The trouble with the debt created is that it is unlikely to ever be paid off, at least not with waged labour, which leaves lenders losing out unless we change the global system by law.
It is impossible to find the tax from a low waged and unemployed economy. Austerity they say must be imposed, but that is a nonsense creating more and more poverty which does not pay tax, and has a knock on effect of crippling business.
We could just change the law so that everyone will get a basic income, but also introduce a “ghost” entry at the bank to accompany the loans that are created as IOU s which can be used by the bank to pay off that debt if it is agreed and very obvious that the loan cannot be paid off.
The implications of not introducing a financial instrument or vehicle of this nature are very obvious to me. It is time for all of us to stand up and be counted, to write letters to our fiscal authority’s, to lobby mps for a solution of this nature.
It is not only poor and increasingly low waged and unemployed people that will suffer but the very businesses and corporate giants that finance our political parties stand to suffer with low profits and weakening sales which must occur as business itself seeks to save costs with more automation and software mechanization.
Every day there is more software available to enable the cutting of staff costs which all company’s must do as they are duty bound to the directors and stock holders for as high a profit return as they can muster.
The corporates do not exist to provide the masses with employment, however they ultimately depend on either government spending or private spending.The consumer represents 70% of our capitalist economies.