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Policy Proposals for Degrowth in Political Economy

10 policy proposals of degrowth 1.Citizen debt audit. An economy cannot be forced to grow to resolve accumulated debts that have contributed to fictitious growth in the past. It is essential not only to restructure but also to eliminate part of the debt with a people's debt audit, part of a new, really democratic culture. Such elimination shouldn't be realised at the expense of savers and those with modest pensions whether in Spain or elsewhere. The debt of those that have considerable income and assets should not be pardoned. Those who lent for speculation should take the losses. Once the debt is reduced, caps on carbon and resources (see 9) will guarantee that this will not be used as an opportunity for more growth and consumption. 2. Work-sharing. Reduce the working week to at least 32 hours and develop programmes that support firms and organisations that want to facilitate job-sharing. This should be orchestrated such that the loss of salary from working less only affects the 10% highest income bracket. Complemented by environmental limits and the tax reform proposed below (see 4), it will be more difficult for this liberation of time to be used for material consumption. 3. Basic and maximum income. Establish a minimum income for all of Spain's residents of between 400 and 600 Euros per month, paid without any requirement or stipulation. A recent study suggests this is feasible for Spain, without a major overhaul of the tax system. Design this policy in conjunction with other tax and work reforms so that they increase the income of the poorer 50% of the population while decreasing that of the top 10%, to finance the change. The maximum income for any person-from work as well as from capital-shouldn't be more than 30 times the basic income (12,000-18,000 Euros monthly). 4. Green tax reform. Implement an accounting system to transform, over time, the tax system, from one based principally on work to one based on the use of energy and resources. Taxation on the lowest incomes could be reduced and compensated for with a carbon tax. Establish a 90% tax rate on the highest incomes (such rates were common in the USA in the 1950s). High income and capital taxes will halt positional consumption and eliminate the incentives for excessive earnings, which feed financial speculation. Tackle capital wealth through inheritance tax and high taxes on property that is not meant for use, for example on the second or third houses of individuals or on large estates. 5. Stop subsidizing and investing on activities that are highly polluting, moving the liberated public funds towards clean production. Reduce to zero the public investment and subsidy for private transport infrastructure (such as new roads and airport expansion), military technology, fossil fuels or mining projects. Use the funds saved to invest in the improvement of public rural and urban space- such as squares, traffic free pedestrian streets-and to subsidise public transport and cycle hire schemes. Support the development of small scale decentralised renewable