“Unfortunately, at this point in the economic cycle, there are only two mechanisms that could solve the social and political issue of our time.
The first is for housing prices to experience a dramatic fall. And the second is for wages to rise substantially.
The first comes with a nasty side-effect: it would create economic chaos and send many of our banks to the wall.
Achieving, or at least promising, the second might get you elected but ultimately would prove disastrous with spiralling inflation and, you guessed it, a probable spike in housing prices.”
Reintroduction of a federal land tax, whilst cutting taxes on wages, would serve both mechanisms, without generating inflation, Ian, but you’re right, this would send banks to the wall.
But the banks are going to the wall anyhow, because of the excessive credit they’ve pumped into our astronomical land prices – so bring on a federal land tax! The Japanese experience shows us it’s certainly better to help people than the banks (and than to stagnate Zombie-like)!