* Posts by omnix

1 post • joined 13 Aug 2014

Govt control? Hah! It's IMPOSSIBLE to have a successful command economy


Planned Economy

All economies are planned - the question is by whom and to what end...

History shows that having a government planned economy rarely (if ever) works. However, the government should NEVER totally abdicate the responsibility of influencing the economy for the greater good. Things like taxing companies based on how they distribute profits, setting personal income tax levels relative the the distribution of wealth (GINI coefficient), ensuring adequate supply AND access to money, limiting foreign tax exclusions, and prudently pursuing corrupt business AND executives.

The US government has increasingly abdicated these responsibilities, and the economy (and the majority of Americans) have suffered. Businesses and financial institutions have taken too much control, which has caused our economy to weaken to the point of collapse on more than one occasion. Providing prudent influent (through taxation and effective justice) would ensure even if/when the economy collapses, the majority of Americans would be able to weather the storm.

Going back to the Fischer equation MV=PY, the government's role should be to ensure that every aspect of the economy is balanced. When there's not enough money being distributed equitably, then prices and/or GDP will suffer.

Remember, not everyone uses the same definition of capitalism - some use Adam Smith's definition, some use Ayn Rand's. One is equitable, the other is oppressive...


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