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| Chloe Swarbrick: 'Yes, I alone will decide how much profit you will make. Or not.' |
"One of the most valuable inheritances from Roman law is the prohibition on retroactive legislation; the principle that what is lawful today cannot be declared unlawful tomorrow and punished after the fact. Civilisation depends on this. Without it, citizens cannot plan, cannot trust the law, and cannot defend themselves against the State. The rule of law collapses into rule by law — law as a weapon. ...
"The Green Party’s supermarket policy is a textbook example of how modern ideological movements drift toward retroactive punishment. Their proposal to penalise 'excessive profit' or 'price gouging' sounds simple until you ask the only question that matters: excessive according to what standard?
"So far, no standard exists.
"Chlöe Swarbrick has been unable to articulate:
- how “excessive profit” would be defined,
- what baseline would be used,
- whether the metric would be tied to past behaviour,
- or how businesses could know in advance whether they were compliant.
"Without a clear, objective, forward‑looking definition, the policy becomes retroactive by default. It allows the State to declare, after the fact, that last year’s lawful profit was actually this year’s unlawful 'gouging.' That is not regulation; it is ex post facto punishment disguised as economic justice.
"This is precisely the danger Roman jurists warned about. Law must be knowable before action, not invented after action."~ Colinxy from his post 'Retroactive Law: When the Past Becomes Illegal'

1 comment:
I googled asking how economists define excessive profit. I got back "In economics, excessive profit, also known as abnormal profit or economic rent, is defined as the profit earned by a firm that exceeds the normal profit levels expected in a perfectly competitive market. This profit arises when a firm generates returns above the opportunity cost of its resources, often due to factors such as monopolistic power, unique advantages, or patents. In contrast to normal profit, which covers the minimum level of profit necessary for a company to remain competitive, excessive profit indicates that the firm is earning more than what is required to keep its resources in their current use, signaling market inefficiencies or barriers to entry."
So I am now none the wiser but can see why economists aren't seen as credible, when it appears there is no definition with hard info like say "greater than bank interest rate plus 5% rate of return on asset base"
I think the Green Party definition is any money a business we don't like makes.
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