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Of course the other 'tax-like' economic activity rampant in our societies today is speculative finance. I have seen estimates that up to 30% of the cost of almost everything we do goes to the financial sector. That is in line with the disproportionate share of profits flowing to the financial sector.  Beyond allocating capital to productive investments, which, in my generous opinion, constitutes at most 10%, probably more like 4% of economic activity, this is pure rent extraction. It is enabled by the de facto capture of our governments by the financial sector, which is, in turn, acting as the agents of the largest wealth holders in our societies.

A liveable world is possible, but not without reining in the financial sector, changing the role of money and wealth in politics and beginning to pursue policies designed for the benefit of the entire society and not just the top one or two percent of wealth holders. A start in that direction would be for governments to directly fund, without even issuing bonds, the construction of needed infrastructure. Just make the key strokes at the Treasury and the Fed to fund these activities.

"It is not necessary to have hope in order to persevere."

by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Wed Nov 28th, 2012 at 02:18:11 PM EST

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