It probably gets pretty tiresome reading prosaic renditions of the same narrative here on The Depression website. However, as I consider I have a scientific explanation of where neoclassical economics—the guiding light of our political representatives—has gone terribly wrong, I’ve an important truth to share. So I’m happy to provide variations on the theme. Different versions may appeal to different people, thereby assisting to spread the word on a basic fact in economics.
It’s also cathartic to get it out of my system.
Why do economies retrogress? i.e. Why are people becoming relatively poorer and poorer than the top 1% of the population, and why does the financial system fall repetitively into recession (or, less frequently, into economic depression)?
I believe two factors contribute: 1) escalating land prices, and 2) the deadweight costs of taxation. Land prices actually represent taxes in no small part, because they are the private capitalisation of publicly-generated land rent, which I argue is the natural source of revenue – instead of arbitrary taxes on labour and capital.
Of course, to be correct, a scientific explanation must have predictive capacity. Have I been able to show how and where land prices (thereby taxation) have occasioned recession, or signal upcoming economic depression?
I also accept the ‘excessive debt’ argument, which I hold to be a proxy for high land prices and taxation, but which doesn’t quite get down to those obvious fundamentals.
I’ve read many sophisticated papers by professional economists which have been unable to explain the world’s parlous economic plight, so I’d be happy to see any argument counter to mine provided it contains greater logic than the usually dismissive “Georgist claptrap!”