The Meeting Place

How our economy works

WORKERS (i) pay rent, (ii) help their employers to pay rent, and (iii) raise some of the next generation of rent-payers.

LAND SPECULATORS (i) receive economic rent for the gifts of nature, (ii) take the credit for providing them, and (iii) lobby governments for an ever-increasing supply of rent-payers.

BANKS (i) borrow money from overseas and lend it against the gifts of nature, driving their prices as high as possible, in order to siphon off the largest possible share of the economic rent under the guise of the interest margin, (ii) ensure that home ownership is financed by debt instead of equity, so that new owners become human shields against price falls, and (iii) take the credit for facilitating changes of ownership that might otherwise have taken place at much lower prices.

HOME OWNERS (i) work themselves to death in order to pay rent under the guise of interest on their inflated mortgages, and (ii) support any policy that would increase their “equity” in their homes by making life even harder for future buyers.

PROPERTY DEVELOPERS drip-feed land to the market, after hoarding it for as long as possible in order to maximize prices (see LAND SPECULATORS).

IMMIGRANTS supplement the ranks of working rent-payers because, mysteriously, people of that class can’t afford to breed at a sufficient rate.

GOVERNMENTS (i) enforce debts, (ii) protect property rights over the gifts of nature, (iii) provide public works and services that raise the market values of the gifts of nature for the benefit of the owners, (iv) bring in rent-paying immigrants who raise the market values of the gifts of nature even without public works and services, (v) fund these activities by taxing rent-payers, and (vi) take the credit for rising asset values.

THE UNEMPLOYED (i) try to take jobs from other people, thereby putting downward pressure on the price of labour to compensate for the upward pressures caused by rents and taxes, and (ii) take the blame for all the free-riding in the system.

EMPLOYERS (i) pay rent, (ii) help their workers to pay rent, (iii)collect taxes payable by their workers, their customers, and sometimes even their suppliers, without being paid for this service, but under threat of penalties if they don’t perform it, (iv) foot the bill for minimum wage increments that are mostly confiscated by the central government via welfare clawbacks and income tax, (v) hire immigrants in a self-defeating attempt to compensate for the above costs, and (vi) take the blame for all the exploitation in the system.

ASYLUM SEEKERS (i) divert attention from the far more numerous economic immigrants brought in by the central government, (ii) get branded as economic immigrants by the central government, and (iii) take the blame for the decline of national unity and national values.

LEFT-WING POLITICIANS pretend that employers can fix everything.

RIGHT-WING POLITICIANS pretend that the unemployed and precariously employed can fix everything.

ECONOMISTS provide plausible explanations why the system doesn’t need fixing, but should be as it is, only more so.

VOTERS
reward governments for policies that (i) maximize the rents and land prices that they have to pay, and (ii) make the unemployed try ever harder to take their jobs and their kids’ jobs.

Did I leave anybody out?

the above article was written by a clever man - gavin putland, who really understands our crooked eCONomy.

https://www.prosper.org.au/2017/06/08/our-lives-are-like-a-hieronymus-bosch-or-pieter-bruegel-painting/

 

 

10 comments

interesting how most people don't want to know how they're being conned (by our economy), until they suffer large losses.

isn't denial wonderful?

DE Nile is wonderfull, but I am talking about the river not the state of mind.  Political organisations worked it out centuries ago, tell the peole what they want to hear and they will vote for you.  The truth only scares them into voting for your rival.

He has to add to the Asylum Seekers paragraph though, they are going to cost the taxpayer an additional $80 million dollars, because the government have just had to admit to a denial of basic human rights and offer a settlement to keep the case out of the courts.

It will be interesting to see how they and their Camp Followers will spin this debacle.  Probably another cruise along that grand old river, DeNile.

yes, the sheeple love that river!

Well said ex PS

Love the sheep, they are the first targets, gives us a chance to adapt and overcome.

Notice the Camp Followers have come out swinging, apparently it is all the fault of the International Court for requiring compliance with International law.  Why on earth should countries have to abide by International Law? LOL

so the system that works is?????????????????????????

Who knows, maybe let these people apply for Asylum and process them on shore, sort out the ones who are not genuine and those who have deliberatley destroyed their documentation and send them back.  Those who are genuine, give them visas that can be revued annually to consider if the risk to them in their country of origin has abated so that they can be repatriated.

You know, just act like civilised human beings who care for more than just themselves.

"the above article was written by a clever man - gavin putland, who really understands our crooked eCONomy."

 

No, he doesn't, but I will gladly join him in Xanadu

Reagan, I don't think most economists today know how it all works. Too many are not hands on and have only had the experience of their assignments.

I'll join you in Xanadu!

Reagan and Banjo

pleaee enlighten us with your knowledge 

how in your own minds does the economy all work ?

Agree Banjo, Reagon, Economists seem to apply theories in order to create more theories, as they generally do not have their own money at stake they are quite willing to take chances.  As they are risking other peoples money and not their own, they can be quite brave at times.

 

I agree with you gentlemen about the failings of economists...and would add this..

When properly developed.. studied and presented.. economics does have its place especially if the economist has done some credible work not only in the public sector but also in the private sector.. However.. 95% of economists are completely clueless with nothing remotely valuable to say.

The field itself is regarded as a joke in some areas and regarded as the "science of extreme simplifications and random guessing" based on nonsensical theories that simply don’t apply to the world we live in. In a nutshell..economists have the reputation these days of having perfected the art of sounding smart when they really have nothing to say.

Just stating my opinion...flavoured with a few facts from Forbes...

 


Great post Thea.

Nothing to say Raphael???

So very true  also this site below is also SO true and gives an idea of where the powers that be want the peoples minds to be

 

https://www.youtube.com/watch?v=7ZcAAP0DyBI

thanks for that link, plan B.

Kika, it says it all in a few minutes does it not.

Marx was an economic theorists , who you all seem to prefer over Adam Smith ..

I think you have missed the point, most comments seem to lead to an opinion that Economists are given too much credence.  Not that one is better than another.

So what is your economic theory , on the best way to run our economy ? 

Hubby has a degree in Economics and as he said you can put 20 in a room and all will have a different opinion.

:) Radish.

Since you ask, for a start stop spending money on pork barrelling and start spending it on asset creation that provides jobs and usable projects that will benefit the Australian people.  

But as I have just explained I do not believe theories from Economists are particuarly helpful in the real world, I would not consider an opinion from an "common man in the street" would be any different, so why waste my time and yours by asking?

Politicians don't run the economy, investors and Industrialists do.

So you agree that free market capitalism is what keeps the economy ticking 

 

Not speaking for exPS but I don't see where he's saying that. 

Explain "free market capitalism" in your own words, that should make good reading!!!

 

You first man in tights 

Ps said investors and industrialist run the economy

shame you don't understand economics or basic comprehension

 

haha Ben, "real shame you don't understand economics or basic comprehension"

Mate, we've got a right Charlie here ROTFLMAO

If you mean by "free market capilism" open slather for invetors and industrialists to act without social conscience, no.

Like anything else, if you want long term posative results you need a balanced aproach.  The governments role is to monitor the activities of the investors and industrialists to ensure that the majority of the people they represent get treated fairly in their dealings with them.

Something that succesive governments have failed to do with the Power Companies and Minners who rip profits off the taxpayer and hide their profits off shore to reduce taxes.  So if these companies represent free market capitalism to you, i guess it is an example where it does not work for the overall good of the economy.

Now Raphael, I like many others have answered direct questions from you, in many cases just so you got another chance to pick holes.  Now how about you start answering some direct questions yourself instead of answering one question with another, please try to resist the temptation to cut and paste, I and I am sure many others are looking forward to seeing some original thoughts.

Yup Reagan, I would be forever grateful if Raffy would explain "economics" to me, maybe then I will have a "basic comprehension" hahaha

Btw Raff how is the string theory reading coming along?

@exPS  "original thought" ? don't hold your breath.

We who live in free market societies believe that growth, prosperity and, ultimately, human fulfillment are created from the bottom up, not the government down.  Only when the human spirit is allowed to invent and create, only when individuals are given a personal stake in deciding economic policies and benefiting from their success – only then can societies remain alive, dynamic, prosperous, progressive and free.

Trust the people.  This is the one irrefutable lesson of the entire post-war period, contradicting the notion that rigid government controls are essential to economic development.  The societies that have achieved the most spectacular, broad-based progress are neither the most tightly controlled, nor the biggest in size, nor the wealthiest in natural resources.  No, what unites them all is their willingness to believe in the magic of the marketplace.

Ronald Reagan

Brocks, that was written in 1981, could you get some more up to date cut and paste, please.

Definition: The unobservable market force that helps the demand and supply of goods in a free market to reach equilibrium automatically is the invisible hand. Description: The phrase invisible hand was introduced by Adam Smith in his book 'The Wealth of Nations'.Definition of 'Invisible Hand' - The Economic Timesm.economictimes.com › definition › invi... Feedback  

1776

Good to see the Tag Team re-united, one is perplexed by original thoughts and direct quetions so he tags out to the other occupant of his mind so that the heat can be redirected.

Two personalities sharing one brain, one would think that this would be more efficient?  Either way direct answers and original thought seem to be beyond the capability of this/these being/s.

That gave me a laugh. I used to play "tag" when I was a kid but lost the art when I grew up and joined the real world.

Some never do!

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