The China Crash
In March of this year, Gaffney forecast the imminent bursting of the Chinese economic bubble. He was correct: From June 12 through July of this year, the Shanghai stock market lost over 30% of its value. As a matter of fact, property prices—driven by increases in underlying land values—tend to undergo boom-and-bust cycles about every eighteen years. The last time China was facing an economic recession was in 1997—eighteen years ago.1
Gaffney has most recently published The Mason Gaffney Reader to great acclaim from other economists, such as economic Nobel laureate Joseph Stiglitz (although, technically, there is no such thing as an economic Nobel). Stiglitz had the following to say about Gaffney’s book:
“One of the most important but underappreciated ideas in economics is the Henry George principle of taxing the economic rent of land, and more generally, natural resources. This wonderful set of essays, written over a long and productive scholarly career, should be compulsory reading. An inveterate optimist, Mason Gaffney makes an excellent case that, by applying the Henry George principle, we can reduce inequality, and raise ample public revenues to be directed at any one of a multitude of society's ills. Gaffney also offers plausible solutions to problems of urban renewal and finance, environmental protection, the cycle of boom and bust, and conflict generated by rent-seeking multinational corporations.”
— Joseph Stiglitz
Check out The Mason Gaffney Reader’s website.
1 The 1997 economic recession primarily occurred in Hong Kong, China’s economic center at the time.
Source: American Journal of Economics and Sociology, Volume 74, Issue 2, pages 325–360, March 2015 by Mason Gaffney | Mar 19, 2015
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