Ideas to Improve the Economy
Author: Duane Johnson
3
Jul
The economy seems to be stabilizing, but almost everyone agrees the patient is still sick. I’ve been encouraged by several economic ideas that are popping up around the internet.
My favorite is the return to a
single “unimproved property” tax that would promote the most efficient use of land. Rather than taxing people who don’t even own property and are still getting their feet under them, a single property tax would shift the burden to the wealthy while also giving prime land a churn rate so that new ideas and ventures get their day in the sun.
A second idea is a re-thinking and
democratization of the banking system itself. Basically, we would lower the bar for individuals or corporations to start a bank and lend money. Then, instead of using an arbitrary “credit score” between entities that don’t really know each other, these new (smaller) banks would lend to those within their social network–in other words, if you know that your friend Simon is credit worthy, then you will lend to him, but not to your friend Bob who is more likely to live it up on your tab.
Because of the massive improvements to our communication backbone, and the fundamental shifts in the economy, new ideas are bound to make a difference right now. Does anyone else have some worthy ideas to share?
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4 Responses for "Ideas to Improve the Economy"
“Then, instead of using an arbitrary “credit score” between entities that don’t really know each other, these new (smaller) banks would lend to those within their social network–in other words, if you know that your friend Simon is credit worthy, then you will lend to him, but not to your friend Bob who is more likely to live it up on your tab.”
Sounds kind of scandalous.
@kerrjac: lol, I think you’re joking… but if not, care to explain?
Are you hiding or did you forgot the fact that the all system was(*) based on massive credit to finance massive consumption… how this kind of economy would return to past state and stabilize without massive credit ? If only your friend Simon can ‘borrow’ and ‘consume’ then the economy will decline again…
(*)was : systems are not immutable.. that’s life
@erwin: The ideas I am most excited about are transparency and innovation. It seems to me that the current system is both opaque and tired. So the question of where money starts (credit vs. debt etc.) is kind of secondary to the main concern: how do we let innovators into what is now a kind of banking cartel? And how do we let normal people see into the system so they can become regulators of our own system?
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