Billionaire Tax Proposal: Leading Nations Write History to End Hunger and Defy Injustice

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For the first time, the world’s richest countries are taking steps to tax billionaires globally. Economist Gabriel Zucman has introduced a simple yet powerful idea: a 2% tax on billionaire wealth. This tax could raise $250 billion every year. To put it simply, just $23 billion of that money could end hunger worldwide. The G20 nations have now agreed to work together on this historic plan. It marks a major step toward creating a fairer global tax system.
Imagine a world without hunger. According to Oxfam, $23 billion (USD) a year would be enough to eliminate hunger and malnutrition. That’s less than 10% of what a global billionaire tax could raise annually.
But the potential goes far beyond feeding the hungry. The extra funds could transform education systems, build hospitals in underserved areas, and fund vital research on climate change. Some of the money could also support startups tackling social and environmental challenges.
How a Small Tax Could Change the World
The plan is straightforward. Around 3,000 billionaires worldwide would pay a minimum of 2% of their wealth in taxes each year. Those who already pay equivalent income taxes would not be affected.
Right now, billionaires often pay just 0.5% of their wealth in taxes. Under this new proposal, their contributions would finally reflect their immense resources. Experts estimate that this change could raise $250 billion annually.
To put it into perspective: Jeff Bezos, with a net worth of over $205 billion, and Mark Zuckerberg, worth $167 billion, would both contribute substantial amounts.
From Decades of Talks to Real Progress
After more than 10 years of discussions, G20 nations have finally begun to act. Last year, they reached a historic agreement on global corporate taxes. Now, they are turning their attention to taxing the world’s wealthiest individuals.
In June 2024, Zucman presented his plan to the G20 under Brazil’s leadership. His report (“A blueprint for a coordinated minimum effective taxation standard for ultra-high-net-worth individuals“) outlined how the tax could work on a global scale, ensuring fairness and effectiveness.
G20 Leaders Commit to Change
Countries like France, Spain, Colombia, and members of the African Union have expressed strong support for the plan. At the G20 summit in Rio de Janeiro, finance ministers pledged to collaborate on taxing billionaires more effectively.
Brazil, led by President Luiz Inácio Lula da Silva, has made tackling inequality a top priority. This agreement is an important first step toward making the billionaire tax a reality.
Is the World Ready for a Billionaire Tax?
Many experts and activists see this as a turning point. NGOs have also welcomed this step by the G20. Martin Kaiser, Executive Director of Greenpeace Germany, stated:

“The G20 are not letting the world’s billionaires off the hook for their responsibility in climate destruction. The development of a billionaire tax will continue. That alone is good news for greater fairness. It cannot be that the excessive lifestyles of just a few thousand billionaires around the world are massively fueling the climate crisis, which threatens us all.”

However, not all countries are on board. Major economies like the U.S., India, and China have reservations. For now, each nation decides how to tax its billionaires.
Meanwhile, the UN has approved a new global tax agreement aimed at preventing tax evasion by the world’s ultra-rich. Advocacy groups have called this move the most significant tax policy shift in decades.
This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite Kontrast / Jasmin Mahmoud as the original source/author and set a link to this article on TheBetter.news. https://thebetter.news/portugal-drug-policy/ The rights to the content remain with the original publisher. Läs mer…

Unbreakable: Duralex Glass Heritage Saved by Its Workforce

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They complement every French bistro like a petit café after a meal: Glasses from Duralex have cult status in France and are very popular internationally. Nevertheless, after several difficult years, the French glass manufacturer was on the verge of collapse. High energy prices and declining sales pushed the company to the brink of insolvency. After multiple takeovers and bankruptcy proceedings, the workforce took charge of Duralex by founding a cooperative, preserving all jobs—and securing the company’s future.
Hailed by the New York Times as one of the best drinking glasses in the world, Duralex products are enjoying great popularity worldwide. Indiana Jones used them to drink his whiskey and James Bond managed to catch a scorpion with a Duralex glass after emptying it.
But the story of these iconic tumblers with the round belly begins much earlier in the heart of France. In 1945, Duralex was founded in La Chapelle-Saint-Mesmin, a suburb of Orléans. Since then, glasses have been manufactured here using a special, patented process and sold all over the world.
Iconic Glasses Made in France
Few drinking glasses can claim to be as sturdy and iconic as this one. In France, there is hardly any person who has not drunk out of a Duralex glass at some point. Even in school, children learn about the properties of these glasses, which can be dropped and yet will not break. For many, Duralex glasses are not only functional, but also part of their collective memory. The number in the glass bottom, an indication of the production mold, became a game for generations of schoolchildren: whoever had the highest number had to fetch the water for the others.
Long-Standing Company Under Pressure
However, the resilience of its glasses cannot be deduced from the economic resilience of the company. Duralex is not the only long-standing company that has come under economic pressure in recent years. Increasing competition from low-wage countries and high energy costs made domestic manufacturing more and more difficult. In particular, the energy-intensive process of glass tempering, in which the glass is first heated to a high temperature and then cooled rapidly, became increasingly expensive. The company was only incurring losses.
Ultimately, the pandemic dealt Duralex the final blow. Insolvency seemed inevitable. After several changes of direction and insolvency proceedings, the company even suspended production for a short time.
Two companies submitted takeover offers. Both included plans for massive job cuts. The case was taken to court in Orléans.
Duralex Employees Set Up a Cooperative and Secure All Jobs
After tough negotiations, the court in Orleans ruled in July 2024 to accept the employees’ plan to found a cooperative. The workforce saved all jobs by uniting more than half of its members to take control over the future of the iconic glasses and invest in their own company. In a statement, the newly founded cooperative said:
‘We are taking our destiny into our own hands and are determined to advance our company, an icon of French industry, in an ambitious transformation project.’
There was support from politicians and authorities. The cooperative received around €10 million to purchase the production site and preserve jobs in the factory and at suppliers.
But more power brings greater responsibility. The employees are now involved in all decisions in a board of directors. They elected the former plant manager, François Marciano, as director. He is supposed to help them get the company back on track. The first step is to convince the rest of the workforce and then the whole world of the new business model.
Raising a Glass to Duralex’s Cooperative Future
The aim is to reduce the high production costs by investing in renewable energies and to make Duralex profitable again by developing new products. To do this, the company needs to modernise its machinery and structures. It wants to build up rather than down. Duralex plans to set up more departments to make sales and marketing more professional.
The renewed attention Duralex is receiving has already boosted demand for its iconic glasses. The cooperative aims to restore profitability within the next five years.
This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite Kontrast / Justus Hartmann as the original source/author and set a link to this article on TheBetter.news. https://thebetter.news/duralex-cooperative/

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“No One Pays Less Tax Than Billionaires” – Renowned Economist Zucman Calls for a Global Wealth Tax

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The richest people pay the least taxes. What sounds like a story from the Middle Ages is a reality in 2024. We spoke with renowned economist Gabriel Zucman about why this is a problem and what we can do about it. His solution: a global wealth tax.
Interviewer: Can you explain the impact of tax evasion by multinationals and the super-rich on broader society?
Gabriel Zucman: The main impact is that it increases inequality. When the richest people avoid taxes, the rest of the population has to pay more. This allows the super-rich to accumulate even more wealth, which makes inequality worse. That’s why it’s so important to fight tax evasion.
Corporations and the super-rich use tax havens like the Cayman Islands to hide their money from tax authorities (source: unsplash)
Interviewer: If we could reduce tax evasion, what benefits would there be for the average citizen?
Gabriel Zucman: Firstly, if the richest people and multinational companies paid their fair share of taxes, the rest of us could see lower taxes on income and consumption, like VAT. Secondly, more tax revenue could go to essential public services like education, healthcare, and infrastructure. These are key drivers of economic growth. Overall, this would boost prosperity for everyone.
Interviewer: What specific actions can Austria and the EU take to combat tax evasion by the super-rich and multinational firms?
Gabriel Zucman: There’s a common belief that individual countries can’t effectively address tax evasion, and that these issues can only be solved globally. This is not true. Any country can take action, like imposing a minimum tax on multinational firms. While there’s a global minimum tax of 15%, Austria could increase it to 20% or 25%. Läs mer…

Gas Price Cap, Rent Controls, and Affordable Food: Why Spain’s Economy is Booming

Publicerad denFörfattareSophie Wenkel

While the economy in some EU countries is stagnating and even slipping into recession, Spain’s economy is showing rapid growth. Spain’s socialist Prime Minister, Pedro Sánchez, has implemented government interventions to regulate prices. This approach has kept inflation low over the past few years and stimulated economic growth. As a result, Spain is now a driving force within the EU and is projected to have the highest economic growth rate in the Eurozone for 2024.
Price Controls as a Successful Economic Strategy
Spain is one of the EU countries that has weathered the COVID-19 pandemic, energy crisis, and inflation surge particularly well. Its economic growth in recent years has far surpassed the EU average, and predictions for 2024 estimate a growth rate of 2.4–2.7%, making Spain the fastest-growing economy in the Eurozone. The Sánchez government took action during the energy crisis by intervening in prices, which helped keep inflation consistently low. Key measures included a gas price cap and rent controls, which helped curb price increases. In addition, the government suspended VAT on essential food items, helping to ease the burden of rising food costs.
Immigration as a Key to Spain’s Prosperity
Another factor behind Spain’s strong economic growth is the influx of skilled workers, particularly from Latin America. This immigration has eased the labor shortage in sectors like technology and hospitality. New immigration policies are expected to support this trend further.
While many European countries focus on restricting immigration, Spain has embraced an open approach. In mid-October 2024, Sánchez presented his plans to the Spanish Parliament, emphasizing that immigration is not only a humanitarian issue but also essential for the country’s economic future:
“It is necessary for the prosperity of our economy and the sustainability of the welfare state.”
The government plans to simplify the recognition of foreign qualifications, introduce a new labor migration program, and reduce bureaucratic hurdles for residence permits. At the same time, integration measures are being expanded.
Lowest Unemployment Rate in 15 Years
Spain’s unemployment rate skyrocketed following the financial crisis of the late 2000s. However, it has now fallen to around 11.3%, the lowest level in 15 years. This improvement is largely due to the robust economic growth under Sánchez’s leadership during recent crises.
Despite being high by European standards, many sectors in Spain, such as technology and construction, are facing a shortage of skilled workers. Rural areas, in particular, are struggling with depopulation and are finding it increasingly difficult to maintain essential infrastructure.
“We have elderly people who need caregivers but can’t find them. Businesses are looking for programmers, technicians, and builders but can’t find them. Rural schools need more children to avoid closing,” said Prime Minister Sánchez.
Sánchez also plans to ask the European Commission to bring forward the implementation of the EU-wide migration pact to next year. Under this plan, migrants and asylum seekers would be more evenly distributed among EU member states based on factors like GDP and population.
Spain’s Financial Market More Stable than France
Spain’s positive economic developments are also reflected in its financial market. Recently, the yields on 10-year French government bonds surpassed those of Spain for the first time. In simple terms, investors now receive a higher return for purchasing French government bonds compared to Spanish ones, suggesting that investors see Spain as a lower-risk country than France, the EU’s second-largest economy.
In January 2024, Spain’s bond yields were still 0.4 percentage points higher than France’s. During the worst of the Eurozone crisis, the difference between Spanish and French bonds was nearly five percentage points.

This article was updated on October 11 to include the information that Spain intends to focus on migration in its labor market policy in the future.
This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite Kontrast / Michael Thaler as the original source/author and set a link to this article on Scoop.me. https://thebetter.news/spain-economy-boom/

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Former Coal City Becomes Climate Leader: Bottrop’s Energy Transition

Publicerad denFörfattareSophie Wenkel

The energy transition—shifting from coal, oil, and gas to renewable energy—only works if everyone can participate. Bottrop, a city in western Germany, shows how this can be done. Once a coal-mining hub, Bottrop has transformed by replacing heating systems, renovating buildings, and installing solar panels—all in just a few years.
The energy transition is crucial for addressing the climate crisis. As a result of the ongoing use of fossil fuels like coal, oil, and natural gas, the planet continues to warm. Consequently, the effects are becoming clearer each year: longer, hotter summers, drying rivers, and heavy rains that cause floods.
In order to tackle the climate crisis, we must stop using fossil fuels. For instance, cars need to run on electricity from water, wind, and solar power. Oil and gas heating systems should be replaced by heat pumps. Furthermore, district heating systems must switch to renewable energy like geothermal power.
Bottrop: From Coal Stronghold to Energy Leader
Achieving this transition requires action from everyone. Cities around the world are involving their residents, and Bottrop is leading the way. Over the past few years, the city has replaced heating systems, upgraded buildings, and installed many solar panels. As a result, Bottrop leads Germany in heat pumps and has the highest number of solar installations in North Rhine-Westphalia.
So, what made this possible? The answer lies in a proactive energy policy that directly engages the community.
Unlike many cities where people need to find advice on their own, Bottrop’s approach is more hands-on. Energy advisors go door-to-door, speaking directly with residents about renovation options. The city also holds workshops and information sessions to encourage more people to get involved.
A Fair and Collaborative Approach
Research shows that climate policy success depends on how it affects people’s lives and how fair it is. Bottrop’s “One-Stop-Shop” model ensures residents get all the help they need in one place. This includes technical advice and financial support, thus making the energy transition easier for everyone.
Moreover, this model is becoming popular across Europe. It helps residents find the best deals for renovations and works with social housing to ensure that improvements benefit everyone, including those in affordable housing.
Public Support is Key to Success
Bottrop shows the real challenge isn’t the technology. The tools for the energy transition already exist and continue to improve. Instead, the challenge is getting people involved. Residents must be willing to replace heating systems, renovate homes, and support new wind turbines and power lines. They also need to support policies that create the legal framework for these changes.
Bottrop has proven that with support and involvement, the energy transition can succeed. This success offers a model for other cities working toward a sustainable and fair future.This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite Kontrast / Kontrast Redaktion as the original source/author and set a link to this article on Scoop.me. https://thebetter.news/former-coal-city-climate-leader-bottrop-energy-transition/

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Historic decision forces corporations to pay minimum of 15% tax globally

Publicerad denFörfattareKontrast.at

Multinational corporations such as Amazon, Facebook and Apple will now have to pay a minimum global tax of 15%. Even hiding their profits in tax havens won’t help. They will have to pay tax where they generate their profits, not where they produce or where they have their fictitious headquarters. This has been agreed by 138 countries after years of negotiation. This global tax is now coming into force – a “reform of the century” on the road to fair taxation.
OECD countries and the G20 nations have been negotiating global tax justice for more than ten years. In 2021, 138 of the 141 countries agreed on a two-pillar reform; a minimum tax rate of 15% and a tax shift away from the place of production to the place where profits are made. The regulation will come into force in January 2024.
The basic idea is simple. If profits in tax havens are taxed at a higher rate, it pays less for companies to shift their profits there. This won’t only effect stereotypical tax havens such as the Caribbean islands, where there is often no corporation tax at all. Tax havens within the EU, such as Ireland with 12.5% corporation tax or Hungary with 9%, are also set to be hit.
“The principle of paying taxes where profits are generated is gaining acceptance and a common tax rate of 15 per cent puts a stop to destructive downward tax competition,” says Evelyn Regner. The MEP (Social Democratic Party of Austria) has been campaigning for fairer taxation of corporations at the European level for years.
Despite criticism that China and the USA are not on board, and that a global tax rate of 15% is too low, there has never been a comparable regulation before.
“For the first time in the history of taxation, states are being given the right to tax profits generated in other states according to agreed rules,” write tax experts Prof Dr Deborah Schanz and Dr Ulrike Schramm.

A MINIMUM TAX RATE OF 15 % COULD BRING IN AN ADDITIONAL 220 BILLION DOLLARS
The minimum tax rate will apply to all groups with an annual turnover of more than 750 million euros – regardless of whether the parent company or only one subsidiary is based in an EU member state. This affects around 7,000 to 8,000 companies worldwide and, according to OECD calculations, is likely to generate around 200 billion dollars in additional taxes.
For Austria, the tax office is expecting 100 million euros in additional revenue from 2026. According to economist and head of the tax department at the Vienna Chamber of Labour, Dominik Bernhofer, this could even amount to 200 to 300 million euros per year. In the long term, it could be even more, as there will be less profit shifting and tax competition. Together with his colleague Professor Matthias Petutschnig from the University of Vienna, Bernhofer looked at 19 of the largest Austrian companies. These include the cardboard group Mayr-Melnhof, banks such as Erste Bank and Raiffeisen, Vöst and Andritz. According to them, these 19 companies alone would have to pay a good 130 million euros more per year.
AUSTRIAN PEOPLE’S PARTY REPEATEDLY OPPOSED TRANSPARENCY DIRECTIVES AT EU LEVEL
Conservative and liberal governments in Europe have been resisting tighter taxes for corporations for years. The Irish government, for example, once declared that it did not want Apple to pay any back taxes, even though this would be necessary under EU law. Austria’s Austrian People’s Party (ÖVP) finance ministers are also taking part in the blockade games. Back in 2018, the then ÖVP Finance Minister Löger blocked tax disclosure by large corporations at EU level. His predecessor Schelling – also ÖVP – also blocked the EU’s planned financial reporting obligation for large corporations in 2016.
The Austrian parliament decided in 2019 that Austria should campaign for more transparency and tax disclosure, no matter who is finance minister in the future. Despite this decision, Austria abstained from another vote at EU level in 2021, once again preventing a push for greater tax transparency. The Finance Minister at the time was Gernot Blümel (ÖVP).
This work is licensed under the Creative Common License. In case of new republication, please cite Kontrast.at/Ingo Geiger as the Source/Author and set a link to the article in English: https://thebetter.news/global-minimum-tax-rate/

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Colombia strengthens regional economies and promotes cooperation instead of competition

Publicerad denFörfattareKontrast.at

Latin America is emerging as the place to look for alternatives to the neoliberal economic system. In Colombia, the Gustavo Petro led government has spent the last year restructuring the previously isolated sector of small businesses and cooperatives. Petro wants to shift away from this model, and into a solidarity-based system. 
The German-language Latin America news portal amerika21 reports that the establishment of a solidarity sector is intended to promote small domestic companies in Colombia. These companies include coffee producers, food vendors, artists and small businesses in the construction sector. The Colombian government has already initiated solidarity-based associations of micro-businesses in eleven regions, with a total of 33 of these projects planned. At a year-end meeting in Ibagué, 3,200 organisations celebrated the development of the solidarity economy in the country.
NEW ECONOMIC APPROACH: COOPERATION INSTEAD OF COMPETITION
The co-operatives, small businesses and small-scale farmers in the eleven regions have joined together to form so-called circuits. This means that, based on the interactions between their products and services, the businesses have also formed cross-sector networks. For example, the “Circuit for Industry, Trade and Tourism” has been created in the northern department of La Guajira and the “Circuit for Tourism and Renewable Energies” in the desert region of Tatacoa.
In the “Solidarity Network of Coffee” (Cafesol) in the department of Huila, small coffee farmers can now join forces instead of competing against each other.
PETRO WANTS TO FAVOUR COOPERATIVES FOR CONTRACTS
Last year, the government department for solidarity organisation in Colombia launched a project to create a solidarity sector. Initially, the department organised local meetings on the topic of the solidarity economy, where small-scale farmers, cooperatives and micro-enterprises could get to know each other and exchange ideas. Entrepreneurs were then trained to take on leadership positions in an educational programme. This enabled existing cooperatives to be strengthened and new cycles to be established.
President Gustavo Petro emphasises the strategic importance of the solidarity sector for the economy in Colombia:
“We want associations of small shopkeepers alongside the financial cooperatives. We want associations of small potato farmers who join forces to obtain subsidised loans so that they can begin the light industrialisation of their products.”
In addition, 30% of state contracts will no longer be carried out by large companies in future. Rather, they will be taken by joint co-operatives. This applies to projects such as road construction. The mergers of small companies therefore make it possible to complete larger contracts, which in turn generates more profit for the sector.
SOLIDARITY-BASED ECONOMY INSTEAD OF NEOLIBERALISM
The Colombian government under the presidency of Gustavo Petro shows that there are alternatives to the neoliberal model. Instead of emphasising competition, the economy is to be geared more towards a principle of solidarity by promoting the cooperative sector. The project suggests that it is possible to strengthen the local economy with the help of small businesses and cooperatives. With the development of a solidarity-based sector, small businesses can be maintained and further developed collectively.
This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite Kontrast.at / Anna Drujan as the original source/author and set a link to this article on Scoop.me. https://thebetter.news/colombia-promotes-economic-cooperation/

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Complete success for the 4-day week in South Africa: 90% of companies want to keep it

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South Africa has become the latest in a long list of 4-day week trialists. Here, the test run was a complete success. Not only the employees, but also over 90% of participating companies want to keep the reduced working hours with the same pay. This is in line with the global trend. However, one small detail distinguishes the African country from previous tests – very few South Africans want to have Fridays off.
The test of the 4-day week in South Africa has been running since 1 March 2023. 28 South African companies and one company from Botswana took part. Most of them are in the IT, finance and recruitment sectors. But how exactly does a study like this work?
Essentially, employees only work four days a week instead of five, do the same work and receive the same salary. Unlike in most previous trials, each employee in the 29 companies was allowed to choose their own day off.
As in the previous tests, the results are consistently positive, both for the employees and for the companies.
RESULTS: LESS STRESS & BURNOUT AND MORE JOB SATISFACTION
After around six months, the first results are now available. These are similar to the results of trials already carried out in other countries. The employees report that they were:
– less stressed
– sick less often
– enjoyed going to work more than before the trial
The mood of trialists had also improved at home as a result of the reduction in working hours. The frustration and stress normally induced by a long week were not taken home from work.
The participating companies are also satisfied, as productivity has remained the same. In the long term, it could even increase as a result. This is because staff turnover fell during the test phase, i.e. fewer employees left the company during this time. This means that the company’s expertise and experience is retained.
Around 92% of the participating companies plan to retain the 4-day week. However, there is one peculiarity that distinguishes South Africa from fellow trialists. While employees in other countries mostly want Fridays off, it is not so clear in South Africa. Only around a quarter of them took Fridays off.
TEST OF THE 4-DAY WEEK IN SOUTH AFRICA IS PART OF A GLOBAL SERIES OF EXPERIMENTS
The study is part of a whole series of tests being carried out by the non-profit organisation “4 Day Week Global”. It has already been successfully implemented in several countries around the world, including Australia, Spain, Japan, the UK and Iceland. The results have been consistently positive.
Iceland is one of the first countries to de facto introduce the 4-day week following a successful test. The reduction in working hours is already a reality for almost 80% of Icelanders.
THE 4-DAY WEEK IN AUSTRIA?
In contrast to South Africa, a 4-day week test has yet to be carried out in Austria. Nevertheless, there are already some companies that have switched to the 4-day week on their own. For example, the Upper Austrian IT company Tractive. A detailed list of companies that have already opted for shorter working hours in Austria can be found here:
This work is licensed under the Creative Common License. It can be republished for free, either translated or in the original language. In both cases, please cite Kontrast.at / Ingo Geiger as the original source/author and set a link to this article on Scoop.me. https://thebetter.news/4-day-week-south-africa/

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The Swedes defy Elon Musk and bring Tesla to a standstill.

Publicerad denFörfattarethomas

The Swedes have brought Tesla to a standstill. Billionaire Elon Musk’s company refuses to negotiate with the Swedish union over wages and working conditions. As a result, 120 Tesla mechanics went on strike. Workers in transportation, postal services, cleaning, and other industries quickly joined the strike. Now, the strike could potentially spread to other European countries.
Elon Musk is far from a friend of labor unions. The billionaire and CEO of Tesla and X (formerly Twitter) have been cracking down on worker organizing in his companies worldwide. Union members at Elon Musk’s companies are fired, and their activities are spied upon.
This anti-union policy is now being pursued by the billionaire in Sweden as well. However, Swedish unions are not backing down. What started as a conflict between Tesla management and 120 Swedish workers has now paralyzed the company. The likelihood of the conflict expanding to other European countries is increasing.
Musk is against collective bargaining agreements
In Sweden, as in most European countries, wages and working conditions are regulated by collective bargaining agreements. Unions negotiate a contract with management that applies to all employees.
Musk and Tesla, however, do not support such collective bargaining negotiations. Those who want to work at Tesla must negotiate wages and working conditions individually with management. The result for most Tesla employees is that they earn less than their counterparts in other companies in the industry.
Tesla is in constant conflict with labor unions. However, the electric car company is likely to face a tough challenge from Sweden’s labor unions. Foto (unsplash)
This is also the case in Sweden. There, 120 mechanics in Tesla’s Swedish subsidiary are said to earn less than the industry average and have worse pension and insurance conditions. For years, the Swedish Metalworkers’ Union has been trying to convince Tesla to sign a collective bargaining agreement to address this issue. However, the company has not budged, leading the 120 Tesla mechanics to go on strike.
Post, transportation, suppliers – no one wants to work for Tesla anymore
The 120 mechanics, however, were not alone for long. Dockworkers supported the Tesla workers and blocked the import of new Tesla vehicles through the country’s ports. Workers at a Tesla supplier, Hydro Extrusions, which manufactures aluminum components for Tesla, are also now supporting the strike. Production has come to a halt until Tesla meets the demands of its workers.
Taxi drivers, cleaning staff, and painters have also joined the strike. Stockholm’s largest taxi company no longer buys Teslas for its fleet, cleaning staff refuse to clean Tesla buildings, and painters refuse to repaint Teslas.
Cleaning staff, in solidarity with the striking Tesla mechanics, refuse to clean Tesla’s buildings.
However, Tesla is particularly affected by the actions of the state-owned postal company, Post Nord. In Sweden, vehicle license plates are only sent from a central location: Post Nord. Post employees are now refusing to send license plates for Tesla. You can still buy a new Tesla in Sweden, but you can’t drive it. Tesla is now seeking a court ruling to have license plates delivered for their cars.
Musk calls strike “insane”
Elon Musk and Tesla have remained silent on the strikes in Sweden so far. However, when postal workers joined the strike, he commented on X (formerly Twitter): “This is insane.”

This is insane
— Elon Musk (@elonmusk) November 23, 2023

Tesla is reportedly planning to fly in workers from other countries to undermine the strike. The head of the Metalworkers’ Union, Marie Nilsson, commented on this, saying, “We haven’t seen anything like this in Sweden since 1937 or so.” The following year, 1938, is considered the beginning of the Swedish social partnership.
The unions won’t back down, according to the head of the Swedish Trade Union Confederation, Susanna Gideonsson:
“It will end with the employees getting a collective agreement in one way or another.” When asked what would happen if Tesla doesn’t sign a collective agreement, she replied: “Then Tesla can leave the country.”
First Sweden, then Europe?
The strike in Sweden could end disastrously for Tesla. Unions in Norway have already announced their intent to prevent Teslas from entering Norwegian ports and being transported to Sweden by land. The strike could also spread to Denmark. Post Nord, the state-owned postal company that does not send Tesla license plates in Sweden, operates in the neighboring country as well.
However, the biggest threat to Tesla lies in Germany. In 2022, the company opened a large factory with around 11,000 employees (according to Tesla) there. This factory produces the majority of Teslas for the European market. Similar to Sweden, Tesla is refusing to negotiate with unions in Germany over wages and working conditions.
The factory in Germany reportedly has a high number of workplace accidents. Employees also criticize significant work pressure and the lack of safety and health precautions.
Elon Musk is facing increasing pressure
The Tesla CEO is already under significant financial pressure. His acquisition of Twitter (now X) did not go as planned. The social media platform has lost thousands of users in recent months and has been plagued by negative press, including massive layoffs. Musk largely financed the purchase of Twitter with Tesla shares.
However, things are not going well for Tesla either. The production of the new Cybertruck model is facing significant challenges. Thousands have already pre-ordered the Tesla pickup truck, but due to rising raw material prices and planning issues, Tesla seems unable to fulfill the orders.
“With the Cybertruck model, we’ve dug our own grave,” Elon Musk told investors.
There are also problems with existing models. Tesla had to recall 55,000 cars just last month. In addition, Tesla is being investigated for fraud. Tesla is accused of misleading customers and potential buyers about the ability to use the autonomous driving mode.
If the strike in Sweden spreads to other European countries, it will further increase the political and financial pressure on Tesla and Elon Musk. Läs mer…

Fairer Taxes and Inheritance for all: The economic Plans of Star Economist Piketty

Publicerad denFörfattareKontrast.at

Thomas Piketty is probably the best-known economist of our time. In his works, he presents proposals on how we can make our economy and society fairer and more democratic. Pikettys economic plans include more economic co-determination, fairer taxes and a stronger welfare state. We have collected his most important demands and show what he stands for.

DISTRIBUTING PROSPERITY MORE FAIRLY
The entire history of mankind is characterized by great inequality. A few people own the majority of the wealth, the rest share what remains. This small group of people is not only extremely wealthy, but also largely controls politics and the economy. Star economist Thomas Piketty wants to change this. He has developed reform proposals that distribute the wealth of our society more fairly and make our lives more democratic. The most important pillars of his reforms are economic co-determination, fairer taxes and a stronger welfare state.
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PROFIT INTERESTS USUALLY DECISIVE IN THE WORKPLACE
We spend a large part of our lives at work. While we make democratic decisions in almost all areas of life, there is hardly a trace of democracy in the workplace. In almost all companies, the owners alone make the decisions and employees have to follow suit. At most, they have a say. This is a particular problem because owners and employees often have completely different interests. The workforce wants good, stable jobs that will enable them to provide for themselves and their loved ones in the long term. Owners are primarily interested in profits. Everything else is secondary.
This contrast is particularly extreme in the case of large stock corporations. Shareholders are rarely involved in the work of the company and are often scattered all over the world. Their interest in the company is limited to how much money they can make with their shares.
MORE CO-DETERMINATION CAN MAKE COMPANIES MORE SUCCESSFUL
Piketty wants employees to have a say in their company. They should have half of all voting rights in large companies. If the owners want to change something in the company, they must therefore negotiate with the workforce. If the workforce has new ideas, they can push them through with the support of one vote from the owners. Piketty argues as follows:
Nothing guarantees, for example, that shareholders are more likely than employees to be able to manage a company or invest more in the economic project in the long term. Often enough, the opposite is true: an investment fund can get in and out of the company in the short term, while the employees have generally invested a significant part of their lives, energy, knowledge and skills in it.
In addition, unlike shareholders, employees often live in the vicinity of the company. If the company operates in an environmentally damaging way or if many employees suddenly resign, this has a direct effect on the lives of the employees, but hardly on the lives of the shareholders.
In working life today, those who have money decide, and the rest must follow. Piketty wants to democratize our working world. This should mean that our economy is not exclusively geared towards the profit interests of a few entrepreneurs, but towards the well-being of the entire population. With half of the voting rights, employees could ensure that the focus of their company is on the well-being of employees and local residents as well as the long-term positive development of the company, rather than just profits for owners.
THE BIGGER THE COMPANY, THE MORE DEMOCRACY
How voting rights are distributed in a company should, however, depend on the size of the company. Piketty’s principle here is: The more people work in a company, the more people need to be involved in decision-making. Let’s look at this using an example:
If a company has, say, fewer than 10 employees, the owner(s) can make all decisions alone. Only from the 10th employee onwards do the employees have half of the voting rights. From then on, the owner needs the support of at least one employee to make major decisions.
STRONGER WELFARE STATE INCREASES QUALITY OF LIFE
For Thomas Piketty, the welfare state is one of humanity’s greatest achievements. Free healthcare has caused our life expectancy to explode, free education has led to better technologies and products as well as more self-determination, and collective agreements and minimum wages guarantee that people no longer have to toil for a pittance.
Piketty wants to further expand these social achievements in order to reduce inequality and improve people’s quality of life.
ALL CHILDREN HAVE A RIGHT TO EQUAL EDUCATION
For Piketty, education is the basis for equality. Therefore, one of his most important demands is that all pupils have access to a well-funded public education system and that resources in the education system are distributed fairly.
Piketty criticizes countries such as the USA, where private schools and private universities play a central role, but also shows that in Europe education depends on income.
Using France as an example, he explains that the state spends three times as much on pupils who attend the country’s best educational institutions as it does on pupils who attend financially disadvantaged schools.
However, elite schools are often attended by the children of wealthy families, while children from low-income families often end up at disadvantaged schools. This further increases social inequality. Children from rich families benefit from the best public education, while children from poorer families receive a much poorer education.
This should change. The star economist is calling for “all children to be entitled to the same education spending”. State investment in the education system should not only be increased, but also redistributed. Instead of providing particularly strong support for children from wealthy families, schools with children from low-income families should receive more funding.
ALL PEOPLE HAVE A RIGHT TO A BASIC INCOME AND A JOB
The star economist also calls for everyone to have the right to a basic income that guarantees their livelihood. Although there are already programs in many countries, such as the minimum income in Austria, Piketty proposes reforms in this area. Everyone should be entitled to this basic income, including students and the homeless. In addition, people with an income below the basic income should automatically be topped up to this level without having to apply.
Piketty also advocates a state employment guarantee. Every person who cannot find a job on the labor market would be allocated a position in the public or charitable sector. The aim here is not to pay a pittance, but a decent wage with which employees can make a living.
A BASIC INHERITANCE FOR ALL
Inheritances are extremely unequally distributed. While the majority of Austrians inherit little to nothing, the richest people in the country have mostly received their wealth from mom and dad. Piketty wants to democratize inheritance. In concrete terms, this means that everyone receives an unconditional basic inheritance on their 25th birthday. This inheritance should amount to 60 percent of a country’s average wealth. In Austria, that would be around 120,000 euros. This basic inheritance is to be financed by taxes on large inheritances and assets.
This basic inheritance is intended to guarantee young people an easier start to adult life. They could use it to finance the down payment on an apartment or start a business, for example. When asked whether young people would not simply squander this gift of money, the economist replies:
“This can happen to rich people as well as poor people. I don’t believe that the children of millionaires only do clever things with their money. Rather the opposite.”
LIMITING PARTY DONATIONS
In order to protect our democracy, Piketty believes that the financing of political parties must be completely reformed. Today, corporations and the super-rich can buy political influence through party donations. We saw this in Austria under former Federal Chancellor Kurz.
Piketty wants a “total ban on all party donations from companies or other corporations” in conjunction with “a radical cap on donations and contributions from private individuals”. Private individuals should only be allowed to donate a few hundred euros per year to political parties. Instead, every citizen should have a certain quota of state funding at their disposal, which they can allocate to parties or political movements.
PIKETTYS ECONOMIC PLANS: WEALTH AND INHERITANCE TAX SHOULD FINANCE REFORMS
But how does Piketty want to finance all these reforms? By changing the tax system. The two basic ideas: the tax system should be simplified and the richest should be asked to pay more so that the majority of society can be relieved.
The basic elements of this are the introduction of a wealth and inheritance tax and a more progressive income tax. In addition, a progressive CO2 tax should be introduced and indirect taxes such as VAT should be abolished.
For Piketty, wealth and inheritance taxes are a key tool for achieving a fairer society. Austria does not have either of these taxes, although the vast majority of the population would be in favor of their introduction.
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Piketty’s concept of inheritance tax works similarly to that of income tax. Small and medium-sized inheritances should be taxed little or not at all. The higher the inheritance, the larger the share that has to be shared with the public.
In contrast to inheritance tax, which is only levied once, wealth tax is an annual tax. For taxes below the average wealth, an annual tax of 0.1 percent is levied. Similar to income tax and inheritance tax, wealth tax also increases with the amount of wealth. At 2 times the average wealth, the tax is 1 percent, 10 percent at 100 times, 60 percent at 1,000 times and 90 percent at 10,000 times.
To fall into the highest tax bracket here, you need assets of 2 billion euros. This top tax rate would only affect around the richest 20 Austrians.
LARGE INCOMES TAXED MORE HEAVILY
Even today, large incomes are taxed more heavily than small incomes in most countries. While top tax rates today are around 50 percent, they were significantly higher in almost all industrialized nations until the 1980s, reaching over 80 percent in the USA and the UK, for example. Since then, taxes have been cut for the rich and an ever greater proportion of the tax burden has been borne by small and middle incomes.
Piketty wants to reverse this trend and make the richest people pay more tax again. People whose income is around 10 times higher than the average income should pay between 60 and 70 percent income tax. Incomes that are 100 times higher than the average should be taxed at 80 to 90 percent.
INDIRECT TAXES ONLY WITH A STEERING EFFECT
In Piketty’s view, indirect taxes have no real justification unless they are intended to correct negative behavior. Accordingly, taxes such as a tobacco tax would be justified, but VAT would not.
The consumption of tobacco has serious health effects and causes enormous costs in the healthcare system. A tobacco tax makes cigarettes expensive. This is intended to discourage people from consuming tobacco. So there is a steering effect here.
This steering effect does not exist with VAT, for example. Whether staple foods such as bread or potatoes are taxed will make little difference to whether I buy these foods or not. They are essential for survival. So there is no steering effect here.
VAT in particular is an enormous burden for low-income households. Abolishing it would help these people in particular.
CO2 TAX SHOULD PARTICULARLY AFFECT THE SUPER-RICH
An indirect tax that is central to Piketty’s economic model is the CO2 tax. Unlike most current CO2 taxes, however, Thomas Piketty calls for a progressive CO2 tax. This means that the more CO2 a person consumes, the higher the tax rate at which consumption is taxed.
Data shows that a large proportion of CO2 emissions can be attributed to a relatively small group of super-rich people. This progressive CO2 tax would primarily affect this group.
The money raised from this tax will be used to support low- and middle-income households to switch to sustainable energy.
PARTICIPATORY SOCIALISM
Thomas Piketty calls his economic model participatory socialism. His demands are intended to ensure that it is not the richest in our society who call the shots, but that we all have an equal say in the direction in which our country and our world should develop.
The star economist takes up many of the demands already propagated by great social democrats such as Bruno Kreisky, Willy Brandt and Olof Palme. However, he modernizes them and goes one step further. His reforms would create a level of social equality and justice that has never been seen before, and guarantee that democracy permeates all areas of our lives and does not stop at the office door.
We must flood all areas of society with democracy. – Bruno Kreisky, former Chancellor of Austria
Who is Thomas Piketty?
Thomas Piketty received his doctorate in economics at the age of 22 and became a professor at the Massachusetts Institute of Technology at the age of 26. He is the founding director of the Paris School of Economics and also works at the École des Hautes Études en Sciences Sociales (EHESS). His research focuses on social inequality and the question of how we can create a fairer economic order. In 2014, Piketty published Capital in the 21st Century, which brought him worldwide fame.

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