• @Decompose
    link
    -129 months ago

    Taxation also can lead to inflation if paid to people who spend it immediately. The problem relates to how the money moves in the economy. It’s a complicated matter. Some think it’s the “velocity of money”, that alone isn’t enough though as we saw in recent years. To maintain inflationary rate (of 2%, as required) you need to have a stable velocity in all sectors of the economy. But who knows how it works in reality.

    • @[email protected]
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      fedilink
      39 months ago

      And if everyone had a relatively comparable amount of assets under their control? If each person could control a certain amount of stock in the stock market or rights to property? As you became more wealthy in assets, the taxes become higher, while when you become less wealthy in assets, you receive more appropriated assets. The same amount of assets would exist in the economy, realized or unrealized, and if the appropriation equation is tuned well enough, it could provide income for people who can’t work, who might exchange all their assets for cash every time they get them, and limit the accumulation of assets for the very wealthy. There would still be the haves and have nots, but the have nots would have an effective floor, and the haves an effective ceiling.

      The government would not make decisions on how the assets are used, only provide the means to even out how the assets are divided. People who work and earn enough to live on that income would be able to accumulate assets in the form of the stocks or property. They would earn assets up until the agreed upon point at which assets are taxed more than the average growth of the economy. This point would be at least enough for an average person to live comfortably and not have to work for a few decades until their assets ran out. Think in the 5 to 15 of million dollar ranges.

      The assets would appreciate if profitable, like stocks owned by current stock holders, or depreciate if not. Most people would hire someone to manage their assets for a fee. That person would likely manage many people’s assets in the way requested of them. The safe investor would see their client’s assets grow with the economy, but some investors might value other things.

      A person could instruct their investor to manage their assets at an agreed upon slow rate of growth, or even a loss. They might do this to spend on stocks that are less profitable, but are something the person cares about. A person might do this if they enjoy their work and have no plans of retirement unless forced to. They would keep enough assets to retire for a shorter period of time, or for use in the case of emergencies. This would allow people to fund some risky projects that could pay out massively, but keep themselves safe enough to not risk too much.

      Other side effects include reducing opulent spending. You could have a huge mansion, but you couldn’t have as much in retirement savings. You could have all of your assets be boats, planes, and apartments for personal use, but you’d have to sacrifice to spend any time off work. The most expensive of properties couldn’t be owned full time by a single person, they’d have to be owned by multiple people and shared amongst themselves.

      People who have huge businesses under their sole or family ownership would need to bring in outside investors. Large privately traded companies would have to be completely reworked, and would likely stop existing beyond a certain size. CEOs who own most of a large company would stop existing. Many other effects I’m sure I haven’t thought of.

      This idea needs more work, and there’s a good chance constitutions would need to be amended to enable it, but it would solve the problem of the ridiculously wealthy having so much sway on the economy, and provide a social safety net. It would bring power to the hands of the people and democratize the economy, while not having the inefficiencies of planned economies.