The Finnish government is planning on reducing corporate tax by two to three percent, which I guess is a reward for making record profits by reducing headcount and increasing unemployment to 9.4 percent. And these corporate tax cuts are coming after they increased consumer taxes, and as they increase various other taxes on consumers, and reduce services like healthcare and education. As I have said before, while it might not have been the initial intention, the economy isn't designed to benefit humanity, it is built to make profits for a few individuals, at the expense of many. If the governments really wanted to improve their balance sheets, they would be ensuring that international companies paid their taxes where they earned the revenue. But it seems -
This is a no-go zone.
Government economics isn't made for the globalised economy, as national economics is designed to control the flow of money within the borders, but the corporations do most of their trade out of the reach of governments. And this is especially true for the digital corporations, as they are able to earn from countries, without even having to register in the country in many cases. And when they do - they do their taxes elsewhere anyway.
If they really wanted to make impacts in the country through tax reductions, it would be on salaried incomes so that people could afford to buy again. Instead, they are doing things that will just increase the wealth gap further, and make any recovery even longer. When will economists learn that the economy doesn't work if no one has any money to spend? Increasing profits for corporations that aren't increasing the headcount of salaried workers is counterproductive for any robust economic improvement, and definitely for any improved social environment.
But who cares about quality of life anyway....
The governments have a chance to improve the global consumer disparity by empowering consumer spending whilst the Trump government is messing around with tariffs. Essentially, they can use the tariff drive to encourage domestic spending and the widening of non-US markets, by lowering consumer and salary taxes on non-US goods and services, and give incentive to spend. This will make RoW business more attractive and make them more money, so that rather than lowering corporate tax, they can use that tax to spur consumer demand again. This will see more investment locally and in RoW companies, taking investment capital away from US companies as they struggle with tariffs and being forced to pay taxes in the countries they earn the revenue - and more startups, and more market share ensues for RoW business.
But, rather than using the opportunity to make life better for more people, they are instead going to look to make quick profits for where they are already invested. They are going to punish people, and further reduce their ability to consume, and increase all kinds of economic related challenges - while rewarding companies for increasing profits through reducing labour costs.
Good governing.
(said with a healthy dose of sarcasm)
But of course, "governing" hasn't been about improving the outcomes of the people governed for a long time - it is just about lining pockets and feeding egos. It is so the people who make the rules can try to ensure that their legacy benefits people like them, the wealthy, the powerful - so that they can rub shoulders and then use those relationships in the future to line pockets further. It is just a circlejerk of the wealthy, pretending that they care about others than themselves.
It is a shame, because right now there is a chance to improve the economy so that it is better for more people, and wealth starts to distribute wider. Instead, all around the world there seems to be a concerted drive to consolidate wealth further, putting more of it in the hands of the few, and forcing the rest to keep cutting back on quality of life decisions, just to survive a day, a week, a month or maybe even a year more.
Survival is not indicative of a good life.
It is like the governments of the world are pushing developing nations backward and into the third world. Life keeps getting harder for more and more people, violence is increasing, mental health issues are increasing, physical health is declining, and wellbeing is falling like a rock.
And the warlords have control.
Taraz
[ Gen1: Hive ]
