I'm a real estate valuer who worked in the Australian Taxation Office (ATO) and Commonwealth Bank of Australia (CBA) before co-founding Westlink Consulting, a real estate valuation practice. I discovered, by leaving publicly-generated land rents to be privately capitalised by banks and individuals into escalating land price bubbles, this generates repetitive recessions and financial depressions. We need a tax-switch: from wages, profits and commodities onto economic rents/unearned incomes, if we are to create prosperity and minimise excessive private debt.
We have people criticise the Bureau of Meteorology for sometimes getting its weather forecasts wrong but, unlike models in economics, meteorological techniques, they are generally valid. Thereby, in these different scenarios, economists are rarely able to foresee those private debt-laden situations that will deliver financial recession.
Yet, we’re told we need to worry about “the national debt”. 🙁
I was happy to have Mason Gaffney support the technique that permitted me to forecast the Global Financial Crisis.
I came across my 2007 AFR blast from the past letter as the Global Financial Collapse set in. It still has relevance to the tired old “let’s have greater supply” argument. (You’ll need to enlarge the letter.)