pricing
Living Income Guaranteed with Labor as Interest
With the nationalization of banks within the Basic Income Guaranteed and the eradication of interest on money, the money supply will grow as a function of labor. The labor has a capital value that will increase the money supply. This has been effectively used by the Germans where they made labor one of the foundations of their economic system. And within the Basic Income Guaranteed where you have a basic income for all your basic needs and you have a guaranteed minimum wage that is double the Basic Income Guaranteed, your labor value will be predetermined as part of every product and service produced.
This means that the input of your labor as value is reflected and revealed within the price of goods and services. This way each person will understand that part of the price is another person’s livelihood, and that as you give = you will receive. Labor then becomes part of the economic value system, part of the production cost – which must be valued sufficiently to be able to support the laborer.
Labor is the action of the human with a measurable value which will be like the accumulation of interest and you’ll have a compound interest effect, which will have the effect of an ever expanding economy, ensuring that everyone in the country has sufficient support to have a dignified life. This is a fascinating point that economists should have adopted long ago, but unfortunately labor has been demonized instead of realizing that that is the actual only real interest that can exist within a system based on money.
Equal Life Foundation Research Team
Living Income Guaranteed and the Nationalization of Banks
Banking in fact is a resource that is required by all citizens equally. If we look at what are resources that should be nationalized, the minimum guideline is that they are all the resources that are equally required by all citizens – this implies water, electricity, roads, transport systems, media, banking, etc. All of the stuff that is necessary for each one to have a decent life, and banking falls within this category.
Banking in a way has become so technological that it is no longer a major job creator; it is simply a management of funds. Therefore, if we nationalize the banks within the approach that with minimum wage one no longer allows personal debt to accumulate – because we will forgive all debt – and the banks facilitate points like building houses and facilitate the placement of motorcars that are debt based on capital investments, which are good for the economic growth – then we are looking here at a very stable banking sector. The profits that come from a minimal interest rate will be distributed according to what is required to facilitate the Basic Income Guaranteed in its totality in a particular country.
The point of importance to note with the Basic Income Guaranteed proposal is that personal tax will be abolished, but taxation in terms of transactions – which is a use tax, a per sales tax and value added tax – those types of taxes would be fair because it would be based on how much one uses the system and those taxes specifically would be accumulated to pay for the functions of government.
To facilitate a society that will stop abusing each other, there is an interesting point that will have to be considered and that is to move away from cash money to total digital money, because with total digital money one will reduce the propensity to deal outside the system and as such to take part in criminal activities. This will also bring an end to the current issues with protests and social dissidence where the problem is being approached from the starting point of demanding others to make the necessary changes, without proposing any agenda that can lead to a feasible practical solution.
Within the Basic Income Guaranteed system the excuse of some wanting to deal with cash because of ‘not wanting to pay tax’ will become irrelevant. It’ll bring stability for the system because those that do pay tax on their services or their products bought will contribute to the tax resource that that will be collected by the banking sector. And so the financial system for the country will be very stable and the budget will be according to available money; and when necessary, pricing or tax will be adjusted for extra money and the governments will not be allowed to borrow money, so that these exorbitant amounts of interests that even go towards ‘unidentifiable parties’ paid for by the labor of the citizens, can finally be stopped.
With the Basic Income Guaranteed system: governmental debt and national debt won’t exist, there is no need for it. Proper accounting, proper planning will prevent this and it is suggested that in the basic Constitution it is placed that: a government cannot make debt. And ‘not being able to make debt’ will also mean that the government will have to spend money on issues that are genuinely relevant where things like war will come to an end and the education, healthcare and all sectors that are relevant to the citizen is what will be considered in the budgets.
Obviously when somebody disagrees with such practical reasonable solutions, one must investigate what criminal activities they are participating in that they want to protect, so that they can have ‘more money’ when it is not necessary because: there is and will be sufficient for all.
Equal Life Foundation Research Team
Living Income and Minimum Wage
One of the big concerns that people have is that “If everyone gets a living wage, who is going to do all the dirty work?” because nobody wants to do it. So, in a Basic Income Guaranteed approach it’s going to be vital to change the ‘living wage’ or the Basic Minimum Wage and here it is suggested that it should be at least double the Basic Income Guaranteed so that it is a motivation for people that would like to live a more extravagant or luxurious life to actually do the work – whether it is a janitor, a road worker, a gardener, a child-minder, whomsoever works – and thus does not depend on the Basic Income Guaranteed, gets a minimum wage that is double the Basic Income Guaranteed, that will ensure that there is motivation for people to do the labor and for those that would like to improve their lives, while the Basic Income Guaranteed ensures that everybody has got enough to make a decent living.
The difference between the two would merely be a measure of luxury and therefore, businesses will have to consider that wage – which is obviously an input on production – must be equated within the price. And so, pricing will be based on ensuring that there are minimum wages and that people earn very good incomes. This will obviously increase again the amount of money that can be spent and so the economy will grow, the house market, the motor car markets… all the markets that are now in extreme trouble and where the trouble is increasing will all grow and life on Earth will be sustainable.
So, for you that are ready to approach these issues, look at how to implement it in your particular countries, translate these proposals into your language, do blogs about it and get involved in your political parties, see which ones are willing to embrace a Basic Income Guaranteed and if they are not: start a political party, because the way forward is political.
Equal Life Foundation Research Team
Living Income Guaranteed 