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Saturday, May 24, 2025

Why innovation is scarce v.02

 Lets start by looking at the economy, people solve each other's problems and with money they remember each others' deeds. The world keeps on changing and people keep on inventing better and better ways of solving problems, sometimes faster but short term, sometimes long term but took a lifetime to notice the difference. In the middle of this dynamic, we started to have assets with leverage. Now, scaling up for efficiency is common sense already and that's a blessing, but the economy wants to change because time keeps on changing anew and problems may seem to be the same at the surface but they also change. 

The scarcity of the world is not of time nor energy nor money but of mutual solutions

When we have a lot of stakes in the scaling up of an industry, we have a huge concern. Innovation is going to challenge the returns of these economics of scale, or should I say the increase in entropy. Innovation is going to respond to the increase in entropy but an extra problem that innovators are not going to be happy to meet is the stakes of the status quo industrial complex. Worse when they're all leveraged, worse when the employees associated with them put all of their eggs there, worse not just eggs but also credit and collaterals. 

This is a forehead expander, the reason we don't have the system in place to deal with this significantly is because the very problem itself. Free market is supposed to adapt to this thing, however the free market had been instituationally or organizationally manipulated (in neutral sense) so that it wouldn't be as devastating for the stakeholders of the leveraged assets - Its HUGE - therefore the free market has not yet reached a plane where I could see forward and noticed the solution in the horizon, I don't think we are there yet because of this very thing. 

I think as much as the devils are hiding in the details, angels maybe conducting espionage in the details as well. I might came up with something but what would it do? So people, find the angels in the details

Monday, May 19, 2025

Royalties but taxed (this can solve a lot of current problems!) v.02b

In order to improve tax compliance, widespread tax compliance, the country could implement royalties obligations for all revenues from all companies or all income. So all revenues should budget such amounts of royalties to some contributors which they would decide on their own. Upon these obligations, royalty taxes would be paid. So yes, the tax would be a very small percentages but because it is a widespread thing, almost all would participate. 

I personally would pay royalties in turn, so probably different people would receive the royalties everytime, but they had to be directly related to the revenue (the contribution had to be directly contributing to the revenue). 

For example restaurant income might want to recognize the recipe creators, or the pseudo recipe creators, or maybe the developed taste of the market (the first Indonesian restaurant / pioneer for example), or maybe the health workers who healed the infectious disease of the season, etc. 

Because there are a lot of contributions but there's not enough time and money and also attention to attribute, if we could do it turn-based at least there would be progress, not hopelessness, plus there would be tax involved so that those who competed without paying tax would not have too much edge against those who do pay tax. Your firefighters, police, the army, the cleaners etc, need meritocracy as well. 

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In the case of existing royalties or main intellectual properties this is not intended to replace that, so if those had been allocated this "tax" would take an after portions. I know I've said from revenue but what I mean by that is an after gross thing, not before gross.

Why innovation is scarce v.02

 Lets start by looking at the economy, people solve each other's problems and with money they remember each others' deeds. The world...