0 Votes
RE: Try Again
I guess the complementary next stage would be to implement some kind of system to make it easier for average people to get a good return on investment off savings or the credible ability to invest.
Current savings account interest rates don’t even keep pace with inflation, so you lose money. You don’t start getting good interest rates until you commit larger sums of money for longer periods of time, such as being locked in to a CD, bond, T-bill, etc. This is kind of far fetched for anyone below middle class.
There was a lot of hullabaloo about small investers back during the dot-bomb era, with several companies claiming to make trading accessible to small investers. I would at least like to see some credit for SMALL investers to get into, say, an index fund or retirement fund, like Roth IRAs. This would be a great alternative to social security if we can make it easier for people to access this.
I also wonder what the impact of a sales tax would have on small businesses, the ability for people to start a new small business, and the ability for a small business to compete fairly. Small businesses are key to the disruptive innovation process
RE: Try Again by scottb
I would at least like to see some credit for SMALL investers to get into, say, an index fund or retirement fund, like Roth IRAs.
I read an argument recently for eliminating caps on IRA investments. It argues that saving is a form of philanthropy – money that you avoid spending leaves more resources for everyone else. It’s a fairly involved theoretical argument in economics, but it’s sound (at least, as sound as the neo-classical economic theory on which it’s based is). The point of the IRA is that money you put there is protected from taxation until you withdraw it and spend it, so it’s the perfect incentive for the miser.
I also wonder what the impact of a sales tax would have on small businesses, the ability for people to start a new small business, and the ability for a small business to compete fairly. Small businesses are key to the disruptive innovation process
One good thing is that we already have sales tax in most states, so most small businesses already have the infrastructure necessary to handle it.
I think on the whole, it would be relatively neutral to small businesses. They’re not all that sensitive to price, just volume.