workers benefit

The Dutch government came up with something a couple of years back, to stimulate the Dutch people to work. As a tax measure a work-benefit was introduced; people with jobs were getting a tax break. Meaning, of course, that people without work had to pay more tax, relatively speaking.

So if you are unlucky enough to loose your job, or not be able to get one in the first place, you are to be punished even further by having to pay tax for that disfortune.

It was the greatest proof of disappearing solidarity we had in decades. Where in the seventies people could still unite to protest for a fair shake for the less fortunate among us, now only a few - with socialist ideas - were man enough to feel outraged and say so. But even they are quieting down.

Now I know that the general idea in times of crisis is to cut government spending. Of course in the great depression of the previous century Roosevelt did the opposite and got the nation on its feet again. But that is far too long ago for the governers of this age to remember or even think about. Now the adage is: cut where it is least likely to invoke protest. And the people who are already ashamed of their misfortune - the sick and unemployed - are the easiest target because they really hate to advertise. So let's lower their benefits, hire lots of people to tell them they aren’t as sick as real doctors say they are, and a couple of years later raise their taxes so they couldn’t afford to protest even if they dare to.

Again I am amazed. How come politicians never seem to read stuff about the downfall of the production economy and the vulnerability of the service economy? Not only do we need to encourage people to start making things, instead of just writing about or talking to people who do, the sector that got us into this crisis need to be taxed for the enormous risk their trade represents.

So let's put a tax on making money with money, saving exempt. To save for when you’re outof work should be rewarded (which it isn't now). But trading financial products - options, futures, leases and whatever - THAT should be taxed. Investing in real estate? Fine, as long as it is sensible real estate. Invest in new businesses? Absolutely. But only making money from handling money?

It took a clever therapist to point me to this. He said at one time, concerning the topic of the economic crisis: the value isn’t gone, of course; the businesses are still there, the product is is valueble, the real estate is still there. That got me to thinking. The only reason we are in this crisis, is because people who only make money from trading in financial products, suddenly gave up believing in much of what they were trading, because someone somewhere started to lie bigger lies than they usually do. So let's say: if the value that is accredited to a financial product suddenly drops, you pay 100% tax on the devaluation. You, the guy that sold the product, will have to pay that tax, not the one holding it. This is apart from any claim the holder of the product may have on you because of faulty advertising or shifty dealings. And when the financial product is not linked directly to a real product that has an intrinsic value, the VAT on such transactions will be somewhere in the region of 85%. The closer you get to a real thing, with an intrinsic value, the lower this tax will be. Untill you get tot the level of consumers buying stuff; there the vat will be something like 6% as is the lowest level at this time.

Why? Because the adding and subtracting of value on financial products such as stocks and bonds, options, futures etcetera is always coming outof the pocket of the working man who is actually making something. Always. These trading guys - banks included for a large part - do not make anything with an intrinsic value. Therefor this value can only be payed outof the pocket of people who do make something like that.

In that light the workers benefit is a great idea. Lets give a premium to people who actually create an intrinsic value, who create something tangible. Let's not cut benefits for the people who are left out of this. And tax the people who are only getting rich at the cost of everybody else.

Sounds like a great idea to me. Too bad I haven’t got huge amounts of money to lobby with politicians to see it this way, as do the people who got us in this mess. Because...did you notice? Those responsible kept getting their million dollar bonusses, salaries and jobs. It again are the ones least likely to create an actual sting, that get to pay the bill.