INDUSTRIAL CAPITALISM WILTS WHILE THE 1% RENTIER ECONOMY FLOURISHES
Michael Hudson writes a long but very well argued piece (19 Oct 2017) on this topic "Socialism, Land and Banking: 2017 compared to 1917" He says
- " the world has un-taxed land rent and is still grappling with the problem of how to keep housing affordable. Instead it is siphoned off rent to a landlord class – more recently transmuted into mortgage interest paid to banks by owners who pledge the rental value for loans. Most bank lending today is for real estate mortgages. The effect is to bid up land prices toward the point where the entire rental value is paid as interest.
Note the need to fully tax Land Rent.
- the only way to save society from the financial power [is] a policy of
- nationalizing natural resources,
- fully taxing land rent
- and [nationalising] infrastructure and other key sectors.
You can read the full article here (wonkish and marxist!)