income

Taking Leave may mean the End of your Job – Solutions?

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by Fidelis Spies

“It’s like a bachelor party for your career! Or having someone buying you dinner and then assume that means he’s owed sexual intercourse! Anyway, apparently telling people to take a vacation before they come to work for you is becoming a thing now.

Paid Leave Labor Vacation Living Income GuaranteedWriting this week in Slate, Will Oremus reports on this phenomenon, telling the tale of Jason Freedman, the CEO of a San Francisco-based commercial real estate search engine company called 42 floors. Freedman offers what he calls paid “pre-cations” to new hires, explaining, “It’s like, ‘Yeah, have a great time! And when you get back here, work your ass off.’” The point is, that sounds terrible.

As Oremus points out, we are already a vastly overworked nation. We put in considerably more hours than we did a generation ago — and most of us are doing it while facing what the New York Times last year called “flatlined” wages. A new study released last month revealed that Americans take only about half the vacation time they’re entitled to, missing out on the equivalent of “over 500 million” days off a year. Why? Because they’re afraid of repercussions, an anxiety reinforced by what MarketWatch notes is “company culture and lack of encouragement from management to take time off.” People are reluctant to take vacations for fear they’ll be revealed as expendable.”
See more at: http://www.salon.com/2014/10/01/the_pre_vacation_is_a_trap/

Well now, what a problem we have here. In the article above you can see how taking paid leave is something that most people simply cannot do, because it could mean the end of their job. Getting a job is a big problem in this world and when you do have a job you will do anything to keep it, because you need the money to survive in this world.

This gives employers power over the employees. There are many people looking for jobs, so if you are deemed replaceable you will simply be replaced. So if it means you have works your ass off every day and not take any leave then there is nothing you can do about it unless you risk getting fired. This leads to bad work situations and over worked, overstressed employees. This will only get worse unless something changes.

A solution that will end this fear and anxiety of losing a job if you take your leave which you are in fact entitled to would be the Living Income Guaranteed. This will give power to the employees and create a dignified work environment. With the minimum wage being double the Living income people will have enough money to live. This will stop the abuse of employees, because they could simply leave and find a better place to work so the employer will need to treat his employees with care to keep them working there.

Workers will feel supported and cared for by their employers, which will result in individuals that no longer feel pressured and enforced to only be a profit-making machine, but will feel happy and content to realize that their work is being truly remunerated and that their time and contribution to the corporation is being valued as the life-time investment it actually is. A well remunerated individual will create a happier and fulfilled society that is no longer afraid of not having sufficient money to feed their family, it will be the beginning of a new era of quality work that dignifies the lives of human beings that genuinely desire to improve their lifestyles.

 

LIG Inflation

 

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Living Income Guaranteed and Taxation – From Redistribution to Contribution

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by Maite Zamora Moreno

 

Re-Set Living Income Guaranteed Taxation

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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The Butterfly Effect and Living Income Guaranteed

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Flowing Economy

The economy in any given location, can be likened to the dynamics of water. If the water in a river flows, then the river is healthy, life thrives in its waters and supports the surrounding terrestrial ecosystems.

Water evaporates from the Earth’s surface, transforms into clouds, travels with the wind, and lands in a new area where it can support life.

When water stagnates, it can become stale. Bacteria and disease start brooding and life stops thriving. Water, and more specifically flowing water – is an essential element and resource in sustaining life.

In our society, we have made the primary element that supports life: ‘money’. If you have money, you can eat, you can drink, you can live in a nice house, you can educate yourself, you can start new ventures, you can support a family, you can participate in leisure time. Money is used, and money is spent – and each expense in turn becomes a flow of income for someone else in society.

Money like water – can be stored for the future. Water-grabs in the form of excessive damming can threaten the vitality of an entire ecosystem: as water is held back, not enough water flows and the area that was once supported by its flow is now faced with a condition of lack, resulting in the degradation of the environment. Dams, when properly regulated and monitored, can be a beneficial factor in the environment. In the same way, we know that saving money can be beneficial to get us through a future ‘rainy day’.  However, when we hog money, like water, we create averse conditions within the economic environment (=ecosystem) around us.

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The Marginal Propensity to Consume, Save and the Multiplier Effect

Within the realm of economics, you may sometimes hear of the term ‘multiplier effect’ and ‘marginal propensity to consume’ or ‘marginal propensity to save’. Although these terms sound daunting, their meaning is actually very simple.

All these above-mentioned terms, relate to changes in the economy when an influx of income (and resulting spending) occurs.

Whenever we have money/an income, we will tend to save some of it and spend the rest. The amount we spend in contrast to how much we save for each unit of additional income, is our ‘marginal propensity to consume’ (MPC). If our MPC is 0.8, then this means that for every additional increase of income, we will spend 80% of it. In turn, the ratio of how much we save over how much we spend for each additional unit of income, is our ‘marginal propensity to save’ (MPS). If our MPC was 0.8, then our MPS is 0.2, which means we will save 20% of any additional income.

When you have little money, your propensity to save will be very low as money will primarily be spent on everyday needs. As your income goes up, your propensity to save will go up as you feel secure enough to ‘put something away’ and still be able to tend to your everyday needs. Once you’re well off, you will be more likely to save a higher portion of additional increments of income, leading to a lower marginal propensity to consume.

The multiplier effect, refers to an effect in the economy where an increase in spending will bring about a ripple effect which results in a greater amount of value as an outcome than the initial amount spent. In a way, one can look at it as ‘returns on an investment’. Here, we can go back to the example of the river, where additional flowing water in a river is not just ‘additional water’. It is also the drinking water for animals downstream whose presence is absolutely vital to the local biome [See ‘How Wolves Change Rivers’ to see how a change in a single variable can have a huge impact]. The same way, money spent in the economy is not just ‘some money spent’, but also the income of another human being who in turn can utilize this income to employ the services of someone else and again contribute to someone’s livelihood.

We can see from the following excerpt, that these propensities matter when it comes down to economic health and vitality:

“Wall Street banks handed out $26.7 billion in bonuses to their 165,200 employees last year. That amount would be enough to more than double the pay for all 1,085,000 Americans who work full-time at the current federal minimum wage of $7.25 per hour.

Purveyors of luxury goods always welcome the Wall Street bonus season, but a raise in the minimum wage would give America’s economy a much greater boost. To meet basic needs, low-wage workers tend to spend nearly every dollar they make. The wealthy can afford to squirrel away more of their earnings.

All those dollars low-wage workers spend create an economic ripple effect. Every extra dollar going into the pockets of low-wage workers, standard economic multiplier models tell us, adds about $1.21 to the national economy. Every extra dollar going into the pockets of a high-income American, by contrast, only adds about 39 cents to the GDP.”

Bang-for-the-Buck

http://www.ips-dc.org/reports/wall_street_bonuses_and_the_minimum_wage

This article nicely illustrates the power of money movement, and where this ‘current’ is the strongest.

By bringing Living Income Guaranteed into the economic picture, we can bring in a gush of fresh new water and transform our stagnant pool into a thriving flowing river. Besides fulfilling our moral duty towards our fellow men through securing each one’s Basic Human Rights, we also put into motion a new economic drive from which will sprout new opportunities of innovation and entrepreneurship.

It becomes possible to have a nice life and to enjoy the latest comfort and tech that science and creativity have to offer, whilst simultaneously making sure that everyone’s livelihood is guaranteed. The principle behind an economy like this is really a simple one: Give, as you would like to Receive.

By changing the money composition in the economy by a fraction, we can bring about tremendous changes. These changes in turn, will bring about their own effects. Even if one might not agree with a Living Income Guaranteed for political reasons, we cannot ignore the ample economic benefits that are coupled with its implementation; to name but just a few: economic growth and expansion, higher living standards, better skilled labor force, lower debt levels and better employment conditions. These in turn translate into social, cultural and psychological benefits such as lower crime rate, lower levels of stress, increased personal freedom, social cohesion, enhanced personal growth and development and overall happiness.

Let’s unleash the wave of economic, social, cultural and personal potential with Living Income Guaranteed.

 

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Living Income Guarantees Business Profits

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For the Living Income Guaranteed to work we require an economic model that must be efficient to follow very specific regulations. Just as one would regulate food and certify it for instance as ‘safe for consumption,’ we have to apply the same principle and certify businesses as ‘safe for the economy’. Within this, one will have to establish ways to ensure that businesses are not built on the ideology of competition but rather on the principle of profit and of quality.

Therefore pricing will have to be certified to be sufficient and effective to ensure the minimum wage at least, is paid to the employees, the business owner makes a profit and the resources bought are paid for at a price that ensures such profit. We have to also ensure that the business is compliant and the movement of sales tax/ value added tax is efficient so that both the government and the Living Income Guaranteed is effective; and then the consumer will be able to buy from businesses that ensure a good quality product, knowing that they are participating in an economic system that is taking care of each one’s individual dignified living with Living Income Guaranteed. Doing this will also ensure that things like poverty, debt and the many psychological issues that develop because of stress around money, start to disappear from society.

This also implies that the true supply and demand will be based on quality and preference wherein the necessary research should be done and facilitated before one brings out a new product on the market. This is the part where psychology and public relations also play a role to ensure the person assesses the product as something that they possibly may be interested in acquiring; this ensures you’re not wasting resources on a ‘potentially successful’ product, and instead you secure your investment once you have your market analysis results,  an effective presentation of a product that will have an assured market with sufficient demand which you will supply – so it is demand first, then supply.

Thus a clearly defined and estimated market share is established and cross-referenced according to the income levels available. This means assessing whether the available amount of money that is in the consumer’s budget is in fact realistic so that the business can work effectively. This is how one will ensure profit and sustainability instead of investing on opening businesses that are guaranteed to fail, just because the proper research was not done prior to running it. This effective business planning will ensure that sufficient profit is made as well as providing a good rate of success that will satisfy the business and the population in an equal manner: everybody wins!

Equal Life Foundation Research Team

Also on this topic: Living Income Guaranteed and Business Transparency

Basic Income Guarantees Business Profits