The problem is the velocity of money; by raising taxes on the wealthy and giving it to the poor they increase inflation and thereby interest rates; which interferes with the housing bubble, which they say is boomers nest eggs, and is thereby important to maintain and grow.
Its a problem with a bubble economy built on cheap debt and ever lower interest rates, you lose the ability to direct your own money supply. Look at owner-occupied housing’s contribution to annual GDP growth, this bubble was fueling most of our economic growth.
Let’s tax wealth to fund quality universal basic services first. Healthcare, childcare, education, transportation, social security, elder care. Social non-market housing, public utilities for electricity, water, telecommunications/Internet. None of these are increasing inflation, because they are not part of the market.
The idea of “nest egg” is only important as a privatised form of elder care. I couldn’t care less about the value of my house if I had a publicly guaranteed quality of life as a pensioner. I wouldn’t even care to own a house if I had strong renter protections in non-market housing (basically if renting was not equivalent to someone holding power over my life decisions).
And of course, of course, the capture of capital in unproductive real estate is beyond stupid. Instead of feeding a real estate bubble, it should be ingested in productive sectors of the economy, like building up renewables and the green transition.
The problem is the velocity of money; by raising taxes on the wealthy and giving it to the poor they increase inflation and thereby interest rates; which interferes with the housing bubble, which they say is boomers nest eggs, and is thereby important to maintain and grow.
Its a problem with a bubble economy built on cheap debt and ever lower interest rates, you lose the ability to direct your own money supply. Look at owner-occupied housing’s contribution to annual GDP growth, this bubble was fueling most of our economic growth.
Let’s tax wealth to fund quality universal basic services first. Healthcare, childcare, education, transportation, social security, elder care. Social non-market housing, public utilities for electricity, water, telecommunications/Internet. None of these are increasing inflation, because they are not part of the market.
The idea of “nest egg” is only important as a privatised form of elder care. I couldn’t care less about the value of my house if I had a publicly guaranteed quality of life as a pensioner. I wouldn’t even care to own a house if I had strong renter protections in non-market housing (basically if renting was not equivalent to someone holding power over my life decisions).
And of course, of course, the capture of capital in unproductive real estate is beyond stupid. Instead of feeding a real estate bubble, it should be ingested in productive sectors of the economy, like building up renewables and the green transition.
A social democracy is just common sense.