Europe management is failing in a lot of areas in my view. And one of them is the real cost of Europe's laws. Trade for example. For open and honest trade, a level playing field and real humanity cost are fundamental and rarely taken into account because politics is too much a tug of war over personal or group interests.
Today, the issue is what to do with the changed car manufacturing landscape. EV's changed the whole landscape. Investments from the resent passed are getting lost fast, and new investments are needed. In the same time, the demographic developments change the investment landscape. And in Europe again the tribes are starting a tug of war. Germany and Spain are the biggest car producers and want their business interest protected. But what is the real cost for humanity?
We (humanity wide) should establish trade rules that ensure the lowest cost possible long term.
I would like to introduce the full life cycle real cost model [FuLiCyReCoMo] for that. A kind of kick off of a discussion, version A1. And I hope this will result in a final version that will help humanity a step ahead without first making several steps backwards.
We (humanity as a species) harvest raw materials and energy from mother earth to flourish. Globalization made us do so on a global scale. But we do not all benefit from our efforts with the same rights and results. The first inequality is the differences in these individual rights and benefits (social benefits) within the different systems in the multipolar world. A Chinese worker within the CCP system does not have the same rights and benefits as a USA trade union member in Ohio or a worker in the German car manufacture industry. Also, the real cost of harvesting raw materials is seldom incorporated in the end price of a product on the consumer market. Raw materials should be a supplementation into a circular system and not a raw material to waste of eternity path, leaving the garbage for our grandchildren.
So if we trade between one system to another in the global market, we need to equalize the FuLiCyReCoMo with tax rules. Taxes should equalize the skewed system differences to create a real global level playing field marketplace.
It therefor is just to tax all imports from China to Europe for two parts. For the difference in individual benefits from the human activity. And for the too high real raw material cost or leak of circularity.
We (humanity) should only have import taxes on social benefits differences and circularity differences. If a Chinese worker would have the same social benefits as a USA or German worker, the Social Benefit Tax can be null. If the goods fit in a 100% circular system, the Circularity tax also can be null. Leaving the third component, the cost for trade administration, security, and control.
I thus suggest having three kinds of import tax on all goods between the global, multipolar world sections: Trade cost tax; Social benefit difference tax; and circularly tax.
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