.. the suppliers, and increase demand by punishment of the consumer for lack of funds, ie Income Tax. The theory, in its most crudely expressed form, is the reduction of production coupled to the enforcement of demand. Fathers can be arrested for not caring for children, while the price of bread, rent, and services is beyond father’s ability to pay. One is arrested as a vagrant if one does not dress well, but the price of clothing through scarcity puts it beyond his reach.
There are many, many variations of the same two factors, supply and demand, and these can be played on by huge industries or the State, or robbers, or beggars, or anyone wthout number. A great deal is made of “deflations” and “inflations.” Great tomes are written to interpret them, but there are only two operatve laws that govern them: 1) An inflation exists where there is more money in circulation than there are goods. 2) A deflation exists where there are more goods than there is money to buy them. These two laws can be twisted about at will to confuse people. But that’s all there is to know about either an Inflation, or a Deflation, or booms, or depressions for that matter.
Fundamentals The economic laws break down to only one fact or fundamental usually never mentioned in the best of suppressive circles This is the genesis of economics, the beginning, how it all came about. To bring about economics, a person must be led to believe he needs more than he can himself produce and must be restrained from consuming his own production. After that, one has economics, a society and rules, laws, governments and a huge industrial combines. Let us take the simple matter of a poor cow. The cow produces milk, more cows, and even meat. By being a producing animal, the cow is made to surrender the lot.
She does not need her own milk, cannot use her calves and is also made to surrender her own body for meat. In return she gets a sloppy barnyard, a thistle pasture, barking dogs and abuse. Sentient or not, intelligent or stupid, the cow yet sets us a fine example of the perfect citizen of the State. The perfect citizen (from a suppressive government viewpoint) is one who demands nothing and produces everything and even surrenders her body on demand – the ideal citizen, the praised comrade. Life gets itself rigged this way.
Those who can produce are convienced they must produce and in production are given less and less until at last we have a slave – all work and, no pay, minimum food and untenable quarters. Economics are used to bring about this exact condition remorselessly. Income Tax If you have reservations about the end product of various state acts or the intentions behind them, consider this hitherto hidden fact. Income Tax is designed on the Marxist principle (to be found in Das Kapital, the Communist text) of taxation as follows: “To each according to his need.” “From each according to his ability to pay.” About the turn of the century, most western nations (govern- ments) gladly swallowed this potion and wrote Income Tax laws as a result. It looks quite innocent to the uninformed.
In a letter written by the treasury of a great nation a question as to why Income Tax was levied so unequally instead of on merely a set percentage of everyone’s gross income, was answered with the astounding datum that taxation of one’s net income on a sliding scale was far more humanitarian. Let’s see how “humsnitarian” this sliding scale income tax realy is. Inflation is the order of the day. Few Western nations take any but inflationary action. To wit, they devaluate the buying power of money by spending more money than there is produce to absorb it. Income Tax is arranged so that the more one is paid, the higher a percentage he is taxed.
For a crude example, if one makes 500 monetary units a year, the law states that his tax is 2%. If he makes 100,000 monetary units a year, the law is so written that his tax is about 90% (1965 US). The more one makes, the more one has to pay in proportion. Very well. let’s use this as hours of work.
In a low income bracket on a forty hour week, one pays the government a half’s work a week. In a middle income bracket, one pays the government 20 out of 40 hours. And in the high income bracket, one pays prehaps 39 out of 40 hours as tax. Alright inflation willy-nilly is shoving the lowest worker towards the higher tax bracket. The price of bread and rent and all will go up proportionate to the value of money.
So will his pay. But his tax will increase even faster. Therefore, governments are very ancious to inflate their money. The more it inflates, the more workers have to be paid (in valueless money), but the greater a precentage the government gets of the work hours. The end product is of course a total state ownership of everything. Industry cannot pay a worker 40,000 monetary units if tax laws take all but 5,000 monetary units.
If you will look at the taxation schedules you will see that if a loaf of bread cost ten times its current price and you had other costs rising proportionately your pay would shrink to where you could not afford to eat because the higher tax percentage would engulf your pay, no matter what it was. Now no one has mentioned this. And governments defend their right to a raising precentage as income rises with a tenacity that is quite suprising. As inflation wipes out savings also, right up ahead is the big chasm, waiting. Anyone trying to say that inflation is inevitable and income tax vital is simply suppressive or stupid. Surely the big wheels of government economics know as well as any other trained economist that all one needs to so to check inflation is increase production and decrease government spending.
One Western nation has a lovely one going. “Export the goods!” is the cry. The more goods exported, the less there is to buy. By Currency Exchange laws, one cannot also export the money. A prohibitive duty is put on all imports. Naturally, inflation with a vengeance. And an Income Tax is easily the highest in the world. Citizens of that nation are traditionally determined to never, never, never be slaves.
But here come the chains; one link for every penny rise in the cost of bread. When a worker has to spend $500 a week to keep himself and family, the government will take $150 of that, leaving him on half rations. And when he would have to spend $1,500 a week to provide food, clothing and shelter, he will get only about 40% of that, even if he is paid that due to Income Tax sliding scale, and he will starve to death. To be charitable, it is possible that the leaders of these countries do not know these things and are being badly advised or are confused. But if so, what vicious blokes must be doing the advising.
A very proper course for the country would be to abandon the empire no citizen of that country cares about any more, cutting off all its support and defense funds for lands that hate the British anyway. Then, or at the same time, engage upon a furious research program to discover how to produce food enough for its people, let down all its trade barriers, cancel the projects that make income tax vital and prosper beyond all imaginings. One can’t tax nothing, and if taxes depress the producer to zero then so goes the land. The bright eyed visionary (with some insanity showing through the brightness) raves about Utopia and the beautiful schemes of various political solutions. These are supposed to open the bright new future if only we grit our teeth now and starve.
There is NO political Philosophy that ever can or ever will solve economic problems, for they are two different fields, aren’t they. When Marx married them, he gave a terrible tool to supperssive men. Many Marxist complaints are just, many are quite factual, but he erred in trying to solve them, for when ever he proposed a solution and what ever solution he proposed, he offered as a part of it government. Governments are not always run by sane men. The man in the street has no guarentee that his ruler is not realy “bonkers”. The Question The relationship of any man to Economics is a simple one: ” How can I live?” To that adheres the question, “How can his dependants and his community live?” When ever a person asks this question or any version thereof in this, the complex society of today, he is asking “What is economics?” In this section, short as it is, all the vital factors of economics are listed.
What needs to be guaranteed is that one’s economic destiny is not managed by men who hate and who will not be comfortable until all other men are slaves. The long term solution to the question “How can I live?” is never work for a suppressive firm and do not support a suppressive government. And work to guarantee that leaders are sane. RON.