When We Say “Tax the Rich”—We Don’t Mean You, So You Can Relax

Rethinking power, public spending, and why taxation isn’t the enemy

“It always looks impossible until it is done.” — Nelson Mandela.

I assigned this interview with economist Ha-Joon Chang to my students to help them make progress in their Master’s and Doctoral theses—because honestly, I could listen to Ha-Joon Chang all day. My students felt equally mesmerized and unsettled, especially given the current state of the world.

I also have many loved ones around me who have grown apathetic—mentally exhausted by the news—wanting nothing more than to be left alone, to focus on their work and simply live their lives. Et c’est vrai, they have a point. Economists, public institutions, and governing bodies exist to serve the people—not the other way around.

Mais, je diverge. I’ll say more on that another time. Today, we delve into the topics of taxation, financial markets, and political reluctance.

First things first: When we (economists and other sorts of social scientists) talk about taxing the rich and taxing wealth, we’re not talking about you. So, you can take a deep breath of relief!

We’ve all heard the same tired refrain: “Taxation is bad for growth. You can’t tax the rich. It doesn’t work.” But history—and logic—tell a different story.

In the 1960s and 70s, Britain was one of the most economically equal countries in the world. And it was growing faster than it has in the last three decades—despite a top income tax rate of 80%. The United States? Same story. A 90% top tax rate did not stop it from growing faster than it is today.

Economist Ha-Joon Chang uses these examples to challenge orthodox economic thinking and advocate for limitarianism—the idea that extreme wealth should have limits, for the sake of society as a whole.

It’s clear that no one here is advocating for these rates. I’m simply suggesting that there’s ample room for improvement. We have to begin somewhere.

Remember, this isn’t about determining the appropriate tax rate to apply to income. We have wealthy families who don’t pay income taxes effectively because they don’t have “income.” Their income is not classified as income. Instead, they simply receive millions and billions throughout their lives.

This is important because: Wealth distribution is not just about money. It’s about power.

It’s about who gets to control resources, who owns the media, and who shapes political decisions. Power concentrates—quickly—and hoards more of itself. And yet, we, economists, rarely center distribution and inequality in our work. Even fewer teach economics in a way that makes students curious about these structural questions.

Let’s Talk About COVID

During the pandemic, Western governments injected eye-watering sums into the economy—£1 trillion in the UK, $13 trillion in the U.S. But few people paused to ask: Who is going to receive this money?

That money mostly went to banks and financial institutions. And instead of investing in productive enterprises—companies that create jobs and serve communities—those institutions sat on the cash. Meanwhile, the alternative—emergency taxation—wasn’t even seriously considered.

But what if it had been?

Even if you believe high taxation is bad in general, mission-oriented, time-limited taxes on the ultra-wealthy are historically grounded and economically sound. We’ve seen them before. Think post-war reconstruction. When there is collective purpose, we find collective means. Think about climate change and the dark days that lie ahead for our planet.

Borrowing vs. Taxing: Who Really Pays?

Let’s break this down.

If governments want to spend more, and the only tool they use is borrowing from financial markets, they’re borrowing from the wealthy elite. That dependency gives power to lenders, not the public. If borrowing is your only plan, you become a servant to the markets.

If my plan is to borrow from you, I need your permission.
If my plan is to tax you, I don’t.

This is not about penalizing success or punishing effort. Itis about freeing public decision-making from private gatekeeping.

There is no credible economic evidence that taxation harms growth. That’s a myth—sustained and sold by people who benefit from it.

Narrative Warfare

We’re not just dealing with numbers. We’re dealing with stories—and who gets to tell them.

Billionaires are paying think tanks and “experts” to appear on TV and in op-eds to repeat the line:

“It’s impossible to tax the rich.”

This isn’t an accidental misunderstanding. It’s a calculated narrative blockade. But it’s not unbreakable.

We’ve done it before.

During WWII, we saw one of the most dramatic reductions in wealth inequality in modern history. Yes, it is possible to tax extremely wealthy families. Yes, we can do it again.

“I’m a pessimist because of intelligence, but an optimist because of will.”

— Antonio Gramsci, Letter from Prison (1929).

Closing Thought

None of this is about envy. It’s about rebalancing power. About having the imagination—and the will—to reshape economic life in ways that serve the many, not just the few.

Still interested?

Here is a wonderful group of my colleagues at the Fairness Foundation in the UK discussing the enormous fortunes of billionaires, using examples like Bernard Arnault and Elon Musk to illustrate the difficulty in comprehending such vast wealth.

Thank You For Reading

I’m deep in the weeds with work these days, but I try to write here whenever I can. I want this space to be less about constant takes and more about thoughtful reflection—a place to pause, to make sense of things, rather than add to the noise.

Reading, for me, isn’t just about gathering knowledge; it’s about transformation. It reshapes how we see the world—and how we move through it. I hope my writing offers that kind of shift for you, even in the smallest of ways.

Let’s keep stretching the boundaries of what’s possible.

I’d love to hear what’s on your mind. Thank you for being here.

With gratitude,
Dilek