The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
That's semantics. In that model, you need to destroy money to avoid it becoming worthless.
Only if the rentier was planning to spend it.
Money that just sits in your bank account does not cause inflation.
If you tax rentier, you destroy costs.
You keep saying that, but it's just not so.
If you tax the rentier, you make sure that the rent is paid to the tax man rather than the private rentier. But that does not make the rent go away - the user still has to pay it.
What it does do is alter the term structure of the rent - from being paid up front in the asset price to being paid over time in taxes. Which is helpful in preventing bubbles, but not make the rent any lower in and of itself.
Like Michael Hudson says, interest grows exponentially,
But it does not, unless you allow scammy stuff like negative amortisation loans.
Austerity can only be implemented in the shadow of a concentration camp.
by ManfromMiddletown - Oct 20 44 comments
by gmoke - Oct 7 3 comments
by ARGeezer - Oct 7 60 comments
by DoDo - Oct 3 10 comments
by Frank Schnittger - Sep 29 19 comments
by Crazy Horse - Sep 29 25 comments
by ManfromMiddletown - Oct 2044 comments
by gmoke - Oct 73 comments
by ARGeezer - Oct 760 comments
by DoDo - Oct 310 comments
by Crazy Horse - Sep 2925 comments
by Frank Schnittger - Sep 2919 comments
by Frank Schnittger - Sep 274 comments
by Cyrille - Sep 24136 comments
by afew - Sep 2240 comments