Sunday, June 21, 2015

Renewed interest in the tax and transfer system

Rule one as we re open this social contrivance for expansion

The system must have access to general revenues and a limitless credit line
If full responsibility for maintaining optimal mobilization
 is the new mission

Nothing more is needed here

Once the individuals life time pay in
 a fractional basis only
  for their  lifetime pay out

Full accounting of this pattern at this granular level
 should be a matter for public viewing
absent relevant identity specifics

Magic tricks are emerging

Separate auto stabilization  and auto redistribution
From auto mobilization
Ie leave the employment ceiling vague or assume nairu and monetary reaction function built on nairu
Are technical issues not class politics

Separate automatic from discretionary

Compare to credit system as spending smoother

Incomplete markets  only on a tractable basis

And yet light pours thru the cracks

Single rep is doomed