Friday, July 12, 2013

Minimal Taxation.

If you look at the Divine Economy Model © you will notice that taxation does not appear to be present at all in the model. What this means is that, theoretically speaking, taxation is not necessarily present in a divine economy. Taxation is not necessarily absent either.

Economics is the study of the means to obtain the ends chosen. If some type of taxation is the best means for achieving order in a cooperative society that protects life and liberty then taxation serves a purpose and it is present.

In a society where property rights are well-defined, and refined, and protected, taxation will be either minimal or absent. As long as taxation is restrained by laws that protect and enforce property rights then taxes will be held to a minimum. The law and order of the divine economy is a reflection of life and liberty which means that taxes need to be zero or minimal so as not to disrupt the flow of knowledge inherent in the free market process.

Divine Economy Theory Policy #11: Since under most circumstances taxation is a deterrent to private production and employment there is no sound economic reason to generate tax revenue to support a government beyond its purpose. The purpose of government is to protect life and liberty.

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Tuesday, July 02, 2013

International Free Trade

Essentially it is important to recognize that the economy works at all times and it works regardless of scale. The same benefits that come to an individual when taking part in exchange in the market occur with trade at the international level.
Only international free trade allows the potential prosperity within the economy to be fully released. Only international division of labor under a system of secure property rights and free trade brings the resources of the world to the market efficiently and with justice — for all to enjoy. Artificial and imaginary boundary restrictions are simply interventions that lessen the prosperity that can come from an unhampered economy and these interventions do damage to the advancement of civilization.

Divine Economy Theory Policy #10: International Free Trade

All trade barriers interfere with the divine economy and cause unnecessary suffering. ‘Free trade’ agreements are really acts of intervention and therefore are a misnomer. Free trade, in reality, is action not words and free trade will occur automatically and naturally if the ego-driven interventionists are removed from the picture.

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