Comments on: Finance and economics: what we have learned, and what still needs to be done – part 5 http://www.libdemvoice.org/finance-and-economics-what-we-have-learned-and-what-still-needs-to-be-done-part-5-6204.html Our place to talk - an independent website for supporters of the Liberal Democrat party in the UK. Sun, 12 Feb 2012 01:36:11 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Andrew Duffield http://www.libdemvoice.org/finance-and-economics-what-we-have-learned-and-what-still-needs-to-be-done-part-5-6204.html#comment-71373 Andrew Duffield Fri, 28 Nov 2008 22:22:46 +0000 http://www.libdemvoice.org/?p=6204#comment-71373 The answer is to minimise the cycle of course. Economic (and therefore fiscal) cycles are directly and evidentially linked to the c.18 year global cycle in land prices. To smooth - and potentially eradicate - all of them, we only need to: a) recognise this fact; b) stabilise land price through the equitable, efficient and sustainable capture and recycling of all forms of economic rent (including the unearned return to banks from their creation of debt-based deposits!); and c) phase out and replace all taxes on productive, value-adding, wealth-creating endeavour accordingly. The biggest worry at the moment and for the next few years is undoubtedly unemployment. The starting point in terms of our response to its rising scourge must be to scrap employers' NICs, cutting business overheads, saving jobs and reducing the need for firms to seek short-term cashflow alleviation by borrowing from banks that are still utterly (and understandably) risk averse. The Tories and Labour have nothing to say or offer on jobs - yet this is critical to minimising the effects of the depression. We should commit to cutting business costs now and start planning for the fiscal switch that will help the UK return - first and fastest - to growth, this time sustainably. The answer is to minimise the cycle of course. Economic (and therefore fiscal) cycles are directly and evidentially linked to the c.18 year global cycle in land prices. To smooth – and potentially eradicate – all of them, we only need to:

a) recognise this fact;

b) stabilise land price through the equitable, efficient and sustainable capture and recycling of all forms of economic rent (including the unearned return to banks from their creation of debt-based deposits!); and

c) phase out and replace all taxes on productive, value-adding, wealth-creating endeavour accordingly.

The biggest worry at the moment and for the next few years is undoubtedly unemployment. The starting point in terms of our response to its rising scourge must be to scrap employers’ NICs, cutting business overheads, saving jobs and reducing the need for firms to seek short-term cashflow alleviation by borrowing from banks that are still utterly (and understandably) risk averse.

The Tories and Labour have nothing to say or offer on jobs – yet this is critical to minimising the effects of the depression. We should commit to cutting business costs now and start planning for the fiscal switch that will help the UK return – first and fastest – to growth, this time sustainably.

]]> By: David Evans http://www.libdemvoice.org/finance-and-economics-what-we-have-learned-and-what-still-needs-to-be-done-part-5-6204.html#comment-71349 David Evans Fri, 28 Nov 2008 18:26:10 +0000 http://www.libdemvoice.org/?p=6204#comment-71349 I wholeheartedly agree. The only point I would add, is that Brown's various fiscal rules, were never meant to work, other than in the sense that they persuaded the credulous that Gordon was married to Prudence. Hence whenever the rules gave evidence of a break up, the rules were re-defined. I wholeheartedly agree. The only point I would add, is that Brown’s various fiscal rules, were never meant to work, other than in the sense that they persuaded the credulous that Gordon was married to Prudence. Hence whenever the rules gave evidence of a break up, the rules were re-defined.

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