3 ms·
Any transaction that is taxed is disincentivized. By disincentivizing consumption as compared to saving, you would reduce spending and therefore the velocity o
by torstenvl 5y ago
Any transaction that is taxed is disincentivized.
By disincentivizing consumption as compared to saving, you would reduce spending and therefore the velocity of money. https://en.wikipedia.org/wiki/Velocity_of_money https://en.wikipedia.org/wiki/Velocity_of_money
By reducing the velocity of money, you would trash the economy.
TLDR: Money would sit in banks. Anyone doing anything for work that wasn't an absolute necessity (i.e., things with inelastic demand) would take a huge hit. Everyone would be worse off.
- jelliclesfarm 5y agoWhat if we had a different metric for reward other than money? Should we create/invent one? Because this money horse has been flogged to death and it’s time for change.
- zaphar 5y agoIt sounds as if you are suggesting a change with no mechanism to mitigate the adverse effects of that change and no supporting evidence for the proposed benefit of the change. Decisions made based on "We have to do something and this is something" has never worked out really well for society.
- jelliclesfarm 5y agoagreed. consider this a thought experiment. how can we gamify this so the rewards for playing the game of life is sustainable and not stackable without any base support like our current economic system. 'money' is a man made construct afterall. so lets create another one. this current economic one is standing on anthills..on one foot.
- zaphar 5y agoI'm of the opinion that this is unsolveable. I can envision no solution that is not worse than what we currently have. I wish you luck in proving me wrong.
- tomjen3 5y agoCompared to no taxes, they would be worse off, but compared to income tax it is not clear they would be if the total tax burden was the same. Unlike an income tax this would encourage investment because it could be done for pre taxed money.