[IDEA] Fair Markets Act ('Against State Capitalism' V2)

[Nordenwald]

So I've been thinking that the World Assembly needs a piece of legislation that serves to help mitigate State corruption of the Market. Having no previous experience in writing WA proposals, I was thinking I could put what I have in this post and then work from there based off the advice/crtiques of the GA Regulars.

So, I'd like to present the following proposal.

"NAME: Fair Markets Act
CATEGORY: Free Trade
STRENGTH: Significant
DESCRIPTION:

THE WORLD ASSEMBLY,

AWARE that Governments use measures such as corporate welfare to benefit specific corporations,

BELIEVING that such practices are blatant abuses of State power and intentionally skew the Free Market,

NOTING that such policies also mitigate competition.

EMPHASIZING that this practice renders the Free Market neither free, fair, or competitive,

HEREBY ADOPTS the following policies in order to discourage such practices:
1. Forbids member nations from subsidizing select corporations, and mandates that they instead subsidize the entire industry
2. Mandates that no corporations be exempt from member nations' corporate taxation policy
3. Encourages member nations to move away from the practice of business subsidization
4. Tasks the World Assembly Trade Commission to enforce these policies and ensure nations are following them.

So that's the proposal, I look forward to hearing your critques.

[Super-Llamaland]

Seems a bit ideological ban-y.

[The Dark Star Republic]

"Before trying to address the proposal, let me ask: is there anything, whatsoever, that would convince its sponsor to modify its ideological absoluteness? Ancaps tend to be utterly uncompromising, and if that's the case, then there's no point suggesting incremental changes."

~ Daisy Chinmusic
Legislative Intern

[Nordenwald]

"Before trying to address the proposal, let me ask: is there anything, whatsoever, that would convince its sponsor to modify its ideological absoluteness? Ancaps tend to be utterly uncompromising, and if that's the case, then there's no point suggesting incremental changes."

~ Daisy Chinmusic
Legislative Intern

"I see no reason as to why I could not make the proposal sound less like a piece of Anarcho-Capitalist literature, if that's what the representative of The Dark Star Republic is concerned about. After all, the purpose of this proposal is to help balance the Free Market; not be perceived as a personal vendetta against the State."

-Nordenian Representative to the WA
(Name Pending)

[The New Sea Territory]

Note that State Capitalism is a different system from Crony Capitalism.

[Nordenwald]

Note that State Capitalism is a different system from Crony Capitalism.

'All squares are rectangles, but not all rectangles are squares'; All Crony Capitalism is State Capitalism, but not all State Capitalism is Crony Capitalism. In a textbook State Capitalist system the State and the Private Sector are synonymous, however the term can be applied to any system in which the State is working within the Private Sector.

The goal of this resolution is to minimize State intervention within the Free Market, specifically in instances where the State is favoring specific companies/groups of companies.

[Greater Auchteristan]

I feel that this would negatively impact socialist states or states trying to achieve socialism.

And it sounds very ideologically motivated.

[Nordenwald]

I feel that this would negatively impact socialist states or states trying to achieve socialism.

And it sounds very ideologically motivated.

The premise of the resolution is to prevent States from benefiting certain companies/groups of companies over others. The only goal of this resolution is to make Free Markets more fair and free by reducing the extent to which States may influence them.

I've tried to word the resolution so that the only parts of an economy that are effected are things like tariffs and subsidies. Economic regulations should still be in place, so the Socialist countries can maintain their Socialism.

As for the ideological motivations, since the resolution doesn't suppress any ideologies. This resolution isn't an attempt to 'destroy the Left'. The motive of this resolution has been stated multiple times- to make Free Markets more fair and free by reducing the extent to which States may influence them.

[Normlpeople]

OOC: I will try to elaborate later when I get to an actual computer, however this contradicts at least 3 other resolutions I can think of. Its very much illegal.

[Bashriyya]

I would totally vote for this.

[Matria]

"While we favor the objectives this proposal hopes to achieve, we feel that it is unworkable.

Point #3 is of particular concern to us. A progressive corporate tax provides a way to discourage monopoly formation and undue influence on political affairs without requiring direct intervention. In fact, this serves to counter the very purpose of the proposal, as the alternative is prosecution, which is far more corruptible than the tax code.

Some other concerns:

Point #1 will be difficult to implement. Should subsidies be based on production? Then the largest companies will receive the largest subsidies - this is the very essence of crony capitalism. Should they, on the other hand, be one-per-company? Then a thousand shell corporations will spring up overnight. The only practical way we can see to do this in general would be through tax subsidies, contrary to point #3.

Point #2 will hinder developing economies following the import-replacement strategy. This does not threaten our own national interests, however.

Point #5 is unreasonably vague. Any military spending could be said to be "designed to benefit" arms manufacturers. Indeed, any government spending whatsoever will benefit corporations in the industry in which it is spent. Banning leaded gasoline specifically benefits companies which produce unleaded gasoline. And any sort of law which can sanction unethical corporate practices specifically benefits corporations which keep their hands clean.

For these reasons, the High Synod of Matria cannot support this proposal without drastic revisions."

-Sister Katerina, Economist-Priestess, Matrian World Assembly Delegation

[Nordenwald]

"While we favor the objectives this proposal hopes to achieve, we feel that it is unworkable.

Point #3 is of particular concern to us. A progressive corporate tax provides a way to discourage monopoly formation and undue influence on political affairs without requiring direct intervention. In fact, this serves to counter the very purpose of the proposal, as the alternative is prosecution, which is far more corruptible than the tax code.

Some other concerns:

Point #1 will be difficult to implement. Should subsidies be based on production? Then the largest companies will receive the largest subsidies - this is the very essence of crony capitalism. Should they, on the other hand, be one-per-company? Then a thousand shell corporations will spring up overnight. The only practical way we can see to do this in general would be through tax subsidies, contrary to point #3.

Point #2 will hinder developing economies following the import-replacement strategy. This does not threaten our own national interests, however.

Point #5 is unreasonably vague. Any military spending could be said to be "designed to benefit" arms manufacturers. Indeed, any government spending whatsoever will benefit corporations in the industry in which it is spent. Banning leaded gasoline specifically benefits companies which produce unleaded gasoline. And any sort of law which can sanction unethical corporate practices specifically benefits corporations which keep their hands clean.

For these reasons, the High Synod of Matria cannot support this proposal without drastic revisions."

-Sister Katerina, Economist-Priestess, Matrian World Assembly Delegation

"Of course, the problem with a Progressive Income tax is that corporations are forced to pay more for succeeding. A Progressive Tax inherently favors small companies over large companies; a flat tax assures that all companies are being treated the same. That is the goal of this resolution: A Free Market that is not only free, but also fair. Fairness cannot be established when the standards fluctuate depending on the success of a company.

Ah yes, the problem of subsidization. I personally am opposed to subsidies and do believe such practices should be banned, however I acknowledge that some countries have built their economies on the shoulders of Corporate Welfare; to eliminate the practice of subsidization would have drastic effects on their economies. Point 1 is created with the goal of ensuring that subsidies are fairly administered between corporations; after all, if the government is openly supporting one industry, or even worse ONE COMPANY over another the Free Market can no longer stand for fair competition.

Insofar as your concerns with tariffs go, companies may still place tariffs. The only difference is that these tariffs must be applied to all imports or exports. So a nation could not just place a tariff on imported sugar, they would have to place this tariff on all imported goods.

I can see the vagueness of Point 5 and removed this clause from the proposal.


If you have any suggestions on how the proposal could be further developed and 'fleshed out' so to speak, I would appreciate you input."

-Nordenian Ambassador to the WA
(Name Pending)

[Normlpeople]

Clover.sighed "Well, not that I have much time to properly debate, but lets start with how you believe this is not in conflict with GAR #17, which forbids WA interference in domestic taxation. I am also interested to know how you believe that forbidding government subsidies, and in effect eliminating government owned industry, is not an ideological ban."

[Separatist Peoples]

"Since it's illegal, as Clover pointed out, I guess I don't have to toss in my resounding "NO" into the mix."

[Unilateral rhodesia]

yes, comrade you are equally justified in this position but state capitalism is actually another phrase meaning communist harassment [with the exception of Tito's Yugoslavia of course] so face the fact that no matter where you go the international follows, God save Rhodesia

[Unilateral rhodesia]

one more tidbit the General assembly is full of communist swine, still i suggest comrade that you deny them any ground at all costs

[Separatist Peoples]

yes, comrade you are equally justified in this position but state capitalism is actually another phrase meaning communist harassment [with the exception of Tito's Yugoslavia of course] so face the fact that no matter where you go the international follows, God save Rhodesia

"Considering the overwhelming number of voters are at least mildly capitalistic, and that the GA expressly forbids ideological bans, none of that can happen. Keep your bloody propaganda to yourself."

[Arcanda]

So I've been thinking that the World Assembly needs a piece of legislation that serves to help mitigate State (or Crony) Capitalism, which is a corrupt system that severely skews the Free Market. Having no previous experience in writing WA proposals, I was thinking I could put what I have in this post and then work from there based off the advice/crtiques of the GA Regulars.

So, I'd like to present the following proposal.

"NAME: Against State Capitalism
CATEGORY: Free Trade
STRENGTH: Significant
DESCRIPTION:

THE WORLD ASSEMBLY,

AWARE that Governments use measures such as corporate welfare and high tariffs in order to benefit certain corporations,

BELIEVING that such practices are blatant abuses of power and intentionally skew the Free Market,

EMPHASIZING that this practice renders the Free Market neither free nor fair,

HEREBY ADOPTS the following policies in order to discourage such practices:
1. Forbids member nations from subsidizing select corporations, and mandates that they instead subsidize the entire industry
2. Forbids member nations from placing tariffs on specific goods.
3. Mandates that member nations use a single, flat corporate tax rate.
4. Encourages member nations to instill Free Trade with other nations.
5. Creates/Tasks the [Agency] in order to enforce these policies."

So that's the proposal, I look forward to hearing your critques.

"I am forced to disagree.Tariffs can be good to the industry and it is up to the country to decide which goods can enter and which can not.For exemple, putting tariffs on foreign cars in order to revigorate the domestic industry can do good to the economy, while tariffs on oranges might not be established because their production is stable in the said country."

[Ainocra]

The Marshal snores both loudly and drunkenly during this debate about something totally illegal.
Were he awake he might remark on the illegality but instead he drools on the copy of the draft he has been provided.

[Nordenwald]

=
"I am forced to disagree.Tariffs can be good to the industry and it is up to the country to decide which goods can enter and which can not.For exemple, putting tariffs on foreign cars in order to revigorate the domestic industry can do good to the economy, while tariffs on oranges might not be established because their production is stable in the said country."

"The problem is that tariffs are contrary to the concept of a Free Market; many times their intent is not to stabilize an industry, but instead to provide extra government income or give local (as in belonging to the country that sets up tariffs) an edge in the Market. This is the problem.

If you have a suggestion for how I could reword the proposal in order to more accurately represent this idea, it would be greatly appreciated.

The Marshal snores both loudly and drunkenly during this debate about something totally illegal.
Were he awake he might remark on the illegality but instead he drools on the copy of the draft he has been provided.

The Ambassador from Nordenwald still seeks clarification on how it is illegal.

[Separatist Peoples]

"Its illegal because the WA is barred from interfering in national taxation as per the GAR#17, I think. Also, there's National Economic Freedoms that bars the WA from interfering in National economies without a significant threat to citizens."

[Catholic Federalized States]

Good God. Leftists took Nationstates over completely.

Ridiculous, lol.

[Old Hope]

So I've been thinking that the World Assembly needs a piece of legislation that serves to help mitigate State (or Crony) Capitalism, which is a corrupt system that severely skews the Free Market. Having no previous experience in writing WA proposals, I was thinking I could put what I have in this post and then work from there based off the advice/crtiques of the GA Regulars.

So, I'd like to present the following proposal.

"NAME: Against State Capitalism
CATEGORY: Free Trade
STRENGTH: Significant
DESCRIPTION:

THE WORLD ASSEMBLY,

AWARE that Governments use measures such as corporate welfare and high tariffs in order to benefit certain corporations,

High tarriffs can have other reasons

BELIEVING that such practices are blatant abuses of power and intentionally skew the Free Market,

EMPHASIZING that this practice renders the Free Market neither free nor fair,

HEREBY ADOPTS the following policies in order to discourage such practices:
1. Forbids member nations from subsidizing select corporations, and mandates that they instead subsidize the entire industry

You want to force me to subsidize the entire industry? This is not what you want to do, do you? I suggest at least a rewording.

2. Forbids member nations from placing tariffs on specific goods.

2.Or in other words, bans any tariffs but general ones?

3. Mandates that member nations use a single, flat corporate tax rate.

Game Mechanics-illegal. You can neither mandate a specific tax rate nor if it is flat or not.

4. Encourages member nations to instill Free Trade with other nations.

We have enough resolutionsfor that.

5. Creates/Tasks the [Agency] in order to enforce these policies."

For what do we need that agency?

So that's the proposal, I look forward to hearing your critques.

[Separatist Peoples]

Good God. Leftists took Nationstates over completely.

Ridiculous, lol.

"Well, better communists than theocracies, I guess."

Game Mechanics-illegal. You can neither mandate a specific tax rate nor if it is flat or not.

OOC: Old Hope, mandating a kind of tax isn't a Game Mechanics violation. Not as this presents it. If this was attempting to adjust the entire Tax Rate, a la what the game calculates, would be. Also, it's really hard to tell the difference between IC and OOC comments from you. Just a heads up.

[The Dark Star Republic]

Good God. Leftists took Nationstates over completely.

OOC: This is one of the most right wing proposals that has ever been seen in the WA. Since when were anarcho-capitalists "leftists"?