Ah, one of the top classical socio-political discussions. Is socialism outdated? Has capitalism proven to be invalid?

Well, I don’t know. Some late historical events are relevant, however. We can say that socialist systems are flawed and seem to be unsustainable on the long run. USSR has collapsed in the cold war, Cuba is on a bankruptcy-like state – even Fidel Castro himself has admitted the flaws of such a system. The gigantic state seems to be unsustainable. Let’s see what will happen in Venezuela. Ah, and, of course, China’s communist system doesn’t count. On the other hand, the free market capitalist model, based on heavy private initiative and a very skinny State, has a lot of problems. This belief that the market can be self-controlled without any supervision from the State has been proved wrong with this terrible subprime crisis. The thing is that both socialist and capitalist systems have lead to bankruptcy of states, but there is more acceptance by the international community of capitalist countries than of socialist ones. Why is that? I guess there was a general impression, especially in the western countries, that capitalist systems bring more quality of life to the generality of people.

With this crisis and the austerity measures, I think this notion is changing. There was, especially in Europe, no real left-wing oriented government until very recently, when François Hollande was elected President of France. I must say this guy is extremely brave. He brought back the idea that the richest people should pay much more taxes than the poor to decrease inequality. And he really took action, by taxing in 75% the people which income is over €1 million annually. Most of the French population loved it, and I also did. I even made the calculations to see whether it was too much. With this taxation, a person earning €1 million a year would get around €10,000 a month after taxation. At first, I thought “Yeah, that is a very decent income, come on!”.

The capitalists always argued that these rich people would leave the country and I guess most of the people disdained this argument, as well as I did. Now I have just seen that Gérard Depardieu, who lived in Lille (France), has just moved across the border to a village in Belgium, because they only tax 50% of his income. Bernard Arnault – who owns LVHM, which controls brands such as Louis Vitton – did the same. And so did a lot of other Richie Riches previously living in France.

Bastards. I cannot believe these guys will run away in such an extent that the overall income can decrease. Let’s wait see… but I don’t want to believe it. If the overall tax income reduces, this tax increase is totally counter-productive and France will pay for this.