Friday, October 17, 2008

One Bold Act to Solve the Financial Crisis

We appear to be on the brink of global economic meltdown. The government needs to be bold and decisive. One simple Act would have these major benefits:

1. Increase financial stability.

2. Increase innovation, entrepeneurial spirit and small business development.

3. Promote equal opportunity.

4. Increase charitable donations.

5. Reduce poverty.

I've mentioned it before. Simply raise inheritance tax to 100%.

1. The government needs to get closer to balancing its books. Living people don't like being taxed. Dead people don't care.

2. People will need to earn a living, even the children of successful rich entrepreneurs cannot just sit on their arses.

3. So who does not think that aiming for equal opportunity is a good thing?

4. Even Gates and Buffett agree. Charitable donations have always been tax-exempt.

5. Charities often tend to benefit the poor. And so do higher tax revenues.

I could add a potential surge in retail sales and consumer confidence too as people decide to spend for their families now while they are still alive. And a huge immediate boost for solicitors and will writers. But that's short term. I'm talking of one simple act to provide a long term radical overhaul to the entire national economy.

1 comment:

A said...

This Financial Crisis began a long time before America was “discovered”, long before the British Isles were settled, in fact so long ago that many of us have forgotten. It was when humanity first made the decision that Land could be considered personal property and belonged in the marketplace as a commodity when in fact Land is a necessary component of Life and therefore a Birthright. Food and materials for clothing and shelter all originate from Land. In fact Land is where the majority of wealth producing goods originate. Along with Oxygen and Water, Land is a necessary component of Life and therefore a Birthright of every human being. All “great” societies have met their demise due to the neglect of this simple fact. We can point our fingers at peripheral problems and solutions all we want but until we learn to honor the contract of Life and build our social structure upon that Sacred Foundation we will always reap dire consequences in the long run. Land is a Universal Birthright!

There is a principle called Ockham's razor which is attributed to the 14th-century English logician and Franciscan friar, William of Ockham. It basically states that – "All other things being equal, the simplest solution is the best."

The following are two simple ideas that effectively create the ideal social construct.

Simple Idea #1

1. Socialize ALL Land (True Socialism defined as the vesting of ownership of Land back in the community as a whole)

2. Charge leases on ALL Land based on current market prices.

3. Return 100% of the resulting revenue equally to every man, woman and child (no matter their financial status) in the form of a yearly Land Dividend check.

4. Make the Universal Birthright of Land an Everlasting Standard in the education/understanding of every human being.

This effectively makes the average piece of Land Free for every Living Soul and restores our Natural Birthright as well as coupling our social construct to the Principles of Life.

Simple Idea #2

1. Remove ALL FORMS of taxation

2. Implement a Tax on ALL NEW goods based on the resources they contain and the resources they use in production and delivery (this can easily be implemented with the current barcode system used at the checkout)

3. Use this system to encourage/discourage various resource usages (High tax on non-renewable/ecosystem damaging products and low/no tax on renewable/ecosystem enhancing products) and to encourage purchasing of local products.

4. Use the resulting revenue to fund infrastructure expenses and the restoration of ecosystems.

This effectively encourages the creation/use of longer lasting, high quality products as well as encouraging recycling and reuse of existing products while also establishing a compatible relationship with the ecosystem.

Idea #2 effectively constrains the ravaging appetite of the capitalistic consumer society within the Boundaries of Sustainability while Idea #1 effectively encloses both Sustainability and capitalism within the Principles of Life.

That's it! The path to True Democracy (rule by the people) – True Liberty (Freedom of expression) – True Socialism (Universal Birthright of Life). Simple and Effective