We have 76 senators and 150 members of the House of Representatives in the Australian federal parliament totally ignorant of the role ‘economic rent’ plays within an economy. They fail to comprehend that if the rent of Australia’s land and natural resources is not captured for necessary revenue, it follows that profits and wages will be low and debt high. Were they publicly collected, profits and wages must both be high and debt low.
Although this is a simple and unassailable proposition, our federal representatives direct all their energies into endeavouring to solve the innumerable economic and social problems that arise from failing to understand this critical point. (I am reminded of the poem The Ambulance Down in the Valley!)
Take a moment to think about this tremendous ignorance …… It is repeated by all of those who represent Australians at State and local levels of government.
Is this not an extraordinary thing? What has happened to our education system that we can have such a void on so basic a matter? Passing strange?
A starting point to remedy this situation might be for our representatives to be made to understand the meaning of the equation, P = R + W + I.