A Multi-Gear Strategy for Economic Recovery by A. Rayman

By A. Rayman

Quantity II proposes radical reform (1) of the accounting procedure – to deliver company administration less than the regulate of marketplace forces; and (2) of the tax method – to let the economic system to develop to its complete power and to set up an automated mechanism for fee balance with none arbitrary intervention.

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If the tax is collected on a pay as you earn (PAYE) basis, and if the rebates on monetary savings are allowed by “authorised institutions” on a receive as you save (RAYS) basis, the net result is direct taxation on the basis of pay as you spend (PAYS). 1 in this section. The only difference is that Period 2 and Period 3 are both subject to inflation of 5 per cent per period in the general level of prices and incomes. The inflation subsidy is clawed back by the operation of the inflation surcharge, and the inflation adjustment is recouped when the savings are eventually spent.

For many people in many parts of the world, it is a struggle against the odds, and the chance of success is poor. But there is no chance at all, if they are not allowed on to the pitch; and what stops them getting on to the pitch is violation of the Law of Circulation. The major threat to economic prosperity comes, not from too much competition, but from too little circulation. That is, perhaps, the most important lesson in welfare economics; and it was perfectly understood by the Luddites. Their objection was not to economic and technological progress, which promised to benefit all mankind; they simply wanted to be included among the beneficiaries.

The Economic Waste-Disposal System has three components: 1. a flat-rate inflation subsidy to stabilise the general level of prices without inhibiting the movement of relative prices and incomes; 2. an inflation surcharge added to the direct consumption tax – to “claw back” the subsidy without discouraging production or investment; 49 50 Part III: A “Multi-Gear” Macroeconomic Policy 3. an inflation adjustment to protect the purchasing power of monetary savings without discriminating between different forms of saving.

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