Saturday, July 18, 2015

Reddit — Member of the 1% Shocks Reddit: ‘I’m Voting for Bernie Sanders. Here’s Why’


Michael Hudson has argued this for years.  Taxing rent would be economically beneficial for growth and better for everyone. The !% would still enjoy the same lifestyle but would not hoard save as much. The difference to them would be marginal rather than substantial. Most would not notice it — only the misers.

Why? Economic performance is a matter of maintaining circular flow at dynamic equilibrium with respect to population growth, and increasing per capital product to the degree possible through innovation.

Rent detracts from circular flow, as does hoarding. If this were invested, especially in innovation, it would not make any substantial difference to the economy other than distributively. But it is not, regardless of the intense propaganda to the contrary.

The pie is smaller than it could be as a result, and distribution is adversely affected too, starving the bottom unless the bottom is subsidized.

Every economist is well aware of this.

AlterNet
Member of the 1% Shocks Reddit: ‘I’m Voting for Bernie Sanders. Here’s Why’
Reddit

1 comment:

NeilW said...

Absolute wealth vs relative wealth again.

The prevailing wealth culture would rather than the fanciest mud hit on the Savannah.