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Marketism (Millanic: Bartreaísma; Spanish: Mercadismo) is a series of political and economic philosophies instituted by the Millanian Government since the nation's foundation in 2017. Different political parties in Millania's history have endorsed Marketism; presently, the Marketist Party is considered to be the country's Marketist party per excellence.
Writ of a Free and Balanced Economy
The "Writ of a Free and Balanced Economy" outlines the economic thought involved in Marketism. It is the main basis of Marketist belief, and allows Marketists to have an idea of what they support. The Writ is written as such:
Over thousands of years, humanity has tried earnestly to find the best economic systems. We seem to have settled on capitalism. There are three great flaws in a capitalist economy; large companies exploiting their position or monopolies, exploiting the human condition for financial gain, and of course, the rich exploiting the poor. A marketist economy aims to solve these problems, and bring a sense of balance to the economy. People only have a limited amount of money, and companies can only go so low a price. However, companies with a near or full monopoly tend to exploit their position to raise prices to an unnecessary level, thus slowing commerce in their sector. This can be solved by putting a limit to prices, and stopping companies from slowing the flow of the Capitalist market.
A problem with society has not been solved for thousands of years - the rich’s exploitation of the poor. The rich have the idea that keeping the poor poor will maintain their status as major players in the economy. But, this is no longer the case. Raising revenue of the poor, and installing a donation tax would remove extreme poverty, and increase productivity of the market.
The Donation Tax is a tax in which 2% of the existing tax is directed through the government to fund housing, fresh water, and food for the poor, and a small loan to help them begin a new life. This will benefit the markets by increasing the workforce, increasing competition, and encouraging the wealthy to work towards regaining their money. Any person found exploiting either the donation tax or the poor will be charged with “Domestic Corruption.” This crime’s sentence may vary from region to region.
As noble as socialist principles are, if you take too much from the rich (regardless of whether they earned it or not) they are going to resist and take their money/business elsewhere, and the system will collapse. If there is no reward for innovating and attaining wealth through ingenuity and/or hard work, then there is not going to be much new wealth.
Nobody will have incentive to earn money, so now the poor will stay poor while the rich will be more inclined to live off their wealth than pay 70% in taxes trying to increase it. Unfortunately, this is a two-way street. You cannot help the poor without the rich, and you can only take so much in taxes before the rich people decide to earn their money elsewhere.
Unless they've got an incentive to keep building wealth, then socialist or not there won't be much in the way of taxes unless you take it from the middle and working classes, who simply won't have as much money and are the people intended to benefit anyway.
A middle ground is needed, in the form of a three-tier, near-absolute marginal tax system should apply. Those who earn below poverty don't pay taxes, those who earn between that and net living wage level (after taxes) pay some, and those who earn substantially more than that (middle class and higher) pay along the lines of 20-30 per cent (central government / total tax burden) to help those who can't help themselves. This keeps taxes sufficiently low without driving people off.
Monopoly Price Caps
To ensure that companies do not overexploit their monopolies, the Government caps the price of the good or service the Company (or Companies) hold a monopoly in, and therefore keeps the price affordable. At the same time, the price must be at least 15% more than the factory price of the good or price needed to pay workers preforming services, so that companies may still gain profits off of their goods or services after taxation.