The re-set’ is a UK-based movement consisting of several proposals to effect ‘a constitutional re-set to re-store fair principles, accountability, community led governance and ethics. Ensuring peoplecare, earthcare and fairshare for the benefit of all’. You can check out their website here: www.thereset.org. An overview of the proposals is presented here: http://www.thereset.org/proposals.php.
In this blog the focus is the Proposal on the abolition of Taxes. The re-set proposes to abolish the current tax system and replace it with ‘TEAL’ – Total Economic Activity Levy:
“TEAL is very much a ‘pay as you go’ tax. Every time money is withdrawn or paid into a bank account, a tiny percentage of money from each transaction will speedily find its way into the treasury. Even people without bank accounts will contribute, because whenever a pack of cigarettes or a loaf of bread is purchased, the seller (say a shop) will be paid, and when the shop pays into his bank TEAL will be collected, and if you sell your labour (i.e. you have a job) TEAL will be paid by your employer and collected by your bank.”
This principle is the same one we propose under the Living Income Guaranteed Proposal. Within such a system, the focus changes from ‘redistribution’ to plain ‘contribution’. It’s not about trying to equalize incomes and moving it from the rich to the poor – but a matter of: if you make more use of the economic system, you proportionally contribute more to sustain it. One likes to believe that one’s wealth is derived from merit alone – but it simply isn’t. There is an entire economic system in place that enables a successful person to be successful. There are those who have gone before you, who have shared their know-how with you, there are those who have an income to buy your goods or services, an income they earned through participation in the economic system, there is physical infrastructure like roads and railway systems that enable all economic activity. If the economic system was self-sustaining and never required any financial input in order to maintain it or correct its inherent weaknesses, then we could say the economic system is a free one. Obviously, that is not the case. The ‘pay as you go’ tax is therefore a reasonable method of collecting the funds to be re-invested within the economic system that each one depends on.
If a basic income or living income is provided through non-tax funding – then the ‘pay as you go’ tax or ‘TEAL’ should be sufficient to mobilize the funds needed for other government expenditures, which we suggest would be quite limited if the economy in itself is largely corrected and empowered through the integration of the Living Income or Basic Income – then other taxes can indeed be abolished.
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This summer I had the mixed pleasure of reading a course in Microeconomics and International trade. In microeconomics the primary focus of the researchers is to establish ‘What is the market really doing and why?’ – and this is attempted to be done utilizing mathematical formulas; primarily utilizing the famous graph where two lines cross each-other, the one line sloping downwards (demand) and the other sloping upwards (supply) – and where they meet each other = that’s apparently the optimal price for the product and the optimal quantity of that product in that given market.
What first struck me as being fascinating about these theories was that they seldom predicted how the market would behave in reality, and neither could they be verified with empirical evidence – and most of the time the authors of the my books where busy trying to find reasons and various viewpoints as to why these theories wasn’t working “as they should” – and how they probably did work but it was just that the inventors missed to take into consideration some important factors and variables.
Though, what was the most fascinating about this entire area of research, was how there was this complete worship to the idea that lower prices = higher consumer satisfaction; and that apparently for a market to be functional, what is required is that we produce as many products as possible, to the lowest prices possible, because then the consumers are able to buy as much as possible, and then we’re apparently okay, happy, and have a fruitful existence here on earth.
Obviously, when I looked at these ideas, I silently chuckled – because the logical flaw of this assumption is glaringly simple = the producers are the consumers! YES – that’s the secret of economy and the reason why we’ve got so many unemployed in this day and age is because we’ve failed to understand that when a product is cheaper, someone at the other end gets less money, which in turns means that a (employee) consumer gets less money, which in turns means that the producer gets less customers = and it all ends up in such a way that most lose but a few that manage to reap the monopoly profits of those very low-priced products – because they’ve priced out everyone else.
It’s clear that we have to develop a new way of looking at economics, and that mathematics and statistics isn’t the way to go – no – we actually require to look at the actuality of what is going on. For example, poverty, what is the actuality of poverty? Why does poverty exist to begin with? It’s not a matter of mathematics, rather it’s a matter of seeing what is behind everything in this world – and that is MONEY – money that in itself is a completely innocent creation meant to be but a way of distributing goods and services to where they are required and wanted the most; but in our current system – money has become a point of control – where those that are already rich and on top of things with all possible means make sure the keep those stricken by poverty in place – else we wouldn’t anymore have a functional slave labor force that can produce all of our various gadgets and other mechanics of entertainment.
Thus, what we must ask ourselves, and economists more importantly, is why have we never used our knowledge to produce a sustainable system where all of us are able to create a life that is dignified, cool and enjoyable? What is required for us to do that? MONEY – and what do we need to bring through such money into this world? Resources – so what is then the solution – the real economic master plan as to how to create a world that would be sustainable and practical for all its inhabitants? To agree that we share the resources – at least the basic and most essential resources – those that we MUST HAVE in order to live.
Thus, I stand behind the Living Income Guaranteed – which is a functional, effective and sustainable way of creating a new world for all people where money will be shared – and for those economists that want to make a difference – I suggest that you investigate this concept and bring your knowledge to the table and help to create something from which we can all benefit!
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The Problem with Colonialism
“Colonialism is a practice of domination, which involves the subjugation of one people to another.” Stanford Encyclopedia of Philosophy.
Colonialism is frequently used interchangeably with imperialism. This is not actually correct, even though both involve political and economic control over a dependent territory. In colonialism, population is oftentimes transferred to a new territory as settlers who maintain an allegiance to their home country, whereas imperialism denotes the power and control factor one ruling country has over the other. However, the starting point of increasing profit and expanding power is the same.
The trick was to disguise the profit and power motive, in fact the exploitation that is be executed through colonialism, as development – with an argument known as the mission of bringing civilization to under- and undeveloped peoples, which was used to justify the intrusions and devastation of the land. So, internal decisions of the respective countries were influenced, financial and intellectual support arranged, the money for infrastructure projects lent, where around a fifth of the loan would be the actual money received, ensuing a tie-up of 80 percent in deposits in London, that would enslave the respective third world countries’ population. ‘Call in the loans’ is basically how the word colonialism is lived and manifested today.
Despite the fact that oftentimes the respective countries that had been targeted for ‘development’ fought for and received independence of the capitalist country, this revealed to be deceptive, as the status ultimately amounted to that of an informal colony. Besides, any obligations given up by them had to be taken over by befriended countries that were tied into such agreements by ‘legal’ coercion.
The idea or ideology of colonialism is nurtured by capitalist nations throughout the world with the enforcement of political, cultural and economic control over the weak nations of the world, in order to exploit them for pure self-enrichment – looking for trade, but basically sucking out the wealth of the countries it has pre-ordained for its dealings. So colonialism it is a major part of capitalism for the purpose of securing financial, economical and power interests. To this end, also, billions of slaves have been trafficked to the Americas, for instance, to have cheap human resources as laborers on the plantations that were set up, in its wake raping nature and natives alike of a balanced relationship with the whole as here as pre-established, causing warfare at all levels, resulting in genocide and complete agony for all life.
Colonialism also took on horrific extents in Malaya and Kenya, for example, where whole villages were punished in 1952, the states turned into a police state with a shoot to kill policy, detention camps were established with forced labor and hangings and any attempt to thwart British revenue demands were brutally oppressed. Hereby the UK gained immense military and industrial strength. Again motivated by material, economic and strategic interest, and, promising independence, GB continued following this ideology of colonialism in the Muslim world; the war on Iraq was spurred dividing the area into weak states, creating Iraq for the oil it needed for the Royal Navy – exchanging rulers and gassing and bombing the nation.
Colonialism sees exploitation and inhumane treatment of people with attacks against insurgents by systematic abuse, such as sleep deprivation, hooding, sexual degradation and starvation. Afghanistan is another example that is well-known, also Israel, established as a settler colony as an outpost of European capitalism, fostered in particular by British imperialism along with the creation of other states to ensure their influence. The list goes on.
One can easily see where this is going: the exploitation and devastation of the earth’s resources and enslavement of all but very few, the Elite behind it all, though even they are subservient to their greed and fear of sinking below the obtained standard trying to hold what they have made themselves believe they’re entitled to.
Since the driving factor is capitalism and within this profit and power and thus the starting point is existent of desire for More, which comes in form of economic control over those nations with rich resources, in the wake of which immense suffering is created for life on all levels, the solution is to limit the control of the corporations. They should not own natural resources and be allowed to mine them for profit of the very few without taking environmental consequences into consideration within responsibility and in regard to sustenance of an overall natural equilibrium. The resources will be handled in a way that is best for all.
It is necessary to take the capitalistic factor out of the equation, namely by implementing a system of equality with each and every living being on earth, where each being is entitled to an income from birth on. Thus each will have enough to stop the struggle for survival and coerced cooperation into a situation of compromise and devastation will be able to be immensely limited. Fear will be taken out of the equation to a great deal and the basis for self-investigation will be established.
The primary steps toward this solution would be to educate people on what equality actually means and what the consequences of implementing such a life principle into and as our practical living would look like to let people eventually see, realize and understand that fearing financial equality is quite ridiculous.
Establishing a party that each can actually vote for is essential as history has proven that acts of revolution give rise to a turnover with the ultimate effect that the same system is implemented only with a different person at the top, not to mention the brutality that is accepted by opting for violent and aggressive measures. The aim of the party would be to reallocate and nationalize resources and redistribute the responsibilities for these and their respective processing to people who are actually competent to handle such a task ecologically with responsibility.
Of course a new financial system will require substantial changes in the administrative structures and tasks and a consequent slimming down of the present extortions of these offices. On the other hand, there will be a need for people to evaluate, forward and implement improvements and suggestions thereof and people will have to be supported and educated to be able to participate with common sense, which will require the directive and clarity of insight of the respective persons to be the peers in this matter, thus after a slimming down there will be stable foundation to be set up and new expansion with regards to various novel fields, for example of science and research, that will need to be supervised will be possible.
Media will have to have a completely reversed focus point namely not to misinform and influence to the disadvantage of the people, but to inform and open up problematic points to impulse some stroke of genius or simply common sense toward solutions that support the common good and forward real growth for humanity.
On the long run the education system has to be totally reorganized and revised, pertaining for one to the contents and basically to the starting point of education as such, where not competition is being fostered to later ultimately cater to the corporate greed – the profit and advantage of the 1% -but but to ‘pick up everyone where he’s at’ and direct toward a re-establishment of common sense and actual know-how as to how things function in this world, what is here and how to create and move toward solutions that are best for all in a team.
The reward, as benefits, is obvious:
No being will have to suffer. Everyone will have food, water, shelter, education – a life. There will be no wars for resources. Fear will be on a personal level as a part of the mind consciousness system to be directed but not reinforced by the economical and financial system and so more easily handled and stopped.
School will be something very interesting without fear of failing in the system later due to bad marks, because competition will not be lived as ‘me against you’ within a superiority/inferiority paradigm, but wanting to excel in and as a team, because one will want to participate with one’s self-expression and not as a matter of surviving in the system.
There will be peace and a possibility of real self-expression without fear.
There will be a great mess to be cleaned up, but there will be a co-operation that establishes itself as everyone has enough for himself and is free to actually work together.
The Living Income Guaranteed integrates these principles in The Proposal, it is in our best interest to end foreign interventions for the sake of profit making purposes and instead, be able to focus on strengthening our own nations economy as well as developing trade within fair terms that benefit both sides.
Within the Living Income Guaranteed with a capitalist approach, profit is one of its cornerstones; therefore it must be ensured. Another point that tends to waste extensive money is the point that new businesses are started which then fail.From that perspective it is a suggested that there – like you have with city planning – you have business planning where it is assessed what type of businesses the community can sustain that is possible within the money supply that exists, and that those businesses are then planned-out and offered to the citizen to take on with full support from the business planning section which should be part as a governmental function, a citizen support function ensuring that businesses do not fail.
This will save massive amounts of money which makes Living Income Guaranteed a very cheap solution to a situation where there is seemingly endless amounts of money ending up in either foreclosure and/or failure and/or abuse and/or maladministration. At this stage there are no actual figures being kept of all of this – we never get to know the real numbers of how much is actually wasted. But there is more wasted through business failure, maladministration, charity and foundation creation abuse due to the influence of the consumer than what is needed to bring about a Living Income Guaranteed.
You should ask yourself some questions:
- Why are the no clear figures that inform the population of the administration of resources?
- Why are there no figures kept of how much is actually lost through foreclosure?
- How much is actually lost through businesses that are going bankrupt?
- How much is actually lost through people losing their jobs at this stage, unable to participate in the system, unable for instance to pay tax or to buy stuff to increase the revenue streams?
- How much is wasted by corrupt government officials?
- How much is directed toward inappropriate placement of tenders?
These are massive amounts beyond belief; how much is happening because there’s no oversight and everybody participating in the system knows one thing: there are resources being stolen and there is maladministration and corruption, that’s why they don’t want transparency, it’s convenient.
In some countries like South Africa, there’s the prospect of placing in laws to ‘limit transparency,’ which is no different to saying ‘Let’s legalize corruption!’. So the integrity of the human within a Living Income Guaranteed system should be administrated through a system. We have the technology now to have systems in place that can support the human to the extent of creating a system that is trustworthy and that assists everyone effectively in the world. We have the expertise to do this, now we need the will to stop corruption and to stop abuse. This can be done by Guaranteeing a Basic Income, guaranteeing a minimum wage and guaranteeing profit because all these three foundational stones will actually guarantee the existence and expansion of Capitalism and bring about a high functioning and effective society with the use of technology to produce what will ensure proper usage of resources, technology and human creativity. This cannot happen without a sense of freedom and money does give a sense of freedom.
We have come to the conclusion that trying to establish a society without a way within which the human can express their freedom is simply not going to work. Freedom is in money, it translates as the ability to express yourself in a way where you feel empowered as well as having your Basic Human Rights recognized and dignified. Not having enough money is to disempower people and to force them into crime and as you’ve noticed, massive amounts of money are lost to crime. All these things will stop if we have in place a proper technological system which we can establish with great ease at this stage. We have the technology and the managerial mechanisms to do so. In a matter of a few years, the whole world will be an internet grid and we can make use of all these things to prevent crime and corruption.
Living Income Guaranteed is not only an opportunity to support yourself from an economic perspective in terms of ensuring everyone’s survival, but also from the economic perspective to have an equal opportunity to support yourself and your family, which is a Basic Human Right. This is the equal right we give to each other to potentially become wealthy individuals while ensuring all resources are made available for everyone equally.