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.
Friends come and go. Enemies accumulate.
by afew - Apr 20 46 comments
by ChrisCook - Apr 20 2 comments
by DoDo - Mar 19 19 comments
by DoDo - Apr 11 4 comments
by redstar - Apr 2 19 comments
by gmoke - Apr 1 33 comments
by ManfromMiddletown - Apr 24
by ChrisCook - Apr 202 comments
by afew - Apr 2046 comments
by DoDo - Apr 114 comments
by redstar - Apr 219 comments
by gmoke - Apr 133 comments
by gmoke - Mar 26
by marco - Mar 2625 comments
by DoDo - Mar 1919 comments
by DoDo - Mar 1237 comments