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Michael Hudson (said to be one of only 12 economists who predicted the crisis) strips away and challenges the flawed economics we're currently subjected to, as well as the progressive, deliberate and corrupt transfer of wealth/control to the rich unelected landowners and the bankers.
Taxes on property and land have been progressively reduced, whilst taxes on products, services and jobs have been steadily increased (and are set to increase much further in coming years). The idea that wealth is generated via real estate asset price inflation is both niave and flawed - house price inflation is a result of failure ... i) the failure to build sufficient housing, ii) the failure and de-regulation of financial services/banking, and iii) the flawed/irresponsible levels of debt people were allowed/encouraged to take on. Given everyone needs a roof other their head, strategies/policies designed to deliberately inflate house prices and to encourage people to take on further debt (e.g. equity release to release more money back into the economy), were arguably not only short-sighted but immoral (e.g. the Government taking house prices out key inflation figures used by Bank of England when setting interest rates).
Taxes on property and land have been progressively reduced, whilst taxes on products, services and jobs have been steadily increased (and are set to increase much further in coming years). The idea that wealth is generated via real estate asset price inflation is both niave and flawed - house price inflation is a result of failure ... i) the failure to build sufficient housing, ii) the failure and de-regulation of financial services/banking, and iii) the flawed/irresponsible levels of debt people were allowed/encouraged to take on. Given everyone needs a roof other their head, strategies/policies designed to deliberately inflate house prices and to encourage people to take on further debt (e.g. equity release to release more money back into the economy), were arguably not only short-sighted but immoral (e.g. the Government taking house prices out key inflation figures used by Bank of England when setting interest rates).
Many people have for many years had to hand over high percentages of their salary (30-40%) straight to banks, in the form on interest payments, and this will worsen once more as interest rates start to rise again (due in part to future imported inflation).
Land Value Tax would address this issue head on, and move the profits away from banks (and to the Government). In doing so the Government could drop taxes on products, services and jobs. This would reverse the current trend of pricing manufacturing and jobs out the market, and move the economy towards a successful, sustainable and value added economy once again. It would also avoid the UK (and the rest of the world) becoming progressively governed by unelected officials and financial institutions; ruling over us via debt and driving poverty/serfdom with the imposition of more unfair/punitive taxes.
However the financial, insurance and real-estate markets (and their associated lobby groups) would fight such a move all the way (supported by the landowners, the media and politicians who have themselves been profiting from it with their expenses), as many of them do not actually know how to generate any real value or wealth (nb they focus/profit from transferring wealth).
Without such changes the crisis will continue to grow, and the UK will progressively shut down ... as more wealth is transferred (and pocketed) by those who provide no value and destroy net wealth.
