Moneyless-ness due to automation is in reality Wage-lessness.
By John Sax Trumpet with Real Economist News.
DUBLIN, COTES D'ARMOR, BERLIN: This is written in all reverence and submission to our Lord and King. England is mighty so the benefits problem is a small problem for England to solve and then England will enjoy its moment of hegemony over it's lands. If we cannot solve this, then we have to find our ancestors who would ensure that we do solve it. We thank our Lord and King. We must really ask who and what are we if we don't solve it? We would also ask how and why is this possible when the economic normal in all other territories from Killarney to Moscow except for the UK resonates an Unconditional Universal Citizens Benefit without means testing. Certainty in systems requisite for the civilisation are always facing nativism ( native resistance); sometimes sophisticated native resistance. In this case in the UK, Canada and the United States, Eleanor Roosevelt ( carrying the DNA of exiled Hugenots ---Elba Babylonian) suggested that she wanted to know what people have before everyone received an unconditional universal benefit in 1936. Her husband passed an executive order but she micromanaged the programmes afterwards and denied the benefits to anyone that had farm animals or a toilet inside their home. This was in the states west of Ohio. Instead of asking what people have, they now suggest they are trying to save money with means testing. They suggested that maybe they are trying to save money but they do not account for the loss of money in the cost associated with losing people to health problems, the cost of crime and desperation with a micromanaging of the applications with massive social worker cadre who are paid significant sums to manage whether someone is judged as having too much education they say to get a benefit. They are really aiming at social worth; not saving money. The educated qualify for the benefits but the social workers, while paid, put the applicant through games involving waiting lists or it's approved and cancelled for no reason and they have to apply again. Then they applied again, it's approved and the money is held at the bank. The social worker shows up at the bank to collect the benefits payment from the Fraudster Bank Clerk. Nicola( Job Centre social worker) showed up with Annette ( DWE 1980 fired social worker) in January 2022 at the Halifax Bank in Muswell Hill to collect 2 months worth of benefits payments owing to her distant relative; paid to her and Nicola as cash). This is not seen in anyway across the other economies that face or encounter much less nativism.
The core paradox of technological unemployment and aggregate demand—famously captured in the exchange between union leader Walter Reuther and a Ford executive showing off factory robots: when the executive asked how Reuther planned to collect union dues from the machines, Reuther replied, "How are you going to get them (the machines) to buy cars?" Saving human labor lowers unit costs and expands margins for an individual firm, but across the macroeconomy, wage labor is or was the primary vehicle for distributing consumer purchasing power. Without wages, high-volume production encounters a wall of missing effective demand or consumer stimulus if this is not substituted with an unconditional universal non means tested benefit. We will face a crisis without this benefit.
Blessed be the God and Father of our Lord Jesus Christ, who according to his great mercy hath regenerated us unto a lively hope, by the resurrection of Jesus Christ from the dead. https://www.biblegateway.com/passage/?search=1Pet.1.3&version=DRA. It seems then that God wants us to enjoy regeneration and our Lord and King has commanded us to do so. See his UDHR; Article 25.
Blessed is the nation whose God is the Lord.
While Grade 10 is the last grade that Jillian finished in 1986, the real question is to ask what is the point in being the producer of many robotically made products if you don't have sufficiently funded consumers across the whole market to buy the goods; many stolen and many redundant in six months? We accept there could be some tragedies in any economy but we cannot engineer tragedy. We can engineer financial safety and assurance for the entire population. What is happening in Canada and the UK is quite the opposite and not economically normal. It might be the vendetta of the orphan boy and girl from 1947 whose parents died in the wars and he decided to kill a school boy and just be him. The mother was in shock but she called it her Black Sabbath and the true end to the war. Her son was 10 and the boy who killed him was 15 that showed up from school that night in her son's uniform. He became a bank employee at Barclays at 17 years old after he killed the woman to inherit and started holding peoples benefits for years until they would beg if they did not offer him some since he was a king now from 15 years old.
We are engineering not classlessness but what class would you have if you would ignore the problems in your community? Instead we are working to engineer an economy that is free of overt human need and suffering. We once engineered a road culture that is free of horse dung. For many centuries horse dung, it's sight and smell was a common urban experience because it is sad and you might bump into it or see it. It smells. We engineer now a society that is, as much as possible, free and void of human need and suffering. There is still class. Some will buy Moet Chandon for their daily breakfast and some people can play an instrument or act. Some cannot. Some cannot play or act but attend live concerts or they teach Sunday School or they run a pub or restaurant, paying whom they must. Some watch motor racing, golf or tennis or attend church at least once a month. That is where you get class. Some can speak two languages; comprende'? Te no habla Bueno English. Habla Bueno English; Bueno Trabajar!!!!
After all of your efforts, we accept nonetheless that some humans may have bad experiences that may leave them sad. Someone robbed them at the swimming pool and took all their clothing, ID etc. we give them a benefit card and help them rebuild their lives. After all our efforts to provide for the people as the royal plebes, they may choose to spend and gamble like a Lord Doyle but even for these kinds of people, they will be propped up and kept alive by a guaranteed unconditional income support; not too sad as he lives on marmite that is full of iron and strong hair texture; not zyclon hair processing. It's God's will that our hair grows as we eat; not that we are acid burned by Cesium.
It might be that only one out of four people, after being given all the support as a Royal plebe with the good income support, will go on to be regenerative.
We call this the parable of the Royal plebes. This means that we know some people will be self destructive in any society in spite of all of our efforts to ensure everyone is providers for and cared for like a Royal rose or Royal squirrel. Read as follows:
The Royal Plebes
In the drought-stricken valley of Oakhaven, young Jack was sent to market with his family’s last meager possession—a barren, milkless cow or it had milk but the milk was acid because the grass was acid due to Cesium Acid rain. The village was impoverished, its spirit crushed under the heavy tribute demanded by the unseen Politician Giant who dwelt above the clouds, hoarding the realm’s water, soil, and gold. He always had a nice thick hair cut though in his old age and looked well fed.
At the edge of the market square sat an old stranger whose cloak was woven from unspun wool and starlight. He did not offer copper or silver for the cow. Instead, he opened his palm to reveal four distinct seeds, each gleaming with a different shade of light.
“These are the Four Seeds of the Royal Plebes,” the old man whispered. “Every commoner carries royal blood, but only those who know where to plant the seed will ever claim their blessings.”
Jack took the four seeds and returned home. His mother, seeing no food or coin, cast the seeds out the window in grief and despair. Yet each seed fell upon a different ground in the yard, and by morning, the parable of their fate was revealed.
The First Seed fell upon the hard, packed cobblestone path where the townspeople marched to pay their taxes. It lay exposed, hardened by centuries of trodden boots. Before the sun could warm it, the scavengers of the sky—black crows of cynicism and fear—swooped down and swallowed it whole. It represented those whose hearts had grown too callous to believe in regeneration, surrendered forever to the dust.
The Second Seed landed upon the shallow, rocky cliff overlooking the town square. Seeking instant glory, it sprouted within minutes. By midday, it had grown into a dazzling, glittering stalk of thin glass and golden leaf. The villagers cheered its rapid rise, naming Jack a hero. But because its roots could not penetrate the solid stone beneath, the midday heat scorched its shallow base, and the entire structure collapsed into worthless dust before dusk. It represented those who chase rapid acclaim and superficial status without depth or foundation, spending too much and not saving enough so they are skint and shabby.
The Third Seed dropped into the wild, briar-choked ditch at the edge of the lord’s estate. It took deep root, but as it surged toward the sky, it intertwined with sharp thorns and choking vines. Jack climbed this dark, twisted stalk and reached the Giant’s castle, where he stole a purse of gold and a golden hen. Yet as he descended, the stalk’s razor-sharp briars bled him dry, and the greed for the golden hen poisoned his mind. He spent his nights guarding his stolen treasure, terrified that another would climb the stalk to rob him. In conquering the Giant, Jack had merely become one—a slave to his own thorn-filled paranoia.
The Fourth Seed, however, fell into the rich amber, white, brown, red, yellow and black humble clay of the communal garden, tended quietly by the working folk. It did not burst forth in a frenzy, nor did it wrap itself in thorns. It drank deeply of the common earth, building immense, woven roots that anchored it miles wide into the valley floor.
Over days of patient labor, the fourth stalk rose like a majestic, green staircase enjoying a zero recession economy right into the heavens—sturdy, broad, and open to all. Jack, now humbled by the failure of the first three seeds, led his mother and the whole village up its wide, stable emerald steps with free trade as everyone received £300 per day in England and $300 per day in Canada on their Bean Support Cards. The fourth seed represents England flourishing across Canada as a Germanic population that speaks some French.
They did not go as thieves in the night to steal the Politician Giant's wealth, but as a unified nation of sovereigns. Together, they opened the Politician Giant’s iron gates, reclaimed the stolen waters, and distributed the celestial seeds across the land below. The Giant, deprived of his monopoly over the sky, vanished into memory, while the common plebes—having cultivated true depth, community, and courage—enjoyed with the true royals in their own right.
We are not seeking a class struggle. We are not seeking independence from legal formalities. This is about a warrior spirit that will work to feed his own population with this financial ration (also called the benefits); at $300.00 per day but paid every two weeks at $4200.00 every two weeks. We can afford it.
We feed the multitudes. We provide a fraction of the money to the consumer citizen that we saved on wages using robotic automation. We ensure the government inputs this benefit throughout the economy, assisting every citizen and permanent resident who are the consumers. We give some money to industrialists within the lawful remit of relevant government programs. But without money provided to consumers, we get an industrial desert. We are just warriors who do have access to the benefits system and will save our home land by paying the benefits to every citizen. It's the law. We are not just orphans needing to be accepted after messing up some where else in the English world. We see no fatties, no trannies, no beardos, no weirdos, no wimps, no radicals; just warriors; and some with beards. It is just that the English people in the world are the only people who have not taken the same solution to Wage-lessness as the other G7 populations. But we boast about those other populations; especially the Chinese. The solution is a guaranteed unconditional universal income support benefit paid to all on your economy who have the right to work. We take a portion back as the sales tax and we can pursue an elevated sales tax on consumer activity (an automation tax) to ensure there is no anxiety about a universal unconditional income support benefit and its cost feasibility. The benefit solves all homelessness crisis or crises. We will clear encampments with emergency benefits cards so people on there encampments can find hotel or motel shelter. With the good benefit we allow people to self serve in answering their problems or needs. We build condos where most of the units can be used as housing at a special housing rate; if they request this special lease rate and qualify as the unemployed. If it's a housing unit, a yellow circle sticker one inch on diameter is placed on the door. The building manager may enter when you are gone out and steal your bacon since you asked for housing. But otherwise it's a condo building unit. A portion of the money goes to the government on all these units. They financed it. But without the benefits paid to all citizens, the English economies remain Orphan economies; Estranged economies.
Click here.
I don't care what material wealth you have but whatever you have, you must look good and feel good and don't provoke me however about what you have with a Benz abandoned at my gate for five minutes; whatever Bahamian you are and then you come to pick it up to be seen by me. We should have more inclusiveness regardless of race but not anxious inclusiveness. We are just as good as those posh bi lingual Europeans. Are we not just as Posh?; or at least we will be, have to be! We will not be diminished by any further debates on this issue of a non-means tested benefit for our economy. It has to be paid to everyone without conditions and those English people moving over seas will get both the English benefit and any Canadian benefits to which they are entitled. This is a Kingly English proper economy worthy of a true European King; worthy of the King of... Bruges, Zurich or Amstel; not this poor lousy, puny minded man, wicked man game from Sarnia with his ultimately racial agenda with political correctness. We will not only keep in pace with these other Royal economies. We will exceed them into terms of payments completed by sending money every two weeks. The economy must revere the Royal laws and mandate. England is Great, England is big. England is grand and we know we can afford it; the unconditional universal income support benefit for every citizen. Anyone who suggested that we are saving money by cancelling benefits for the government employed or for those with savings of £100,000.00 or more is an enemy of England. He gave the Royal 15 Rolexes and then pretended to be his son but he is not a Mountbatten. If he was, he would get dubbed at Hampstead near the Thistle and they would confirm his title. Clearly he is not since means testing is small, poor thinking. He also keeps saying that he wants to know what the Royal understands about anything; and has tried to make him look like a lousy crumpet man; not the food crumpet man. But these policies are not the Royal policies since they fail to actualise true Celtic Gaelic defensiveness, Celtic pride and self preservation with this means testing as if the Royal would ever be anxious about what you could "have" as a plebe. Why are benefits being cancelled if the recipient woman would drink London Pride in public; in Leeds? But you should have something and without stealing it. My proposal for the economy is £100,000.00 per year in benefits without means testing and 50% sales tax; with a virtual currency card. The economy must reference me and my people and I pretended with the man from John Amos only to see what he would do, what he would say if given the chance to try and defame the UK. He has tried to screw me, drug me and make me his widget. Just give them a gift, take a desk and do what you want or he is a son and knows what to do. The Brandon Residential School in Manitoba will be a travellers hostel.
We would like to consider all the English people in the world as a market for English and European goods; especially German vehicles and goods; not just American and Japanese goods. Marks and Spencer products will be a feature item offering in all Loblaws shops; especially wines, beers, can sodas and drinks, cookies, candies, soaps, crackers and canned foods. We believe free trade is the best way to achieve this as we understand that we could have unholy trade tariff wars where we all lose. It is the loss in the extended American market for the sale of one's goods and the loss in product diversity that is most troubling. Losing Canada is not so significant to ask of an American beer producer but it is a loss in sales; an unnecessary loss. As we are selling less, we are hiring less people. President Thump knows but he is being threatened by a Canadian to do everything backwards so that he can feel superior to those who went to school at the University of St. Xavier in Nova Scotia.
"I was made to make" is a slogan in a new Ontario government commercial about the building of the Ontario subway line. But what about making the population safe and secure in light of the joblessness that causes Wage-lessness and Money-lessness that leads to food and shelter insecurity. We can solve this with the same fortitude used to build a safe subway track with all the anxiety about ensuring life is safe. As such, we build safe social spaces where everyone has enough benefit money to navigate through urban spaces with sufficient financial resources.
The government can bail out corporations and finance home construction, build subways also. It must also bail out, guarantee and ensure it's population is safe when facing all the risk of Wage-lessness.
North America is a German Japanese car market but no matter how much we save in human labour, what market for sales of the finished product is there if the population does not have any money due to Wage-lessness to...purchase the car product?
Without wages, high-volume production encounters a wall of missing effective demand if this is not substituted with an unconditional universal non means tested benefit. This non means-tested benefit is to maintain the Royal plebes. It's given to everyone regardless of means. It's a benefit for all that are settled in our economy.
You are a Royal plebe boy, not a martyr, but you will have your benefits and arrears; now. We are tired of the sense of defeat among us while other populations are thriving in our own spaces; including Reading. The English on the other hand is disappearing as if we have resigned occupation of our spaces to all other cultures. Enjoy the Chinese Buffet there now at £15.00 for two buffet plates. But you will be able to afford it. Buy an MG or a Mini Cooper or the BMW or Benz. Be happy. We have more territory than the Swiss so our economy will be just as big or higher as we get out of misery in means testing the benefits. We will follow the Swiss strategy that solves the Wage-lessness. It's a good, White thing. But we have inclusiveness. I had a black girlfriend once and she made me a box of caramel and all kinds of candies and chocolate that made my coiffure go pow. My white girl made bread with iron, pow coiffure and growth power like what you find in a band-aid; the brand name products have more and the store brand products have a little less; and no Cesium. It just builds up in the atmosphere, the soil and the ground water. Only a big mouse or ground hog that was dying of Cesium (rat poison) and that witnessed the stream in which it was dying just evaporate around him would tell us, if given the chance, (some how) that this was his dying experience with water just as he was putting Cesium in all the food and drinks to see it manifest in a deathly way in the atmosphere so you would be warned in his love for mouse kind.
Click here.
When labor-saving robotic efficiency outpaces income distribution, several distinct economic markers signal that consumer capacity is decoupling from production:
- Wage-Productivity Divergence: Real output per hour continues to rise while real median worker compensation flattens out, indicating that productivity gains are accruing almost entirely to capital owners rather than workers.
- Debt-Engineered Liquidity: To offset stagnant wages, consumer spending is sustained through financial extension—such as 84-month or 96-month auto loans, expanded credit utilization, and aggressive leasing programs. Surging subprime auto defaults are a primary marker that financial engineering has reached its limit.
- The K-Shaped Market Bifurcation: The mass middle market collapses. Automakers pivot away from affordable volume models toward high-margin luxury vehicles targeting capital owners and top income earners, alongside low-margin fleet or rental sales.
- Declining Money Velocity: Capital concentrates among high net-worth households and corporations with a lower marginal propensity to consume, causing the circulation speed of money in the real economy to slow significantly.
If consumer wage income evaporates entirely, the mass retail auto market ceases to exist in its traditional form. Production either shrinks to match the limited demand of high-wealth households, or transitions into fleet-operated, state-subsidized, or subscription mobility. In a hyper-automated economy, sustaining a private consumer market ultimately requires decoupling purchasing power from labor—relying instead on mechanisms like consumer dividends, social wealth funds, or universal basic income to recycle capital back into aggregate demand.
Replacing wages with universal unconditional income support fundamentally re-engineers the macroeconomic circuit. It solves the effective demand crisis by converting purchasing power from an internal production cost (wages paid by individual firms) into a systemic market condition (an unconditional dividend supplied across the entire economy).
When purchasing power is decoupled from human labor, the dynamics of high-volume manufacturing shift in four distinct ways:
- The Recapture Closed Loop: In a wage-less economy, consumer demand exists as a public infrastructure asset. The economic circuit only functions if the revenue realized by hyper-automated capital is continually recaptured—via consumption taxes (VAT), resource rents, or automated production levies—and recycled back to households as unconditional income. If the recycling rate matches the rate of automated output, the missing demand wall vanishes.
- Marginal Cost Collapse vs. Real Purchasing Power: Because human labor is eliminated from the production line, unit production costs collapse toward the raw material, energy, and capital depreciation baselines. As a result, high-volume goods become significantly cheaper. A universal basic dividend does not need to match historical wage levels in nominal terms to deliver equal or greater real purchasing power for mass-produced goods.
- From Demand-Constrained to Resource-Constrained: With effective demand artificially stabilized through universal transfers, the primary bottleneck on high-volume manufacturing shifts from "Can consumers afford to buy this?" to "Can the physical supply chain sustain this output?" The economic limits move to energy grid capacity, critical mineral availability (e.g., lithium, copper, neodymium), land use, and environmental carrying capacity.
- Shift in Product Architecture and Ownership: When income is guaranteed but no longer tied to individual wage growth or status climbing through employment, consumer behavior alters. High-volume markets tend to transition away from high-depreciation, individual debt-financed assets (like private ownership of 4,000-lb cars) toward shared fleet access, standardized modular goods, and utility-driven subscriptions where durability outranks planned obsolescence.
The central challenge in this framework ceases to be a monetary one and becomes an allocative one: setting the recycling rate of capital high enough to clear mass-produced supply without triggering demand-pull inflation on fixed-supply assets like real estate and scarce natural resources.
Click here. due to automation is in reality wage-lessness that results in low consumer ability to pay unless we substitute wages with an income support benefit or Citizens-Dividend.
The core paradox of technological unemployment and aggregate demand—famously captured in the exchange between union leader Walter Reuther and a Ford executive showing off factory robots: when the executive asked how Reuther planned to collect union dues from the machines, Reuther replied, "How are you going to get them to buy cars?" Saving human labor lowers unit costs and expands margins for an individual firm, but across the macroeconomy, wage labor is the primary vehicle for distributing consumer purchasing power. Without wages, high-volume production encounters a wall of missing effective demand.
Click here.
When labor-saving robotic efficiency outpaces income distribution, several distinct economic markers signal that consumer capacity is decoupling from production:
- Wage-Productivity Divergence: Real output per hour continues to rise while real median worker compensation flattens out, indicating that productivity gains are accruing almost entirely to capital owners rather than workers.
- Debt-Engineered Liquidity: To offset stagnant wages, consumer spending is sustained through financial extension—such as 84-month or 96-month auto loans, expanded credit utilization, and aggressive leasing programs. Surging subprime auto defaults are a primary marker that financial engineering has reached its limit.
- The K-Shaped Market Bifurcation: The mass middle market collapses. Automakers pivot away from affordable volume models toward high-margin luxury vehicles targeting capital owners and top income earners, alongside low-margin fleet or rental sales.
- Declining Money Velocity: Capital concentrates among high net-worth households and corporations with a lower marginal propensity to consume, causing the circulation speed of money in the real economy to slow significantly.
If consumer wage income evaporates entirely, the mass retail auto market ceases to exist in its traditional form. Production either shrinks to match the limited demand of high-wealth households, or transitions into fleet-operated, state-subsidized, or subscription mobility. In a hyper-automated economy, sustaining a private consumer market ultimately requires decoupling purchasing power from labor—relying instead on mechanisms like consumer dividends, social wealth funds, or universal basic income to recycle capital back into aggregate demand.
Replacing wages with universal unconditional income support fundamentally re-engineers the macroeconomic circuit. It solves the effective demand crisis by converting purchasing power from an internal production cost (wages paid by individual firms) into a systemic market condition (an unconditional dividend supplied across the entire economy).
When purchasing power is decoupled from human labor, the dynamics of high-volume manufacturing shift in four distinct ways:
- The Recapture Closed Loop: In a wage-less economy, consumer demand exists as a public infrastructure asset. The economic circuit only functions if the revenue realized by hyper-automated capital is continually recaptured—via consumption taxes (VAT), resource rents, or automated production levies—and recycled back to households as unconditional income. If the recycling rate matches the rate of automated output, the missing demand wall vanishes.
- Marginal Cost Collapse vs. Real Purchasing Power: Because human labor is eliminated from the production line, unit production costs collapse toward the raw material, energy, and capital depreciation baselines. As a result, high-volume goods become significantly cheaper. A universal basic dividend does not need to match historical wage levels in nominal terms to deliver equal or greater real purchasing power for mass-produced goods.
- From Demand-Constrained to Resource-Constrained: With effective demand artificially stabilized through universal transfers, the primary bottleneck on high-volume manufacturing shifts from "Can consumers afford to buy this?" to "Can the physical supply chain sustain this output?" The economic limits move to energy grid capacity, critical mineral availability (e.g., lithium, copper, neodymium), land use, and environmental carrying capacity.
- Shift in Product Architecture and Ownership: When income is guaranteed but no longer tied to individual wage growth or status climbing through employment, consumer behavior alters. High-volume markets tend to transition away from high-depreciation, individual debt-financed assets (like private ownership of 4,000-lb cars) toward shared fleet access, standardized modular goods, and utility-driven subscriptions where durability outranks planned obsolescence.
The central challenge in this framework ceases to be a monetary one and becomes an allocative one: setting the recycling rate of capital high enough to clear mass-produced supply without triggering demand-pull inflation on fixed-supply assets like real estate and scarce natural resources.
Click here.
Using a broad-based sales tax or Value-Added Tax (VAT) as a proxy for an "automation tax" avoids the operational pitfalls of targeting machines directly, while creating a clean, self-balancing capital recycling loop.
Direct "robot taxes" face a definition problem: distinguishing between software automation, algorithmic efficiency, and physical hardware is difficult, and taxing equipment disincentivizes productivity. By contrast, using an increased sales tax shifts the focus from how goods are produced to the value captured at the point of exchange.
1. The Mechanics of the "Sales Tax as Automation Tax" Loop
- Deflationary Absorption: As automation drives unit production costs down, real prices fall. A higher sales tax absorbs a portion of that automated cost savings. If a vehicle's production cost drops by 40% due to full automation, adding a 20% sales tax still leaves the final consumer price lower than before, while extracting substantial revenue for public distribution.
- Technological Neutrality: An increased sales tax does not penalize a firm for deploying AI, robotics, or synthetic labor. A hyper-efficient firm that achieves massive scale pays more total sales tax simply because it commands more market throughput, capturing automation gains cleanly regardless of the underlying technology.
- Capturing Non-Labor Value: In a fully automated supply chain, corporate profits and capital returns represent nearly 100% of the value generated. A broad consumption tax functions as an indirect tax on capital efficiency.
2. Resolving the Regressivity Paradox
Standard consumption taxes are traditionally criticized for being regressive because lower-income households spend a larger share of their earnings on daily consumption. However, when an increased sales tax is paired directly with a Universal Unconditional Income (UBI), the net fiscal system becomes strongly progressive:
\text{Net Household Benefit} = \text{Universal Dividend} - (\text{Sales Tax Rate} \times \text{Household Consumption})
- Net Recipients: Low- and middle-consumption households receive significantly more in universal income support than they pay in sales tax, leaving them with net positive purchasing power.
- Net Payers: High-spending households and capital owners whose consumption exceeds the baseline dividend threshold become net contributors to the pool.
3. Structural Limits of the Consumption Recapture Model
- The Fixed-Supply Bottleneck: While an elevated sales tax easily recycles capital for high-volume, automated goods (like cars, electronics, or processed food), it creates inflation on fixed-supply assets. Land, prime real estate, and un-automatable local services absorb the redistributed purchasing power, driving up prices in those non-manufactured sectors.
- Capital Flight via Non-Consumption: If capital owners accumulate profits and store them in non-taxed financial instruments or foreign assets rather than spending them within the domestic consumer market, the sales tax recapture loop experiences a "leakage," requiring complementary wealth or financial transaction levies to maintain the dividend pool.
By using an increased sales tax as the recapture engine, the economy taxes the abundance created by automation rather than the mechanisms of automation, keeping high-volume manufacturing viable without punishing efficiency gains.
By SDGCK Research with James Smith, University of London Alumni.
Final.
