Thursday, 5 June 2014
Economic Unification Theory
Small businesses are the key, nothing new there.
Imposing a very high income tax on national revenue of national and large corporations would encourage large corporations to expand to foreign countries to sell there, where the income tax would be purposely lowered for foreign sales. And to compensate for the lack of governmental cash return from these companies, the money would be proportionally found in the reduced amount of national advertising of these corporations.
Impose huge advertising taxes for large corporations, discouraging them from advertising. Larger companies would advertise less and pay more, which creates a new revenue for the government, compensating for the international sales income tax reduction, and gives more space for small corporation advertising. This money would be used to reduce and support advertising costs of small and medium businesses, which would attract more clients. Small companies would now generate more revenue due to the increased clientele and could expand, creating jobs and simultaneously promoting a healthy flow of money. Because more jobs equals more money in the pockets of citizens, more small corporation advertising equals more citizens spending on small corporations, which allows small companies to expand, and we therefore come back to the first element, creating more jobs. This system would result in salary raising and better job security, which would reduce employee strikes and maintain more stable levels of productivity. One of the biggest killers of an economy is the purchase of monstrously large corporation products in our current fiscal and corporate policies.
This system is fully dependent of large companies on rarified advertising with increased financial investments into said advertising. Which, in turn, is dependent of the international expansion of large corporations. When you buy a small business product, you basically invest directly in job growth and economic stimulation.
To avoid harm to large corporations, the transition between having low advertising tax and higher ones would be slow and gradual, and extended over a large period of time. And as they gradually reach the level of almost unbearable local advertising taxes, they would be given proportionally rising grants to invest into international expansion. If international expansion fails, they come back down to normal advertising prices determined by the publisher of the ad, but still with very high income tax to prevent a corporate unification. (preventing companies to get too big on the national level so they won't have the money to buy out other companies, for a stable variety of corporate advertising.)
When a corporation would make income declarations, investigations would be held each time by independent groups where the employees live out of the money system, to act as a corruption-proof employee. The lives of these people would be financed by the surplus of the international expansion of large corporations. I will not develop further on how they would get their food and such things, this is not relevant to my point and goes into extremely precise details.
Solid grants could be available for start up corporations to get them on their feet and going. But to prevent them to start and have no customers, market evaluations would be done to determine if the company has potential within it's market. If it has potential, a kickstarting free advertising campaign would be funded by large corporation income taxes to get clients early on and ensure stable growth of the starting corporation.
On the long term, this system would generate so much revenue by picking money out of foreign countries, that some countries would end up having referedums to economically unite with the core country running this system to have and share the wealth of this system. Eventually, this would lead up to a massive economic united entity. A first step towards the standardization of all things.
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