What is The Business Cycle?

What is The Business Cycle?

The Real Estate market is deflating right now. This is a great opportunity to do things differently in the future as long as most folks’ home value has evaporated right before their eyes. It is the result of our backwards tax policy that punishes the good while rewarding the bad. How? Just having a habitat on a piece of land will cost you plenty. But a vacant lot is barely taxes at all. Fix your house up or build an addition to accommodate your growing family and your tax goes up. But be a slum lord, let your property decline or even board it up and your tax goes down drastically. In other words, use your land to shelter your family and get slammed with higher taxes. Or just hoard the land forbidding anyone to trespass, let everyone else along with government tax money build up the infrastructure around your hoarded property then sell the property for a killing in a few years.

However, your unstable, unfair, backwards tax policy that causes this boom/bust Real Estate cycle, (commonly referred to as the Business Cycle) is not the worst aspect. The worst aspect is it prices about half the people in this country and most people in other countries out of a home. The weakest live in the streets while more than enough houses sit boarded up waiting to be sold in the future for enormous profit. Or governments own them for the people. The system, while very profitable to those with the means who know what they are doing playing the cycle, breeds the vast majority of desperation, poverty and crime. The richest should not be allowed to rent the earth to the poorest if for no other reason than to reduce the need for the negative behavior that this desperation causes.

So the next time someone steals your purse or knocks you in the head and takes your wallet ask yourself this. Wouldn’t it be better if we quit taxing good things like houses and began taxing bad things like land hoarding? Crime, besides not usually paying, is hard nerve-wracking work that takes effort. If the criminal had owned a house and been allowed to participate in a real full employment society then he would have too much to lose. Land hoarding strangles job growth especially in the construction/renovation industry. The killer is half the house tax money usually goes to fund the local public school system that is slowly destroying our youth’s thinking ability. Instead the educrats focus on control, conformity and compliance with the wishes of the state in all matters. To sum up, we are doing something stupid to fund something stupid. When we get the chance, let’s not screw it up in Cuba and use this numb skull system.

Tomás Estrada-Palma