Land rent is one of several sources of unearned wealth that bestow privileges on a minority of citizens while biasing the economy against the interests of the majority.
In classical economics, each of the three factors of production – land, labour and capital – earns a share of the wealth generated through enterprise: land earns rent, labour earns wages, and capital earns profit.
Look around. Oil companies guzzle down the billions in profits. Billionaires pay a lower tax rate than their secretaries, and Wall Street CEOs, the same ones that direct our economies and destroyed millions of jobs still strut around Congress, no shame, demanding favours, and acting like we should thank them. Does anyone here have a problem with that?
The wider public is depressingly disinterested in the workings of the economy; nowhere is this more evident than in their ignorance of the monetary system. If more people understood the means by which banks create money, the way it swells the coffers of the already wealthy, and the destabilising effect it has on the real economy, then surely there would be a outcry of Murdochian proportions.
Current best practices in risk management work only when correlations are stable. At turning points historical relationships between assets breakdown. The only way to effectively anticipate future risk factors is by understanding root macroeconomic causes.
Renegade Tycoons is the show that meets business owners, business leaders and entrepreneurs. Chrystina Schmidt is co-founder and creative director of Scandium, London’s leading Scandinavian designer home store.
The Tipping Point
I may be wrong, but it looks like a tipping point. A host of concerned economy-watchers are beginning to understand that most economists failed to understand or predict the global economic crisis, and should therefore be deposed. Just as the despots of north Africa and the middle East crumbled in the face of a critical mass of popular opposition, so too mainstream economics is looking shaky in the fresh-faced glare of laymen.
Since they first appeared in the New Testament, the Four Horsemen of the Apocalypse have ridden roughshod into the consciousness of every generation. They remain a potent symbol in popular culture. But, as a judgment on the failings of human beings, and as a warning to put our collective house in order, they’ve had remarkably little effect.
In this latest show Renegade Economist host Ross Ashcroft talks with Larry Lamb, George Lamb and Roger Mavity about todays relevance of the American Dream with Andrew Walker providing the data insights.
It was Herbert Spencer who first coined the term “survival of the fittest” but that is not the optimum way a society should function.