We have been consuming our wealth. We need to create more and consume less.
Correcting that balance requires major changes to our incentives. We must:
- minimize disincentives to work, so people know that they will keep as much as possible of the money that they earn from whatever work that they are capable of doing;
- reduce the costs and constraints on businesses in competitive markets, whilst resisting corporatist calls to insulate them from competitive pressures and the consequences of their actions; and
- cut the cost and scope of government, not just to reduce taxes, but also to cut out unnecessary and harmful interventions in our personal and cooperative activities.
Our flagship policy, around which our policies in many areas are shaped, is the replacement of the current complex systems of personal taxation, government welfare, and provision of essential services, with a Basic Income and Flat Tax on personal earnings. This would have major benefits for all three of the above objectives, but is just the start of the changes we need to make.