Living wage – how about productive economy first?

This is one of those without a solution.

Companies simply couldn’t afford a living wage and as was seen in the vid on What really caused the depression?, when governments interfere in the economy via legislation, things either go down or the extant problems are exacerbated.

It’s not that the conditions of workers are not an issue – they are. Cambodian wages are a disgrace but in relative terms, ours are getting that way too. And there is a case for a union to press for relief from excessive hardship for staff but when does that change to greed and the tail wagging the dog on the part of the unions? Ditto with women in the workforce – when does it cross the line into discrimination?

Coming back to companies, the reason they can’t afford it, as we all know, is because of the parasites on their backs, the largest being the government. If I set up a business, it’s hard enough without the leeches taking huge swathes of money for propping up unnecessary regulatory bureaucracies and their equally parasitic bigwigs on megasalaries. To hell with paying those. They need to have productive jobs, those bureaucrats.

There is a case for a regulatory body but one of them only and much reduced in size, merged with a Companies House – not the rampant bureaucratic wastage of the present day. And their job is to enforce arbitrated agreements between the parties, that’s all – a policing role. There should be no external bodies like the Fed setting interest rates – these should be set by market forces.

A flat 25% is a fair tax on all – no bands, no tiers, no difference between companies and individuals – there needs to be a huge incentive this way for people to try businesses. We set up a business in Australia once and had to front whatever the companies house was called at the time with our articles and the other documentation. It was pretty tough to convince them and so it should have been.

The whole point is that it should be business people in these regulatory roles, not bureaucrats and parachutees. Therefore their own salaries need to be worth the bother.

………..

I wanted to set up a business. I went to the centre of town and negotiated for a space at the market, selling wholesale grain, coffee etc., from sacks, in the Russian way. What should have happened was that I’d need to pay for the stall at a reasonable rate and there should be a government tax on me of 25% of all profits. If I take out a loan, then that’s what I negotiate. There’s what I negotiate too with the wholesalers. That should be all.

As you know, I got nowhere. I had the suppliers, there was no reason not to give me a stall. It didn’t fit in with their strategic plan. Stuff their strategic plan. They also wanted kickbacks from the very start, before it even got to the government avarice.

You’ll smile at such a cloud cuckoo land venture and it was. Why was it? If a nation wishes to have a vibrant business sector, employing people, why on earth is it cloud cuckoo land for me to hope for the conditions I’ve just described?

Central government, local councils and unions are the issue and always have been, the leeches. Let’s not even get into what you get back for your council tax.

And then there is Them – in this case, the EU and Common Purpose.

………..

The traditional way to reverse our situation is for there to be a war. I don’t want that. No one sane does. So how do we root out the greedy parasites? Can companies go on a “fail to pay” strike themselves?

You know the answer to that. Incarceration. The socialist bureaucrats have us in the grip of their bloated, pudgy, greedy paws. They infest every area of public life. They’ve choked the life out of production and then have meetings about how to divvy out the dwindling takings of remaining businesses and taxpayers. Millipede E is going to reinstate 50% [if there's no fratricide in the meantime].

The parasites are not just the government, they’re everyone trying to rake off a percentage of someone else’s productivity. They’re the people who would vote in a party which allows such things, which is all three of them.

They need either preventing or eliminating.

[H/T haiku]

12 Responses to “Living wage – how about productive economy first?”

  1. Moggsy October 1, 2012 at 12:22 Permalink

    Maybe a flat 20% for all?

  2. JD October 1, 2012 at 12:48 Permalink

    productive economy?

    Setting up a market stall does not make you part of the productive economy – a market trader is not a producer, he is a trader, a dealer in other words. Traders/dealers/shopkeepers do not add value, they add only costs i.e. handling charges.

    Poor example. Think of another, better one to illustrate what constitutes the ‘productive economy’.

  3. James Higham October 1, 2012 at 13:54 Permalink

    Moggsy – or even 15%. Do I hear 10%?

    JD – making whoopee?

  4. JD October 1, 2012 at 15:38 Permalink

    …………cushions?
    yes that’ll do it :)

  5. CherryPie October 1, 2012 at 23:18 Permalink

    To bolster the economy you have increase spending rather than suppress it, which is what is currently happening.

    Following on from JDs thoughts – the productive economy.

    In recent years the government/s have nulled all the engineering skills and expertise within this country and chosen to shop abroad…

    In so doing they have killed the engineering industry in the UK. And that means?

    This is one example of many…

  6. Amfortas October 2, 2012 at 02:08 Permalink

    Mafia Protection Racket Government.

  7. Steve Hayes October 2, 2012 at 07:30 Permalink

    Among the parasites here are the tenderpreneurs. Some government body asks people to tender for, say the repair of a road. The tenderpreneur, A, puts in a tender, factoring in the fat bribe he had to pay to get his tender accepted. He has not knowledge of how to build a road, and no capacity to do it, so he contracts it out to B, who likewise doesn’t know how to build a road, but sub-contracts it to C, D and E, who likewidse don’t know how to build roads, burt sub-sub-contact it to the people who do. And by the time all these parasites have taken their cut, there isn’t enough money left to pay for the repair of the road, so the sub-sub-sub-contractors are underpaid, and do a shoddy job.

  8. Moggsy October 2, 2012 at 08:35 Permalink

    Cherry Pie, Not so sure what you mean by “increased spending”, if you mean increased government spending then I am sorry to have to disagree with you. But if you mean Increased spending in the private sector would be a different.

    To me, the problem at the moment, especially for the UK is there is not enough bank lending to allow the economy to get moving. I figure one of the reasons for that is bad debt and not knowing where it is hidden. That and building up their balance sheets.

    I agree about the governemnt shopping abroad doing harm, I wonder if that has to do with having to tender to EU nations?

  9. CherryPie October 2, 2012 at 18:19 Permalink

    Moggsy, no not government spending. I meant people spending money on produce and services etc. Spending has slowed down because people are feeling the pinch and this leads to businesses closing.

  10. Don QuiScottie October 2, 2012 at 18:50 Permalink

    The tax rate is not the key issue, I would suggest, but, first, the ability of those at the top in terms of income to avoid paying whatever tax rate they are supposed to pay. Many millionaires seem to pay a lower actual tax rate than those on 20K per year. If everyone actually paid the set tax rate it could be much lower. And, secondly, this applies not just at the top, but to the tradesmen who only put half or less of their real income through the books, the rest being cash in hand and nobody knows. I know of several people blatantly declaring only around half of their real income while at the same time moaning about other “cheats”.

    Of course much of the tax raised is completely wasted by the government, but that is another issue.

  11. Don QuiScottie October 2, 2012 at 18:52 Permalink

    Of course when I said “tradesmen” in my comment I should have used a unisex term instead – many of the people I spoke of are women doing things from accounting and consulting to cleaning and childminding, but getting paid in cash and paying no tax.

  12. Moggsy October 3, 2012 at 08:25 Permalink

    Don, What do they say “All taxation is theft”? :-)

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