Read e-book online A Multi-Gear Strategy for Economic Recovery PDF
By A. Rayman
Quantity II proposes radical reform (1) of the accounting approach – to deliver company administration less than the keep watch over of industry forces; and (2) of the tax process – to allow the economic system to develop to its complete power and to set up an automated mechanism for expense balance with none arbitrary intervention.
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It is not the actual greatness of national wealth, but its continual increase, which occasions a rise in the wages of labour. 71] Ch. 3 The Greatest Economic Theorist of Them All 27 The liberal reward of labour, therefore, as it is the necessary effect, so it is the natural symptom of increasing national wealth. 75] There are, however, no guarantees. The system often fails; but, when it does, the most likely cause of failure is not too much competition but too little circulation. Globalisation is blamed for what some regard as the widening gulf between rich and poor countries: About one-fifth of the world’s population lives on less than $1 per day, and that is unacceptable in a world of such plenty.
What nurtures protectionism and encourages resistance to the opening of markets is the fear that competition from abroad will cause unemployment at home. That fear is nourished by the complacency of Single-Gear Fundamentalists who mistakenly insist that obedience to the Law of Competition is the solution to all economic problems. Ch. 4 Globalisation: Blessing or Curse? 37 Globalisation has the potential for being a blessing; but, until it is rescued from Single-Gear Fundamentalism, there is always the danger that it can be a curse.
There would be total freedom to pursue any foreign trade policy however protectionist. Import controls of all kinds would be allowed. No tariff would be too high nor any quota too restrictive. But any country that chose to pursue a policy of protection would find itself automatically having to pay the full market price: it would lose the surplus. Knowledge that the wages of protectionist sin would be paid by no country other than the sinner itself would constitute a powerful incentive to dismantle trade barriers and to repeal discriminatory legislation.
A Multi-Gear Strategy for Economic Recovery by A. Rayman