What follows is a contribution from Pat McCutcheon. Pat will be moderating an online forum about SOLAR ENERGY for the Canada West Forum Society. This is part of our series on energy and is open to anyone without charge.

1. Powering the Future
2. Harnessing Wind Energy
3. Geothermal Opportunities
4. Friday, May 15, 9 am — Harnessing the Sun (Solar Power) —— ZOOM INVITATION
5. Pending — High Demand Users (LNG & Data Centres)
6. Pending — Electricity Efficiency: Doing More with Less

Global financial markets are estimated to be worth $500 trillion, while global GDP is only estimated to be worth $100 trillion. This means that 80% of financial markets are not involved in producing the goods and services our society relies on to function properly. $400 trillion dollars is effectively sloshing around in financial instruments such as options, futures, polymarkets, crypto, and God knows what else. These financial instruments are effectively casino bets, nothing more. And yet they are tax-advantaged.

Meanwhile, the actual builders of our society, the healthcare professionals, educators, tradespeople, small business owners, etc., are taxed 100% on their salaries. This is upside down. The tax code needs to change to support the builders and remove any advantage to the gamblers.

Stock ownership also needs to have its tax-advantaged status overhauled. There are actually two stock markets, primary and secondary. The primary market handles new shares being issued by a company in order to raise capital. If you buy shares on the primary market, your investment goes directly to the company. It could be argued that some tax advantage should exist for this type of investment, especially if the company is a startup.

On the other hand, the secondary market is a stock exchange. When you buy shares on the secondary market, none of your money goes to the company whose shares you are buying. Your money goes to the individual who is selling the shares. This is similar to buying a used fridge from your neighbour down the street. Whatever you paid for the fridge goes to the neighbour, not the manufacturer. This type of transaction is not really an investment. It is a transfer of ownership and should not be tax-advantaged.

Financial markets need to be exposed for what they have morphed into. There still exists an element within financial markets that raises capital for companies and supports our economy. However, 80% of financial markets are a casino serving no benefit to our society (i.e., trading crypto), and they deserve no financial benefit.

Of course, it is the wealthiest citizens in our society that inhabit the global financial casino and benefit from it. The capital gains need to be taxed appropriately.

Even Warren Buffett, one the world’s 15 wealthiest citizens, is now referring to the markets as a casino.

This is from Yahoo Finance: Warren Buffett Says Markets Have Turned Into A ‘Casino,’ Warns, We’ve ‘Never Had People In A More Gambling Mood Than Now’