Reckless Economics – Baked fresh by Morrison, Taylor and Cormann

The following was a response to a comment at macrobusiness.com.au (click here)

tonydd,

Yes, that is the core of the problem.

The LNP policy recipe is designed to concentrate wealth and the mechanism is by boosting the value of certain classes of assets. For a long time this was very successful electorally because one of the key asset classes getting a boost was land and about 60-70 % of the population have a direct interest in land.

Lots of voters with an interest in land and property assets thought this was wonderful.

“They are making me rich and I just sit back and smile and eat smashed avocado”

It was so successful as a political strategy that the ALP jumped on board and the Greens did not say a word. Continue reading

Free Nation economics: Time for a change

Slowly but surely the penny is dropping right around the world.   The issues that caused the GFC have not been resolved, are not going away and are lurking in the corner ready to pounce.16797842_2263570940448247_840417104403875622_o

Despite all the radical actions, by Central Banks and governments, the international economic system remains on life support.

What are the key elements of the system that have demonstrated beyond doubt that it is structurally defective? Continue reading