Labourism and the Economics of Limited Taxes
DOI:
https://doi.org/10.15678/AOC.2016.1402Keywords:
capital, labour, money, value, taxesAbstract
The author shows that the system of fundamental economic concepts has so far not been clearly explained. Understanding capital and labour as primary and complementary economic categories leads to the view that money is also an abstract category which arises in the process of labour as work receivables. This means that work does not need to be financed because it finances itself, that is to say, it creates money. Recognition of this state of affairs implies the need for a new institutional solution. The natural solution would be to empower the central bank to pay compensation for work in the public sector and to control the labour productivity ratio. This macroeconomic ratio limits wages in the economy. The bank’s present function of issuing money would be completely eliminated; it is a function which has no scientific justification. The author’s calculations show that in such a system the budget deficit would disappear and the introduction of reforms to streamline and lower taxes would be possible.References
Atkins, P. (2007) Four Laws that Drive the Universe. New York: Oxford University Press, pp. 3–78.
Banerjee, A. and Maskin, E. (1996) “A Walrasian Theory of Money and Barter”. Quarterly Journal of Economics CXI (4): 955–1005.
Barrow, J. D. (2003) From Alpha to Omega, The Constant of Nature. London: Vintage Books, pp. 201–91.
Bliss, Ch. (1975) Capital Theory and the Distribution of Income. Oxford: North-Holland Publishing, p. 7.
Bliss, Ch., Cohen, A. J. and Harcourt, G. C. (2005) Capital Theory. Volumes I–III. Northampton, Mass.: Edward Elgar.
Bryer, R. A. (1994) “Why Marx’s Labour Theory is Superior to the Marginalist Theory of Value: The Case From Modern Financial Reporting”. Critical Perspective on Accounting 5: 313–40.
Buchholz, T. (2007) New Ideas from Dead Economists. An Introduction to Modern Economic Thought. New York: A Plume Book, pp. 229–34.
Dobija, D. (2003) Pomiar kapitału intelektualnego przedsiębiorstwa [Measuring a company’s intellectual capital]. Akademia Leona Koźmińskiego, Warszawa, pp. 187–209.
Dobija, M. (1998) “How to Place Human Resources into the Balance Sheet”. Journal of Human Resource Costing & Accounting 3 (1): 83–92.
Dobija, M. (2005) “Financing Labour in the Public Sector without Tax Funds”. Argumenta Oeconomica Cracoviensia 4: 5–20.
Dobija, M. (2007) “The Abstract Nature of Capital and Money” in Linda M. Cornwall (ed.) New Developments in Banking and Finance. New York: Nova Science Publishers, Inc., pp. 89–114.
Dobija M. (2008) “Labour Productivity Ratio and International Comparison of Economic Performance – Formalization of the PPP Theory and Preliminary Examinations”. EMERGO 13(1): 5–20.
Dobija, M. (2009) “Natura i piękno zapisu podwójnego” [The nature and beauty of double-entry]. Zeszyty Naukowe Uniwersytetu Ekonomicznego w Krakowie No. 796, pp. 5–20.
Dobija, M. (2011a) “The Abstract Nature of Money and the Modern Equation of Exchange”. Modern Economy 2 (2): 142–52, May, http://dx.doi.org/10.4236/me.2011.22019.
Dobija, M. (2011b) “Labor Productivity vs Minimum Wage Level”. Modern Economy 2 (5): 780–87, http://dx.doi.org/10.4236/me.2011.25086.
Dobija, M. (2014a) “Formation of the Integrative Currency Area”. SOP Transactions on Economic Research 1 (1): 1–9.
Dobija, M. (2014b), “The Global Currency Area: A Way to Constructively End the Era of Reserve Currency”. Modern Economy 5(4): 289–302, http://dx.doi.org/10.4236/me.2014.54029.
Dobija, M. (2015a) “Laborism: The Economics Driven by Labor”. Modern Economy 6: 578–94, http://dx.doi.org/10.4236/me.2015.65056.
Dobija M. (2015b) “Economics Approaches the Fork in the Road: Labor Self-Financing and Tax Free Compensations or Toil of Deficit and Deflation”. International Journal of Accounting and Economics Studies 3(2): 86–94, http://dx.doi.org/10.14419/ijaes.v3i2.4290.
Dobija, M. and Kurek, B. (2013) “Towards Scientific Economics”. Modern Economy 4 (4): 293–304, http://dx.doi.org/10.4236/me.2013.44033.
Garrison, R. W. (2001) Time and Money. The Macroeconomics of Capital Structure. London and New York: Routledge, pp. 7–8.
Górowski, I. (2010) “Podatek dochodowy jako kategoria ekonomiczna” [Income tax as an economic category] in M. Dobija (ed.) Teoria pomiaru kapitału i zysku [The theory of measuring capital and profit]. Cracow: Wydawnictwo Uniwersytetu Ekonomicznego w Krakowie, pp. 160–69.
Ijiri, Y. (1993) “The Beauty of Double-Entry Bookkeeping and its Impact on the Nature of Accounting Information”. Economic Notes 22 (2): 265–85.
Ijiri, Y. (1999) “The Cost Principle and the Labour Theory of Value in Relation to the Role of Accounting Theories and their Depth” in S. Sunder and H. Yamaji The Japanese Style of Business Accounting. Westport: Quorum Books, pp. 177–190.
Jędrzejczyk, M. (2012) “Labor Productivity Parity vs Trend of Exchange Rate”. Modern Economy 3 (6): 780–85, http://dx.doi.org/10.4236/me.2012.36099.
Kozioł, W. (2009) “Struktura wiedzy w społeczeństwie jako determinanta godziwych nierówności płacowych w gospodarce” [The structure of knowledge in society as a determinant of fair wage inequalities in the economy]. Zeszyty Naukowe Uniwersytetu Ekonomicznego w Krakowie No. 796, pp. 21–32.
Kozioł, W. (2014) “Rozwój teorii pomiaru kapitału ludzkiego i godziwych wynagrodzeń” [The development of the theory of measuring human capital and fair wages] in M. Dobija (ed.) Teoria rachunkowości. Podstawa nauk ekonomicznych [Accounting theory. The basis of economic science]. Cracow: Wydawnictwo Uniwersytetu Ekonomicznego w Krakowie, pp. 156–93.
Kurek, B. (2011) Hipoteza deterministycznej premii za ryzyko [A hypothesis of the deterministic risk premium]. Cracow: Wydawnictwo Uniwersytetu Ekonomicznego w Krakowie, pp. 122–25.
Kurek, B. (2012) “An Estimation of the Capital Growth Rate in Business Activities”. Modern Economy 3 (4): 364–72, http://dx.doi.org/10.4236/me.2012.34047.
Kurek, B. and Dobija, M. (2013) “Scientific Provenance of Accounting”. International Journal of Accounting and Economics Studies 1 (2): pp. 16–24, http://dx.doi.org/10.14419/ijaes.v1i2.1054.
Lietaer, B. (2004) “Complementary Currencies in Japan Today: History, Originality and Relevance”. International Journal of Community Currency Research 8: 1–23.
Pacioli, L. (1494) Summa de Arithmetica, Geometria, Proportioni et Proportionalita. Venice.
Renkas, J. (2012) “The Empirical Test of the Model of Human Capital and Minimum Wages”. Nierówności społeczne a wzrost gospodarczy 24: 345–56.
Robinson, J. (1953–54) “The Production Function and the Theory of Capital”. Review of Economic Studies 21 (2): 77–89.
Rosenberg, N. and Birdzell, L. E. (1994) Historia kapitalizmu [The history of capitalism]. Cracow: Signum, pp. 186–89.
Rushkoff, D. (2008) “Open Source Currency” in J. Brockman (ed.) What Is Your Dangerous Idea. Edge Foundation. Polish edition: “Niebezpieczne idee we współczesnej nauce”. Sopot: Smak Słowa, pp. 244–44.
Smith, A. (1776) An Inquiry into the Nature and Causes of the Wealth of Nations. Book I, Chapter V, http://www.econlib.org/library/Smith/smWN2.html.
Solow, R. (1963) Capital Theory and the Rate of Return. Amsterdam: North-Holland Publishing Company, pp. 7–9.
Struve, W. (1969) “Some New Data on the Organisation of Labour and on Social Structure in Sumer During the Reign of the IIIrd Dynasty of Ur” in I. M. Diakonoff (ed.) Ancient Mesopotamia. Socio-Economic History. Moscow: Science, pp. 127–72.
Weatherford, J. (1997) The History of Money. From Sandstone to Cyberspace. New York: Three River Press, pp. 132–35.
