Compliance with tax and social security obligations is discouraged by frequent recourse to amnesties and immunity from prosecution; between 1970 and 2004 only two fiscal years were not covered by provisions of this kind. The revival of domestic economic growth and the reduction of geographical disparities are complementary objectives.
A number of proposals incorporate a government guarantee to cover this risk, to take effect after a significant stack of private capital is wiped out. That brings me to my second principle: If Congress chooses to go in this direction, any such guarantee should be explicit and transparent, and should apply to securities, not to institutions.