Are Countertrade credits as flexible and efficient as cash? A novel approach to reducing income inequality using countertrade methodology. (version 1.0.0)
The impacts of income inequality can be seen everywhere, regardless of the country or the level of economic development. According to the literature review, income inequality has negative impacts in economic, social, and political variables. Notwithstanding of how well or not countries have done in reducing income inequality, none have been able to reduce it to a Gini Coefficient level of 0.2 or less. This is the promise that a novel approach called Counterbalance Economics (CBE) provides without the need of increased taxes. Based on the computer simulation run on NetLogo, if the Counterbalance Economics model was introduced into the Australian, UK, US, Swiss or German economies, between 2006 and 2018, these economies would have increased their overall GDP by around 4 per cent and reduced their level of inequality from an average of 0.33 down to 0.08. A detailed explanation of how to use the model, software, and data dependencies along with all other requirements have been included as part of the info tab in the model.
The impacts of income inequality can be seen everywhere, regardless of the country or the level of economic development. According to the literature review, income inequality has negative impacts in economic, social, and political variables. Notwithstanding of how well or not countries have done in reducing income inequality, none have been able to reduce it to a Gini Coefficient level of 0.2 or less. This is the promise that a novel approach called Counterbalance Economics (CBE) provides without the need of increased taxes. The research has shown that introducing the CBE will provide a range of benefits to society including reduce Income inequality to almost zero, reduce government expenditure by around one third, reduce crime, and mitigate a range of social issues, such as unemployment, housing, poverty, and the job displacement that automation and artificial intelligence are set to bring. Based on the computer simulation run on NetLogo, if the Counterbalance Economics model was introduced into the Australian, UK, US, Swiss or German economies, between 2006 and 2018, these economies would have increased their overall GDP by around 5 per cent and reduced their level of inequality from an average of 0.33 down to 0.08.
This is a companion discussion topic for the original entry at https://www.comses.net/codebases/fac2bacc-6728-44cc-b1f5-45bae24fcdd2/releases/1.0.0/