I made the following comment on a very interesting blog; probably the best economics blog on the net.
Hi, Robert. Here is my prescription for what ails the US economy, and every other western economy. Wealth tax on individuals, excess profits tax on corporations.
Use the new revenue to repair infrastructure, pay normal people a demogrant, and set up public investment banks. Abolish private banks, expropriate and liquidate their assets. Close stock markets.
Here is another comment on the same topic from someone in Germany, about the nature of inflation.
my view of the alleged lack of inflation: wherever the excess money of the central banks goes, inflation can also be found there: e.g. on the stock market, real estate, and interest rates. The fact that money no longer pays interest means that money loses its value.
However, the excess money does not reach the normal commodity market, which goes into the reproduction of wage labor. Therefore, inflation can hardly be found there.
Wal Buchenberg, Hannover
Which prompted me to write this…
Aha! Here is the most elegant explanation of inflation, or lack of it, that I have found. Inflation does not effect everything equality. It goes where the money goes.
What interests me is what will happen when the USA can no longer import “Walmart” goods from China. It can’t produce anything at home anymore. It seems to me that they will then start getting inflation in commodities.
It also occurs to me that if they then started trying to bail out their working classes with a “Basic Income” it would be counterproductive; again just create an inflation in commodities. That gets me back to my comment from yesterday, about taxing wealth to pay for a demogrant.
Even that would not work without either making arrangements with China, building up domestic production again, or more likely both. So debt/inflation risk is a hard problem to unravel.
Except the investor class likely thinks it does not have to bother with unraveling it. Even if there is an economic collapse and a deflation in Real Estate, Stock Market, etc, they probably think they can just take the paper losses and ride it out. They will still own everything.
There! Brr! Frightening to think about! But it confirms my thesis that a Basic income just will not work without the abolition of capitalism.
Comment if you please. Keep up the good work, all. This is one of the most interesting Blogs on the net.