All posts by Bryan Kavanagh

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.

THE ONLY WAY TO TAX THE RICH (AND THE REST OF US)

 

Well said, Tom!

And, of course, a flat rate charge on land values will pick up the mega rich (and the rest of us) quite nicely.  Problem is, the ultra wealthy push the poor widow to the fore to carry their argument against it–but she can be accommodated!–and the ‘two-bob toffs’ will also come out of the woodwork to object.  (The latter are quite used to being stolen from; taxed on all their comings and goings, so they don’t see there are PRINCIPLES involved.)

Land can’t flee overseas or be hidden.

The holding of other natural resources, too, is the complementary sine qua non, of course:  proper charges on oil, mineral, fishing, forestry & spectrum licenses, etc.

7 billion population?  More than ever, we need to ensure a thoroughgoing stewardship of the planet: that land is protected, used efficiently, isn’t monopolised or misused, nor held unreasonably out of use.

There IS an answer: the capture of economic rents and abolition of all arbitrary taxation imposed by those who would rape and abuse the planet.

 

BREAKING THROUGH THE ANDREW BOLT-ALAN JONES-NEIL MITCHELL AXIS

Radio 3AW morning host Neil Mitchell is an interesting character.

He has abilities to describe and comment upon the shortcomings of the local Victorian community, our failing hospital and education systems, to bewail the losses in superannuation on air today with Tom Elliott (which are going to leave self-funded retirees with inadequate retirement incomes), yet manages to attack the very people who want to address these issues.

You might say he argues both sides of the question without being able to reconcile them, nor to see that change is essential if we are to repair these increasingly socially-devastating problems. His approach could be characterised as: ‘Politically, things are all right; it’s just that our services are falling apart.’

As he characterises most of the protesters in the City Square in Melbourne either as radical unionists or Greens, an intelligent woman calls in to let him know the gathering was clearly broader than this; but this was largely water off a duck’s back.

Prosper Australia (which says public funding for education, health, civil order and infrastructure can be vastly improved whilst we also abolish many taxes) was represented at “Occupy Melbourne”, and I can assure Neil that our members vote for the whole range of political parties. I think, however,  he would find this hard to accept, because it’s simpler to filter everything into black and white.

As with Andrew Bolt and Alan Jones, the economy is not Neil Mitchell’s long suit.

Like his Sydney counterpart Alan Jones, from whom he attempts to distance himself, Neil likes to pigeon-hole groups who suggest it may be possible to change things for the better. More often than not, he sees them as trouble-makers, especially if their protests have an ‘edge’ to them.

As rent-seekers pillage the common wealth that is the economic rent of our land and natural resources, and the world consequently collapses into financial instability, Neil has a message for protesters: “Go home! You’re blocking the City Square and affecting adjoining businesses!”

Maybe, Neil. But you’re pandering to a constituency frightened by anything resembling change, and that won’t improve our hospitals, education system, law and order, infrastructure or social welfare, will it?  We need a reformed economics to do that.  No?

We must call the rip-off rentier 1% to account, and change the system.  Oh, and Neil, that would lead to a genuine free enterprise system!

________________________________________________________

If anything is certain, it is that change is certain. The world we are planning for today will not exist in this form tomorrow.” – Philip Bayard Crosby

WITHOUT COMMENT

Well, I WILL add a comment (from ABC radio):

http://www.abc.net.au/pm/content/2011/s3345580.htm?

MARK COLVIN: Riot police with dogs, horses and capsicum spray have been out against Occupy Melbourne protesters today. Since last Saturday a small group of protesters had camped out in the city square protesting against corporate greed.

But things turned ugly at lunchtime today. The action to disperse the protesters closed off the inner city to traffic and trams for four hours. At least six protesters and two police officers were injured and at least 20 protesters were arrested this afternoon.

Alison Caldwell reports on the day’s events.

(Sounds of protesters)

ALISON CALDWELL: It was just before midday when around 400 police descended on the Occupy Melbourne protesters. Riot police with dogs and horses pushed the protesters out of City Square and up into Swanston Street on the corner of Collins Street.

Protesters who fell to their feet were dragged away by police. Some complained of being capsicum sprayed.

PROTESTERS (Chanting): We are Occupy Melbourne. We are the 99 per cent.

ALISON CALDWELL: The protesters who’d spent the past week camped out in Melbourne’s city square alongside a five-star hotel with luxury boutique stores and an American coffee chain; all symbols of corporate excess according to the protesters.

Karl Fitzgerald is with a group calling itself Prosper Australia.

KARL FITZGERALD: Our prime concern is the corporate control over our very lives. The influence of lobbyocracy distorting what was once known as democracy. And, of course, the big one, the dominance of speculative capitalism that is undermining so many people’s freedoms. You can’t do much when you’ve got no money in your wallet. And the housing boom is only good for a few people, not the majority.

ALISON CALDWELL: He says there was no need for police to be so heavy handed.

KARL FITZGERALD: People were, you know, really were staunchly defending what was once the city square. It’s now been cleansed, another corporate cleansing going on, and what a pity when we had such a festival of community going on for the last week.

 

OCCUPY MELBOURNE

.

I WENT ALONG TODAY to “Occupy Melbourne”, with Karl Fitzgerald and the Prosper Australia team who’ve been there regularly.

What a great spirit was happening at the City Square!

Let some of the mainstream accuse the “Occupy” movement of this or that, but I was incredibly impressed and encouraged.

To those people bemused about what we’re on about when we’re clearly not as badly off in Australia as people in the USA, Ireland, Greece, Italy … etc.,  (yet), I would simply ask is it necessary to implode fully before we start to challenge the arrant nonsense that delivers Australians’ common wealth to rent-seeking parasites, whilst the 99% pays taxes on its comings and goings?

A great day, with a number of passers-by and inquirers agreeing that Prosper Australia and others at the City Square have much to recommend their ideas.

My day was surprisingly topped off for me when Alex’s groovy little band of musos gave the microphone to Karl Fitzgerald who then proceeded to do an incredible five minute rap on E-CON-O-MISTS.  And didn’t the crowd love it! Hidden talents, no longer, K2!

Good luck guys! The Melbourne City Council has been good so far.  I trust the Queen’s visit doesn’t have Lord Mayor Robert Doyle move in on you.

REVOLUTION IN THE AIR

Most of the people rioting and protesting around the world have got one thing right: the super wealthy have been stealing from us.

You’d have to question the perspicacity of anyone who would deny the fact, because the observation has resonated deeply with many people. We are awash with studies and data showing the rich have grown obscenely richer, whilst much of the 99% is impoverished and debt-laden.

Few, however, have got to grips with the two nearly invisible means by which this pea and thimble trick has been worked upon them – which doesn’t fill one with confidence that the “Arab Spring” revolution or the west’s “Occupy” movement will be able turn things around quickly.

We can only cross our fingers that people will come to see financial institutions’ ability to create money by a computer keystroke and their lending of funds against the chimera of land price for the two pathologies they are.

It is they that create the knot in the fair and proper distribution of the gross domestic product and deliver the earned incomes of labour and capital to the rich.

But first things first. As land prices collapse around the world, let’s keep them collapsed by capturing their rents for public revenue. Unusual? Too simple?

Yes, this remedy is always been criticised as being “too simple”, but it’s interesting to note how wages flow to labour and capital unimpeded under such a regime, and away from the lords of the land. So, it’s worth investigating, surely?

With such a revenue base in place, taxes on labour and capital could be gradually wound back and abolished, rectifying the distributional knot that has channelled wealth away from its creators to the drones and parasites.

Then, and only then, when banks are no longer able to assess the vagaries of escalating land prices amongst their “assets”, will we need to deal with the secondary problems of money and credit creation.

These are the correct priorities.