Recent posts.

After the 2007-8 crisis, banks took big losses on securities based on US mortgages. The widespread existence of ‘non-recourse’ loans in the US may have been an important factor. Lenders may recover debt from defaulting borrowers’ homes, but not from their other income or assets. The crash of 2008.

By replacing graduated income tax with a flat tax, the affordable Unconditional Basic Income is almost doubled. If some of the flat tax is described as benefit withdrawal, it can be seen that this UBI policy is similar to current government policy. Is a Basic Income affordable?, November 2017.

The Bank of England’s decision to raise interest rates is the first since 2007. The cost of borrowing remains extraordinarily low. It has probably encouraged a misallocation of scarce resources. The crash of 2008, November 2017.

The price of land is determined by its earning potential. An increase in land tax would cause a decrease in the capital value of the land, so that the annual cost to the landowner, paid as tax plus interest, stayed the same. Land tax, September 2017.

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