I'm a real estate valuer who worked in the Australian Taxation Office (ATO) and Commonwealth Bank of Australia (CBA) before co-founding a private valuation practice, Westlink Consulting. I discovered that we leave too much publicly-generated land rent to be privately capitalised by banks and individuals into land price bubbles. This generates repetitive recessions and depressions. These need to be avoided by capturing more revenue from land values to free up wages and household debt.
It was a telling moment when Jacqui Lambie trapped Liberal MP for Higgins, Katie Allen, and Labor MP for Hotham, Clare O’Neil, like startled deer in party donation headlights.
Jacqui has her shortcomings, but her independence and honesty is refreshing in Australia’s increasingly stultified parliamentary politics.
The ‘yes’-‘no’ of party politics has surely had its day and is obsolete? But stolidly, it remains with us. Oh, for a system of proportional representation voting for the lower house, as with the Senate!
The 8th episode of “Front Running” with Max Keiser and Stacey Herbert and guests Randy Voller and Michael Hudson discusses the madness that has Wall Street pumping up asset bubbles as it consigns Americans into impossible levels of debt.
Michael Hudson suggests that the Democrats are now so tied into Wall Street, that it cannot permit Bernie Sanders to win the race to Democratic Party pre-selection. Donald Trump is a better proposition for them than Bernie!
To say Wall Street is ‘winning’ at the expense of Main Street is no socialistic exaggeration: it’s happening before our eyes, and the levels of private debt bear this out.
If they’ve paid off their homes and not in debt, maybe some baby-boomers are feeling relatively comfortable, but their kids are still paying off their student debt, and any deep scrutiny of the American economy is damning.
Most people are in impossible debt, so a financial crash is inevitable.
So, come the crunch, how do we reset?
We bail out people – not the banks: “Too big to fail” has failed us!
We introduce a universal basic income at a generous rate.
We shift taxes off productivity and onto economic rents, in order to (a) protect the currency* (b) generate real jobs (c) abolish private rent-seeking. [*We should seek to capture all economic rent – on land, minerals, electromagnetic spectrum, &c.]
We institute a proportional representation voting system for all elections
We do away with the misguided notion of ‘balanced federal budgets’, replacing it with spending on projects deemed worthy on the basis of sound cost-benefit analyses. [*The currency is protected from inflation, as above.]
This reset ain’t too hard. It’s both doable and essential, if we’re not to experience a lingering socio-economic depression.