[S11 E42] New
On this week's show, Prof. Wolff presents updates on Biden's and Democrats' fading tax reforms, German and Austrian politics shift left, Yale sells out to rich donors, product shortages often deliberate, wages for housework, and real US food inflation.
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“Marxism always was the critical shadow of capitalism. Their interactions changed them both. Now Marxism is once again stepping into the light as capitalism shakes from its own excesses and confronts decline.”
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- Biden's and Democrats' fading tax reforms: https://www.nytimes.com
- German and Austrian politics shift left:
- Yale sells out to rich donors: https://yaledailynews.com
- Product shortages: https://www.theguardian.com
- Wages for housework: https://www.news24.com/parent
- Food inflation: https://www.bbc.com/news/business-58659478
Showing 4 comments
COVID19 exacerbated but did not cause the rise in “rents” in the United States. There are multiple causes preventing an increase in supply to demand the demand as young adults leave a parent’s home and live independently. There are many instances where existing residents oppose zoning variances to permit higher density development or oppose using public funds to subsidize the purchase of land and the construction of housing units affordable to low and moderate income households. All this acknowledged, the fundamental problem is twofold: (1) the over-taxation of housing (which is a depreciating asset); and (2) the under-taxation of land value (which allows owners to sit on vacant land for years or decades, thus artificially creating a supply shortage that drives up land prices; and, which makes land an attractive asset for speculation rather than purchase for development).
The green/black coalition of environmentalists and Christian Democrats—who rule that “land” together—adopted the tax. Setting it at a very low rate and aiming it at metro land, made it more politically palatable, but less economically effective. The tax (if still around) won’t start up until 2025 (plenty of time for opponents to regroup). It took the ruling coalition seven years to put this tax on the books.