When the poorest man or woman needs to find a way to make a living, he or she needs the support of the working class industry. Within this industry, there may be factories of all sorts, and there may be service jobs of all sorts. Nonetheless, if a large country focuses on service sector only, there won’t be enough jobs. Furthermore, if the working class environment doesn’t provide the diversity of both service and factory jobs, then there would be less choices for working class group to find the right jobs that would fit their abilities and demands.
This is why I think it’s wrong for a country to be narrow mind in term of thinking do away of this sector and that sector, because the less available job sectors there are the less jobs there will be for the working class group. Often the poorest people in a country would find themselves toil away in the working class sectors. Without enough manufacturing and servicing jobs, the working class group would not be able to put foods on their tables. Basically, the working class sectors are the last resorts for the poorest people in a country. When the last resorts are not available, the people would find themselves drowning in debts and financial difficulties.
Without the working class sectors to support the poorest people in a country, there won’t be a way for the poorest people in a country to sustain and wait for better opportunities to come by. When minimum wage is too high, the employers for working class sectors would try to find ways to cut costs. Perhaps, these employers would fire their employees to cut even more costs to boost profitability for a business. Do away with minimum wage altogether may allow employers to exploit their employees with lower wages, but competition to acquire good employees will provide higher wages regardless. With minimum wage, small businesses will find surviving to be harder than usual, and big businesses will have great advantages over small businesses as they got more cash to pay for the minimum wage.
High income tax would furthermore drive the poorest man or woman to the brink of desperation. High corporation taxes would export jobs to countries with less corporation taxes, because we are living in a globalized world. Finding the balance that keeps a country wealthy but not try to tax the working class people or corporations too much is a tall order. Nonetheless, it would be wise to do so, because taxing the local population and companies too much would destroy a country’s future.
What about sale taxes? Well, high sale taxes or any tax we could speak of would be a disaster anyway. Thus, minimum sale taxes are necessary too. Local population would appreciate to buy things with cheaper sale taxes in the market environment with either low or high inflation. We are not living in a perfect world/country, thus we cannot demand to do away with all taxes, but high tax of anything is a recipe for disaster. Common sense, really! Anybody, educated or not, would understand this!
When tax codes are unclear and misleading, corporations can use lot of cash to hire lawyers to find loopholes within the tax codes. Meanwhile, the working class people would not have the luxury of hiring expensive lawyers to find the loopholes within the tax codes for them. Complex tax codes would discourage people to start a small business. Without enough small businesses around, there would be less jobs around. With not enough jobs around, working class people will find themselves to have less choices in making a living. They might go hungry!
In summary, there are many things that can go wrong for a country, but things cannot be worse if a country implements common sense policies. These policies are competing for keeping working class jobs inside a country, lowering taxes, and cleaning up the tax codes. Of course, these three policies are never enough to fix all the problems of any country, because there are other improvements such as building and improving infrastructures. I think with common sense policies, a country would go far!