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THE DEBT THAT REALLY MATTERS IS THE IMPOSSIBLE LEVEL OF PRIVATE MORTGAGE DEBT!

BUT WHO’S GOING TO TELL YOU THAT? BANKING? REAL ESTATE? MEDIA? POLITICIANS? MONOPOLY CORPORATES?

NO! YOU’VE GOT TO BE KEPT IN DEBT UNTIL THE CRASH. THEN YOU’LL BE REQUIRED TO BAIL THEM ALL OUT – NOT YOURSELVES WITH A UNIVERSAL INCOME DERIVED FROM ECONOMIC RENTS!

THEY’LL CONTINUE TAKING THAT, TOO!

FOR WHICH WE’RE PAYING A VERY HEAVY PRICE!

Guess on which side you’ll find your political representative?

The shift from Republicans to Democrats isn’t so remarkable when it’s viewed in terms of a revolt about the cost-of-living. It’s the US version of Europe’s street riots.

Happily, for Donald Trump who was elected on an anti-status quo vote himself, it won’t really matter if the Democrats do control Congress and the Senate. He says he’ll just veto Senate and Congress votes if he doesn’t approve of them.

That’s democratic!

Tom Elliott interviewed economist Paul Bloxham on radio 3AW this morning. He asked Bloxham what he would do in our current economic circumstances.

Tax reform, said Bloxham. [tick!] He would reduce personal and corporate income taxes. [tick!] and increase the goods and services tax. [x!]

There you go; the oldest trick in the world! Try to pass off the repetitive switch of emphasis between income and sales taxes as ‘tax reform’! Higher consumer prices are apparently good for us? God forbid higher taxes on our hopelessly escalated land prices which would deflate them!

Bloxham was also concerned about Australia’s low productivity [tick!] and that we need to look after our corporates.

But has anybody noticed that business gets a pretty good hearing from governments responding to the pleas of lobbyists and economists – often at the expense of all Australians?

Where do people stand in getting a hearing fromthe national government? Surely businesses will do pretty well if people have money in their pockets, not these impossible levels of mortgage debt?

Maybe it’s time to listen to heterodox economists who are more attuned to the generality of people than so-called ‘orthodox’ economist lobbyists?

Well, there you go!

At least the RBA Governor Michele Bullock believes that she’s addressing, if not fixing, Australia’s internal inflation by increasing the cash rate to 4.85%, not the external inflation which Treasurer Jim Chalmers would prefer to blame.

As I said on Friday, “Madness Rules!”, because the depression is about to solve our inflation next year in a big way.

Sigh!

How can anyone say that we’re all entitled to a universal income? Some people don’t deserve that sort of a freebie; others who receive it will surely stop working!

Well, that’s not what the many trial studies have shown: it’s wrong!

When people work, they’re rewarded with a salary. Similarly, capital also achieves its return. Both sides claim that they don’t receive a fair reward for their work. They correctly argue that they’re paying too much tax on their incomes and consumption.

So, why don’t we do anything about it?

When we produce things privately or publicly for the efficient running of society, a surplus known as economic rent emerges. Although that surplus income is owed equally to every citizen, it’s currently captured only by rent seekers. That needs to stop.

If we were to make the necessary tax shift to unearned economic rents, which include the rent of land and all natural resources, including rents from the electromagnetic spectrum, we also abolish all of the deadweight losses that misapplied taxation has injected into the economy: [Martin Feldstein assessed the losses from income taxes alone at twice the amount levied.]

So, this tax shift repairs the inadequate incomes of labour and capital and removes monopoly super profits.

Now, if we understand how fiat currencies work in economies having their own currency, we know that governments spend before they tax. They then tax back in an endeavour to curb inflation; but this fails because land prices–privately captured land rent–the driver of inflation, are excessive without greater public capture of land rent. However, our tax shift deals with this of its own accord by reducing land prices, ergo tax inflation.

Therefore, the universal income and tax shift together claw back currently stolen rents. The combination allows all publicly captured rent to be delivered as an equal dividend to every citizen: it’s not necessary for public services. Government spending has seen to that; and thev government doesn’t need to borrow to be able to spend its own currency into existence: bonds and treasuries are quite unnecessary ‘public debt’.

That’s how we achieve the economy of abundance, folks! Get to it!

Vimmlbutt works!