ORGANIC ECONOMICS

in #economics6 years ago (edited)

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A case for keeping the State. Not the communist State.... Definitely not the communist state but a man made all inclusive society that respects human rights espoused in the Bill of Rights and that also discourages hoarding of wealth. This article is aimed at Anarchist Communists to Learn something about economics before hitting the Big Red Easy Button of Totalitarian Communism; But I believe is good information for anyone.

Organic Economics assumes a de-centralized system with no organized controls or central authority likening it to a living system evolving on its own excluding any intelligent design.

Whether you believe in God or not, people tend to overlook or forget how many unsuccessful organisms nature has produced.

But, as in farming, there has to be someone responsible for pulling the weeds and chasing off pests - without poisoning the crop with round-up.

Some people say that the “Central Authority” the Federal Reserve, created in 1913 caused the Great Depression in order to effectuate greater controls over society itself. So I do not consider an organization that can print and retract money supply, at will, intelligent design or beneficial to an Organic Economic System.

But, however, Organic Economics should not exclude intelligent design or control mechanisms that prevents both Diarrhea and Constipation of the organism, and also, should not necessarily mean no taxes but should actually be a scary high rate tax system but one that includes real choices which result in business owners choosing tax policy mechanisms which can lower their overall taxes paid for their “protection fees and for infrastructure created for public use.

It takes a government willing to tax the elite heavily because the elite do not automatically grow and expand solely because their wallets get fatter from not paying high taxes.

The elite do market research and these reports never say..... if you raise salaries consistently, people will buy more of your products because And unless consumers have real disposable incomes, the elites will not have any reason to expand their companies to serve a non-existent customer. Smart companies do, however create both the market and the products to satisfy that market. Just look at the Military Industrial Complex for proof of that.

The Voodoo Economics that we have today and that Trump wants to continue, results in a slowly shrinking economy, as the elite hoard wealth causing consumers to band together and take it back through the power of misguided welfare taxation.

Giving Business owner’s a choice by creating competing economies through tax policy is the key to unlocking and unleashing a healthy velocity of money and organically healthy economy.

Formerly called Eisenhower Economics 101: Scary High Taxes combined with scary liberal deductions, encourages tax free reinvestment and causes economic growth organically by giving business owners choices as to where their Tax Obligation lays.

Placing Higher “tax rates” on business owners while allowing deductions for self retooling and personal expansion and re-investments in their own business will either create jobs or higher salaries for the current people will encourage owners to spend on expansion and grow; so as to grow equity rather than liquid wealth. (This tax structure encourages tax deductible spending and increases the velocity of money, which is good for the economy.).

Thus creating tax deductions for growth based spending and investments on oneself and his employees to avoid paying the government is a good thing for America.

Here are the Choices:

If a business has a choice 1. Give bonuses often to its employees. And/Or 2. Retool its equipment being incentivized by a targeted deduction for reinvestment in a business which will also lower its tax burden. And/or 3. Expand and Hire more employees to operate the retooled business because spending the money is tax deductible and lowers its overall tax burden. Or 4. Pay the high tax rates and let the government provide the large infrastructure needed for large scale public works projects that some people call corporate welfare.

These examples are Eisenhower Economics. Expand and Grow or pay a high income tax to the government to spend it for you to benefit you without direct payments to individual people or companies except in return for products or services.

Reaganomics Or Voodoo Economics penned by Bush Sr. Or trickle down economics assumes people with great personal wealth automatically expand and grow to hire people but as we can see that hasn't happened. The key word though is trickle down. That slows the velocity of money to a trickle and we need it moving pretty quick to get the regular Joe into paying taxes rather than expecting to collect earned income credits.

Remember when Bush Jr. had the treasury give everyone an advance on their tax return? He was causing velocity to stimulate the Economy.

VooDoo Economics with no regulatory controls recommended by Rothbardian think tanks places control of expanding the economy in an uncontrolled market rather than where it should be; on an intelligently designed organic system that encourages self expansion and growth that organically Creates Jobs; But again, doing so requires a scary high income tax rates that exempts specifically this type of spending... growth and expansión creating jobs.

The current voodoo encourages taking on debt to expand a company because currently direct spending of un-mortgaged Capital on growth isn't deductible like it was under Eisenhower.

Eisenhower Economics VS Voodoo Economics. We have seen the results of both.

Scary High income tax rates with targeted deductions that stimulate growth using psychology rather than Wishful Voodoo, Voodoo which ends in the stagflation we have now - with people begging for even less taxation.

There are other regulatory factors which negatively affect economy but none more-so than those that work against business expansion; which expand only when profitable to do so. Ie. When large amounts of consumers have real disposable wealth they earned from their actual labor which is real organic Velocity not the kind caused by government handouts which progressives have been so intent on creating over the last 70 years.

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Still too complicated and has too many loopholes.
I think there is only one way to tax fairly and effectively, is a graduated VAT system. So on a loaf of bread 0% tax, on a Ferrari, 100% tax.
All of a sudden, 100% of the population are paying taxes in your country. The only people that will actually feel the pinch are the super wealthy that can avoid taxes under the current system. Not to mention organised crime.

Yes I agree the VAT is a better idea but excluding raw food and medicine.

The post is directed at the current income Tax system and the fact that employers don’t automatically expand or pay better just because they keep more of their profits from low taxes.

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