Inflation & High AUD Policy

Day 638, 01:29 • Published in Australia Australia • by Black Feather Corp

Dear citizens & Australian Congress I am proposing a Policy which i think will greatly benefit Australian citizens, The Australian government and General Managers.

Monitory Policy
The Australian Bank and Government should raise the AUD to 0.04 this will mean Australia will have the highest currency in the world. All the well developed countries have high Local currency the IDR , RUB, HUF, BRL and FRF will soon have a high currency. Why is it that these countries have a high Local Currency?
The Countries with high currency were smart and they kept their wages as they are, what they did change is the Currency which is not that hard. Once they did this citizens all around the eWorld flocked down to these countries to work. Their governments were able to collect huge taxes and their companies had made competition which lowered the prices.
Also all those countries have at least 1 High Region of Raw Materials, Australia has 3 High Regions if im not mistaken so i think we should increase our AUD to become like them.

This Policy has issues such as:

Positives:
- Citizens will gain more gold for their AUD

- If wages stay the same ( they will, il cover it more in the article) then Australias population will increase because citizens from around the world will come to work for us. This will mean that Australia will be stronger both military and economically.

- General Managers can buy more raw materials ( from other countries) with their organization because once the AUD is exchanged companies can get more gold.

Negatives:
- Companies will earn the same amount but they will face competition which might risk them going broke.

Now this negative can be fixed by tax changes

Taxes.
Income tax needs to go ( this will aslo benefit the domestic market), another reason is that income tax is a waste. There are a number of citizens who are smart enough to Dodge it through the Monetary Market. I propose that the Income tax is lowered to 1% and the VAT increased to 10-15% this will benefit the government the most because they will collect more tax.

Import Taxes.
If the AUD is going to go up then this will mean that many overseas organizations will be exporting to Australia.
Isn't Importing Bad? Many people think that Importing will stuff up the "Free Market" This is true only if the Imports are too low and Foreign investors will have a chance to destroy local companies but if the Import tax is reasonable and if we calculate it properly then we can make sure that both Local and Foreign Companies compete fairly.
Since i mentioned that the AUD is high foreign companies would be keen to ecport to us to earn a nice profit but this is where we restrict them from taking our money. We should place Imports to 50-60% which means that companies will still export to us.

Lets use an example; If a Romanian company is creating Q5 weapons at 1G, Australia is selling Q5 weapons at 1.65G the Romanian companies would benefit from exporting to Australia because at a 50-60% import tax they sell it for 1.5G + VAT which gives them a fair profit. Also remember that the Australian companies arn't missing out, they are at 1% Income tax and they dont need to worry about Import tax because they are in Australia. We can see that competitiveness will overlap and both companies will benefit.
This Also means that the Money collected is staying in the Australian economy and its not leaking overseas. It means that Australia's Population will increase and we would be much stronger.

Example:

Now Lets decrease Supply:

We see that once supply is low the the price increases, and once supply increases the price drops.

The only negative affect is that Australian Companies wont be able to Export their goods overseas (not profitable due to high wages) but lets have a look at Australia's monthly Imports and Exports.

Monthly exports 32.87 Gold
Monthly imports N/A Gold

Are you surprised? Yeah lets see Indonesia.

Monthly exports 264.97 Gold
Monthly imports 39.95 Gold

Now we see that our Monthly exports is very low. What does this mean? It means that not many Australian Companies are exporting and it wont really hurt them. Also we see that Our Imports dont exist, our RM are sold on the AUS market anyway. Why is important. Well we see once again that the government is not benefiting from the Imports. We see that a 99% Import tax doesn't help the government at all and if it is Lowered to 50% The government would be able to collect much tax.

Lets just Go Over the whole thing in a summary.

- Increasing the AUD
- Creates Jobs and a Higher Population In Australia
- It means we are Economically and Military prepared for war.

- Australian Companies would Increase their prices in order not to go broke
- This issue is then fixed by changing the Taxes
-Reducing Income Tax puts pressure off companies
- An Increased VAT wouldn't mean much to companies because it affects both domestic and foreign companies. It would only affect citizens. But remember that Citizens are getting payed really well so i wont mater.
- A 50% Import Tax will allow the government to collect more tax, it also means it will reduce the prices ( coincidentally it rules out the Price increase in the previous example)
- Foreign Investors make a profit
- Local Businesses have a better Chance of survival because of Lowe Income tax and because they avoid the 50% income tax that overseas companies benefit.


Overall the Advantages are huge and Governments, Citizens benefit mostly. Please vote and subscribe this up and lets make the Australian Congress Realize that Australia can become a lot stronger.