Most of the people rioting and protesting around the world have got one thing right: the super wealthy have been stealing from us.
You’d have to question the perspicacity of anyone who would deny the fact, because the observation has resonated deeply with many people. We are awash with studies and data showing the rich have grown obscenely richer, whilst much of the 99% is impoverished and debt-laden.
Few, however, have got to grips with the two nearly invisible means by which this pea and thimble trick has been worked upon them – which doesn’t fill one with confidence that the “Arab Spring” revolution or the west’s “Occupy” movement will be able turn things around quickly.
We can only cross our fingers that people will come to see financial institutions’ ability to create money by a computer keystroke and their lending of funds against the chimera of land price for the two pathologies they are.
It is they that create the knot in the fair and proper distribution of the gross domestic product and deliver the earned incomes of labour and capital to the rich.
But first things first. As land prices collapse around the world, let’s keep them collapsed by capturing their rents for public revenue. Unusual? Too simple?
Yes, this remedy is always been criticised as being “too simple”, but it’s interesting to note how wages flow to labour and capital unimpeded under such a regime, and away from the lords of the land. So, it’s worth investigating, surely?
With such a revenue base in place, taxes on labour and capital could be gradually wound back and abolished, rectifying the distributional knot that has channelled wealth away from its creators to the drones and parasites.
Then, and only then, when banks are no longer able to assess the vagaries of escalating land prices amongst their “assets”, will we need to deal with the secondary problems of money and credit creation.
These are the correct priorities.