The Effort to Support Purchasing Power — Benefit Licenses

The second method to increase purchasing power, proposed by the New Physiocrats, is to encourage the sale of low-price Basic Essentials at the point of consumption. It is not enough to foster increased production of Basic Essentials; it must be ensured that the retail/distribution networks are in place to distribute them, and to ensure that low costs are carried through to consumers.

We refer to the agency with the mandate of using this method, as the Effort to Support Purchasing Power. The same agency would also have the authority to take anti-trust measures to meet these same goals.

Special licenses must be granted to retail businesses that meet certain requirements, for their role in distributing Basic Essentials. We can preface this section by saying there must be no restrictions on these businesses on operating before their licenses are granted; the licenses would only grant these business special privileges. These licenses would allow them to take ownership in an additional Sectoral Bank, the Bank of Basic Essentials. As this bank would be one of those receiving funds from the Sectoral Bank program [from the pool of corporate income tax revenues], it would be able to offer a combination of inexpensive loans, training and schooling, and cash dividends.

To achieve the desired effect, Basic Essentials (e.g., fresh foods), regardless of which outlet they’re sold from, would be relieved of VAT. Restaurants play a special role in the distribution of food as well, as they and the cuisine they prepare is also a manifestation of the region’s culture. Certain clothing can play a similar role. As mentioned earlier, while the LVT component of the ULT brings physical structures and establishments up from the earth, and the building tax component of the ULT moulds the structures, like an artist moulding clay. If these structures were defined by the type and price of products they sell, it becomes possible to encourage the development not only of affordable housing, but also of affordable clothing and food relevant to the regional culture. The use of licenses here would also swiftly eliminate VAT compliance costs.