Originally posted by fnord
Basically, my idea is that everything has to be sold at cost.
Well, take me as an example. Late every summer, the kids and I take a pickup-load of water melons to the farmer's market. They are allowed to keep
half the profits, and use the money as they see fit. If we have to sell at cost, then I'm basically FINISHED growing melons for other people.
Why ON EARTH would I work hard hoeing and turning melons all Summer, if I have to sell them at cost. The seed packets cost like, four bucks. I'm
not ABOUT to sell a pickup full of melons for four bucks!
the cost is calculated as the actual cost of buying the materials+labor+advertising+R&D+any other expenses that might occur (including projected
growth for the year + or minus 10 %) plus 5% for un-forseen expenses that might arise.
There are enough "fudge factors in your formula so as to be meaningless. For instance, "labor" I think I should pay my kids a nickel an hour.
No, wait; If I can justify a high market price, I've just decided that they are all executives, and are worth $25 an hour. So, ANY price for my
melons is now justified, merely by fiddling with the numbers I turn in each year . . .
any profit goes twards a "rainy day fund" as described above. companies are forced to give a detailed monthly statement to the government (via a
representative in every company) of the costs associated with the product, additionaly to prevent fraud each detailed statement is indipendently
verified by the government via other companies and a series of dummy companies.
So, you've got at least 4 bureacrats "overseeing" my company now, and all we do is raise a bunch of melons! And is there an appeals process? Or
are the decisions of your bureacrats final? One of my kids wants a job as your bureaucrat in charge of oversight for my company. He wont cheat for
CEO's can't be paid more than 3 times what the lowest paid member of the companies work force is paid. (also verified via the detailed cost
Fine, I'll just FIRE most of the employees, and have a small company that MAKES LESS PROFIT for you to tax, and less paperwork for me to fill out.
Even though I make less, it'll be less heartache than cutting through your red tape . . . But wait a second, what about musicians? A rockstar
doesn't work for a company, so there's no cap on what HE can make, right? Same with a lawyer in private practice. So, professionals like doctors
and lawyers keep right on making millions, along with celebrities and sports stars, but people doing manual labor make only pennies.
And this is different from real life, how?
So, as a result, the dollar bill will climb because every dollar is worth more product.
The dollar increasing in purchasing power is called "deflation." With respect to fiat currency, it is usually considered the hallmark of a
recession/depression. But don't worry. You've failed to link it in ANY WAY to your new economic program. WHY will the dollar magically increase?
Second, an increasing dollar will CAUSE a recession if you don't have one already. If a candy bar costs a dollar today, and only 90 cents next week,
then I'll just put off buying it for a month, and then it will cost only 66 cents! Why buy a car, or a TV, or a college education. I don't have to
work, I just need to bury my money in the garden: it'll be worth more next year, without me having to do any work or take any risks!
Watch me not plant a garden next year. The kids and I will just bury the money, and dig it up when it's worth more next year. And we won't have to
pay you any taxes or do any of your dratted paperwork. (I'm not joking, by the way, this is EXACTLY how the depressions of 1822 and 1857 happened.
It's also why, although the Great Depression was over by 1933, consumer spending was stagnant until about 1937: the appreciating dollar discouraged
there will be less homeless people (if any) beacuse everything is cheaper. people will be happy yay us.
I disagree. There will be LOT FEWER jobs, because executives won't want to hire employees they'll have to pay too much. There will be fewer goods
for sale, as I've demonstrated above. Fewer jobs and less product equals MORE HOMELESS.
People will be outraged, and storming the Ministry of Economics, burning you in effigy. They only way to put down the rebellion will be for you to
set up a "secret police" to maintain order.