Where does it all go wrong?

Labour says Capital is to blame.

Capital says wages are too high.

Both need each other to generate wealth, but they’re always at each other’s throat.

There’s no other argument.

Except ….

…… nobody notices that the price of all goods and services is twice what it should be, because prices have been inflated by taxation and its cascading deadweight losses, down through every part of the production process.

Were we to capture land rent from production instead of taxing wages and profits (viz, labour and capital) i.e. P – R = W + I, we wouldn’t have to introduce taxes (which are passed on in prices) into the equation.

Labour and Capital would discover that they’re actually complementary, not at odds. Each would receive its full reward. Prices would halve.

So, the existing position: Cui bono?

Hmmm …..