Question about economy

LED ZEPPELIN

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As the United States, I just annexed China and now I have 1.5 billion more people. This means I have more people to educate, give healthcare, etc.

This causes me to get arround 20 trillion dollars of expenses related to these things (yes, trillion, because I'm spending a lot on education and healthcare for my people, also other things like research, enovirment and propaganda got more expensive since I annexed the place), and I'm getting a deficit of arround 10 trillion.


SO THE QUESTION OF THE NIGHT IS what should I do?

Option 1: Raise personal income tax from 20% to 90%, which would get everyone very mad.
Option 2: Lower budget expenditures on things like education and health care, which would get everyone very mad
Option 3: Lower interest rates and increase production, which would get me very mad (inflation and getting debt with IMF)
Option 4: Nuke myself in order to get mass depopulation (which would get the world mad)
Option 5: A bit of everything

All of these options would get either a great possibility of getting anarchy in my country, bankrupcy or I'd simply not be relected.

What to do???
 
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Hexuze

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Lesson of the day: You can't please everyone.
 

Aim64C

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Allow people to keep their incomes - as in - drop all direct national taxation.

Allow populations of people apply to become independently governed states. State-Hood comes with the benefits of mutual defense across states, simplified legal and tax concerns across states (as interstate commerce is not taxed), etc. In return, the state government forfeits the power to print money and agrees to minimum levels of restrictions on the laws it can form (Bill of Rights) - as well as complies with the requirements for producing representatives to the offices of the national government.

As well as a tax on their revenue.

The nation taxes the individual states on their revenue.

The individual state should be allowed to set their revenue policies/strategies. If the people want to rent from their government in the form of property tax, then that is their prerogative. If they wish to collect all revenues through sales tax, that is their prerogative, the same if they wish to choose how much income a person is allowed to keep in the form of an income tax.

As a nation, you provide for what must absolutely be provided for - defense and mediation amongst the states.

The mistake most people make is assuming that the government should be doing something. It should do and be responsible for as little as possible. Especially at the national level.

Or you end up with states looking to secede. Like the U.S. does now.
 

LED ZEPPELIN

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Allow people to keep their incomes - as in - drop all direct national taxation.

Allow populations of people apply to become independently governed states. State-Hood comes with the benefits of mutual defense across states, simplified legal and tax concerns across states (as interstate commerce is not taxed), etc. In return, the state government forfeits the power to print money and agrees to minimum levels of restrictions on the laws it can form (Bill of Rights) - as well as complies with the requirements for producing representatives to the offices of the national government.

As well as a tax on their revenue.

The nation taxes the individual states on their revenue.

The individual state should be allowed to set their revenue policies/strategies. If the people want to rent from their government in the form of property tax, then that is their prerogative. If they wish to collect all revenues through sales tax, that is their prerogative, the same if they wish to choose how much income a person is allowed to keep in the form of an income tax.

As a nation, you provide for what must absolutely be provided for - defense and mediation amongst the states.

The mistake most people make is assuming that the government should be doing something. It should do and be responsible for as little as possible. Especially at the national level.

Or you end up with states looking to secede. Like the U.S. does now.

the thing is taxes on trading are already on 99.9%....
 

Aim64C

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the thing is taxes on trading are already on 99.9%....

You don't tax trade.

You tax the revenues of states. States determine how they take revenues. They can go door-to-door asking for donations for all you care. Their state can be all-volunteer with no taxes.

What could you possibly be forcing them to do that is worth the taxes you take from them by force?
 

LED ZEPPELIN

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just legalized abortion, child labour and incremented a 1-child policy
 

HashiramaDescendant

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The Chinese are already pretty well educated... I wouldn't worry too much about the education portion, lol.
 

LED ZEPPELIN

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You don't tax trade.

You tax the revenues of states. States determine how they take revenues. They can go door-to-door asking for donations for all you care. Their state can be all-volunteer with no taxes.

What could you possibly be forcing them to do that is worth the taxes you take from them by force?

when resources are controlled by corporations rather than the government itself you'll tax things that you import and export. if you didn't then you'd find most mexicans wearing clothes of wealthy brands, but mostly unenmployed. in some countries the tax from corporations goes straight into the consumer's hands like in scandinavia or vice-versa like third world countries where instead of a high personal income tax, the industries and services providers will get most taxes.

thats why there are things like nafta and eu. they're there to say "GTFO Taxes".
 

Qu4zi

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Option 5 and just say Korea did it... :hint: simple
 

KingHashirama

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First of all, China will be divided into new sections.

Economic change comes only after and depending on the type of political change occurs. And how many states and so on.
 

Aim64C

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when resources are controlled by corporations rather than the government itself you'll tax things that you import and export.

Why do you, as a nation, care?

Let States decide how to generate their revenue. Tax the revenue of States.

The States decide if they wish to impose taxes on the revenue of corporations (though they would forfeit the power to tax trade aside from point of sale transactions).

You're just saying: "You tax because you tax."

Which is kind of like saying: "I spin around three times before walking outside because I spin around three times before walking outside."

if you didn't then you'd find most mexicans wearing clothes of wealthy brands, but mostly unenmployed.

You're the nation. You don't care about unemployment. The only thing you are going to do about unemployment is hold a gun to someone's head and demand they give you more money that you are going to turn around and spend. Hence why higher taxes and government stimulus programs always fail in the long run.

in some countries the tax from corporations goes straight into the consumer's hands like in scandinavia or vice-versa like third world countries where instead of a high personal income tax, the industries and services providers will get most taxes.

So they take money from the economy to give back to the economy after paying the administrators of administrators of the managers of the supervisors of the accountants of data entry personnel (who get their data from the social workers and postal workers who have a hundred levels of supervisory, management, and administrative positions).

And say that it helps the economy.

Sounds legit.

thats why there are things like nafta and eu. they're there to say "GTFO Taxes".

They're actually there as political bargaining chips. Little more. The initiatives are failures in practicality.

Drop the taxes. Drop the regulations to that which is absolutely necessary. Watch businesses and people flock to your nations' states with sound policies and the people prosper.

The reason government runs into problems and becomes a design problem is because the people in government can never seem to resist the temptation to do something they think will be a good idea. "If I could get more money from them, I could do this for them!"

The path to hell is lined with good intentions. People get so preoccupied with what they are pursuing that they do not realize the grounds upon which they stand. Eventually - negligent and complacent get into office and party-it-up (Obama). Then an insidious person takes the office amidst the destructive aftermath of a clown, and the system has been so corrupted by unmitigated expansions of power in the quest for good intentions that it swings into a totalitarian government before you realize what happened.

You should always ask one question: "Must the government do this?" If there is not an unequivocal, resounding, deafening, earth-shattering "yes" - then the answer is "no."

Then you come to the question of "Should the government do this?" If you are asking the question at this point, then the answer is no. The government should not.

At that point - it is very easy to propose a balanced government budget.
 

LED ZEPPELIN

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Why do you, as a nation, care?

Let States decide how to generate their revenue. Tax the revenue of States.

The States decide if they wish to impose taxes on the revenue of corporations (though they would forfeit the power to tax trade aside from point of sale transactions).

You're just saying: "You tax because you tax."

Which is kind of like saying: "I spin around three times before walking outside because I spin around three times before walking outside."



You're the nation. You don't care about unemployment. The only thing you are going to do about unemployment is hold a gun to someone's head and demand they give you more money that you are going to turn around and spend. Hence why higher taxes and government stimulus programs always fail in the long run.



So they take money from the economy to give back to the economy after paying the administrators of administrators of the managers of the supervisors of the accountants of data entry personnel (who get their data from the social workers and postal workers who have a hundred levels of supervisory, management, and administrative positions).

And say that it helps the economy.

Sounds legit.



They're actually there as political bargaining chips. Little more. The initiatives are failures in practicality.

Drop the taxes. Drop the regulations to that which is absolutely necessary. Watch businesses and people flock to your nations' states with sound policies and the people prosper.

The reason government runs into problems and becomes a design problem is because the people in government can never seem to resist the temptation to do something they think will be a good idea. "If I could get more money from them, I could do this for them!"

The path to hell is lined with good intentions. People get so preoccupied with what they are pursuing that they do not realize the grounds upon which they stand. Eventually - negligent and complacent get into office and party-it-up (Obama). Then an insidious person takes the office amidst the destructive aftermath of a clown, and the system has been so corrupted by unmitigated expansions of power in the quest for good intentions that it swings into a totalitarian government before you realize what happened.

You should always ask one question: "Must the government do this?" If there is not an unequivocal, resounding, deafening, earth-shattering "yes" - then the answer is "no."

Then you come to the question of "Should the government do this?" If you are asking the question at this point, then the answer is no. The government should not.

At that point - it is very easy to propose a balanced government budget.

1-very few countries on earth have states to take decisions like in the US; even in some federations, there's still a supreme power, which is my case, so i actually can say if something should be like this or that;
2-if i don't care about unemployment, people won't have what to eat. and worse, they won't have how to pay fixed expenses, which means that i, as a politician, will lose my job
3-taxes help the economy because like i said, if there werent everyone would be unemployed. because, you see, a western industry sells a car at the same price of a national company. say that this western company is audi, bmw, or whatever, and this national car sucks. of course everyone would just buy the western car but this means that, for the national company, that it would have no jobs because the company can't sell so it can't hire people. this causes the devalorization of national industry and national unemployment, and even worse, this will cause people to not be able to buy that audi or bmw car. so what we do is we tax the foreign car. also we can tax national and foreign shit just to get our politicans a salary or get ourselves some schools or hospitals.
4- economies are very burocratic indeed
 

Aim64C

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1-very few countries on earth have states to take decisions like in the US; even in some federations, there's still a supreme power, which is my case, so i actually can say if something should be like this or that;

You missed the point.

Support the argument that the country does something worth taxing people for.

2-if i don't care about unemployment, people won't have what to eat. and worse, they won't have how to pay fixed expenses, which means that i, as a politician, will lose my job

If the government were to cease to be, tomorrow - would your father quit his job?

Would his place of business just say: "Well... no government to care about employment... I'm going to stop trying to sell the goods and/or services I currently do. I'm just going to go home and stare at the wall."

Of course not. Farmers would still trade food for goods and services. Miners would still mine to trade with factories for currency standards that farmers will accept. The world will continue turning.

People go to work for each other naturally. Where there are people - there are mouths to feed. Where there are mouths to feed, there are buildings to be built and maintained. It's a "bootstrapping" process that allowed our ancestors to go from picking berries off of bushes and chasing things around with sharpened poles to building space ships and microscopes that can peer into the very fabric of our universe.

None of that was done because a government came along and said: "Okay, guys - you're going to give me money and I'm going to give it back to you in a way I think is better."

It came about because people provide for each others' needs, look for better ways to accomplish the practical, and seek to explore ideas.

3-taxes help the economy because like i said, if there werent everyone would be unemployed. because, you see, a western industry sells a car at the same price of a national company. say that this western company is audi, bmw, or whatever, and this national car sucks. of course everyone would just buy the western car but this means that, for the national company, that it would have no jobs because the company can't sell so it can't hire people. this causes the devalorization of national industry and national unemployment, and even worse, this will cause people to not be able to buy that audi or bmw car. so what we do is we tax the foreign car. also we can tax national and foreign shit just to get our politicans a salary or get ourselves some schools or hospitals.

What is wrong with a foreign country making cheaper products?

Let's use China as an example - they are making a lot of stuff over there. And their population is becoming wealthier. As their population becomes wealthier - they look to satisfy desires as opposed to needs. Their industry also seeks to expand and develop more modern capabilities (so their businesses can properly satisfy local demand for more advanced products).

Do you know what that means?

It means we don't have to worry so much about building whatever it is they are building. We re-tool to build the machines their industry demands, we become the technical advisers, etc. Since our people are spending less money on something they would be buying here - there is still money left over in their bank accounts that they can use on other domestic products.

So they bought a bunch of stuff made in China at a fraction of what it would cost them to buy those goods produced here. Who cares? - they spent the money they didn't spend on Chinese goods on the newest in a fleet of hydrocarbon fuel cell cars developed by U.S. industries.

And guess what. China is going to want those fuel cell cars, too. They're starving for energy - so the wealthier people among them build those and we begin helping them design nuclear reactors to sate their industrial power demand.

Economies are not meant to be stagnant. Industries should not be protected. We get large, 'too big to fail' corporations that abuse their power and that are the butt of many sour jokes within society because we attempt to pick winners and losers within the markets and economies.

Of course - many of our domestic products would become cheaper with lower taxes, decreased regulation, and the dissolving of the Federal Reserve.

4- economies are very burocratic indeed

Economies are very simple.

Bureaucracies just find every excuse they can think of to justify their negligence, waste, and abuse over a system we inherently understand as human beings.
 

LED ZEPPELIN

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mmmmmm first of all allow me to thank you for entertaining me by making such good arguments i need to take myself a time to actually give a reply. also allow me to ask that as an intelligent person, someone who (according to your avatar) served the armed forces, and someone who takes his time to join an argument, how did you end up here on narutobase?

so, 1- it seems i indeed missed the point and i i support "the argument that the country does something worth taxing people for". i thought you were talking about a state - not a State

2-no, i'm not saying that without a government there's no society, i'm saying that without jobs there's no society.

3- the problem of other countries making cheaper products is exactly unemployment. since china makes good stuff and we buy that good stuff, we will stop buying stuff made in USA and american industries will lose money which means they cant hire people and if a company can't hire employees you'll have unemployment and when you have unemployment you have several other problems.

4- economies are simple in theory. when it comes to pratice, it is very hard to do something here without affecting that something else there
 

Aim64C

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mmmmmm first of all allow me to thank you for entertaining me by making such good arguments i need to take myself a time to actually give a reply. also allow me to ask that as an intelligent person, someone who (according to your avatar) served the armed forces, and someone who takes his time to join an argument, how did you end up here on narutobase?

There are quite a few anime nerds in the military, even amongst the grunts. I picked up an addiction to anime forums back when 56K modems were as good as it got unless you were on the backbone of a corporation of university. That was back when I was a wee young lad in high school.

I enjoy discussions, or, more precisely, in challenging my own viewpoints. It's kind of interesting to see how I've changed, and how I haven't over the years, in terms of where I stand in debates. My morals and ethics have not changed as much as they have encompassed issues I consider to be more important.

For example - I believe homosexuality is 'wrong' in the sense that I believe that there exist members of the opposite *** that could appeal to a person who believes him/herself to be homosexual, and that the two could share a much deeper bond. Almost a decade ago - I would have supported a ban on homosexual marriage.

My opinion on homosexuality hasn't changed, but my concept of ethics and morals has grown to encompass the legal process. Plenty of heterosexual couples are 'wrong' in their relationships - in them for the wrong reasons, picked a person they could control, etc - should I support a ban on those people getting married? How would I even begin to do that? What... What if someone else thinks my desire to share my life with a particular woman believes it to be destructive and manages to pass a law forbidding me from marrying her?

Perhaps it is moral and ethical to say that the law should have no bearing on who can and can not get married, and should simply allow people to outline, in official terms, how they wish to join their physical assets and legal rights. The law only needs to get involved in cases of fraud and abuse, which I believe all reasonable people would agree can be defined and agreed upon.

The more I thought about it - the more I realized we use laws and government as an expedient way to force our ideas upon others. Our intentions may be good - but our methods are an evil we are often blinded to.

Social security - the idea that we should take care of our elderly - was a good intention. When it was first enacted, even Roosevelt never intended it to last beyond his administration.

But it stayed, and it has become evil. The government 'borrowed' (took) money from the working population with the promise to put it into an account and pay it back as a retirement supplement. This was done as a temporary means of securing funding to keep many of the retired people who lost their mutual funds during the Stock Market Crash from losing their homes. Social Security would be collected and eventually ended 'once the danger had passed.' The money owed would then be returned to those who paid into the system many years later, giving the government plenty of time to space out the debt repayment.

But that never happened. By now, an entire generation was born into the system and died under the system. A second generation is passing out of the system, and a third is not far behind it. Several generations have, since the day they began working, had a portion of their income siphoned off by the government. "It is just the way it is" - and we have learned through school and through watching our parents that we are guaranteed our Social Security. We have our money taken away so that it can be paid back to us at a later date - it is 'ours.' 'We earned it.'

But the reality is that there is no account. The revenue from social security goes directly into paying off debts on social security bonds issued decades ago while new social security bonds are issued to cover the revenues consumed. The money you and your parents pay into social security is going directly to subsidize the payments being made to the people drawing social security. If you cease to pay into social security, bond buying will cease and the social security system will simply evaporate unless revenue is drawn from general funding to cover both the debt of the issued bonds and the debt owed to those drawing social security.

Which means, in order to get: "what I earned" under Social Security, my children and your children must have a portion of their income confiscated.

I'm not all that pleased by that idea. If I'm worth having around at that age, and my retirement efforts have failed, I will be able to survive through a combination of work on my own part and charity on the part of others (assuming they want me around - if they don't - why should they be forced to pay for me?).

But if I suggest putting an end to Social Security... I propose putting an end to the retirement that people were promised. Not only were they promised - they were taxed for it. They were forced to give up considerable portions of their income that they are now going to never receive when they are least capable of working.

This makes the system the white elephant in the room with a suicide vest strapped to it that no one wants to address. It will eventually explode.

Which is why it is more important that we focus on what it is ethical to do and not do to each other rather than to focus on what is an is not ethical behavior of our person. By focusing on the ethics of the individual, we naturally gravitate toward attempting to govern and rule the individual - which inevitably leads to fascism and totalitarianism.

so, 1- it seems i indeed missed the point and i i support "the argument that the country does something worth taxing people for". i thought you were talking about a state - not a State

The question is still very important. What does any government do worth allowing it to confiscate a portion of your earnings?

Is it necessary? Is it a 'good deal?' What data supports the argument that it is either?

Government should always be approached from a minimalist attitude. If it cannot be shown that it is absolutely necessary or an overwhelmingly good economic move for the government to take your money and that of your neighbors to re-appropriate it according to the decisions of a bureaucracy... then it shouldn't out of principle.

2-no, i'm not saying that without a government there's no society, i'm saying that without jobs there's no society.

Where there are people there are jobs. The only reason why people would not go to work to satisfy the needs and wants of others in a process of mutually beneficial exchange is if there is another group of people that makes it not beneficial to do so.

Like a government demanding money or sending armed people to close your business down.

3- the problem of other countries making cheaper products is exactly unemployment. since china makes good stuff and we buy that good stuff, we will stop buying stuff made in USA and american industries will lose money which means they cant hire people and if a company can't hire employees you'll have unemployment and when you have unemployment you have several other problems.

I believe I explained this, before (though it's been a day since I started this reply - so it may have been above and I just didn't see it).

China is not only having to supply our consumer demands, but also the growing consumer demands of their economy. Developing economies always produce the 'primitives' of larger economies. Basic fittings for infrastructure, consumable items, and simplistic devices/tools (silverware) - those types of things are always built by developing industries. By building them cheaper for us, those countries allow our lower income groups to afford a similar quality of life to that previously enjoyed by higher earning groups.

The exchange also fuels growth within the developing economy. Chinese people begin to have greater wealth to demand higher standards of living. Our industry re-tools to provide for that demand. Meanwhile, their own population begins to demand larger amounts of the goods that we are purchasing from them - which does mean that some of our domestic production will remain (they simply will have to match the market demands carefully).

Many of those will be side-jobs for industry that has already re-tooled to produce more advanced products for both our own society and China.

Jobs are not static things. The presence of people, products, skills, trades, ideas, ambitions, materials, and methods means that there will always be jobs that can be done, and can be part of a network of mutually beneficial exchanges.

I am looking at that very same thing in my current line of work.

I work in Dialysis - we keep people with acute kidney failure alive. But the industry is poised to rapidly change. They are able to print kidneys and potentially remove genetic causes of kidney failure from those printed organs. It's only a matter of time before the need for clinics dedicated to pumping and cleaning people's blood becomes a part of medical history or a brief intermediary while awaiting a printed replacement.

I cannot expect to do one thing for my entire life. I have to be flexible if I wish to be successful - to be willing to apply my knowledge, skills, and trades in new ways and in new places.

Sure - there are always your 'basics' - farming, mining, prostitution - but those things change, too. Agriculture has become a sprawling field of science and research, Mining methods and technologies have changed countless times with recycling and recovery of materials becoming a powerful new force, and prostitution has gone largely digital and far more efficient than walking the streets.

There's an old Tracy Lawrence song about how time marches on.

4- economies are simple in theory. when it comes to pratice, it is very hard to do something here without affecting that something else there

Everything is simple. It is simply a matter of varying degrees of intricacies to account for.

Why does it matter, though?

The only reason to want to try and figure out how specific actions at one end of the economy will affect things on the other side of the economy is to manipulate that economy - to control that economy.

It is a mentality that was only made worse by Wall Street investors who have horribly perverted the concept of investment (which is the subsidizing of a company, government, individual, etc for ownership in their company that you believe will be able to grow and become productive enough to sell that ownership at a later date for greater purchasing power in a future market). They have gone so far as to install fiber-optic lines to increase transaction speeds to within the millisecond. They have computers that buy and sell several times a second.

Which is partially why bubbles and bursts happen in an afternoon, these days. It exacerbates investor trends, usually to a net detriment.

Either way - those are the types of people that want to be able to figure out how they can put money in one side of the economy and get some kind of return on the other side with some kind of guarantee.

And they sell governments on this idea. Governments then turn around and sell security: "If we have this kind of control over what you all do, then we can keep anyone from losing money in the long run."

It'd be hilarious if it weren't so insidious.

Generally speaking - the working parts of the economy do not need to have vast amounts of intimate information about how the economy works to function to the net benefit of the economy. If the baker is able to sell his bread to the factory worker for a mutually agreeable price that leaves both able to provide for their needs and save for their wants/improvements, then that is all that portion of the economy needs to know in order to make the grand scheme of the economy work.

It is only when you want to try and seize control of the economy that you start generating problems. When governments act to protect large businesses - that prevents smaller and more innovative industries from filling the collapse. When governments attempt to prop up new markets, they end up becoming stagnant (just look at how long GE has been putting out the same shitty wind turbines... because they get tax credits).
 
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