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The legacy of 'Silent Spring' : Comments
By Eric Claus, published 5/5/2005Eric Claus argues we need a sustained inclusive approach to environmental degradation.
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Inflation being, the cost of a basket of “good’s and service’s”, plus the GST "tax”.
As I see it, the domestic labour market gets the benefits of the social wage provided by the "tax" plus a wage rise as well.
This also means domestic business, without import competition also prices their G&S to achieve the same outcome, i.e. an income that rises with cost of G&S plus tax.
I have come to the conclusion, that it is DOUBLE dipping, and actually no consumable wealth is collected. I agree that "$"s is collected, but as the cost of G&S goes up with the tax, particularly tertiary services, the govt is actually in a net situation. This is because it has to “BUY” back the tax when it purchases “G&S”, along with all the compensation that has occurred.
Any modelling I have done shows a result of infinity, unless you “exclude” a section of the economy. (They pay all the tax then)
I have excluded any productivity improvement, as the benefit from this should be shared by all members of the community.
Unless someone can show me a “model’ as to how this works, it means that the tax is actually transferred to the agriculture export sector, depriving them of the ability to re-invest in the land. The rest of the economy really only has a book entry for the tax, a $ in, and a $ out. (Lets leave out the overhead cost’s to employing at the moment)
Maybe this should be the first reform in environment management
These changes should have the support of any hard-core environmentalists as it will return wealth to the land.
Govt will never be able to fund it, let along manage the environment so any expectation that will ocurr is pie in the sky stuff