So the current world order is kind of like...
Liberal WO: democracy and free trade, running on Adam Smith's "invisible hand" of supply and demand that determines the value of something. Of cause the world economics isn't so simple as that so there's also Keynesian Aggregate Demand that influences the output and inflation.
in the short runs of downturns (recessions) or upturns (booms), markets cant automatically self-correct to full employment fast enough, requiring government intervention through fiscal (spending, taxes) and monetary policies to stabilize the economy and manage business cycles
now here's my take on it:
some commodities like food and stuff to buy are okay to be regulated by the market, because they are small and insignificant enough to not make a huge impact into one's life quality.
however there are some items that should be closely watched:
housing and property.
in NZ we get taxed by IRD hased on how much we earn in total income :
| For each dollar of income | Tax rate |
|---|---|
| 0 - $15,600 | 10.5% |
| $15,601 - $53,500 | 17.5% |
| $53,501 - $78,100 | 30% |
| $78,101 - $180,000 | 33% |
| $180,001 and over | 39% |
it's kind of a good idea, because the idea of it is to tax those that can afford to be taxed that much.
but its horrible in implementation. it dis incentives people to earn more than a certain threshold
and truth be told, it doesn't work. the mega rich all do tax evasion. the run their money through businesses and claim a loss and get tax refunds.
so it's always the middle class that suffers, the hardworking honest people that do a decent living working 9-5 that pays the taxes to keep the govt, country running and rich people sitting on their deck chairs.
and on the other spectrum is the people just plain lazy to find jobs and game the WINZ or benefit and welfare system. A system that has good intentions, to help those that really need help, instead get's abused by people that know how to abuse the system, free money. ACC claims while still working for cash. staying in govt housing although they drive BMW and Mercs....
2. and rates. hosuing rates are super high. it's not nice to own a home now. even people that have no mortage are sturrlign with the rising house rates by councils . while council workers getting 29% payt increaes,,
i propose... that to get money, its not through taxing people on house rates equally.. but on how many homes one owns.
this will solve the housing crisis.
everyone is only entitled to one house,
they moment you try to buy another one as an investment property....
the rates on that would be like 80-% or something.
you're rich enough to have more than one house... you can afford to keep the council and country running.
houses shouldn't be something people can invest in to make them richer,
because that just pushes the price up too much for people that need to actually buy one.
got the idea from EVE when people would just buy up factories and let them sit empty until the right buyer comes along. it defeats the purpose, it doesn't contribute to society or add any value...
so they solved it buy having a monthly subscription on it, people cant just buy things and let it rot. it had to be active...
it's almost like the AIrBnB mnarket on waiheke.. tonnes of foreing investors, buy real estate. and just sit on it.. and it's all empty homes..... holiday weekend bach, rentout out as airBnBs...
the current system sucks..
maybe i'm just sour because i haven't bought a house yet.
