Harnessing monopoly for the common good

Within this lease could be a caveat that X amount of free airtime be provided to each political party in a campaign year, as New Zealand allows. Politicians would then face less pressure to pawn their principles as they wouldn't have to pay for advertising on the once public airwaves.

The scientific community have been very open in accepting its failure to simplify core messages to the public over climate change, allowing breathing room for climate sceptics to control the debate. Similarly in the economics profession, some responsibility must be taken for the current situation where the global property bubble has been ignored as a catalyst for the credit crisis (falling land prices → bank write downs).

To be a science, economics must relate to reality. Thankfully economists such as Joseph Stiglitz, Michael Hudson and Martin Wolf are raising the flag as we re-frame economics as the essential science, never dismal.

In closing, the pot of gold at the end of each property flip must face closer scrutiny if we are to give equal opportunity to future generations. The tax system must be directed to equalise the opportunities between those who own our common wealth and those who are contributing to the community. Otherwise, rent seeking in the race for the rising value of the Earth will distort both economic and political decision making.

Karl Fitzgerald, Prosper Australia Executive Director will release the Total Resource Rents of Australia report next Tuesday Nov 20th, Melbourne. http://www.prosper.org.au/2012/11/09/total-resource-rents-of-australia/

Watch the locally made documentary Real Estate for Ransom – why does land to cost the earth?

Listen to the Renegade Economist radio show/ podcast each week Wednesday 5:30 PM on 3CR, 855AM on the dial (or via iTunes).