THE CLASSES STILL EXIST

  1. The Lower Class – people who do the vast majority of the nation’s essential work, plus those unable to work or who may be unemployed.
  2. The Middle Class – people who work for a living in lesser but sometimes important jobs and some of whom also try their luck at rent-seeking, aspiring to join the upper class.
  3. The Upper Class – those who direct their attentions to feeding off the net national income/rent owed equally to all citizens by denying this rightful distribution.

2026/27 – 2032 DOESN’T NEED TO BE LIKE THIS ….

…. BUT IT WILL BE, BECAUSE NOBODY MUST SAY ANYTHING ABOUT A REAL ESTATE BUBBLE UNTIL AFTER IT BURSTS.

Meanwhile, it seems we must let, banking, real estate, media and our rent-seeking political ‘representatives’ continue along their merry way. We mustn’t interfere with Australia’s speculative interests until the bubble-burst happens.

OK then. However, on this occasion, it would be great if instead of bailing out the banks once they do go under, that the government of the day takes them over for their misdeeds, delivering Australians a universal income to steer them through the financial depression.

No? Too simple? We’ve got to keep bailing out banks and leaving people shackled to impossible levels of debt?

As a diversion until then, let’s all play along with the game of pretending the so-called ‘national debt’ is real debt?

You can expect plenty of that in the media!

Just sayin’!

“Neither a borrower nor a lender be.”

Surely, the man who wrote this advice must have been delusional: a madman, perhaps?

Mustn’t each one of us aspire to be indebted to banking or other usurers and rent-seekers if we are ‘to get on’ in life and the world is to continue to operate in the peace, happiness and security that it so obviously is now?

GO WELL, SCOMO!

But isn’t it a little ironic that at a time when young Australians are finding it impossible to get a home, you cite “Judeo-Christianity” in your valedictory as having underpinned your beliefs?

THE ECONOMIC BASICS

  1. We should tax things that we want less of.
  2. Therefore, we need to tax land values and pollution.

(a) We fail to do this. We tax work and purchases, so we have less work, i.e. unemployment, and fewer sales/exchanges than we might have.

(b) As a result of under-taxing land values, we have high land prices, big mortgages and high levels of private debt.

(c) We also wonder why we can’t get on top of carbon pollution to manage climate change.

Therefore, we might ask ourselves who benefits from our misbegotten tax regimes.

These people, among a multitude of others, would agree.

GEORGISTS FORECAST FINANCIAL CRASHES BUT ECONOMISTS CAN’T?

The above transcript and transposition of the formula offers a robust and testable economic model which might assist to demonstrate the inverse relationship between wages/profits and the privatization of economic rents. There are implications for the financial catastrophes which flow from excessively privatized rent capitalized into impossibly high land prices.

That the formula is fundamentally the same as that of Henry George published in “Progress and Poverty” back in 1879, namely;-

Produce – Rent = Wages + Interest

should add further to the model’s credibility.

Let’s take a peep at the repetitively destructive socio-economic role of bursting land price bubbles.

Another slant: –

KPI.pptx (live.com)

So, yes, there is a proper response to misbegotten cyclic busts. They are not “the natural business cycle” as we’re often advised. They can be remedied by a genuine tax reform which includes an all-in land tax, along with the abolition of some 100 other taxes as a trade-off, along the lines recommended by the Henry Tax Review.