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By A. Rayman

Quantity II proposes radical reform (1) of the accounting procedure – to carry company administration below the keep an eye on of marketplace forces; and (2) of the tax method – to allow the financial system to develop to its complete strength and to set up an automated mechanism for fee balance with none arbitrary intervention.

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One of the benefits is the opportunity for regional economic independence. The establishment of economic breakwaters provides an opportunity for effective economic sovereignty within individual countries, or even regions, so that they have the autonomy to achieve price stability and full employment. By removing the fear of international free trade, the Laws of Traffique provide the best opportunity of realising the hopes of economists like John Stuart Mill for peace, prosperity, and economic progress.

There would be no need for a World Trade Organisation to “supervise” the conduct of free trade. There would be no need for Common Markets or Free-Trade Areas, whose liberal pretensions are matched only by the quantity of their bureaucratic paraphernalia. The protectionist gun could be fired at will, but it would be automatically trained on the gunman’s own foot. If that kind of system could be made to work, it would probably do more for the cause of trade liberalisation than any number of treaties and agreements.

The unintended deflation subsidy is removed by the application of a deflation tax (added to the indirect value added tax), which is paid back by a deflation refund on the direct consumption tax. A deflation adjustment prevents over-compensation of the purchasing power of monetary savings as a result of increases in the rate of deflation refund. The Automatic Self-Financing Operation of the System The system for operating the proposed consumption tax on the pay as you spend (PAYS) basis described in Chapter 16 of the previous volume is very similar to the system for operating the present income tax.

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