By A. Rayman
Quantity II proposes radical reform (1) of the accounting approach – to carry company administration below the regulate of industry forces; and (2) of the tax procedure – to allow the financial system to develop to its complete power and to set up an automated mechanism for cost balance with none arbitrary intervention.
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Additional info for A Multi-Gear Strategy for Economic Recovery
Of all the taxes on consumption, a reduction in the payroll tax on the business “consumption” of labour is most likely to be effective in dealing with regional pockets of particularly heavy unemployment. Multi-gear regional regeneration would be driven by the economic situation and by market forces in the regions themselves. Depressed areas would automatically1 incur a lighter tax burden than the rest. Some economic activity would thereby be attracted away from prosperous areas of relative overheating into depressed areas of relative underemployment.
4 Globalisation: Blessing or Curse? 33 in different gears, the flow of resources may be distorted by differences in the level of activity. Regionalisation of circulation operates in the same way as the “liftout” partitions in a tray of ice cubes. The liquid can flow fairly rapidly in response to natural forces without destabilising surges. Multi-gear maintenance of the level of economic activity in “top gear” has two benefits. First, it does not interfere with, or create obstacles to, the movement of resources between regions in response to market forces.
By the same token, regional variations in the level of employment may be the result of different regions sliding into different gears. If that is the case, the Law of Circulation indicates that gear-changes in some regions need to be different from those in others. The tax and subsidy policy of stabilisation, to be outlined in Chapter 8 of Part III, is intended to apply in relation to the economy as a whole. It is based on the tax reform described in Part V of the previous volume. The key element of that reform is the switching of direct taxation away from income to consumption.
A Multi-Gear Strategy for Economic Recovery by A. Rayman