Deutsche Bank Green Covid-19 Recovery Plan: Tax People for the “Privilege” of Working from Home

Deutsche BankDeutsche BankDeutsche Bank

Guest essay by Eric Worrall

h/t Breitbart; You might think a German bank would see telecommuting as a positive step towards a more climate friendly future. But according to Deutsche Bank, people who ditch the daily commute should be taxed.

From the report;

To save capitalism we must help the young

Democratic capitalism is under threat as increasing numbers of young people view the system as rigged against them. The pandemic has only exacerbated their economic disadvantage. However, there is a growing risk that as the young gain an electoral advantage, a populist politician will harness the anger and upend capitalism in ways that hurt inclusive development. To avoid this, we must now redistribute from the old to the young in ways we have not yet considered.

Don’t waste the crisis: How to address Europe’s challenges for the next decade

Post-covid, Europe has a unique opportunity to make greater use of fiscal policy to support the strategic goals – green, digital, levelling up – of the EU with public investment. For this to work, fiscal expansion must be sustained, fiscal rules rewritten and common fiscal capacity created. We detail the actions that are needed.

The fundamental right to connectivity

The pandemic has shown how the ‘haves’ are more resilient than the ‘have-nots’. Much of this is based on the gap between the two groups based on their access to technology. The divide in the US runs deepest along race and location (urban versus rural). To narrow this gap, we lay out our vision to develop an initiative that covers the more than half of households without proper broadband connection and a computer.

Rebuilding better economies and businesses – lessons from luxury

This year, ESG principles have escalated dramatically in the minds of customers and investors. Firms will have to produce less, avoid waste, and build products that last forever. In short, companies should: set the new trend; produce less, shop less, shop better; rethink the supply chain; spoil their local customers; reset the distribution footprint; build scale or be small and deal with second hand and rental models.

A work-from-home tax

People who can WFH and disconnect themselves from face-to-face society have gained many benefits during the pandemic. A five per cent
tax for each WFH day would leave the average person no worse off than if they worked in the office. It could raise $49bn per year in the US, €20bn in Germany, and £7bn in the UK. That can fund subsidies for the lowest-paid workers who usually cannot work from home.

Read more: Deutsche Bank What We Must Do to Rebuild

Deutsche Bank has other helpful suggestions, such as encouraging the US Fed to relax about “inflation overshoots”, easier access to welfare, higher taxes for savers, and converting empty office buildings to apartments to prevent inner cities from depopulating.

The last suggestion, about encouraging the maintenance of high population densities in urban centres, I’m not sure exactly why that is a good idea in the middle of a pandemic.

The following is part of Deutsche’s explanation of why encouraging concentrated urban populations make sense in a post Covid world;

… Cue an influx of people. Cue the artists, craftspeople, and anyone who wants to live where they work on their passion. Indeed, the City of London has already said that unused office space may be used as artists’ residencies or galleries. Old office and retail stores will never be the same. We know that people are very good at redesigning random spaces into homes and, with these reforms in place, vacated city centres will quickly become magnets for the sort of people who ignite urban culture. To assist further, local councils can pedestrianise many city centre streets to facilitate community. This will not be hard – the pedestrianisation movement is already in full swing across many European cities. …

Read more: same link as above

I leave it to readers to figure out what they are talking about.

Deutsche Bank has around $780 billion dollars in assets under management, so there is a good chance a significant portion of your retirement savings is being managed by the people who commissioned and published this report.

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via Watts Up With That?

November 16, 2020 at 08:20PM

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