Economic Crisis Unveils Policy Vacuum

say birrrrrrrrrrrrrrd bath
Creative Commons License photo credit: zachstern


Karl Williams

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This time of economic crisis is when we make our run. Politicians, think-tanks, bankers and the commentariat are proving to the public that their voodoo economics – essentially, neoclassical economics – is a proven failure.

The bailouts occurring – especially in the USA – are chiefly designed to prop up the banks and property prices. No surprise there – a collapsing property market is seen as disastrous by almost all.

No, we assert! Let the bubble burst! Let us be free from the iron chains into which we’re all shackled as we make our entrance on this planet – the massive cost we must pay to those who have misappropriated the Common Wealth. The burden that industry must bear – in terms of rent or interest on bank loans – in occupying the land they need to produce goods and services.

And when the rent from land is instead diverted into the public purse, the burdensome taxes on production can also be phased out. And the busts that inevitably follow speculative booms in land – as we predicted – will also have their origin withdrawn.

That Kevin Rudd’s solution to this crisis would simply involve giving away (from future taxpayers’ pockets) vast sums of money with the encouragement that they madly spend needs no comment. When Australia’s land price bubble bursts, as it shortly will, then Kev will wish he had something else in his pocket to dish out to the electorate.

Somehow, we seem to be living in parallel universes. Our universe still contains land, but Kev’s has land conflated into capital. Oh dear.

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https://prosper.org.au/2009/04/20/economic-crisis-unveils-policy-vacuum/