Civil wars sometimes fade away from exhaustion and sometimes they end through a peace agreement. The bloodletting in Bosnia in the early 1990s ended with the Dayton Accords of 1995. Nobody heard much about Bosnia thereafter until February of 2014 when widespread protests erupted across the country. It quickly became clear to outside observers that the armed conflict of twenty years ago had continued in the form of economic warfare against the citizens of Bosnia.
Politicians cannot be trusted: they do not keep their promises. That mantra is deployed to justify the apathy displayed at times of general elections. But the corrosive effect of that popular assessment is once again driving the rise of extremist political parties in Europe. The deep-seated cynicism is understandable, but it is corroding the foundations of the democratic process. What makes this crisis tragic is that both the voting public and the politicians seeking a mandate to govern are victims of a willful blindness in the theory of economics.
Prince Charles believes that he has a clear vision for his future kingdom. He has certainly mastered the pop mantras, such as: sustainability, human scale communities, respect for people of all faiths. But there is a flaw in his thinking: he wants to tag his vision onto the culture of greed. The physical embodiment of his hybrid community is annexed to Dumfries House in Scotland.
Ideas are windows through which a mind sees. But an idea can be obscured. We easily confuse the finger marks on the misted pane with the reality beyond. So it is with the idea of “the value of land”. Clearly understood, it reveals a remarkable world. While there are those who would like us not to see that world, it is mostly lost because of a habit of thinking and speaking that has been insufficiently challenged. There is also a horror that for thousands of years has run around the world causing mayhem and suffering. It began with the first pre-neolithic claims by the powerful to personal dominion over the greatest resource, primary for all living things – land. It has run through the endless violent conquests every people experienced, through to the modern Enclosures, the planting of the American flag on the moon, and on to the present time, of miners, loggers, and landless poor driving to death the last tribes in the Amazon rain forest.
Conspiracy theory is the lazy way to explain political puzzles. And it lets the villains off the hook. That’s the case with the failure of politicians to reform the public’s finances. The explanation is simple: politicians won’t make the changes that would make everyone better off because they are cowards. How else can we explain what happened when an eminent economist wrote three reports for the British government? Two of them were published with official fanfare. His report on taxation was buried.
The manifestation of evil in Europe in the 20th century began and ended with events in Bosnia. An assassination in Sarajevo triggered World War 1. And after the fall of the Soviet empire, the people of Bosnia endured genocide. Today, Bosnia-Herzegovina (B-H) is a fractured territory whose peoples need policies that integrate them into a stable social system. This essay describes the financial principles that would deliver economic prosperity and social harmony. New policies must deliver on two needs:
-acceptance that the political system treats every citizen equally and fairly, and respects ethnic and cultural diversity; and
-economic growth that is not disrupted by the systemic failures which continue to create mass unemployment in market economies.
The cornerstone of the new financial model is technically called “economic rent”. Because of intense opposition to reform by the privileged elites, adoption of the necessary tax reforms is not the easy option. Could the People’s Plenums that have emerged in towns throughout B-H override the opposition of the political elites?
China is now in the unique position of being able to learn from the tragedies of Western nations, to create a post-capitalist society based on the freedom and equality of all citizens. This can be achieved if the financial system is constructed on respect for the division between what the individual citizen may retain as […]
THE financial ligaments of the statecraft of greed are most visibly displayed in Italy. The man who symbolises the culture of corruption is Silvio Berlusconi, a convicted tax fraudster and Italy’s longest-serving post-war prime minister. To reassert his power, he has now forced the government to abandon a tax on the flow of income that […]
The financial mechanism that damages people’s mental health and their culture is being laid bare by the policies ordained by the Beijing Politburo. The communists are telescoping into a few formative years the policies that took centuries to evolve in Western Europe. It’s all to do with the way government funds the public’s services. Instead […]