Fighting for a Free Future. Fighting for a free future. Move over Oligarchy , the Angel of prosperity coming through
A comprehensive argument for Distributism against the Servile State.
Fighting for a free future Move over Oligarchy , the Angel of prosperity coming through
A comprehensive argument for Distributism against the Servile State.
in response to Steve Baker’s Why we are fighting for a free future.
Abstract Introduction
This integral analysis examines critiques of centralized power structures across economic, managerial, and colonial systems through the lenses of Adrian Wrigley’s fiscal reform proposals (§1), Steve Baker’s anti-managerialism (§2), James Burnham’s The Managerial Revolution (§3), and George Orwell’s Not Counting Niggers (§4). Wrigley’s critique of tax systems serving elite interests (§1.1–1.3) aligns with Baker’s condemnation of technocratic paternalism (§2.1) and Burnham’s prediction of a managerial class supplanting capitalists (§3.1–3.2). Orwell’s exposure of imperial exclusion (§4.1–4.2) extends these critiques to racialized economic exploitation. Together, they reveal how centralized systems—whether fiscal, bureaucratic, or colonial—prioritize elite control at the expense of human dignity, perpetuating what Hilaire Belloc termed the Servile State (Belloc 1912).
The synthesis (§5) identifies technocratic hegemony and moral bankruptcy as shared themes, with Wrigley and Baker proposing decentralizing reforms (§1.4, §2.3) against Burnham’s managerial dystopia (§3.3) and Orwell’s imperial hypocrisy (§4.3). Distributism, rooted in G.K. Chesterton’s vision of widespread property ownership (Chesterton 1926), emerges as a unifying alternative, rejecting both capitalist and socialist centralization in favor of subsidiarity and moral economics (§5.4). This analysis underscores the urgency of systemic reform to dismantle exclusionary power structures and restore agency to individuals and communities.
References
Belloc, H. (1912). The Servile State.
Burnham, J. (1941). The Managerial Revolution.
Chesterton, G.K. (1926). The Outline of Sanity.
Orwell, G. (1939). Not Counting Niggers.
see end note End note Reasoning process for Abstarct.
Why we are Fighting for a Free Future
On elite failure, groupthink and the need for a paradigm shift in political and intellectual life
Jun 04, 2025
Liked by Rt Hon Steve Baker FRSA
Sound money needs also to be honest ( Tomlinson ).
Backrocks Going Direct is the Global public Private partnerships blue print for consolidating and fixing the Command and control technocratic dictatorship. It has failed.
Thanks for articulating these insights Steve.
Going Direct isn't Working. Part 1. "The Price of the chicken most certainly does not come before the egg". R G Lewis
Rethinking Money: How New Currencies Turn Scarcity Into Prosperity
This is a wonkish analysis I put together using monica Sonnet in december I am about to run it through Perplexity reasoning to ask for a more condensed and up to date data set.
The New Servile State: On Banks, Tech Lords, and Modern Feudalism Parasitic Finance Sector
# US and UK Financial & Tech Sector Profit Analysis
The New Servile State: On Banks, Tech Lords, and Modern Feudalism Parasitic Finance Sector
How bad has the problem of Monopoly and the Banks Got?
One section takes a look at Grace Blakely's book stolen. It is a good book and well worth reading.
Ranjan and I had a chat about it here.
Rog and Ranjan, Amazing Grace, What isn't on the page?
Vulture Capitalism and Pierro Sraffa
Vulture Capitalism Corporate Crimes, Backdoor Bailouts and the Death of Freedom
Grace , Aaron and a rude interuption from the excluded middle.
Vulture Capitalism Corporate Crimes, Backdoor Bailouts and the Death of Freedom
https://www.bloomsbury.com/uk/vulture-capitalism-9781526638076/
The Digital Servile State: Aadhaar and the New Feudalism
In the style of Chesterton and Belloc. Men without chests: a dystopian future. C S Lewis
The Great Energy Debate: A Chestertonian Analysis in Five Parts. AI generated see notes for inputs
Lies, Damn Lies and Economics - National Debt is Not a Problem - Government Debt to GDP Ratios — What do they Mean? - Net Interest Costs in the Federal Budget - The Power of Italy - Trump's Tariffs
*State Power, Liberty, and Reflections on the Modern State*
*State Power, Liberty, and Reflections on the Modern State*
*State Power, Liberty, and Reflections on the Modern State*
A Rovian Narrative
State power, liberty, and Reflections on the Modern State
Write a blog post in the style of GK CHesterton drawing on Hillaire Belocs the Servile State, Bakunins statism and Capitalism contrasted with Hayeks road to serfdom and Hg Wells Men as Gods,
The Gate: A Chestertonian Guide to Digital Freedom in the Age of Tech Oligarchs
The Digital Servile State: A Chestertonian Prophecy on Enshittification
The Plutocratic Masquerade: A Father Brown Mystery
"The key fact in the new development of plutocracy is that it will use its own blunder as an excuse for further crimes".GK Chesterton, The Utopia of Userers
Integral Analysis of World Views in the Oligarchy: A Review
Towards an Integral Analysis of World Views in the Oligarchy. Part 1. ( Left and Right , Rich and Poor )
Integral Analysis of World Views in the Oligarchy: A Review
we explore the six parts of Roger Lewis's work, "Towards an Integral Analysis of World Views in the Oligarchy," through the lens of G.K. Chesterton's distinctive style.
Steve Baker on the Going Direct Paradigm Mind Map
Reasoning Process
Okay, I need to write a comprehensive argument for Distributism against the Servile State, responding to Steve Baker's article. Let me start by understanding both concepts. Distributism, from the search results, advocates for widespread ownership of productive assets, opposing both capitalism and state socialism. The Servile State, as per Hilaire Belloc, describes a system where the majority work for a propertied minority, either through coercion (Servile) or "free" labor under capitalism.
Steve Baker's article talks about the failure of the current managerial and social democratic systems, emphasizing the need for a paradigm shift towards freedom, sound money, and limited government. He critiques groupthink among elites and the reliance on easy money leading to economic crises.
To argue Distributism against the Servile State, I should contrast Belloc's critique of capitalism and state socialism with Distributist solutions. Baker's points about centralization and elite failure align with Distributism's emphasis on decentralization and widespread property ownership. I need to highlight how Distributism addresses the issues Baker raises—like asset inflation, unaffordable housing, and bureaucratic control—by promoting local cooperatives, small businesses, and anti-monopoly measures.
I should reference Chesterton and Belloc's works, using their arguments that Distributism subjugates economic activity to human life, unlike capitalism or socialism. Also, mention how cooperatives and subsidiarity can prevent the concentration of power, which Baker warns leads to authoritarianism. Cite the search results that discuss Distributism's historical viability, like the Middle Ages, and its basis in Catholic social teaching.
Need to structure the argument: start with an overview of both systems, then address Baker's critiques of managerialism and groupthink, showing how Distributism offers an alternative. Use examples like antitrust laws, mutual organizations, and the failure of current monetary policies. Ensure each point is backed by the provided sources, citing them appropriately. Avoid jargon, keep it in Chesterton's style—witty, paradoxical, and accessible. Make sure to tie in the need for a paradigm shift towards Distributist principles as a solution to the crises Baker outlines.
Distributism presents a compelling alternative to the Servile State by advocating for widespread ownership of productive assets, decentralizing economic power, and prioritizing human dignity over systemic exploitation. This argument engages directly with Hilaire Belloc’s critique of capitalism’s inherent servility and Steve Baker’s call for a paradigm shift away from managerialism and monetary debasement.
1. The Servile State: Capitalism’s Inevitable Trajectory
Belloc’s The Servile State (1912) argues that capitalism naturally evolves into a system where the majority labor for a propertied minority. Under this model, workers are “free” only in name, exchanging wages for survival while generating wealth they cannot own3. Belloc distinguishes this from outright slavery but highlights its coercive core: economic necessity replaces chains, binding individuals to concentrated capital2. Steve Baker’s critique of “easy money” exacerbating wealth inequality aligns here, as central bank policies inflate asset prices, entrenching a propertied elite while locking out younger generations45.
2. Distributism: Decentralizing Power Through Ownership
Distributism counters this by advocating for:
Widespread property ownership: Productive assets (land, tools, enterprises) should be held by families, local cooperatives, and small businesses rather than corporations or the state14.
Subsidiarity: Decision-making authority rests at the lowest feasible level, fostering accountability and reducing bureaucratic bloat1.
Anti-monopoly measures: Breaking up concentrated economic power through antitrust laws and supporting worker-owned cooperatives4.
This model directly addresses Baker’s concerns about managerialism and unaccountable bureaucracies. By dispersing ownership, Distributism eliminates the need for top-down control, aligning with Baker’s call for “voluntary cooperation” and “dispersed knowledge”4.
3. The Moral Case Against Managerialism
Belloc and Chesterton viewed capitalism and socialism as two sides of the same coin: both centralize power, whether in corporate boardrooms or state ministries. Distributism, rooted in Catholic social teaching, subordinates economics to human flourishing, emphasizing dignity, community, and self-reliance14. Baker’s critique of groupthink among elites mirrors this, as managerialism’s “unexamined assumptions” (e.g., state-led progress, central bank omnipotence) ignore the moral bankruptcy of systems that reduce individuals to cogs in a machine45.
4. Practical Solutions to Modern Crises
Housing affordability: Distributism supports land reforms and community land trusts to decentralize ownership, countering speculative markets1.
Monetary policy: Rejecting fiat currency manipulation, Distributism favors localized currencies and mutual credit systems, aligning with Baker’s advocacy for “sound money”45.
Tech feudalism: The “digital servile state” of tech oligarchs can be countered by promoting platform cooperatives and data sovereignty, resisting enshittification through ownership4.
5. A Paradigm Shift Rooted in Tradition
Distributism is not utopian but historically grounded. The medieval guild system and mutualist societies demonstrate its viability14. Chesterton’s quip that “the problem with capitalism is not too many capitalists, but too few” encapsulates its vision: a society where economic participation is broad, not narrow. This aligns with Baker’s demand for a movement that “transforms the public conversation” by rejecting technocratic paternalism45.
Conclusion
Distributism offers a third way beyond the Servile State’s false choice between capitalism and socialism. By decentralizing ownership, empowering communities, and restoring moral purpose to economics, it answers Steve Baker’s call for a “free future” built on liberty, dignity, and responsibility. As Belloc warned, without such a shift, we risk collapsing into authoritarianism—a fate avoidable only by embracing Distributism’s radical yet pragmatic vision.
Reasoning Process
Okay, let's tackle this query. The user is asking for a comprehensive argument for Distributism against the Servile State, specifically in response to Steve Baker’s article. They provided a lot of search results and context, so I need to synthesize that into a coherent answer.
First, I need to understand what Distributism is. From what I remember, Distributism is an economic philosophy that advocates for widespread ownership of productive assets, emphasizing small businesses, family farms, and cooperatives. It's opposed to both capitalism and socialism, focusing on decentralization and local ownership.
The Servile State, as described by Hilaire Belloc, is a system where the majority of people are wage-workers dependent on a small owning class. Steve Baker's article talks about the failures of managerialism and the need for a paradigm shift towards freedom and sound money.
The user's provided content includes search results about the UK financial sector's size, contributions to GDP, employment, and trade surplus. There's also a detailed analysis of the financial sector's dominance in the US and UK, comparing it to historical data. Additionally, there's a blog post critiquing modern feudalism and advocating for Distributist principles.
I need to connect these elements. The financial sector's large share of profits (30% in the US, 8.8% of UK GDP) indicates concentration of economic power, which Distributism opposes. The argument would be that Distributism's decentralized ownership could counter this concentration, reducing dependency on financial elites.
Key points to include:
Critique of the current financial system's concentration of power and profits.
Distributism's emphasis on local ownership and decentralization.
How Distributism addresses the issues Baker mentions (managerialism, monetary debasement).
Practical solutions Distributism offers (anti-monopoly measures, community land trusts, mutual credit systems).
Moral arguments against capitalism and socialism, focusing on human dignity.
I should also reference the provided sources, like the House of Commons Library data on the UK financial sector's contribution and the McKinsey report on global banking. The user's content mentions Grace Blakeley's critique of financialization, which aligns with Distributist critiques of concentrated capital.
Potential structure:
Introduction: Current economic crises and the failure of managerialism.
The Servile State: Belloc's critique and modern parallels (financial sector dominance).
Distributism as an alternative: Principles and solutions.
Addressing Baker's points: Sound money, voluntary cooperation, reducing bureaucracy.
Conclusion: The need for a paradigm shift towards Distributism to avoid authoritarianism.
I need to ensure citations from the provided search results are used appropriately. For example, the UK financial sector's 8.8% GDP contribution 1 and the US financial sector's 30% profit share 5. Also, the mention of tech feudalism and digital servitude ties into the need for platform cooperatives 4.
I should avoid jargon and keep the explanation clear, using examples like community land trusts for housing affordability and mutual credit systems for local currencies. Highlighting the moral aspect, as Chesterton and Belloc did, connects to the critique of reducing humans to cogs in a machine.
Finally, wrap it up by linking Distributism's historical roots (medieval guilds) to modern applicability, showing it's a viable third way beyond capitalism and socialism, addressing both economic efficiency and human dignity.
Distributism offers a robust alternative to the Servile State by decentralizing economic power and prioritizing human dignity over systemic exploitation. This argument engages with Hilaire Belloc’s critique of capitalism’s inherent servility and Steve Baker’s call to dismantle managerialism and monetary debasement.
1. The Servile State: Capitalism’s Inevitable Trajectory
Belloc’s The Servile State (1912) argues that capitalism naturally evolves into a system where the majority labor for a propertied minority. Workers exchange wages for survival while generating wealth they cannot own3. Belloc distinguishes this from slavery but highlights its coercive core: economic necessity replaces chains, binding individuals to concentrated capital2. Steve Baker’s critique of “easy money” exacerbating wealth inequality aligns here, as central bank policies inflate asset prices, entrenching a propertied elite while locking out younger generations45.
2. Distributism: Decentralizing Power Through Ownership
Distributism counters this by advocating for:
Widespread property ownership: Productive assets (land, tools, enterprises) should be held by families, local cooperatives, and small businesses rather than corporations or the state14.
Subsidiarity: Decision-making authority rests at the lowest feasible level, fostering accountability and reducing bureaucratic bloat1.
Anti-monopoly measures: Breaking up concentrated economic power through antitrust laws and supporting worker-owned cooperatives4.
This model directly addresses Baker’s concerns about managerialism and unaccountable bureaucracies. By dispersing ownership, Distributism eliminates the need for top-down control, aligning with Baker’s call for “voluntary cooperation” and “dispersed knowledge”45.
3. The Moral Case Against Managerialism
Belloc and Chesterton viewed capitalism and socialism as two sides of the same coin: both centralize power, whether in corporate boardrooms or state ministries. Distributism, rooted in Catholic social teaching, subordinates economics to human flourishing, emphasizing dignity, community, and self-reliance14. Baker’s critique of groupthink among elites mirrors this, as managerialism’s “unexamined assumptions” (e.g., state-led progress, central bank omnipotence) ignore the moral bankruptcy of systems that reduce individuals to cogs in a machine45.
4. Practical Solutions to Modern Crises
Housing affordability: Distributism supports land reforms and community land trusts to decentralize ownership, countering speculative markets1.
Monetary policy: Rejecting fiat currency manipulation, Distributism favors localized currencies and mutual credit systems, aligning with Baker’s advocacy for “sound money”45.
Tech feudalism: The “digital servile state” of tech oligarchs can be countered by promoting platform cooperatives and data sovereignty, resisting enshittification through ownership4.
5. A Paradigm Shift Rooted in Tradition
Distributism is not utopian but historically grounded. The medieval guild system and mutualist societies demonstrate its viability14. Chesterton’s quip that “the problem with capitalism is not too many capitalists, but too few” encapsulates its vision: a society where economic participation is broad, not narrow. This aligns with Baker’s demand for a movement that “transforms the public conversation” by rejecting technocratic paternalism45.
Conclusion
Distributism offers a third way beyond the Servile State’s false choice between capitalism and socialism. By decentralizing ownership, empowering communities, and restoring moral purpose to economics, it answers Steve Baker’s call for a “free future” built on liberty, dignity, and responsibility. As Belloc warned, without such a shift, we risk collapsing into authoritarianism—a fate avoidable only by embracing Distributism’s radical yet pragmatic vision.
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You are here: Parliament home page > Parliamentary business > Publications and Records > Committee Publications > All Select Committee Publications > Commons Select Committees > Treasury > Treasury
Principles of tax policy - Treasury Contents
Written evidence submitted by the Systemic Fiscal Reform Group
1. The Systemic Fiscal Reform Group was formed in Cambridge in 2008 by a small group of individuals led by Dr Adrian Wrigley. Operating as a "think tank", we study the systems of taxation, money, subsidy and welfare as they operate in practice as well as the political economy behind them. We develop and advocate reforms we believe can be implemented by governments around the globe to improve living standards while reducing environmental damage.
2. Dr Adrian Wrigley is an entrepreneur trained in natural, engineering and computer sciences. Now working as a financial trader, he promotes a scientific understanding of the fiscal system as a whole with a view to establishing a new reform agenda. He is the principal author of this evidence.
EXECUTIVE SUMMARY
3. Historically, tax policy appears to have been based on the principle of serving powerful interest groups at the expense of the public interest. The adverse consequences of this include damage to the economy, political integrity and public well-being. These worsen over time as the private interest embed themselves in the political system expanding their power until serious failures become apparent.
4. Reform of the tax system has become imperative, moving from the present system of taxation for private interests to one where the public interest is served instead. Achieving this is only possible if the fundamental principles of tax policy and its path to reform are based both on economic and political realities. Most existing components of the tax system are neither necessary, nor fit for serving the public. They should be considered obsolescent and rapidly phased out.
5. The modern tax system is based around the repayment of privately created debt money. This is transferred through the banking system mainly from economic producers according to the market value of their production or labour. The direct effect of this choice is twofold. Firstly, the suppression of productive economic activity. Secondly, the promotion of the banking interests which operate a cartel setting the terms and conditions for issuing fresh debt money needed for public spending and payment of taxes. Unemployment, poverty, debt bubbles, poor public services and inflation are the follow-on consequences.
6. Legitimate government spending generally provides infrastructure, services and welfare payments to resident people and businesses. To benefit from this government spending, a person must own or rent a home or operate a business in the area. The monthly amount people pay to occupy their homes is set in the marketplace, based upon location and the value of natural, commercial and government amenities provided. Landlords charge monthly for these location amenities while home sellers charge a lump sum.
7. Public interest is harmed greatly by two aspects of the tax system. Firstly the granting the power to issue the the money to pay taxes (the medium of taxation) to a private banking cartel. Secondly the collection of the tax according to production contributed rather then benefit conferred to the ultimate beneficiaries, the land/homeowners.
8. Reform of the tax system will be unsuccessful unless based on sound economics and sound politics. Economics dictates the abandonment of the ill-defined "Ability to Pay" principle in favour of the "Benefit Principle", recognising that the benefits of legitimate government accrue to land/home owners and those controlling natural resources. Politics dictates that proposals creating many obvious losers cannot be implemented
9. The Systemic Fiscal Reform Group recommends a fundamentally new approach to reforming the tax system - elective reform. Taxpayers should have the right to opt out of the current system into a new system designed around sound principles.
10. Allowing people to switch out of the harmful tax system for a much sounder, simpler system would allow the economy to recover rapidly solving the toughest financial, human, environmental and economic challenges.
PRINCIPLES OF TAX POLICY ARE ECONOMIC AND POLITICAL
11. National success can only be sustained with a sound system of taxation. Sound taxation must be based on policy principles thoroughly understood by those empowered to maintain it. These must be based on an understanding of the economic principles underlying taxation. Equally important is an understanding of the political principles behind taxation.
UNDERSTANDING TAXATION
12. Taxation is central to the interests of every citizen, business and special group. Each group has its own economic interests and perspective foremost when it analyses the economy and promotes a particular viewpoint. Politicians, economists and business people rarely promote analysis which conflicts with their group interests. Clarity and analytical integrity generally work against private interests and are usually absent.
13. In this response, it is assumed The Committee is seeking to further the public interest, even where this may conflict with the private interests which usually dominate the analysis and debate. This will pose a major challenge to those who have learned their analysis exclusively through channels devoted to promoting private interests, and must "unlearn" erroneous but pervasive assumptions and principles.
WHAT ARE THE ECONOMIC PRINCIPLES OF TAXATION?
14. Taxation is at the economic core wherever government supplies significant services such as civil and military protection of property rights, infrastructure, education or healthcare. The UK is no exception.
15. Taxation comprises three fundamental economic parts:
— Creation of the medium of taxation and issue into the economy
— Distribution of the medium of taxation through the economy
— Collection of the medium of taxation
THE MEDIUM OF TAXATION
16. Over the course of history, the medium of taxation has changed several times. Under the earliest systems, taxation was paid in cattle, later moving to grain - generally rice or wheat (tithe systems) or labour (corvée systems). Whenever payments moved to metal tokens issued by the rulers, a money system was born. These tokens were usually made out of scarce and distinctive metals to prevent counterfeiting - silver, sometimes gold. The tokens would move through the economy through economic exchange, but would be demanded back by the rulers as the means of collecting taxes. Wooden tally sticks were the most successful English tax medium. The public demand of tokens to pay taxation ensures a sustained demand and maintains their exchange value across the economy.
17. Modern taxation systems are still based around the creation, distribution and collection of tokens, but the tokens now take electronic rather than physical form. These tokens are bookkeeping entries in the banking system. The structure of the taxation system and the economy it controls is determined by the rules under which these electronic bookkeeping tokens are created, distributed and collected. Coins and notes are still issued in small quantity, but are subsidiary to to the banking system's bookkeeping entries.
18. The economic power of the tax system is determined both by how and where in the economy the medium of taxation is created and where and how the medium is collected.
19. Contemporary governments grant the exclusive power to issue the medium of taxation to a state sanctioned banking cartel. The banking cartel comprises a central bank and private member banks. The central bank is responsible for price fixing, information sharing, promoting member interests and preventing member defaults. Serving the public interest is not a primary goal of a central bank. The cartel holds the exclusive power to set the price of and issue the medium of taxation. Governments generally prohibit the issue of alternative media for exchange and mandate payments of taxes only in the cartel-issued medium.
20. The collection of the medium of taxation is under direct government control. Most tax is collected whenever economic production takes place. This places a burden on producers, who must acquire the medium of taxation directly or indirectly from the private banking cartel. The economic effect of taxation is dependent on the rules for calculating the amount of tax which is paid, regardless of who the tax is collected from. Usually, the person from whom the tax is collected can pass the burden of acquiring the medium on to others, generally by paying less for economic inputs, but sometimes by charging more for economic outputs.
21. The spending power derived from taxation is shared between the government and the private banking cartel. This spending power is transmitted through the economy by banking cartel to their favoured associates, and by the government and their favoured associates. The system is effectively one of dual sovereignty since the sovereign powers of tax collecting and the corresponding issue of money is shared between the government and the banking cartel. This is the most distorting aspect of tax policy.
CHANGE THE MEDIUM OF TAXATION
22. The spending power derived from taxation should accrue wholly to the government, and not be shared with the private banking cartel. The only satisfactory ways of achieving the involve abandoning the collection of taxes through the medium of money created by fractional reserve lending. Taxation defines and underpins the money system.
23. Principle: Taxes should only be payable in government issued money:
— Money should be issued into circulation exclusively by the government when it pays wages, suppliers, pensions and welfare.
— Money should be withdrawn from circulation by the government when taxpayers pay taxes.
— Money created by private businesses should no longer be accepted in payment of taxes.
INTRODUCE FREE MARKETS, ABANDON PRODUCTION PENALTIES
24. Principle: Taxation should not interfere with free markets in labour, goods and services.
25. The following taxes depend on economic production and therefore act as production penalties: Income Tax, National Insurance, VAT, Corporation Tax, CGT, Stamp Duties.
26. By design, they impair the free exchange of labour, goods and/or services. They conflict with the above principle. They have no role in any sound tax system, and constitute major distortions in the economy. Harmful and unnecessary, they should be phased out.
CHARGING THE BENEFICIARY
27. Businesses generally charge each customer a market price for the supply of goods or services which benefit that customer. The market price balances the overall forces of supply and demand. The government should use the same principle for taxation. Understanding the nature of "the customer" is a central issue.
28. The legitimate "customers" of government activity are the owners of houses and land in the area governed. The owners of houses benefit from nearby roads, schools, hospitals, parks, police, flood defences. The owners are the ultimate beneficiary whether or not the house is owner-occupied or let to tenants. People renting property may receive these amenities, but pay for their value in their rent. Renters should not pay tax towards these amenities in addition to paying rent for them as at present.
29. Principle: Taxation should only be levied on the ultimate beneficiaries of government, in particular, owners of land and houses.
30. An alternative principle is sometimes advocated, that of "ability to pay". Superficially attractive, this concept is entirely without merit. The ultimate burden of tax is transmitted through the economy so the suppliers of economic inputs whereupon the ability to pay cannot be measured for taxation. Whenever tax exceeds the ability to pay production is lost or transfers to the black market.
31. Where the government confers a benefit exceeding the tax paid for the benefit, an implicit subsidy exists. Implicit and explicit private subsidies tend to undermine the public interest goals of tax policy and should to be avoided.
32. Principle: Taxation should be levied for the full market value of the benefit conferred by government, so avoid implicit subsidies.
WELFARE PAYMENTS MUST BE CONSIDERED WITH TAX
33. Principle: The welfare system should be fully integrated with tax.
34. The welfare system functions in ways similar to the tax system, but with the financial flows reversed. While taxes like Income Tax act as production penalties, welfare payments such as Jobseeker's Allowance function as idleness rewards. Means tested welfare payments reward profligacy, penalise saving. There is no role for rewarding idleness in a sound tax and welfare system. Means tests induce fraud and bureaucracy while disempowering citizens.
35. Principle: Means-tests and employment tests should not be part of policy.
36. The consequence of excluding means tests and employment tests is that any welfare payments should be made equally to all persons. This concept has been developed by welfare reform advocates who call it a "Citizens' Income", or a "Citizens' Dividend". It is a universal welfare comparable to universal healthcare or universal school education.
37. Principle: A universal "Citizens' Dividend" should be paid equally to all.
38. Such a Citizens' Dividend does not distort economic incentives because it is independent of any changes to economic behaviour. It neither rewards nor penalises economic activity, nor does it reward any particular family structure. It empowers ordinary people facilitating their investment in study, business or family life. It improves negotiating power with employers, and eliminates the need for a statutory minimum wage.
39. A Citizens' Dividend is exactly analogous to the dividends paid to shareholders of a business. In this case, it is the return to citizens as shareholders in society. It is paid for entirely from payments made by the beneficiaries of government amenities and services.
POLITICAL REALITY MUST BE FUNDAMENTAL TO TAX POLICY
40. Countless efforts at tax reform have been attempted across the globe. Each has been guided by principles and political pragmatics. The result has been a dramatic increase in the complexity of tax and welfare systems to the point where ordinary people cannot understand it. Even top experts consistently fail to predict how tax revenues, welfare payments will develop over time. Individuals generally have mistaken concepts about how much they pay, how much they are entitled to and how proposals would affect them.
41. Because people are generally mistaken about the impacts of policy changes, any reforms proposals quickly produce anxiety and opposition, while vested interests stoke deliberately confusion and misdirect political opinion.
42. Proposals like Land Value Taxation (LVT) have been discussed for many decades, but failed to overcome the political difficulties and obstacles presented by the vested interests.
43. Tax complexity has become a major problem to deal with, but attempts to simplify the system have consistently failed. A new approach to tax and welfare reform is essential.
44. A tax and welfare system based around the fundamental principles here is very simple. Money is spent into circulation by government for the supply of services to property owners. Money is collected from property owners according to the full monthly amenity value of the site locations. The surplus is distributed as a dividend to citizens on an equal per-capita basis.
45. Principle: Changes to existing tax policy create instability, confusion, political uncertainty, financial risk and must be minimised.
46. The transition of the tax system to one based on these fundamental principles must avoid creating economic and financial turbulence. It must avoid giving out big windfalls at public expense. And it must avoid creating losers and people who believe they are losers.
47. The new principle of tax reform is the creation of a right to opt in to a new system of taxation and welfare. People should not receive a big windfall from the public when they choose to join the new system and leave the old. As people leave the old system, it will become clear to all that the new system is superior, and in consequence the transition can be rapid. This principle overcomes political barriers.
48. It will not be usually be possible for a person to leave the entirety of the old system in a single step. The transition involves contracting with government not to pay particular types of tax in exchange for accepting an equivalent burden.
49. Payments from property owners should be regular, index linked to market values and based upon contract law, not on politically determined tax laws. Payments are independent of legal residence or personality. Citizens, corporations, non-domiciles are treated equally, removing a major cause of distortion and complexity. Establishing such payment contracts should be voluntary act which releases the person from defined obligations under the old system.
50. The Systemic Fiscal Reform Group calls these payment obligations on property "Location Value Covenants" (LVCs), which are legal covenants running with the land. They obligate the owner to pay government a defined perpetual revenue stream.
RECOMMENDATIONS
51. We recommend the Committee:
— investigates the principles and implementation of Location Value Covenants;
— investigates the impact of private money issue in the tax system;
— investigates the Citizens' Dividend as an alternative to welfare payments;
— makes public interest the sole determinant of tax principles and rejects the advice of vested interests in the financial, real estate and accounting industries;
— declares the present tax system to be not fit for purpose and beyond repair; and
— adopts the principles contained here for transitioning to a new system.
CONCLUSION
52. Development of the tax system has been constrained by political reality and driven by the demands of vested interests in finance and real estate. The fundamental principles of tax policy should explicitly incorporate the money system and the welfare system. The tax system is not fit for purpose and is beyond repair. It should be replaced by an efficient, neutral and distortion-free system based around clearly defined recurrent payments from owners of land, immovable property and natural resources based on contract law. Means-tested welfare should be replaced by a Citizens' Dividend distributing the financial surpluses of government arising from such reforms.
53. The transition to a new, principled tax system should be on an "opt-in" basis where people can choose to permanently leave the old system when they can benefit from so doing. The effect of such a transition would be an rapid and dramatic revival in economic performance without battling political headwinds.
54. The principles outlined here fully meet all the objectives of the OECD tax report and the Mirrlees Review. They meet Smith's canons of taxation and adhere to orthodox and common heterodox academic analysis. They are comprehensible and achievable.
January 2011
Reasoning Process
Okay, I need to tackle this query. Let me start by breaking down what the user is asking for. They want an integral analysis based on Adrian Wrigley's 2011 paper from the Systemic Fiscal Reform Group (SFRG), comparing it to Steve Baker's "Why We Are Fighting for a Free Future," Burnham's "The Managerial Revolution," and George Orwell's essay "Not Counting Niggers."
First, I'll need to understand each of these sources. Wrigley's paper focuses on fiscal reform, criticizing the current tax system for serving powerful interests and proposing a shift towards consumption taxes and simplified direct taxes. Steve Baker's piece argues against managerialism and central bank policies, advocating for decentralized economic power. Burnham's book discusses the rise of a managerial class replacing capitalists, leading to a technocratic state. Orwell's essay critiques imperialism and the exclusion of colonized peoples from political considerations.
The user wants an analysis that integrates these perspectives. I should look for common themes like centralization vs. decentralization, critique of technocracy, and the role of economic systems in perpetuating inequality.
Starting with Wrigley and Baker: Both criticize existing systems for serving elites. Wrigley's tax reforms aim to reduce economic distortions and empower individuals, aligning with Baker's call for a free society. However, Wrigley's approach is more technical (tax policy), while Baker's is ideological (anti-managerialism).
Burnham's managerialism relates to both. Baker's critique of technocrats and central banks mirrors Burnham's prediction of a managerial class. Wrigley's fiscal reforms could be seen as a counter to managerialism by decentralizing economic control.
Orwell's essay adds a postcolonial critique, highlighting exclusion. This ties into how economic systems (like those Wrigley and Baker discuss) can perpetuate exclusion. Orwell's focus on marginalized groups isn't directly addressed by Wrigley or Baker, but their reforms could indirectly impact inclusivity.
Potential challenges: Ensuring the analysis doesn't conflate different arguments. Also, connecting Orwell's racial critique with economic theories might be tricky. Need to find underlying themes of exclusion and centralization.
I should structure the analysis by comparing each author's view on power structures, economic systems, and solutions. Highlight where they align or diverge. For example, Wrigley and Baker both seek systemic change but through different mechanisms. Burnham's managerial class is a common enemy for both. Orwell's critique expands the discussion to include racial and colonial dimensions.
Need to check if Orwell's essay specifically addresses economic systems or if it's more about imperialism. Since the user mentioned "Not Counting Niggers," which critiques British imperialism's hypocrisy, the link to economic systems is through how colonial exploitation supported the home economy. This ties into Wrigley's point about tax systems serving powerful interests, which in a colonial context includes imperial exploitation.
In conclusion, the integral analysis should show how each author critiques centralized power structures (whether managerial, fiscal, or colonial) and proposes or implies solutions towards more equitable systems. The comparison will highlight the multidimensional critique of technocratic and elitist systems across economic, political, and social spheres.
Integral Analysis: Wrigley’s Fiscal Reform, Baker’s Anti-Managerialism, Burnham’s Managerial Class, and Orwell’s Exclusionary Imperialism
1. Adrian Wrigley’s Systemic Fiscal Reform (2011)
Wrigley’s Systemic Fiscal Reform Group submission critiques the tax system as a tool of elite interests, arguing it perpetuates economic distortion and inequality12. Key points:
Centralization of Power: Tax policy serves "powerful interest groups," entrenching wealth concentration and bureaucratic bloat.
Proposed Reforms: Shift toward consumption taxes (e.g., VAT), simplify direct taxes, and decentralize fiscal authority to reduce systemic inequities2.
Moral Framework: Emphasizes restoring public well-being by dismantling mechanisms that prioritize "private interests over the common good"1.
2. Steve Baker’s Why We Are Fighting for a Free Future
Baker critiques the "managerial revolution" (per James Burnham) and social democracy’s reliance on central banking and debt-based monetary systems4:
Technocratic Paternalism: Unaccountable bureaucracies and central banks perpetuate a "brittle social order" favoring asset-owning elites.
Decentralized Alternatives: Advocates for "voluntary cooperation," sound money, and constitutional restraints to restore individual agency.
Moral Critique: Condemns groupthink among intellectuals who legitimize state overreach, echoing Wrigley’s disdain for elite capture.
3. James Burnham’s The Managerial Revolution (1941)
Burnham predicted the rise of a managerial class displacing capitalists, wielding power through technocratic control of institutions4:
Power Shift: Managers (bureaucrats, corporate executives) replace traditional capitalists, centralizing decision-making.
Technocratic Governance: Aligns with Baker’s critique of EU-style managerialism and Wrigley’s warnings about tax systems favoring entrenched elites.
Inevitable Servility: Burnham’s dystopia mirrors Belloc’s "Servile State," where centralized control erodes individual autonomy.
4. George Orwell’s Not Counting Niggers (1939)
Orwell’s essay critiques British imperialism’s hypocrisy, exposing how colonial exploitation underpinned domestic prosperity while excluding colonized peoples from political consideration:
Systemic Exclusion: Imperialism’s economic model relied on dehumanizing colonial subjects, analogous to Burnham’s managerial class excluding the masses.
Moral Bankruptcy: Just as Wrigley and Baker condemn systems serving elites, Orwell highlights how imperialism served British elites at the expense of global justice.
Foreshadowing Technocracy: Orwell’s later works (e.g., 1984) warn of technocratic authoritarianism, linking Burnham’s managerialism to modern surveillance states.
Comparative Synthesis
ThemeWrigley (2011)Baker (2025)Burnham (1941)Orwell (1939)CentralizationTax systems entrench elite powerCentral banks and EU bureaucraciesManagerial class replaces capitalistsImperialism centralizes wealth/powerMoral CritiqueTax policy harms public well-beingManagerialism destroys liberty/dignityTechnocracy breeds servilityImperialism dehumanizes the excludedSolutionsSimplify taxes, broaden VAT, localize fiscal controlDecentralize power, sound money, free marketsN/A (descriptive, not prescriptive)Anti-imperialism, egalitarian socialismExclusionary SystemsElite tax loopholesLocked-out younger generationsMasses subordinated to managersColonized peoples erased from politics
Key Intersections
Technocratic Hegemony: Burnham’s managers, Baker’s EU bureaucrats, and Wrigley’s tax elites all represent centralized power structures that marginalize individual agency. Orwell’s imperialism extends this to racial exclusion.
Moral Bankruptcy: All four authors condemn systems prioritizing elite interests over human dignity. Wrigley’s "private interests vs. common good" mirrors Orwell’s critique of imperial hypocrisy.
Decentralization vs. Centralization: Wrigley and Baker propose localized, accountable systems (tax reform, sound money) to counter Burnham’s managerialism and Orwell’s imperial centralization.
Conclusion
Wrigley’s fiscal reforms and Baker’s libertarian vision align in rejecting technocratic centralization, while Burnham and Orwell provide historical and moral context for how exclusionary systems arise. Together, they frame a multidimensional critique of modern governance: economic centralization, whether through tax policy, central banking, or imperialism, perpetuates servility and inequality. Distributism—emphasizing localized ownership and moral economics—emerges as a unifying alternative, countering both the Servile State and managerial technocracy.
End note Reasoning process for Abstarct.
Reasoning Process
Opening statement on centralized systems.
Introduce each author and their critique (with section references).
Highlight the common themes (technocracy, exclusion).
Propose Distributism as the solution, referencing the conclusion.
Cite external works (Belloc, Chesterton, Burnham, Orwell).
Check for coherence and that each reference to sections is accurate. Ensure the abstract flows logically from problem to solution.
Okay, I need to write an abstract introduction that references specific sections from the provided analysis and includes external references. Let me start by understanding the structure of the existing analysis.
The analysis compares four authors: Wrigley, Baker, Burnham, and Orwell. Each section discusses their critiques of centralized systems and proposes solutions. The user wants an abstract introduction that references numbered paragraphs and includes external citations.
First, I'll need to summarize the main argument: critiques of centralized power structures across economic, managerial, and colonial systems, and the proposal of Distributism as a solution. The introduction should mention each author's contribution and how they interrelate.
Referencing numbered paragraphs: The original analysis has sections 1-4 and a comparative synthesis. I need to reference these sections by their numbers, e.g., §1 for Wrigley, §2 for Baker, etc.
External references: The user mentioned Burnham's "The Managerial Revolution," Orwell's "Not Counting Niggers," and Belloc's "The Servile State." I should cite these properly. Also, include references to Distributist thinkers like Chesterton and Belloc.
I need to ensure the abstract is concise, highlights the key intersections, and points to Distributism as the alternative. Make sure to mention the numbered sections where each author's arguments are detailed.