The Search For Rent

But look at my hopes, look at my dreams
the currency we’ve spent
I love you, you pay my rent
I love you, you pay my rent

The aim of the neo Liberal Govts in the UK since 1997 has been to provide risk free income to people, their people not you most likely. This has taken the form of grossly inflating land and housing costs such that usury and rent are paid on what is from an economic point of view mostly unproductive – it raises GDP but that is just a measure not an actuality of economic progress. The majority of the wealth ‘created’ being already built houses and low productivity jobs associated with buying and selling houses.

The public utilities were privatised but they mostly charge for things people have to use and thus provide a guaranteed stream of income or de facto rent. Even when they have a risky project the collapsed local balance sheets that allow profit to go to offshore trusts via loan repayments mean any risk has to be taken by Govt – yes it’s pointless privatisation like paying the bar bill when your wife meets her lover for most of us. BTW HMRC’s own headquarters pays rent to an offshore company!

Thus our betters, the already wealthy, land owners and foreign state owned utilities get rental incomes with little or no risk. The rest of us get near 0% interest, insecure jobs etc etc Pensioners have also benefited from guaranteed income and as owners of the land and houses from a saner era where they were cheaper.

This is not a sustainable economic model. Indeed as the Steel market shows real production is being destroyed by Zombie companies living on debts they cannot pay in China and elsewhere – seriously how do you know these offshoring companies are viable? See Enron collapse.

It’s hard to find a sane classical economist who would back such an economy. Marx or Smith or Hayek or Keynes would laugh if it were not so brutal. Only the neo Classical school bought by corporate interests pretending banks loan money they take as deposits could envisage this as working for the majority. Neo Feudalism. Pigs at the Trough neo Feudalism at that.

There is no creative destruction of right wing fantasies there is only destruction.

The Search For Rent

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