Homeowners: Step on Tenants Or Stand up to Flipper?
|May 9, 2014||Posted by Catherine Cashmore under Editorials|
This 2014 excerpt of MacroBusiness, May 9, is by Catherine Cashmore.
Australia’s oldest PhD at 93 – Dr Elisabeth Kirkby – has just written a 100,000 word thesis on austerity backfiring. Yet government chooses to penalise productivity and exempt gains from selling site+housing. That rewards speculation and by consequence, widens the wealth gap between rich and poor.
Total Government debt is around $542 billion (as at March 2014 – RBA) – that’s about 35% of GDP. Total household debt was $1.8 trillion as at the end of 2013 – higher than it has been at any other time over the past 25 years. Our household debt to GDP ratio is estimated to be around 97%.
Therefore instead of our current leaders asking Australian’s what they can do to assist Government debt, we should be asking the Government, what it will do to assist private debt?
Market activities cause land values to increase – through no exertion on the vendor’s side, but rather the collective efforts of the community. Hence most consider owning a well located plot of land better than both money in the bank and the wages they have to ‘earn.’
This is why increasing charges on the revenue stream ensuing from the locational value of land, and recycling it back into the community – (which is where it came from, and where it belongs) – by way of a tax shift off productivity (wages) and onto our valuable and limited natural resources – was termed the ‘least bad tax’ by the capitalists Milton Friedman and Winston Churchill – to name but a few.