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  • Writer's pictureJohan Söderström

Taxation is not enough

In an economic system, money is always distributed to either more or fewer hands. The current may be slow or faster, but it always goes one way or another.

If the owners of the means of production, the employers, are given the opportunity to accumulate resources, albeit only a small part, then this part will grow and grow until one day everything is gathered on their hands.

Because the economy is a closed circulating system. There is nothing like perpetual growth. There is actually no growth in the economy at all. Society's resources always consist of the sum of its total work, and nothing else. The value of labour is always shown in retrospect. Profit is nothing but an error in the calculation of its value. Unless this part of the value is returned in full to the employees, those who performed the work, they will slowly but surely get poorer and poorer. Because even if the lion's share of corporate profits was taxed and distributed to the people, resources will pass by the owners' hands over and over again, due to the daily consumption. Thus, they inevitably accumulate on the hands of those who profit from the system and are allowed to hoard it.

That is why ALL profits must be re-directed back to the people. Since the system is closed, no repetitive withdrawals can be allowed. It will eventually erode society’s common resources.

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