If Jews were not calling the shots in Australian economics, how would we go about quickly getting full employment? Getting a manpower scarcity?
How is full employment achieved when we get away from thief-economics. When we get away from the economics of the tribe?
G+I+C+X-M equals GDP. But G plus business to business spending plus C plus X-M equals Gross Domestic Revenue. Business to business spending becomes cost of goods sold in the next time period. So if we do all the good things, get people to save, run big surpluses, cut government spending, what happens is profits will fall. This is because profits is total revenue minus cost of goods sold. Consumer spending and Government spending do not become cost of goods sold in the next time period. So reducing them reduces profits in the next time period.
Good policy change leads to low accounting profits. Which is all the more reason why no sole trader should ever have to pay taxes on retained earnings. In a soundly run economy its hard to make a profit. If you doubt the above think of the situation which has prevailed in the US. Record profits for big companies, running neck and neck with depression era employment. Thats what these big deficits and low savings rates produce. They produce huge profits and very few jobs.
Employment is a business expense paid out purely from business-to-business spending. Keynesian policies boost GDP and profits, but reduce employment directly.
To create full employment and upward pressure on wages, we need sole traders to be awash in the producer goods they need to make a profit with. Supposing you have a beekeeper. If he’s got too many hives, too many flowering trees, he grows the timber for a mead-making brewing operation, well he cannot use all these producer goods on his own. There is too much work BECAUSE there are so many producer goods. He’s got to employ people. He cannot do the work himself. So a workers paradise comes out of the retained earnings of a sole traders paradise.
Thats really the secret of it all. Bringing up the density of producer goods so we are struggling to find the people to use them. Now how can this be done, if the sole trader is getting taxed on his retained earnings, and if everyone and his Momma is trying to divert loanable funds into the collection of rental properties? Or indeed loans are going to anything else but durable producer goods? That so much loan money is going into negatively geared rental properties is anti-economic craziness. New houses and major renovations is what the funds ought to go to. Not buying and holding and failing to build.
For us to have a trade surplus we must be able to lend more than we borrow. But how can we lend if we are all jacked up on debt? How can we have the funds to spare to lend overseas, if we are already starved of low interest funds for the sole trader to buy durable producer goods?
So our success comes from what we DON’T lend for. Its not okay to be lending for shiite. The funds have to be applied for wealth creation. Durable producer goods. Not investment in consumer durables, shares, takeovers, gearing up the balance sheet of big corporations to make that balance sheet “less lazy” or any of this other bullshit. This is all pretty obvious stuff.