The Revolution and Earth Rent
The Revolution and Earth Rent
The two basic economic models of the 20th Century were communism and capitalism or variations of the two. Fidel's communism outlawed private ownership of one's own labor output but he banned private ownership and sale of property too. With capitalism labors' output is taxed and earth rent is paid to private owners of land. Plus government taxes housing and other endeavors as well. You are more free in capitalist countries but the economic system is geared to enrich the wealthy class on the backs of labor.
The new economic system in Cuba should allow people to own all the fruits of their labor but also outlaw private collection of earth rent. Instead, that earth rent, based on the location value of a given property, would be paid to run the local, provincial and federal governments. Essentially, buildings and other land improvements as well as labor, sales, imports and exports, etc. would remain untaxed. This will lead to an economic explosion. The farther outlying from the central business areas the lower the earth rent because it is less desirable location wise. The rural areas with farms would be untaxed. So food production is going to soar!
The choice between capitalism and communism is a lousy one. In fact now you see why Fidel and the US government have worked together for decades.
posted by Tomás Estrada-Palma at
3:19 PM
3 Comments:
Tomás, you said, "You are more free in capitalist countries but the economic system is geared to enrich the wealthy class on the backs of labor."
Please send me your list of "poor business" owners looking for employees.
Ziva I'm not sure what your statement means. And I suspect you do not know what I mean either. You see when I use a word like "capitalism" it can convey many different meanings to many different people. So when I say capitalism what I mean is a kind of freer market that heavily taxes labor output, sales of vital human goods and services, imports and exports then all the while allows urban land to be held for pennies in disuse so the wealthy can reap huge profits speculating on land. But you probably hear free markets when I say the word capitalism. But the neo capitalists are not interested in free markets or the real reason for the majority of poverty in Western nations. I promise you this - if you read Henry George's "Progress and Poverty" you will completely understand what I mean and agree with me. Henry has never let me down except for the times when the person refused to even open the book.
Tomas:
Both ends of the spectrum are bad, but I'll keep capitalism as the lesser of both evils, I shall buy and read the book you mention, so I can have a better perspective, thanks
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