What are Earnings, Tax and Rent exactly?
- Earnings are the share of total production that go to workers and enterprises, as wages, salaries and the return to invested capital. Earned incomes. Money and credit are not capital, nor are shares and bonds in the economic sense. They are obligations to transfer existing wealth from one to another and add nothing to the common stock.
- Tax should be self explanatory. What is taken from total production, work and enterprise, to fund government.
- Rent, specifically economic rent, is the share of total production that goes to the ownership of non productive assets. Unearned incomes or monopoly profits. Such as the location value of property(mainly "interest" on mortgage assets), natural resource rents and other smaller scale monopoly profits.
- GDP as Earned and Unearned Incomes, based upon and extended from Dwyer, T.
- Mark Wadsworth: Rents and Taxes as a Share of UK GDP
- LVRG and Terry Dwyer - The Taxable Capacity of Australian Land and Resources
- Business Insider:Here's What The Wall Street Protesters Are So Angry About..
- Our irrational distribution of wealth (1908) - Byron Collins Matthews
- New York Times - Real Wages Fail to Match a Rise in Productivity
- The Independent - Stewart Lansley: The unreported cause of the financial crisis is shrinking wages
- Wikipedia - Standard of living and GDP
- Truthout, Twelve Charts That Will Make Your Blood Boil
- Prem Sikka - Madhouse economics with lunatics in charge
- Henry George, David Ricardo, Adam Smith et al. The Effect of Material Progress on the Distribution of Wealth
- The High Pay Commission - The Cause of High Pay: the role of land value
- The Robin Smith Institute - Why Do Your Earnings never Rise?
- US wealth gap between young and old is widest ever
- 23 Mind-Blowing Facts About Inequality In America
10 comments:
What is the source of this statistical analysis?
Where are food, health care and education? If for instance medical care and school costs are accounted for by the rise in taxes, I should think that quite the bargain for most citizens and for the broader society.
Peace, Justice and Freedom... avra
Thanks avra cohen
These are not a statistical analysis. They are basic facts you can find anywhere. GDP, Earnings, Tax, Rent.
There are about 10 sources linked below for you to research. Let me know if you need more or any are nto clear.
Food is a good and is part of GDP
Health care is a service, also part of GDP. Ditto for education.
Most taxation is used to pay for welfare. Not health and education.
Welfare is needed to mitigate the effects of taxing work and allowing the rents to be collected privately instead of for public purposes.
Great graph but what is the source of the data. Where could I find UK only data.
William
Thank you for asking. I have no specific UK data. The evidence for cause and effect here are so abundant I've stopped looking for more.
Also if you were to take a few moments to think about the law of rent as a theory there are few ideas more self evident.
And even then it is the only economic law that all economists agree on, they just don't bother to examine the consequences.
I'm not sure we need infinite evidence.
But since you ask, I do realise that different people need to see it from where they are standing, so why do you want specific UK data? It is a common request so let me know and it may spur me to slot it in the list too?
Thanks for the reply.
I am on the Liberal Democrat committee for Action for Land Taxation and Economic Reform (ALTER).
I would like a UK version of the graph to promote LVT in the Lib Dems. I suspect supporters of LVT in other parties would need a UK version as well.
OK. But ALTER know about this? Anyway I'll look into it.
In the mean time use this graph. I'm certain the UK one will work out the same.
I can guarantee you though, that even with that data deniers will then say:
Nope. We just decided we need more evidence than that
They are looking for Infinite Evidence.
Dear Mr Smith,
I strongy support William Davison's request. The graph, if correct, would be an extremely compelling illustration of how the asset rich are sucking wealth out of society.
Unfortunately without the source data sets it is unusable. Merely waving ones hands and declaring the data is 'anywhere' is not helpful.
Like William, I am active in Libdem ALTER.
Regards
David Cooper
Dear Mr Cooper
Thank you for reinforcing Mr Davison.
I will be doing this work shortly.
But I'm still trying to understand why infinite evidence is not enough for you. I get the request for more data all the time, each time after I have delivered what the last one demanded was necessary. There is so much data there now it seems unreasonable that anyone would want more.
Also, I ask again: Do your deniers understand the law of rent? If they do not then no amount of data will be good enough? This is a critical point of politics.
So before I go ahead, please can you tell me why so much data is required to convince?
Would you both be able to help me collect the data? That would certainly focus your minds to take it into ALTER.
Do you have contact details for me please?
William & David
I'm starting to gather UK data. Here is the first stab.
House prices(rents) have increased 30 times since 1910. GDP only 20. That means there is that much less left over for labour(wages) and capital(interest).
A central London house for £20,000 – how prices looked in 1910
http://www.guardian.co.uk/uk/2011/jan/11/1910-london-property-prices-put-online
We now have UK specific data from Mr Mark Wadsworth linked here.
http://markwadsworth.blogspot.co.uk/2012/04/rents-and-taxes-as-share-of-uk-gdp.html
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