Interesting piece. Yes there are winners and losers in trade wars or competition from cheap labour. But, I think you are wrong. Whether we are an insular economy or a world wide economy there is at any one time a finite amount of money. If someone benefits and profits it will always be at someone or some groups expense by losing the equivalent. It’s just maths. Individual market forces dictate flow of capital and when certain companies may do well others have to fail to equal the equation. The differences only happen when the rules we all learn from a young age play out. That is ‘piggybank’ economics. We all learn that to grow the pot we must add to it and not take any out! Simple but true. The world is full of money but it’s a finite amount so to do well automatically means someone else has to loose. The differences comes when money is printed. (Added to the piggybank) There has to be an equation to quantify this amount. It has to represent the reason why a milkman in the 70s earned £50 a week and if there was one now he might earn £2500 per week. That is the effect in the main of inflation! A need to print the extra requirement. In the same equation we must see that an amount of money printed must represent the needs of say a 2 million population and say a population of 79 million. There had to be a difference. But whatever the equations and whatever the total monetary figure an equal amount is and has to be balanced. What we have to do though, is understand that Trump thinks like a company CEO. He doesn't care about the fall out of his actions as long as he can justify cutting costs and increasing prices to show a profit. But you can’t run a country like that! It’s irresponsible. Those in charge must think in the round to look after all citizens. And frankly no Government thinks in the round as they don’t have any brains to think beyond two sided bookkeeping it seems to me, when they should be thinking in 3 and 4 dimensions! It’s just beyond their experience and knowledge as if promoted to a level of incompetence. As I fear we see Trump and similarly Rachel Reeves seem to be. As nothing makes sense! There is no thought in the round. For examples Income tax and NI is actually paid by the employer not the employee. The employee has no chance to spend it not even to credit the exchequer! So ‘we the taxpayer’ is a misconception in common thinking. The employee pays much more tax by spending and spending all their money means they pay as much tax as they can! Our tax systems rules are that SPENDERS pay the tax! Our tax system is based on money moving when spent. So it has to follow that those who can and thus avoid SPENDING ALL their money actually pay NO tax at all on that unspent amount NONE!…. Even a beggar homeless, unemployable and comatose from drinking a bottle of whisky paid over 73% of vat and duty and contributed to the profit of seller supplier and producer! Thats twice a higher rate tax earner. Whereas someone who doesn’t spend pays and contributes nothing no profit no tax revenue! It’s the rich and wealthy that can avoid SPENDING all their money. So that unused money is uninvolved in any part of our working economy for all the time it is unspent, unused and withheld from our working pot. In the main that is the reason why our working pot is insufficient in weight and flow (3rd and 4th dimensions) to produce enough monthly tax take. Unless that other pot holding all their money unused money is reintroduced to the working pot from which tax is triggered then we will never get out of recession and deficit. We owe now £2,800,000,000,000.00 trillion. How can we seriously expect to grow from that minus situation? And by investment if we are lucky? No! We need surety of SPENDING to make money revolve faster and in a tsunami of flow sufficient for an overflowing tax rake. We have to be thinking in the round using money in, money out, money round and in what time scale ( four dimensions) to see the real potential of our work productivity and for that we need a spending policy to make it happen so it can be autonomous and perpetual without the bewildering and reckless decisions and interventions of the like of Trump and Reeves. We need to put a spend by date on money electronically to make money move to make the poor richer, then make the benefits better and to afford at last enough to pay for say a war machine. But counterintuitively the rich will also be richer but from the spending monthly of their income on what they buy and get for that spending and not from the money itself, presently hoarded from the main majority for days to years and centuries as it is now. We must stop tinkering with a wall of cogs to make it work better. Instead have one cog that works! Start using ALL the money out there for its intended use. As an exchange of work in the now! Earn high but spend it! And ensure its return next month! Not a wish and a prayer. By decree. For all people.
Interesting piece. Yes there are winners and losers in trade wars or competition from cheap labour. But, I think you are wrong. Whether we are an insular economy or a world wide economy there is at any one time a finite amount of money. If someone benefits and profits it will always be at someone or some groups expense by losing the equivalent. It’s just maths. Individual market forces dictate flow of capital and when certain companies may do well others have to fail to equal the equation. The differences only happen when the rules we all learn from a young age play out. That is ‘piggybank’ economics. We all learn that to grow the pot we must add to it and not take any out! Simple but true. The world is full of money but it’s a finite amount so to do well automatically means someone else has to loose. The differences comes when money is printed. (Added to the piggybank) There has to be an equation to quantify this amount. It has to represent the reason why a milkman in the 70s earned £50 a week and if there was one now he might earn £2500 per week. That is the effect in the main of inflation! A need to print the extra requirement. In the same equation we must see that an amount of money printed must represent the needs of say a 2 million population and say a population of 79 million. There had to be a difference. But whatever the equations and whatever the total monetary figure an equal amount is and has to be balanced. What we have to do though, is understand that Trump thinks like a company CEO. He doesn't care about the fall out of his actions as long as he can justify cutting costs and increasing prices to show a profit. But you can’t run a country like that! It’s irresponsible. Those in charge must think in the round to look after all citizens. And frankly no Government thinks in the round as they don’t have any brains to think beyond two sided bookkeeping it seems to me, when they should be thinking in 3 and 4 dimensions! It’s just beyond their experience and knowledge as if promoted to a level of incompetence. As I fear we see Trump and similarly Rachel Reeves seem to be. As nothing makes sense! There is no thought in the round. For examples Income tax and NI is actually paid by the employer not the employee. The employee has no chance to spend it not even to credit the exchequer! So ‘we the taxpayer’ is a misconception in common thinking. The employee pays much more tax by spending and spending all their money means they pay as much tax as they can! Our tax systems rules are that SPENDERS pay the tax! Our tax system is based on money moving when spent. So it has to follow that those who can and thus avoid SPENDING ALL their money actually pay NO tax at all on that unspent amount NONE!…. Even a beggar homeless, unemployable and comatose from drinking a bottle of whisky paid over 73% of vat and duty and contributed to the profit of seller supplier and producer! Thats twice a higher rate tax earner. Whereas someone who doesn’t spend pays and contributes nothing no profit no tax revenue! It’s the rich and wealthy that can avoid SPENDING all their money. So that unused money is uninvolved in any part of our working economy for all the time it is unspent, unused and withheld from our working pot. In the main that is the reason why our working pot is insufficient in weight and flow (3rd and 4th dimensions) to produce enough monthly tax take. Unless that other pot holding all their money unused money is reintroduced to the working pot from which tax is triggered then we will never get out of recession and deficit. We owe now £2,800,000,000,000.00 trillion. How can we seriously expect to grow from that minus situation? And by investment if we are lucky? No! We need surety of SPENDING to make money revolve faster and in a tsunami of flow sufficient for an overflowing tax rake. We have to be thinking in the round using money in, money out, money round and in what time scale ( four dimensions) to see the real potential of our work productivity and for that we need a spending policy to make it happen so it can be autonomous and perpetual without the bewildering and reckless decisions and interventions of the like of Trump and Reeves. We need to put a spend by date on money electronically to make money move to make the poor richer, then make the benefits better and to afford at last enough to pay for say a war machine. But counterintuitively the rich will also be richer but from the spending monthly of their income on what they buy and get for that spending and not from the money itself, presently hoarded from the main majority for days to years and centuries as it is now. We must stop tinkering with a wall of cogs to make it work better. Instead have one cog that works! Start using ALL the money out there for its intended use. As an exchange of work in the now! Earn high but spend it! And ensure its return next month! Not a wish and a prayer. By decree. For all people.