Taxation and unemployment In a market economy

 Taxation and unemployment

In a market economy

 

The Government, by taxing goods and services, produces price increases and reduces the penetration of these goods and services in the market, that is, in the end it causes unemployment. Is every tax built into the price of goods and services, or does anyone have any questions about it? The problem is that this price increase is outside the administrative scope of the entrepreneur who, in a competitive market, seeks to work at the lowest possible price. In a market economy prices are free, therefore plus taxation. The Government seeks to use taxation to penalize the superfluous and alleviate the necessary, as well as to take from those who have to give to those who do not have it, by taxing the rich. In a market economy it is an illusion to use taxation as a tool for redistributing wealth. This only works in socialism, where bureaucrats put a brake on price escalation by fully controlling the economy and stripping creative vitality of the process. This is the anteroom to hell and the explanation for the fact that socialism only works in an autocratic environment. In a market economy it is useless to use taxation as a tool for redistribution. The result is that, in addition to transferring resources from the private sector to the state, that is, by sterilizing resources, the Government ends up producing unemployment. There is a truth that must be observed—

"You shall never strengthen the weak by weakening the strong." 

Governments around the world seek to compensate for this imbalance with philanthropy. But the solution of this dilemma lies in a new Social Pact between workers, entrepreneurs and government, where the company assumes, for employees and dependents, the conditions of survival and progress, remunerating labor at a free market price, and the government eliminates the corresponding taxation, because human labor is a process of transformation of human energy into physical or intellectual energy and this needs to be ensured a priori, Just like a vehicle needs fuel.

Cordially

Ronaldo Campos Carneiro  

Production engineer, was a professor at USP/PUC, negotiator of projects by the Brazilian government with the World Bank, IDB and bilateral agencies. He was the owner and executive of a private coffee and coffee machine company. Retired from the Brazilian electricity sector.

rcarneiro4@gmail.com

http://rcarneiro4.blogspot. Com

ANE – National Academy of Economics – academic – chair 169

ABROL – Rotary Academy of Letters of the Federal District – founding scholar

Author of the book – "Returning to the origins to deserve tomorrow", a socio-economic essay of political theory. Released in Germany in several languages on 9/26/2018

Distributed by amazon, morebooks and www.editoramultifoco.com.br