- There are two kinds of capitalism: Socialism for corporate monopolies. This amounts to capitalism/rentierism.
2. Socialism for people. This is tantamount to capitalism/ democracy.
The coronavirus offers an opportunity to reset from 1 to 2 above, as advocated by Adam Smith, David Ricardo, JS Mill, Tom Paine, Henry George, Mason Gaffney, Michael Hudson, Fred Harrison, Joseph Stiglitz and others.
With today’s measures, it’s obvious the RBA is getting desperate – as are many Australians.
How about the federal govt injecting a little hope and security with a universal basic income: not QE for the big end of town.
Then, reform the tax regime which has directed many Australians away from productive pursuits and into rent-seeking in asset values: shares and real estate.
We should also start implementing the recommendations of The Henry Tax Review.
OK. People matter most. Not banking nor other monopolies.
So, a universal basic income must be introduced – now!
The federal government has to realise (at long last) it may spend to assist people and the nation without causing the slightest harm. Any counter argument is nothing but unadulterated neoliberal bullshit.
If the federal government provides capital to any listed company, it must obtain equivalent equity in that company.
Then (not yet): When real estate prices tank (well, land prices actually), distressed mortgagors who wish to do so should be able to sell the federal government the current market value of their land.
All this should be conducted preparatory to the introduction of the excellent 2010 recommendations of the Henry Tax Review – which will help get the economy back into (more equitable) motion again.