Some know the period between economic depressions as “the Kondratieff Wave”. The post-WWII K-wave topped out in 1972, and has trended down into the depressionary trough ever since.
Kondratieff didn’t know what fashioned his Wave, but it’s pretty clear to me that repetitive boom-busts in land prices keep getting bigger until a final gargantuan bubble collapses the economy altogether.
This tends to elude economists, because they can’t (won’t?) see that the private capitalisation of unearned income (economic rent) acts to destroy productivity, the creation of real wealth. [Hello, Productivity Commission!] Economists don’t think it’s as simple as this, but it really is. [What have they been able to forecast? …. Zip!]
So, as the process worsens and poverty and debt increase, this site helps me externalise the childish stupidity that is neo-liberal economics.
In doing so, I can also take a shot at those economic analysts who still believe that Australia needs to “balance the budget” (read: ” we need to send the private sector into deficit”). Do they really believe it, or are they playing up to their rent-seeking masters?
Or, that instead of taxation simply taking money out of the system, it’s actually generates a potful of cash, out of which the government funds its public services. [!]
Right now, there’s a powerful case for a universal basic income to kick-start economies and to allay the crushing private debt burden rent-seeking banks have placed upon us. However, this should not be done short of reforming the Australian taxation system.
We’ve got to abolish taxes on wages and tax away economic rents, if we want to reverse what’s the chart above shows. Mind you, it’s not likely to happen, because the uber-wealthy have another agenda altogether, and they hold sway. But writing this get their s**t off my liver.
Ahhhhhh! That worked!