Saturday, 14 September 2013

Land Monopoly Black Hole (LMBH).

An astrophysicist observes clusters of orbiting stars moving at incredible velocity, or the bending of light without the influence of any object, or beams of high energy radiation emanating from the centres of distant galaxies. If he/she didn’t know about black holes and their effects they’d have to provide an alternative model of physics. An erroneous one.

It’s a bit like that with economics. If at the heart of your model only Capital exists, you are never going to be able to account for the effects of the £250bn per annum LMBH at the heart of our economy.
You will observe phenomena like boom/bust cycles, wealth/regional/intergeneration inequalities, dysfunctional housing markets, falling disposable incomes, poor growth, etc,etc.

But because your model does not account for monopolies (everything has to have a free market solution, right?), you must put the blame elsewhere. Too much government regulation, too much tax, the lazy feckless poor, not enough house building, not enough private property,  immigration  etc, etc.

Equally, if you can’t see the LMBH, it could all be exactly the opposite.

The LMBH distorts and destroys,  unobserved and unaccounted for by politicians, economists and the media. Blind, brainwashed or corrupt? Who knows?