Wednesday 25th January 2012
Thank you for your email. Due to the large volume of correspondence and email which I receive, I am not always able to respond directly.
If I am out of the office, I may ask a staff member to respond on my behalf.
Thank you for taking the time to contact me.
Hon Peter Dunne
Malcolm Baker,
Baker Publishing,
42-44 Spencer Avenue
Maketu 3189
http://www.rainierbank.biz
Dear Sir,
I'm hoping you will read and consider some of the ideas from a book
about Economics I am preparing for a Nobel Prize I hope to win.
There is a link from my web page.
As you know the situation is serious, both nationally and internationally.
The book is in an early stage of preparation because I'm also writing a
thesis about nuclear physics, or quantum mechanics, if you prefer,
but there are some problems economically, not the least of which is the increasing concentration of wealth amongst the wealthy.
If you accept that wages create demand, and the economy is stagnant, the
answer is to increase wages to create demand but this cannot be done
because it would cause inflation and possibly create unemployment.
The other problem is global warming, and with temperature increases
predicted by serious scientists, as .5 degrees one year, with a 2 degree
increase the following year, 5 degrees the next, and over double or 10
degrees in the fourth year, you will se a predicted increase of 17
degrees in just four years. This is a lot more serious than most
scientists think, but once it starts it will be too late to stop it. In
purely economic terms, oceans will rise, whether immediately or over the
next 200 years, and cities like London will flood, and have to be
rebuilt elsewhere, as will all the ports of the world.
The solution is relatively simple, a 10% on motor spirit, with the money
raised being used to install solar electric panels, which will pay for
themselves (at $90 for every 10 units a day generated) (economies of
scale must reduce prices), an average roof generating between $500 and
$1,000 per year. Also an increase in the amount of alcohol being sold in
petrol is needed, to save another 10% of oil.
Keeping relativity in wages, and paying only public servants (nurses,
school teachers etc), a $2 per hour increase is needed immediately, ($6
for those on three times the minimum). Wages must be increased before
petrol prices are (can be) increased, even if the money is paid back as
vouchers to buy solar panels. with tax revenue at about 48 to 50
billion, and the Bank of England- which is owned by the people of Great
Britain,and indirectly, the Commonwealth can lend money to Finance
Ministers at 5%, by buying currency in their countries with pounds, and
then lending it to them. It will not need to be repaid (for 20 or 30
years), as long as interest is paid, and even this can be deferred for a
year or two as long as it is paid eventually. This way 20 billion will
cost 1 billion. This could be sustained for three years, long enough to
stimulate the economy by paying people to create assets (wealth) for the
government. I have some ideas how this could be done, public (state)
housing for example.
Many European countries also need help, but cutting out welfare, and
cutting government spending will only shrink the economy even more.
People do have the right to work, or an income if there is no work for
them to do. They have to buy food and pay the rent. Business will
flourish if people have money to spend, but real wages have been
shrinking for many years.
This is not the whole answer, and part of my solution is to increase
bank interest rates by 1%, (ultimately to 8%), and the reasons are on my
web site.
I hope you consider this. I know it is logical, and my work will contain
some simple formulas to get a flat tax of about 30%, plus GST, and to
get the government onto a balanced budget with a falling deficit of
below 8% of GDP.
It is my hope that you find something of interest here, and something which resonates with your own ideas.
(I'm no longer seeking a permanent relationship with Sladja, who I wrote
to you about earlier. She still works as a private tax consultant, and
we now share a software business called Dragon Systems.
Thank for your previous response, and have a happy and prosperous new year.
Yours sincerely,
Malcolm Baker.