https://iview.abc.net.au/video/NC2505C011S00

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We tax things we want less of, @InsidersABC. Taxing land prices more & incomes less is the only way to make housing more affordable. It’s quite clear that ALP & Liberal Party election promises are going to pump Australian land prices even more than they’ve been doing.

We’re already # 1 in the world at property spec!

We need to see how neoclassical rent-stealers insinuated themselves in with ‘capital’. They’ve argued that high wages are problematical – and our financial analysts seem to believe this misbegotten case. 🙁

High wages act to assist private businesses. It’s escalating land prices, together with taxing sales and incomes which generate the enormous background inflation that devalues world currencies.

Not understanding these economic fundamentals is exactly why world economies—both east and west—are now in the process of foundering.

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Edward Gibbon Wakefied knew things. He knew that if he abducted and married two wealthy heiresses he’d be better off.

Well, for a while, anyway.

They caught up with him for his second abduction.

While he was in Newgate prison, he had another idea: If wealthier people sold land at impossibly high land prices they’d have a quite supine workforce; you know, heads down, bums up, trying to afford a home.

We called his idea “The Wakefield Scheme”.

Australian politicians are now firmly committed to seeing that the tax regime works for Wakefield’s idealistic ends.

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I’m not at all sure about that, Bryan!

The question is whether Donald Trump’s idiotic shenanigans will bring forward the worldwide crash in land prices.

I don’t believe they will.

IMO, the cycle will have its way with us, again, but in a major way on this occasion. Especially in Australia, where our tax regime has us at #1 at property spec.

It can’t be both.

UNTIL THE TAX REGIME GIVES THE RIGHT SIGNALS ….

click above

REALITY

Dr Gavin Putland has updated the Kavanagh-Putland Ratio chart–which includes all Australian real estate sales (i.e., residential, commercial-industrial, rural and other) as against Australian GDP–to include details for the financial year ended 30 June 2024.

But we’re now in April 2025, are we not?

Yes, but not to worry, the K-P Ratio assists to forecast economic recessions within the forthcoming 12 to 18 months; so we may say the aspect is reasonably good for the rest of 2025 and the first half of 2026.

What we need to see to call an upcoming recession is a 25% decline in the year-on-year ratio, together with a significant decline in real estate prices. We experienced both of these in 2018 (which heralded the 2020 ‘Covid’ recession) but not in 2023 when, although the ratio declined, real estate prices did not.

So, you didn’t get to read it, Donald?

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