There are innate problems with the Left of politics, with those who believe government generates wealth or creates jobs.
But the Right also has it wrong. (Whilst it’s lonely here in the radical Centre, nothing beats knowledge and truth!)
The role of government is to ensure no harm is done by any part of society to others. In taxing labour or capital, or granting privileges to any part of society, the government itself is capable of doing terrible harm to society. (Witness what’s happening around the world!)
Therefore, the best we can hope for from that amount of government which is necessary is that it enforces the Rule of Law, that the latter is fair, that government grants no privileges to any sector of society, and most importantly, that the taxation of labour and capital is abolished.
Whereas society’s land and natural resource rents are generated by society as a whole and not by any individual, they are the natural and proper source of revenue, being owed equally to each and every member of society.
The Right positively believes–and the Left by default on the subject seemingly believes–that people and companies who seek the rent of our land and natural resources do no harm to society. Curiously, the Right goes so far as to say rent-seekers should be supported! They are both wrong and need to understand the latent catastrophe involved in the private rent-seeking of the public’s rent.
At bottom, the public capture of economic rent is the glue that adheres society. As public capture of rent has fallen away, so too have societies disintegrated as the world descends into another economic depression.
Maybe the following, which ought to be incorporated into any declaration of human rights, exposes the superficiality of both the Left and Right of politics on the subject of economic rent.
Bryan Kavanagh says:
August 13, 2013 at 9:00 pm
Yep. I’d agree it’s also the role of government to run natural monopolies, Bernard.
Of course it is, they are run through force, not voluntary exchange. The “mafia” is the perfect example cough cough.
right bernard just give “them” more money rght? Can you explain how the state creates “wealth” and “jobs” as in what money do they invest? They can just print it at the RBA or FED and give all 1 miilion 10 million im not sure? Maybe you know?
Im pretty sure we’ve seen/heard it all collapse many times even b4 USSR. Yet some people cannot let go of failed ideas so I guess we have to head to mad max thunderdome. We’ will soon find out their coming for the last of the “wealth” thru taxes should end in a nice catastrophe/implosion. Higher prices and less money in the economy together should work a treat.
Yep. I’d agree it’s also the role of government to run natural monopolies, Bernard.
Here is your favourite topic:
http://www.zerohedge.com/news/2013-08-12/flipping-frenzy-full-frontal-bought-december-15-million-sale-33-million-eight-months
That’s a good statement of the principle from 1949 – the only thing that might be added is an explicit statement of the citizens dividend concept.
I suppose I must be considered a leftist as I do believe a central role of government is to create wealth and jobs – in a particular way.
Namely, that it is the role of government to build, maintain and upgrade all infrastructure that is in the nature of a natural monopoly: transport, communications, water, power. (I call this the tea-cup principle – T-Cwp.)
It could be funded by an infrastructure levy on the economic surplus which is hypothecated to the purpose.
I recall the old Labor party creed used to call for “the democratic socialisation of the means of production, industry and exchange to the extent needed .. etc”
You can see by contrast I am putting an explicit emphasis on monopoly infrastructure and utilities (including banking).
ahh then the banks will have a problem, The US is not little australia, its economy is about 14 times larger and it has the reserve currency at present. Australia’s manufacturing is all but gone, agriculture not much better, mining heading for the shitter from less demand, an all around disaster in the making. Hopefully oil doesnt stay high and the dollar tanks then its game set match.
Yep! Isn’t the US demonstrating that if you keep borrowing/printing money, your economy will recover? That’s what the financial pages are all telling us, and that couldn’t possibly be wrong. 🙂
There are plenty of people researching money, but only a handful on what it is spent, namely real estate. And the greater part of real estate prices in Australia now consists of ephemeral land prices. (Watch them halve shortly!)
the purchasing power is eroded with inflation.
the taxes are needed to pay the ever increasing borrowing to pay the interest, because each dollar is borrowed thru the banking system with the interest never being created.
you should research money itself in regards to how it is created. the gov needs to sell bonds to receive currency if it needs to spend more than it takes in taxes which you must pay for.
if all debts where paid public and private no money in circulation would exist. but what happens when you reach a point where actual production cannot pay even the interest at 100% taxation? borrow more?