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Task sugestion: Staple goods

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Post: #1
Task sugestion: Staple goods

Economy, Budget
Staple goods costs are very high for poor people while insignificant for the rich.
1. "Some goods like staple foods, water, electricity and medicines are essential in our lives." Points out Gerald Gawain a long time unemployed who in times had a luxury life "So these should all be tax exempt, it will help the poor and to avoid problems in our budget you can slightly increase the tax on luxury goods."

2. "Not enough, the capitalist system, forces many people into unemployment and poverty, what reduces consumption, increasing unemployment and poverty!" Shouts Adrian Mouse, baker and member of a left wing party. "So the state should not only remove taxes on these products but also give subsidies to cut their price in half! That's the best option for the people and for the economy."

3. "All of this is nonsense, our society is good enough and most cases of extreme poverty are caused by addictions and mental illness" argues Thomas Moore, young millionaire entrepreneur, and owner of a big it company. "what we should do is reduce the taxes of high tech goods, that will allow our youth to have them, this will increase the number of successful youth entrepreneurs increasing the competitiveness of our economy."

1. Poverty is greatly reduced while luxury goods become to expensive for most.

2. Traditional cuisine recipes are abandoned in favor of new recipes based on subsidized food list.

3. The number of young successful entrepreneurs is increasing as is the number of children in extreme poverty.

Some direct consequences in my opinion:
Reduces GINI
Slightly reduces living costs
Reduces GINI
Reduces living costs
Reduced Excise taxes
Increase PE subsidies
Increases private consumption
Increases GINI
Reduces Excise taxes
Increases Automation
Increases Level of progress
Increases private consumption
Increases export
Increase imports

There are for sure many errors and other problems but what you all thing about my task proposal?

01.09.2015 11:52
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Blue Wizard

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Post: #2
RE: Task sugestion: Staple goods


I would like to solve this task. I would probably select the first option.

Nicely done,


“Courage will now be your best defence against the storm that is at hand-—that and such hope as I bring.” Gandalf the Grey
09.09.2015 19:48
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Post: #3
RE: Task sugestion: Staple goods

In real life, I'd levy a small flat VAT of 5% on all items, and excise on other things (such as alcohol and tabaco). The low flat VAT would ensure easy bureaucracy and would work as an automatic stabilizer during the upward cycle. Evidently, like all taxes it would add to demand for government currency. I'd do away with obligatory insurances and enhance welfare programs and institute an unconditional basic income, alongside universal health care and free education. I would also like public utilities to offer their services at cost to businesses and consumers.
09.09.2015 20:03
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