Geonomist Jeff Smith recently posted this comment attached to an article that describes the growing income inequality in America. His comment tells about an obvious and totally rational approach to resolving the problem. When will we muster the political will to implement it.–t.h.g.
“Of all the US states, the one with the least income disparity is not the one with the highest income tax but one without any personal income tax at all, yet with a “rent” dividend. That’d be Alaska, which shares oil revenue among its residents. Sharing “rents” — the essence of geonomics — is the best way, better than more jobs or higher wages, to fundamentally and profoundly close the income gap.
Jobs and wages can not succeed. The whole point of techno-progress is to liberate humanity from drudgery. Forcing people to do busy work breaks the human spirit.
What has to happen is for people to feel worthy of an income apart from their labor. They also must feel that all their income is theirs, and that losing some to a tax is not fair. That’ll bring up the income floor.
To bring down the income ceiling, forget about taxing the rich. Just quit subsidizing the rich, like bailing out Wall Street. Instead of giving away government-granted privileges — everything from corporate charters to land titles — for a mere pittance (no more than a filing fee), run government like a business and charge the full market value, the annual rental value, for those little pieces of paper such as resource leases and patents and copyrights.
Geonomics will close the income gap with a wallop. And the policy will close the political power gap, too. So we won’t have to worry about inequality ever rising again.”
# # #