Banking relies on people depositing their savings with a bank. In times of high inflation they will want to earn more than the 2% or 3% the savings account is offering. 

If they are lucky enough to have a freehold house and section, they may well be earniing 10% or even 20% returns on their capital, but they still need a place to live, and may not wish to sell the house to provide retirement income.

To earn the $22,000 the average person will need to live on, they need $220,000 earning 10%, or $440,000 invested earning 5%. Otherwise they need a salary or a wage.

One thing they may wish to consider is government work. Society should consider this. A basic benefit for a retired person, an unemployed person, a sick person or an invalid such as a blind person varies, but starts at around $12,000 per year,or about $230 per week, ($5.70 per hour). This need to be doubled, but to justify it in a time when there is 6% or more unemployment, more than handing out money to the needy needs to be done. Assets have to be created so they can be sold. Make work schemes are exssential to inject more money into the economy, but injecting money into the banking system through low (3%) interesst rates is not productive, because at teh end of the process, every dollar spent on a house has to be earned. Raising the price of housing is not productive to an economy, even if people are able to live, simply by paying off an 80% mortguage on a $1 million house with a 3% loan, and spending some of that money to maintain a lifestyle above what they could simply spending what they earn.


Consider that there is an international price for metals; Gold, Silver, Aluminium, Copper etc. These metals rise in price as does everything else. As the cost of fuel and other imputs increases, so does to price of food. 

Politicians have a vested interest in keeping the price of food as low as possible, and also in creating an incentive for people to work harder. This is called increasing productivity. Humn nature says that people will not work harder for nothing. They do it when they receive a reward.

One way to reward people for increased productivity, is a flat rate of tax. If everybody pays 20% tax, those who earn more will still pay more, but those who work for a higher rate of pay will not be increasingly penalised for doing so.

A flat rate of tax is a human right which has been granted through the courts.

Whether the rate is 20%, meaning everybody pays one day's wages a week, or 28%, everybody should pay the same income tax. GSt will add about 15% to any money they spend, but severybody should still pay at the same rate, then there is an incentive to better one's self and get a better education and a better paying job.

Here is a simple proposal to create work, and to improve the environment.

Households should be provided with free, different coloured plastic recycling bags. If the cost of disposing of household rubbish is $3 per bag, and people can pay at the supermarket, they should be also able to pay less $1 for a recycling bag. Every bag of rubbish which does not have to be disposed of represents a saving to the community- (the Council which collects the rubbish)

There are five classes of rubbish which can be easily identified.


 

 

 

 

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