What’s your opinion about these economic reforms I propose
Root causes of Economic Crises Richard Nixon Government Spending and Taxation Main Assertions Governments should concentrate on long-run structural policy changes The main idea is the primary role of the government is to strategize the changes its going to make to the factors of production and society to maximize prosperity Example: Make basic Digital skills mandatory for both young and old An Independent central bank should manage the money supply Use Use the Gold Standard Economic Growth measures the fluctuating purchasing power of individuals Hence, wages and income fluctuate in proportion to GDP fluctuation Individual prosperity is measured by weighted average of GDP We’re Not in a Recession. Why Does It Feel Like We Are? For any economy to succeed there need to be: Free markets Fair competition Minimal State intervention Decentralization Modest and efficient Welfare (Redistribution of wealth) Meritocracy Corporate decisions should take in consideration all stakeholders GDP factors Government spending -> It must come from a balanced budget Consumer Spending -> true mark of GDP Total Investment -> The higher the better Net Exports -> It should be balanced or positive Debt must be balanced by wealth creation investment high skill workforce innovation research Dismantle Social Security Only Social Safety net Javier Milei on government failures The economy should be structured like this: Social Market Economy Circular Economy Fiscal Discipline ”It is the ability of a government to maintain a balance between its expenditure and revenue, ensuring macroeconomic stability and sustained economic growth. It involves avoiding excessive borrowing and debt accumulation” Balance Budgets Low Debt to GDP ratio Small Government “the greatest possible economic liberty and the least possible government regulation of social life” Decentralize government power to municipalities Small Public sector: Provision of public goods and regulate externalities Fiscal conservatism Economic liberalism Competition law Free markets and minimal government intervention Government failures: Government interference in the economy often does more harm than good. Free trade Distortion of markets Brands Loyal Customers (Example: Apple Products) Behavioral Marketing (Exploitation of human psychology and irrationality) Advertising (Those with money get more exposure) Lobbying of Powerful Business (Influence of Government Officials) Remedy through value for money consumption (Flagship killers: Oneplus over Apple) & (Generic Drugs over Brand Drugs) Force Consumers to be rational and Utility Maximizers Regulate Influencers, Marketing, Advertisers, Supermarkets “Good” Influencers: Honest Tech reviews Use of Standards and Metrics for Products Example: FDA Certified mark for Drugs Example: Vesa Certified DisplayHDR mark for Monitor screens Diminishing Marginality Every dollar received by the poor is significant Every dollar received by the wealthy is insignificant Flow of Money The larger the middle class (above living wage income earners) the more the money flow to various and diverse segments of the economy The poor with below living wage income and the wealthy with high wealth concentration act as a black hole to the economy where money flow to inactive bank accounts, necessity goods and to less diversified segments of the economy Dangers of economic inequality Political instability Increased Crime Increased Unhappiness Reduced Social cohesion Reduced Social goods Worse Health Welfare Replace all Welfare with Universal basic income Universal basic income avoids the welfare trap Benefits It provides cash which the individual sees as the best possible way of support It targets poverty directly through income rather than through general old-age benefits or farm programs It replaces all supporting programs and provide one universal program The cost can be lower than the cost of existing programs mainly due to lower administrative costs. The program should not distort the market in the way minimum wage laws or tariffs do Retain Single-payer healthcare, Child Benefits and Social Housing for Young Couples, programs for continues upskilling, retraining, fund/give incentives to a group of unemployed people start a worker cooperative, provision of Public Goods and protection of the Environment Constraints: Minimize the total cost Retain a balance fiscal budget Retain the incentive to work Don’t distort the markets Standard workweek of 32 hours Set the universal basic income as equal to the sum calculated by optimal tax theory Assessed according to the balance it achieves between three factors: the improvement in overall well-being from a more equitable distribution the loss in economic efficiency due to the distortions introduced the administrative costs Welfare strategy is funded by Wealth redistribution through wealth tax on the most wealthy and ridiculously high income earners The money supply should not be affected by Universal basic income Employ the Buffet Rule ”Tax plan which millionaires and billionaires to pay the same tax rate as middle-class families and working people” Pillars of economic growth Simplified tax system and provide tax incentives Cut Red tape (Bureaucracy) Reliable and stable banking system End culture of corruption, godfather and para-state Simplify and speed up administration of justice Education system that can feed labour market with new talent Strong competition authority to stop cartels Rewrite labour law from ground up to make it easier for business to access work but also allow workers to assert their rights Put in key ministries worthy people with high training and experience in global market Ecosystem where business share expertise, resources, sales networks, logistics and infrastructure Creation of Institutions which regulate the Economy (Not the State) Health Care Single-payer healthcare Payment Contributions from all members of Society A set amount is paid by single payer insurance and the rest comes from co-payment Co-payment should be varied across Clinics, Hospital and Doctors. According to forces of Supply and Demand based on the Quality of Services, ownership of State of the art Machines, Specialization level and Competency of Doctors The government insures everyone, but medical care is in private hands No limits of the total amount of money someone spends on Co-payment Education High School Diplomas, Bachelor Degrees and Master Degrees are not all that matters. Life-long learning, Grit, Interpersonal skills and work experience are what matters. Increase the flexibility of Occupational Mobility Downgrade the role of bachelor degrees Recognize Certificates Recognize Internships as work experience All workers are obligated to have Linkedin, thus providing a faster way for business to discover talent and workers to advertise themselves Businesses are obligated to be transparent about wages before hiring A unified digital system where workers provide review about their work experience on a business and give a rating All wage should be paid per hour (Not per month) Problem: Crony Capitalism Solution: Less Power to the Wealthy (Control of Business decision making) Less Political Corruption How to fight the power of the Wealthy Fight Shareholders Primacy “Making capitalism more ethical: Dynamism with decency” Stakeholder theory in all Bussiness ”is a theory of organizational management and business ethics that accounts for multiple constituencies impacted by business entities The theory argues that a company should not ignore any of its stakeholders and should balance their interests and needs” 2. Universal basic income is funded by Wealth redistribution through wealth tax on the most wealthy and ridiculously high income earners 3. Worker Cooperatives Law 10 unemployed people, instead of getting welfare they will be given money to start a new Cooperative 4. Consumer protection – Fight Cartels 5. Bailouts Save the Banks | Not the Bankers Save the Business | Not the shareholders, board of directors and managers How to fight Political corruption Asset and funds-source declaration Transparency and access to information Checks and balances Auditing agencies End impunity Empower citizen to hold government accountable Close international loopholes Pensions Retirement options to invest in good ETFs or Portfolios) Policy Stable Long-term zero tax on necessity goods with high inelastic demand Remove active income tax for poor and middle class individuals Have active income tax for ridiculously high earners No contributions to health care and social security from low active income earners Remove tax from home renting for low active income earners that live inside. (Provided the house is not big and luxurious) Sources: Prof. Antony Davies: Why Government Fails, Explained How a Wealth Tax Works: Explained by Elizabeth Warren Why No One Wants to Live in the UK Causes of Prosperity How the US Is Destroying Young People’s Future | Scott Galloway They Launched a 6 Day Work Week. The Results Are Disastrous submitted by /u/Uncle_Duck_1 [link] [comments]
Article from r/Libertarian: For a Free Society
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