The Difference between Economic Turmoil and Prosperity
•
by DMV3
I have a degree in economics, and real life experience running a business; it is that experience that lead to this article, and my campaign for Congress.
The current economic policy of the eUS government has been lacking in reflationary policy that is necessary for our economic recovery. This has lead to further deflation, and economic retraction. Our economy has begun shrinking at alarming rates, and unless confidence in the economy is restored we will continue to see shrinking wages, and shrinking business profits.
What needs to be done?
(The following suggestions may be unpopular, but are necessary for economic recovery.)
1. Raise the import tax on manufactured goods to 30% to stabilize domestic prices. (This should be short term, once international economic recovery begins we should start cutting the rate over a six month period to current levels.)
2. Raise the import tax on land goods to at least 15% to protect domestic producers, and encourage investment in this area of the domestic economy.
3. Create an export development program that will pay half the cost for export licenses for countries that lack high quality land resources.
4. Require all government funded programs to purchase products from eUS suppliers.
5. Reduce our alliances to only countries that are either strategically or economically beneficial to our country. (The only exception to this should be if a country is willing to pay the full cost of the MPP.)
6. Reduce Income Tax to 10% over the period of 6 months to encourage spending.
7.Increase the the Vat Tax to 15% on gifts, guns, and moving tickets over a three month time period.
8. Increase the Vat Tax to 25% on food over a five month period.
We have been undergoing what can only be described as a global economic depression since early January, and unless steps are taken market failure is likely. This plan is not the only way in which we can encourage market stability, but it is a starting point for discussion.
A vote for Dennis McVicker in North Carolina, is a vote for economic stability.
Facebook
Twitter
Discord
Comments
No
SECOND DENIED
A vote for Dennis McVicker in North Carolina, is a vote for economic stability.
Who do I vote for if I want some strange shit to happen?
Plus you completely avoided the biggest issue. WILL YOU CLICK ON URL LINKS GIVEN TO YOU!?!?!?!?!?!?!?
I only click on links distributed by Krems!! Besides I have the link previewer enabled.
i like the export idea
I kind of maybe don't disagree with some of these things.
Good work, holmes 😁
Good luck 🙂
Yes on 4. No on the rest of them.
I've seen a lot of talk about plans and ideas for getting us out of this rut. The one issue public discussion seems to be lacking in is the new economic module. I'm not a scholar of economics, nor am I intimately aware of how the tax system affects the market--but wouldn't the new system have pretty big implications on a long-term plan like this?
What are your ideas considering the change we're about to see?
How is an increase in VAT going to make my elife better? With a concurrent increase in import duties - how would I be able to afford high quality food and houses, necessary now that the hospital will only heal battle wounds? Am I to wait for the trickle down effect and hope the GM of my company gives me a pay rise of at least 15%? I'll vote for you if you reduce taxes...
Tariffs and higher consumption taxes in a depression? I'm going to have to disagree with you strongly. We're pulling out of this downturn as we speak, my friend, and its not by doing those things.
I can buy 120 Guns from my HW medal.
This is one of the best economies ever
Bad ideas.
I'd like to hear WHY you think higher taxes will help... and why you picked the percentages and time periods that you did.
I believe that this is a very good plan for the future of this country. The only part that I believe may need changing is the parts on VAT increases. If they have to be increased, then have the increases where they won't hurt the most. With the VATs for guns and food at 10% instead, you won't be discouraging these markets as much. Having gifts and moving tickets at 10%-15% will not stagnate these already hard to get into companies. Remember, the price of goods will compensate for the amount of money that company is loosing given any number of factors, taxes included. If it costs more for a company to make food because the VAT was increased by 25%, then the product's price will move up 20%-25% in order to make the same profit margin. That's a $5 Q5 food becoming $6.5. If there are 100 000 guns and 50 000 food sold every day (I made up these numbers, but they shouldn't be too extreme) that's a preaty good hunk of change each day at 10%. The gift and moving ticket markets aren't as big, but the tax still shouldn't be more than 15%.
On the export program: The only countries this will hurt are the foriegn ones, and the last I checked, we're American. This will promote American companies over foriegn ones because people will not be buying from the the foriegn companies due to the higher prices of their goods. This is also another reason why the VAT should not be increased by very much, in order to not hurt the manufacturers too much with costs. However, when American companies can pull the load, there will be more American tax payers, therefor more government dollars at the same tax percent. That meens that the taxes can be lowered even further than today's because the lower percent will pull the same income for the government. This meens that more -successful- companies can be put up and with the encouragement of export, we don't hit a roof!
The government is a bussiness, and if you charge too much for your services people will buy them elsewhere.
(The second paragraph, it doesn't show all of it for mine.)
On the export program: The only countries this will hurt are the foriegn ones, and the last I checked, we're American. This will promote American companies over foriegn ones because people will not be buying from the the foriegn companies due to the higher prices of their goods. This is also another reason why the VAT should not be increased by very much, in order to not hurt the manufacturers too much with costs. However, when American companies can pull the load, there will be more American tax payers, therefor more government dollars at the same tax percent. That meens that the taxes can be lowered even further than today's because the lower percent will pull the same income for the government. This meens that more -successful- companies can be put up and with the encouragement of export, we don't hit a roof!
A few points I'd like to make:
1. Good economic policy is proactive not reactive; the current mindset seems to be either wait until v2 to worry about making changes, or falling prices are good for consumers and to hell with the producers. The issue is strengthening the economy today, so we have more flexibility and growth in the future.
2. Two things I left out of the article; the increases in the Vat tax are meant to be temporary to help stabilize prices, and the peg should be adjusted over time towards it's true value which is closer to 0.02 than 0.025.
3. There is a psychology to economic policy that the average person doesn't seem to realize. Falling prices tend to cause consumers to buy only what is needed as tomorrow the price will be lower than today. Whereas prices that increase slightly over time encourage spending, as tomorrow's price could be higher.
I can buy 120 Guns from my HW medal.
This is one of the best economies ever
explain y this is wrong?
its .02? orly? how do you figure? the peg holds nothing up, only keeps it from rising. we could easily have it dropped on us, but we dont. i wonder why?
DrTango,
Let me get this straight because you can buy 120 guns for five gold that means the economy is good? What kind of economic principle is that?
The only reason the eUS economy is seeing growth is because of the new Hospital rule driving up demand in the housing and gifting industry, once the bubble bursts the economy will be worse off than it is now. As far as the peg goes, by setting it at .2 you put more currency into circulation thus encouraging growth. Gold is a reserve currency, thus more gold in circulation means less consumer spending, or more spending on lana, or creating more companies (that the economy does not need)
Where is your degree in Economics from exactly?
Here's a thought for you: Ask the average person if they are better off economically than they were a month ago or three months ago.