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Adam Smith, understood a free market to be one in which taxation freed the economy from untaxed economic rents. In neoliberal economics, “free market” means freedom for rent extraction free of government taxation and regulation. This is a huge differ
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nickname unavailable
Apr 4, 2017, 8:29:27 PM4/4/17
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Adam Smith, understood a free market to be one in which taxation freed the economy from untaxed economic rents. In neoliberal economics, “free market” means freedom for rent extraction free of government taxation and regulation. This is a huge difference.
http://www.globalresearch.ca/j-is-for-for-junk-economics-the-worlds-best-economist/5583405
“J is for For Junk Economics”. The World’s Best Economist
Review of Michael Hudson's Book
By Dr. Paul Craig Roberts
Global Research, April 04, 2017
Region: USA
If you want to learn real economics instead of neoliberal junk economics, read Michael Hudson’s books.
What you will learn is that neoliberal economics is an apology for the rentier class and the large banks that have succeeded in financializing the economy, shifting consumer spending power from the purchase of goods and services that drive the real economy to the payment of interest and fees to banks.
His latest book is J is for Junk Economics. It is written in the form of a dictionary, but the definitions give you the precise meaning of economic terms, the history of economic concepts, and describe the transformation of economics from classical economics, where the emphasis was on taxing incomes that are not the product of the production of goods and services, to neoliberal economics, which rests on the taxation of labor and production.
This is an important difference that is not easy to understand. Classical economists defined “unearned income” as “economic rent.” This is not the rent that you pay for your apartment. Economic rent is an income stream that has no counterpart in cost incurred by the recipient of the income stream.
For example, when a public authority, say the city of Alexandria, Virginia, decides to connect Alexandria with Washington, D.C., and with itself, with a subway paid for with public money, the owners of property along the subway line experience a rise in property values. They owe their increased wealth and their increased incomes from the rental values of their properties to the expenditure of taxpayer dollars. If these gains were taxed away, the subway line could have been financed without taxpayers’ money.
It is these gains in value produced by the subway, or by a taxpayer-financed road across property, or by having beachfront property instead of property off the beach, or by having property on the sunny side of the street in a business area that are “economic rents.” Monopoly profits due to a unique positioning are also economic rents.
Hudson adds to these rents the interest that governments pay to bondholders when governments can avoid the issuance of bonds by printing money instead of bonds. When governments allow private banks to create the money with which to purchase the government’s bonds, the governments create liabilities for taxpayers than are easily avoidable if, instead, government created the money themselves to finance their projects. The buildup of public debt is entirely unnecessary. No less money is created by the banks that buy government bonds than would be created if the government printed money instead of bonds.
The inability of neoliberal economics to differentiate income streams that are economic rents with no cost of production from produced output makes the National Income and Product Accounts, the main source of data on economic activity in the US, extremely misleading. The economy can be said to be growing because public debt-financed investment projects raise the rents along subway lines.
“Free market” economists today are different from the classical free market economists. Classical economists, such as Adam Smith, understood a free market to be one in which taxation freed the economy from untaxed economic rents. In neoliberal economics, Hudson explains, “free market” means freedom for rent extraction free of government taxation and regulation. This is a huge difference.
Consequently, today the US economy is focused by policymakers including the Federal Reserve on maximizing rentier income at the expense of the growth in the real economy. Rentier income has the productive economy in a death grip. The economy cannot grow, because consumer income is siphoned off into payment of interest and fees to banks, and is not available for increased purchases of real goods and services.
Neoliberal economics is a predatory device that justifies the exorbitant incomes of the One Percent while blaming rising debt on those forced into debt-peonage in order to survive. Hudson’s virtue is that he explains the historical development of debt-peonage and makes it clear that this is the status that the One Percent intends for the 99 Percent. He resurrects classical economics and reformulates economic theory in keeping with the facts on the ground instead of rentier interests.
The original source of this article is Global Research
http://www.globalresearch.ca/j-is-for-for-junk-economics-the-worlds-best-economist/5583405
“J is for For Junk Economics”. The World’s Best Economist
Review of Michael Hudson's Book
By Dr. Paul Craig Roberts
Global Research, April 04, 2017
Region: USA
If you want to learn real economics instead of neoliberal junk economics, read Michael Hudson’s books.
What you will learn is that neoliberal economics is an apology for the rentier class and the large banks that have succeeded in financializing the economy, shifting consumer spending power from the purchase of goods and services that drive the real economy to the payment of interest and fees to banks.
His latest book is J is for Junk Economics. It is written in the form of a dictionary, but the definitions give you the precise meaning of economic terms, the history of economic concepts, and describe the transformation of economics from classical economics, where the emphasis was on taxing incomes that are not the product of the production of goods and services, to neoliberal economics, which rests on the taxation of labor and production.
This is an important difference that is not easy to understand. Classical economists defined “unearned income” as “economic rent.” This is not the rent that you pay for your apartment. Economic rent is an income stream that has no counterpart in cost incurred by the recipient of the income stream.
For example, when a public authority, say the city of Alexandria, Virginia, decides to connect Alexandria with Washington, D.C., and with itself, with a subway paid for with public money, the owners of property along the subway line experience a rise in property values. They owe their increased wealth and their increased incomes from the rental values of their properties to the expenditure of taxpayer dollars. If these gains were taxed away, the subway line could have been financed without taxpayers’ money.
It is these gains in value produced by the subway, or by a taxpayer-financed road across property, or by having beachfront property instead of property off the beach, or by having property on the sunny side of the street in a business area that are “economic rents.” Monopoly profits due to a unique positioning are also economic rents.
Hudson adds to these rents the interest that governments pay to bondholders when governments can avoid the issuance of bonds by printing money instead of bonds. When governments allow private banks to create the money with which to purchase the government’s bonds, the governments create liabilities for taxpayers than are easily avoidable if, instead, government created the money themselves to finance their projects. The buildup of public debt is entirely unnecessary. No less money is created by the banks that buy government bonds than would be created if the government printed money instead of bonds.
The inability of neoliberal economics to differentiate income streams that are economic rents with no cost of production from produced output makes the National Income and Product Accounts, the main source of data on economic activity in the US, extremely misleading. The economy can be said to be growing because public debt-financed investment projects raise the rents along subway lines.
“Free market” economists today are different from the classical free market economists. Classical economists, such as Adam Smith, understood a free market to be one in which taxation freed the economy from untaxed economic rents. In neoliberal economics, Hudson explains, “free market” means freedom for rent extraction free of government taxation and regulation. This is a huge difference.
Consequently, today the US economy is focused by policymakers including the Federal Reserve on maximizing rentier income at the expense of the growth in the real economy. Rentier income has the productive economy in a death grip. The economy cannot grow, because consumer income is siphoned off into payment of interest and fees to banks, and is not available for increased purchases of real goods and services.
Neoliberal economics is a predatory device that justifies the exorbitant incomes of the One Percent while blaming rising debt on those forced into debt-peonage in order to survive. Hudson’s virtue is that he explains the historical development of debt-peonage and makes it clear that this is the status that the One Percent intends for the 99 Percent. He resurrects classical economics and reformulates economic theory in keeping with the facts on the ground instead of rentier interests.
The original source of this article is Global Research
Werner
Apr 5, 2017, 7:54:48 AM4/5/17
to
As near as I can tell everything is taxed - production, labor, interest, capital, consumption, rents, estates... Government means taxation. What else does it do? Government is the economic rentier mechanism of choice by everybody who wants favors and protections paid for by others. That means pretty much everybody.
Frederic Bastiat, a 19th c. French classical liberal thinker also had some prescient advice.
“Government is the great fiction, through which everybody endeavours to live at the expense of everybody else.” and
“When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it."
Frederic Bastiat, a 19th c. French classical liberal thinker also had some prescient advice.
“Government is the great fiction, through which everybody endeavours to live at the expense of everybody else.” and
“When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it."
Bret Cahill
Apr 5, 2017, 9:48:59 AM4/5/17
to
> Adam Smith, understood a free market to be one in which taxation freed the economy from untaxed economic rents. In neoliberal economics, “free market” means freedom for rent extraction free of government taxation and regulation. This is a huge difference.
>
>
> http://www.globalresearch.ca/j-is-for-for-junk-economics-the-worlds-best-economist/5583405
>
> “J is for For Junk Economics”. The World’s Best Economist
> Review of Michael Hudson's Book
> By Dr. Paul Craig Roberts
> Global Research, April 04, 2017
> Region: USA
>
> If you want to learn real economics instead of neoliberal junk economics, read Michael Hudson’s books.
>
> What you will learn is that neoliberal economics is an apology for the rentier class and the large banks that have succeeded in financializing the economy, shifting consumer spending power from the purchase of goods and services that drive the real economy to the payment of interest and fees to banks.
>
> His latest book is J is for Junk Economics. It is written in the form of a dictionary, but the definitions give you the precise meaning of economic terms, the history of economic concepts, and describe the transformation of economics from classical economics, where the emphasis was on taxing incomes that are not the product of the production of goods and services, to neoliberal economics, which rests on the taxation of labor and production.
>
> This is an important difference that is not easy to understand. Classical economists defined “unearned income” as “economic rent.” This is not the rent that you pay for your apartment. Economic rent is an income stream that has no counterpart in cost incurred by the recipient of the income stream.
>
> For example, when a public authority, say the city of Alexandria, Virginia, decides to connect Alexandria with Washington, D.C., and with itself, with a subway paid for with public money, the owners of property along the subway line experience a rise in property values. They owe their increased wealth and their increased incomes from the rental values of their properties to the expenditure of taxpayer dollars.
This is just 137 year old easy-to-understand Henry George, assuming Jefferson and Locke didn't cover it adequately or even better one or 2 centuries earlier, a dubious assumption.
>
>
> http://www.globalresearch.ca/j-is-for-for-junk-economics-the-worlds-best-economist/5583405
>
> “J is for For Junk Economics”. The World’s Best Economist
> Review of Michael Hudson's Book
> By Dr. Paul Craig Roberts
> Global Research, April 04, 2017
> Region: USA
>
> If you want to learn real economics instead of neoliberal junk economics, read Michael Hudson’s books.
>
> What you will learn is that neoliberal economics is an apology for the rentier class and the large banks that have succeeded in financializing the economy, shifting consumer spending power from the purchase of goods and services that drive the real economy to the payment of interest and fees to banks.
>
> His latest book is J is for Junk Economics. It is written in the form of a dictionary, but the definitions give you the precise meaning of economic terms, the history of economic concepts, and describe the transformation of economics from classical economics, where the emphasis was on taxing incomes that are not the product of the production of goods and services, to neoliberal economics, which rests on the taxation of labor and production.
>
> This is an important difference that is not easy to understand. Classical economists defined “unearned income” as “economic rent.” This is not the rent that you pay for your apartment. Economic rent is an income stream that has no counterpart in cost incurred by the recipient of the income stream.
>
> For example, when a public authority, say the city of Alexandria, Virginia, decides to connect Alexandria with Washington, D.C., and with itself, with a subway paid for with public money, the owners of property along the subway line experience a rise in property values. They owe their increased wealth and their increased incomes from the rental values of their properties to the expenditure of taxpayer dollars.
When this is discussed a super majority will agree the economics is junk. 75% already agree that taxes need to be hiked on the rich.
As with much of the pay-by-word left there is nothing game changing about the above.
The interesting question is more psychological:
Exactly how does a loose informal coalition of property owners and other parazoids control the media to dumb down the public and allow the parazoids to control the political class all the way down to the local level?
A lot of it has been grandfathered in over decades of 0.1% control of the media but a lot of it sailed right through the Enlightenment with hardly a scratch.
As Tocqueville pointed out democracy is just a veneer. When the paint flakes off you can often see the old aristocracy peeking through.
The historic Texaco refinery in Port Arthur was sold to Motiva around the turn of this century. Unlike signage on fencing corporate cultures cannot be expected to change overnight and it was easy to determine the exploitative nature of Texaco simply carried over to Motiva.
I spent a little time cycling around the area thinking about Tocqueville. When I got to the plant I started looking for the old Texaco signs.
I eventually I found an old Texaco sign on a fence on a bayou, probably too much work to remove.
Bret Cahill
"The more things change the more they stay the same."
Bret Cahill
Apr 5, 2017, 9:57:02 AM4/5/17
to
> As near as I can tell everything is taxed - production, labor, interest, capital, consumption, rents, estates...
Taxing land ownership once represented the lion's share of all gummint revenue.
Property taxes, always progressive, have dropped off as a % of all taxes.
This is why homeless encampments are so yuge and will mushroom in size under tRUMP.
nickname unavailable
Apr 5, 2017, 11:50:45 AM4/5/17
to
On Wednesday, April 5, 2017 at 6:54:48 AM UTC-5, Werner wrote:
> As near as I can tell everything is taxed - production, labor, interest, capital, consumption, rents, estates... Government means taxation. What else does it do? Government is the economic rentier mechanism of choice by everybody who wants favors and protections paid for by others. That means pretty much everybody.
then you agree with smith, who said only regulations and taxes that favor workers and producers should be enacted. other wise everyone else, that is the wealthy, are simply parasites.
> As near as I can tell everything is taxed - production, labor, interest, capital, consumption, rents, estates... Government means taxation. What else does it do? Government is the economic rentier mechanism of choice by everybody who wants favors and protections paid for by others. That means pretty much everybody.
>
>
> Frederic Bastiat, a 19th c. French classical liberal thinker also had some prescient advice.
> “Government is the great fiction, through which everybody endeavours to live at the expense of everybody else.” and
> “When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it."
you can find all sorts of greedy lazy cranks all through history, smith even warned against them.
nickname unavailable
Apr 5, 2017, 12:02:34 PM4/5/17
to
On Wednesday, April 5, 2017 at 8:48:59 AM UTC-5, Bret Cahill wrote:
> > Adam Smith, understood a free market to be one in which taxation freed the economy from untaxed economic rents. In neoliberal economics, “free market” means freedom for rent extraction free of government taxation and regulation. This is a huge difference.
> >
> >
> > http://www.globalresearch.ca/j-is-for-for-junk-economics-the-worlds-best-economist/5583405
> >
> > “J is for For Junk Economics”. The World’s Best Economist
> > Review of Michael Hudson's Book
> > By Dr. Paul Craig Roberts
> > Global Research, April 04, 2017
> > Region: USA
> >
> > If you want to learn real economics instead of neoliberal junk economics, read Michael Hudson’s books.
> >
> > What you will learn is that neoliberal economics is an apology for the rentier class and the large banks that have succeeded in financializing the economy, shifting consumer spending power from the purchase of goods and services that drive the real economy to the payment of interest and fees to banks.
> >
> > His latest book is J is for Junk Economics. It is written in the form of a dictionary, but the definitions give you the precise meaning of economic terms, the history of economic concepts, and describe the transformation of economics from classical economics, where the emphasis was on taxing incomes that are not the product of the production of goods and services, to neoliberal economics, which rests on the taxation of labor and production.
> >
> > This is an important difference that is not easy to understand. Classical economists defined “unearned income” as “economic rent.” This is not the rent that you pay for your apartment. Economic rent is an income stream that has no counterpart in cost incurred by the recipient of the income stream.
> >
> > For example, when a public authority, say the city of Alexandria, Virginia, decides to connect Alexandria with Washington, D.C., and with itself, with a subway paid for with public money, the owners of property along the subway line experience a rise in property values. They owe their increased wealth and their increased incomes from the rental values of their properties to the expenditure of taxpayer dollars.
>
> This is just 137 year old easy-to-understand Henry George, assuming Jefferson and Locke didn't cover it adequately or even better one or 2 centuries earlier, a dubious assumption.
>
hudson is simply trying to re-educate americans.
> > Adam Smith, understood a free market to be one in which taxation freed the economy from untaxed economic rents. In neoliberal economics, “free market” means freedom for rent extraction free of government taxation and regulation. This is a huge difference.
> >
> >
> > http://www.globalresearch.ca/j-is-for-for-junk-economics-the-worlds-best-economist/5583405
> >
> > “J is for For Junk Economics”. The World’s Best Economist
> > Review of Michael Hudson's Book
> > By Dr. Paul Craig Roberts
> > Global Research, April 04, 2017
> > Region: USA
> >
> > If you want to learn real economics instead of neoliberal junk economics, read Michael Hudson’s books.
> >
> > What you will learn is that neoliberal economics is an apology for the rentier class and the large banks that have succeeded in financializing the economy, shifting consumer spending power from the purchase of goods and services that drive the real economy to the payment of interest and fees to banks.
> >
> > His latest book is J is for Junk Economics. It is written in the form of a dictionary, but the definitions give you the precise meaning of economic terms, the history of economic concepts, and describe the transformation of economics from classical economics, where the emphasis was on taxing incomes that are not the product of the production of goods and services, to neoliberal economics, which rests on the taxation of labor and production.
> >
> > This is an important difference that is not easy to understand. Classical economists defined “unearned income” as “economic rent.” This is not the rent that you pay for your apartment. Economic rent is an income stream that has no counterpart in cost incurred by the recipient of the income stream.
> >
> > For example, when a public authority, say the city of Alexandria, Virginia, decides to connect Alexandria with Washington, D.C., and with itself, with a subway paid for with public money, the owners of property along the subway line experience a rise in property values. They owe their increased wealth and their increased incomes from the rental values of their properties to the expenditure of taxpayer dollars.
>
> This is just 137 year old easy-to-understand Henry George, assuming Jefferson and Locke didn't cover it adequately or even better one or 2 centuries earlier, a dubious assumption.
>
> When this is discussed a super majority will agree the economics is junk. 75% already agree that taxes need to be hiked on the rich.
>
> As with much of the pay-by-word left there is nothing game changing about the above.
>
> The interesting question is more psychological:
>
> Exactly how does a loose informal coalition of property owners and other parazoids control the media to dumb down the public and allow the parazoids to control the political class all the way down to the local level?
>
> A lot of it has been grandfathered in over decades of 0.1% control of the media but a lot of it sailed right through the Enlightenment with hardly a scratch.
>
> As Tocqueville pointed out democracy is just a veneer. When the paint flakes off you can often see the old aristocracy peeking through.
>
> The historic Texaco refinery in Port Arthur was sold to Motiva around the turn of this century. Unlike signage on fencing corporate cultures cannot be expected to change overnight and it was easy to determine the exploitative nature of Texaco simply carried over to Motiva.
>
> I spent a little time cycling around the area thinking about Tocqueville. When I got to the plant I started looking for the old Texaco signs.
>
> I eventually I found an old Texaco sign on a fence on a bayou, probably too much work to remove.
>
>
nickname unavailable
Apr 5, 2017, 12:03:51 PM4/5/17
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