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Financial Reform

2010-07-21

You have to pay money to loan money, you even have to pay money to use money (credit cards, you pay for this indirectly through fees and interest).  This is completely unreasonable.  Running a business that makes money simply because it already has a lot of money is not just unethical but very wasteful.  Money must be a tool to make trade of goods and services efficient - not something that allows you to make even more money.

Whenever someone profits on simply the use of money (not on what was purchased) that's effectively an additional tax.  A tax that does not go back to the people like the tax that pays for roads, but a tax that goes to a few already terribly rich and greedy people.  And this tax is massive, since it's present on every single transaction.

Not-For-Profit Bank And Credit Card 

In order for money to become an effective tool to facilitate trade in our economy, the government must create it's own bank.  A bank that is Not run for profit.  A bank where any service costs the people exactly what it costs to provide, and nothing more.  All consumer banks would become obsolete.

This government bank would lend money to people and corporations directly, without any profit hungry middle men.  It would charge interests based exactly on how likely someone will be to pay the money back.  Both people and corporations would be able to borrow as much as 10%, or even more, of their yearly income without paying any interest at all, since there's virtually no chance they wont be able to pay back.

The government would also create its own credit card and online payment solution.  This too would only charge exactly what it costs to provide and not a cent more.  Massive amounts of hidden costs throughout the economy would be saved with a not-for-profit bank and credit card.  Both people and corporations would find themselves with cheaper goods and services and more money still left in their pockets.

The greedy parasites sucking up all wealth for themselves using trickery and deceit would of course not be happy with this.  And since they already have such an extraordinary amount of money, they can buy as many politicians, "experts" and media sympathy as they like.

Make Insurance Illegal 

As I've already explained in The Insurance Scam, insurance is a complete outright scam.  Sure you only pay a little at a time, but it adds up and the insurance company must profit.  They will never, they can never, pay out even close to what you pay them.

If something bad happens, you can always take a loan from the government at zero or extremely low interest.  After all, the government does not need to make single cent of profit.  Insurance is very much like a loan anyway, except you pay back first and get the loan later, but only if you need it, and only if the insurance company can't find a loop hole, and never more than they have left after paying their executives and share holders.

Don't be fooled by "all those jobs would disappear", they would translate into many new jobs at the government bank.  And with all the wasted money now back in peoples pockets, they wouldn't need to work as much, and corporations could use their extra money to hire more people, pay higher wages and/or reduce prices on their products and services.

Direct Taxes 

The income tax is extremely unfair, especially with the people making the most money being able to use lots of loopholes to pay much less tax than everyone else.  The amount you pay in taxes does not relate to what you get back in any way, no matter how much or little money you make.

Direct taxes would make everyone pay a fair tax and also allow anyone to choose exactly how much tax they want to pay and what they want to get back for it.  For instance, those that drive on the roads the most should be the ones paying the most for their construction and maintenance.

This would also give smaller local companies, and companies using local goods, a better chance since they don't have to drive across the country with all their goods, reducing their environmental impact and allowing people to support their own community instead of a company on the other side of the country.

Simple Taxes 

It's simply astounding how much money, time and energy is wasted on doing taxes - both for people and corporations.  All of those exceptions and special cases that riddle the much too complicated tax code should just be dropped, there are so many that they simply cancel each other out most of the time, and when they don't, they make it unfair.

There's also no point having every single individual do their taxes - the company they work for and all the companies they buy things from basically does everyones taxes already.  Only a minimal amount of taxes should have to be done by individuals and only in rare cases.  There really is no point having the taxes done twice.

Maximum Income Limit 

More money will make your life better, but only to a point.  Once you've passed 100 000 dollars in a year does it really get better.  What about 200 000 dollars, do you really think that will make you twice as happy.  It wont, not even slightly.  Sure, with loads of money you can buy a house made of gold, or chocolate for that matter, and it would be really cool but just a fraction of that money would actually improve a lot of peoples lives significantly.

Don't be fooled by the greedy few, the only reason they can make so much money is because they're screwing every single one of the true workers who actually make the products and services, and the consumers who pay for it.  You could assassinate every single executive in the world and someone else would be able to take their place, and do a better job.

Of course there are good executives, but should a single one make more money than all the workers in the company put together.  The free market allows bad people to screw good people, and that's why there has to be limits to how greedy people can be.  No one should be allowed to make more than 5 times as much as the average person.

This would give so much money back to the middle and lower class and raise normal peoples living standards exceptionally, while still allowing the stupidly rich to remain very rich.  But prevents extremely severe greed.

Welfare 

Welfare is an extremely important system that ensures that people can survive even if something very bad happens and it allows them to bounce back and become productive members of society again.  But welfare is not something you should want to stay on.  It's a safety net in case you fall off a cliff, it should not tempt you to jump off the cliff.

People should only get enough to survive, it's only a temporary help while they get back on their own feet.  And the welfare system must promote getting out of it.  Set an amount as a minimum living standard.  If you make less you get welfare to make up for half of what you have left to the minimum.

Then if you don't make any money, you get 50% of the minimum amount, which is just barely enough to survive.  If you make 20% of the minimum, there's 80% left, and so you get 40% of the minimum, giving you a total of 60%.  As you make more money yourself, you get less welfare, but not as much less as you make more.  Since your total money increases as you make more money even though your welfare decreases, it encourages you to keep making money yourself and not rely on the welfare system.