The Labor-Value Theory

About the Book

The Labor-Value Theory by Louis Berenguer deals with the problems of money, distribution of income, and taxes—the three elements in the economy that can make or break any nation. The parade of corporate CEOs and their accountants through the court of the land nowadays is the results of our business and political leaders’ failures to manage those elements to the best interest of the nation. Money. America’s $8 trillion debt, courtesy of our politicians tax cuts for their affluent sponsors, are responsible for devaluating the Federal Reserve notes 96.5% of its original value, severely affecting workers and retirees on fixed incomes’ warrants a return to our Constitutional money to stop a financial crash that is brewing big trouble ahead. Under the protection of the Constitutional money, wages cannot be manipulated by businessmen keeping them below the inflation rate to achieve huge profits, nor workers have to fight any longer for wage increases due to devaluation of the currency, because gold and silver are a guarantee against the erosion that paper money is subject to in the hands of irresponsible politicians. Distribution of Income. As this treatise shows, workers cannot rely on business and political leaders’ benevolence to improve their standard of living. Thus, this treatise introduces a new idea, based on accounting and economic principles, on how to deal with those problems successfully. The labor-value theory establishes, based on John Locke’s and Adam Smith’s property rights principles, the workers’ rights to claim a share to the business profits that have been achieved with their labor and dexterity and set the rule of the game by which such principles should be enforced. As workers’ standard of living increases in a legitimate way, production and consumption will also increase, assuring business prosperity and the nation’s economic stability as well. America is a capitalist, rather than a socialist, nation; thus the distribution of income policy has to be a logical, integrated part of the system, as introduced in this treatise, rather than a costly and bureaucratic redistribution of income as it is today. Taxes. Under the labor-value theory, taxes will be paid by individual taxpayers based on the 25/75 tax rules tailored to promote investment. In addition, business will be exempt from sales, payroll, and corporate taxes, resulting in higher profits; while depreciation, property taxes, and interest charges will be passed to stockholders, to reduce their tax liability. This new tax rule will revolutionize the stock market, promote business activities, and open new job opportunities for all.

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