8th May 2020
On a Split Velocity system at the highest rate of acceleration
which is recommended for developing countries, by 2030
government has 26 times more revenue for public expenditure
with which to manage the national economy.
The tables above show the growth of government revenue on a Split Velocity model showing the 3 different rates of acceleration Slow (10%), Mild (20%) and Aggressive (42.5%). By the 10th year government revenue for the budget has grown by US$15.42 bn, US$33.94 bn or US$161.5 bn respectively.
Unwanted inflation and deflation are a persistent problem that make it very difficult to manage businesses and central banks seem to have their hands full when it comes to keeping these stable. A Split Velocity system controls both inflation and deflation. There will no longer be persistent situations where the central bank is not in the driving seat when it comes to these two problems. It does not need to adjust the Monetary Policy Rate to achieve this price stability.
Improvements in government revenue are from economic activity and productivity. Unlike current methods available for managing a national economy an SV-Tech system does not leave expectations for economic growth to forecasts, guess work or chance. There is far greater certainty about how the economy will perform with significantly enhanced dexterity when it comes to the options available for ensuring price and financial system stability. Creditors can lend to government with much greater certainty the amortization process will be smooth. Credit rating agencies are able to encourage investors to invest in the economy due to the SV-Tech system’s capacity to enhance a government’s credit worthiness.
Even if unexpected economic shocks were to occur the system is designed to mitigate against these to ensure the impact on economic activity is kept to a minimum.
Even on its slowest rate of economic growth the Split Velocity system achieves growth in 5 years that normal growth forecasts estimate over 10 years.
All three settings on the SV-Tech system outperform expected revenue for the budget over the next 10 years to 2030. Applying current approaches the budget is forecast to grow to US$9.6 bn by 2030. However, since this is a forecast that is not financed achieving this result is absolutely not guaranteed.
Therefore, Split Velocity offers a more predictable, sound and safer way of ensuring governments have the revenues they need to manage a national economy.
Split Velocity Solutions Ltd 