions. Initiatives that could genuinely enhance people’s lives are being window dressed in favour of our nation’s obsession with money making. It is no surprise that happiness level in Malta is in an all-time low.
A study carried out by the University of British Columbia in 2022 showed that cash transfers from rich to poor can increase happiness of the poor. “To a man with an empty stomach food is God,” Mahatma Ghandi would frequently say, underscoring the fact that people are more receptive to the influence of those who provide them with food when they are vulnerable. This has far-reaching consequences for policymaking. Government handouts won’t enhance the long-term living conditions of the needy; instead, they represent a mere trickle in the vast desert of daily challenges to maintain even the most basic living standards.
The strong sense of community and caring for one other, which was our trademark, is being eroded minute by minute as a result of our nation’s unquenchable desire to make more money quickly.
“The same elements that enable us live a long and healthy life are the ones that make life worth living,” Dan Buettner remarked in his Netflix series “The Blue Zone,” which attempted to explain why some people live longer than others in various parts of the globe. The top three items, according to Buettner’s research on health and longevity, are a plant-based diet, regular exercise, and, as essential, prioritising family and a strong sense of community.
“Walking in community, with friends, with those who love us, this helps us arrive at our destination,” Pope Francis writes in his recently published book Ti voglio felice (I want you to be happy), emphasising that happiness is free and we cannot embark on a solo journey but rather to walk alongside others. If we are generous, “we received life freely” and “all of us are able to offer without expecting anything in return, to do good to others without requiring that they treat us well in return.”
If economic growth is not driven by smart economic policies that prioritise the common good, the idea that a rising tide lifts all the boats does not come to fruition. Unfettered economic expansion leads to increased greed among those with resources and deepens poverty for the less fortunate. Effective economic strategies involve shifting focus from a paternalistic approach to social assistance to one that promotes a more caring society. While individuals on the fringes of society appreciate the assistance from the government, it is not enough to address the issue of inequality. We should implement social policies that encourage the wealthy to share their wealth and discourage them from hoarding it.
Affluent individuals and organisations need to meet their tax responsibilities, leading to a substantial reduction in the wealth gap. Yet, addressing the issue goes beyond taxation alone; it necessitates individuals who can actively endorse and fund sustainable initiatives aimed at eradicating poverty. There are many non-profit organisations committed to assisting individuals in breaking free from the cycle of poverty. One such NGO is the Voluntary Solidarity Fund, which collects funds to aid organisations dedicated to improving the welfare of individuals and communities. Any companies or individuals who wish to assist in this regard may get in touch via the website below.
Claudio Farrugia is a director of The Voluntary Solidarity Fund Malta HTTPS://VSFMALTA.ORG/
This article appeared on The Times of Malta on 18/03/2024 https://timesofmalta.com/article/prosperity-common-good.1089252
The Curious Wanderer - Claudio Farrugia 
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