LATEST NEWS FROM PARTNER CAP X
2 June 2017
How can Labour’s leaders be in thrall to Marx? - This election is only postponing the big questions - Land Value Tax is a great idea – but it’ll never happen - Pakistan cannot build its way to prosperity - Will Bitcoin always bounce back?
The most alarming thing about Jeremy Corbyn and the clique at the top of the Labour Party isn't their extravagant spending plans. It isn't their association with the IRA or even their sheer ineptitude. It's that they refuse to give up on Karl Marx, a man who has a good claim to having caused more suffering than any other human being in history. They have fallen for a bearded prophet. Let's hope Britain isn't about to do the same.
Whether because of voter fatigue or a sense that the contest is a foregone conclusion, the election campaign is limping rather than racing to a conclusion. But that's also because this campaign has been one in which the most important questions - for example about the future of the Labour Party, and the direction of Brexit - won't be answered until after polling day. After the vote, the fireworks start.
The Labour Party has, unusually, come up with a good policy: the Land Value Tax, an idea written off by the Conservatives. While Labour's proposal is far from perfect, a tax on land has a lot going for it. First, as Milton Friedman pointed out, because land is finite, it is the only tax that does not distort supply. More importantly, the LVT is unlike any other tax in that it makes the economy more efficient.
From a metro system for Lahore to smooth new motorways, Pakistan's politicians have a penchant for spending lavishly on infrastructure. And none more so than the country's prime minister, who is championing a fresh building binge part-funded by China. Such projects, however, will do little to boost the economy. For that, those same politicians would have to take on the vested interests holding Pakistan back.
The soaring values of Bitcoin and other cryptocurrencies look like a bubble ripe for bursting. People are buying without any clear idea of what these currencies are and what they are for - which is always a recipe for disaster. But while cryptocurrencies are neither entirely secure nor entirely frictionless, there is still a genuine market demand out there for what they are and what they can do.
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