A different approach

The economy only works one way, according to author Peter William Bailey. He maintains that the strength of the economy comes through the spending power of the people in the community. The people have to work to earn an income and the more workers and the more money they earn, the stronger the economy will be.

His definition of the economy is: ‘A community of people working to supply their own needs and wants, who may be organised by leaders and entrepreneurs into organisations and companies with tools and equipment to boost their productive capacity’.

This applies whether there is money in the system or not.

Money provides a means of remunerating the community and a means whereby businesses and individuals can accumulate wealth. Money provides the community with freedom of choice.

The business sector generates the goods and services required by the community and the government and generates the income required to pay the community and government. The money will be generated from the community and exports. However, exports will generally be balanced by imports which logically suggests income should be generated by the community.

One taxpayer

Peter Bailey says he can prove that whatever governments may think or do there is basically only one taxpayer in the system – the consumer. Even income tax is paid by the consumer. In consequence and in order to reduce the costs of employment and the cost of production to make the country competitive then we should go onto the Centreline System of government.

The Centreline System of government has a VAT-based tax system and is designed to eradicate poverty and unemployment. Because of the absence of income tax and company taxes the country will attract the investment and skills needed for the creation of jobs. It recommends free health and education for strong economic reasons and not welfare reasons. The level of government tax receipts is geared to the economic performance of the economy which is geared to the productivity of the business sector which provides the employment and income necessary to drive the economy.

The strongest economy will be where there is full employment with a good standard of living.

Recipe for disaster

He also maintains that austerity measures such as those in Britain and Europe are a recipe for disaster. They increase taxes and reduce spending power and the community becomes poorer which is the opposite of what should be done to achieve the desired results. – Peter W. Bailey’s latest book It’s all in the price is available on amazon.com

Post published in: Business

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