Friday, October 31, 2008

Trickle down econmics of food (part II)

Now let's see why I think Supply Side Economics is right in US. Let's assume we don't use money, we use food as way of exchange wealth.

When food is not a concern, the wealth comes from people's creation. The more people create, the more wealth we have. For example, If you have enough food for the year, and a lot of extra, the extra food doesn't do you any good (no real value to you).

Now let's assume someone could make the food taste better. All the people with extra food would give food to that guy in exchange for him to cook a meal. Now the food that is rotten in your backyard has extra value for you!

That is called wealth. Your extra junk can give you something you want. The more stuff you want, the more value your extra food has. People's desires match with material is wealth. If someone who can create stuff others want, and others have the material in exchange for return, that creates wealth.

Now let's step back to our world. There are certain things that we are too lazy to do for ourselves, and it is to our common good to do it as a group. So there is the government and taxes. The more the government does for us, the less we need to worry. Sounds good but everything come at a cost. All service we receive comes at a cost (could be hidden cost). The services we receive from government has a hidden cost. and the bigger the government, the far removed we are from it, the bigger the cost. Sometimes the cost is not so hidden (i.e the bridge to no where ), but because it is too far removed from us, no one cares.

The taxes that lay on you and me, each of us maybe only paying $10 a month, has tinny effect to us. But the tax that are paid by industries could be huge, and those money could cost us the next google.

My suggestion will be, a flat tax (or better, fair tax) on everything. Only hit rich people with extra progressive tax/regulations if that guy has became a monopoly.

1 comment:

Anonymous said...

And the rich people would agreee to this because?

I would consider myself in the upper tax bracket.

I would go against this. Why would people who manage and invest their money have to pay more than a person who mis manages their money and spends it on worthless crap when they know they shouldnt?

there is a reason why rich people keep getting richer and poor people keep getting poorer.

its their attitude and lack of responsiblity.

IE. if you make 10k a year. you should try to save 30% of that money to invest and tighten up on everything else.
but most people just splurge on nights out things they "want" vs "need"

my 2 cents