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Have we been here before? Bryan Kavanagh Land Values Research Group Total Real Estate Sale Prices: Five Major Australian States 80 New South Wales 60 Queensland Victoria billion dollars 40 Western Australia 20 South Australia 0 1986 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 2005 Source: State government departments Total Real Estate Sale Prices: Tasmania, NT and the ACT 4 ACT Tas 3 billion dollars 2 NT 1 0 1986 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 2005 Source: State & Territories Total Australian real estate sale prices (at current prices) 2004 $245.04 bn bn 250 200 150 Increased 3 times since 1996 1989 $87.7 bn 100 1981 $26.90 bn 1973 $10.65 bn 50 1996 $75.52 bn 0 72 74 76 78 80 82 84 86 88 90 92 94 96 98 '00 '02 '05 Total Australian real estate sale prices (in 2005$ bn) 2004 $251.1 1989 $140.6 1973 $77.501 72 74 76 78 80 82 84 86 88 90 92 94 96 98 '00 '02 '05 Total number of Australian real estate sales 2003 766934 thousands 750 1988 694106 1973 651588 650 1976 501997 550 1981 556352 1983 483399 450 1974 406643 74 76 1986 508473 1990 486812 long increase from 1996 interrupted only in 2004 1996 475898 1978 382808 350 1972 1994 579678 1984 579145 78 80 82 84 86 88 90 92 94 96 98 '00 '02 '04 The Economy’s Barometer total real estate sales prices divided by GDP % 30 25 20 15 10 5 0 1972 75 77 79 81 83 85 87 89 91 93 95 97 99 '01 '03 '05 The Economy’s Barometer total real estate sales prices divided by GDP % 30 25 1973 comm/ind peak 20 15 10 5 0 1972 75 77 79 81 83 85 87 89 91 93 95 97 99 '01 '03 '05 The Economy’s Barometer total real estate sales prices divided by GDP % 30 25 1973 comm/ind peak 20 15 10 1974-'75 recession. Whitlam government dismissed 5 0 1972 75 77 79 81 83 85 87 89 91 93 95 97 99 '01 '03 '05 The Economy’s Barometer total real estate sales prices divided by GDP % 30 25 1973 comm/ind peak 1981 residential peak 20 15 10 1974-'75 recession. Whitlam government dismissed 5 0 1972 75 77 79 81 83 85 87 89 91 93 95 97 99 '01 '03 '05 The Economy’s Barometer total real estate sales prices divided by GDP % 30 25 1973 comm/ind peak 1981 residential peak 20 15 10 1982-'83 recession. Fraser government defeated 1974-'75 recession. Whitlam government dismissed 5 0 1972 75 77 79 81 83 85 87 89 91 93 95 97 99 '01 '03 '05 The Economy’s Barometer total real estate sales prices divided by GDP % 1988/89 comm/ind peak 30 25 1973 comm/ind peak 1981 residential peak 20 15 10 1982-'83 recession. Fraser government defeated 1974-'75 recession. Whitlam government dismissed 5 0 1972 75 77 79 81 83 85 87 89 91 93 95 97 99 '01 '03 '05 The Economy’s Barometer total real estate sales prices divided by GDP % 1988/89 comm/ind peak 30 25 1973 comm/ind peak 1981 residential peak 20 15 10 '91-92 recession. Hewson-led opposition loses 'unloseable' 1993 election 1982-'83 recession. Fraser government defeated 1974-'75 recession. Whitlam government dismissed 5 0 1972 75 77 79 81 83 85 87 89 91 93 95 97 99 '01 '03 '05 The Economy’s Barometer total real estate sales prices divided by GDP % 1988/89 comm/ind peak 30 25 1973 comm/ind peak Queensland boom, and end of distress sales from late 1980s boom in other States 1981 residential peak 20 * 15 10 '91-92 recession. Hewson-led opposition loses 'unloseable' 1993 election 1982-'83 recession. Fraser government defeated 1974-'75 recession. Whitlam government dismissed 5 0 1972 75 77 79 81 83 85 87 89 91 93 95 97 99 '01 '03 '05 The Economy’s Barometer total real estate sales prices divided by GDP % 1988/89 comm/ind peak 30 25 1973 comm/ind peak Queensland boom, and end of distress sales from late 1980s boom in other States 1981 residential peak 20 15 10 '91-92 recession. Hewson-led opposition loses 'unloseable' 1993 election 1982-'83 recession. Fraser government defeated 1974-'75 recession. Whitlam government dismissed Keating federal & Goss Q’land governments defeated in 1996. Queensland recession only 5 0 1972 75 77 79 81 83 85 87 89 91 93 95 97 99 '01 '03 '05 The Economy’s Barometer total real estate sales prices divided by GDP % 1988/89 comm/ind peak 30 25 2004 residential peak 1973 comm/ind peak Queensland boom, and end of distress sales from late 1980s boom in other States 1981 residential peak 20 15 10 '91-92 recession. Hewson-led opposition loses 'unloseable' 1993 election 1982-'83 recession. Fraser government defeated 1974-'75 recession. Whitlam government dismissed Keating federal & Goss Q’land governments defeated in 1996. Queensland recession only 5 0 1972 75 77 79 81 83 85 87 89 91 93 95 97 99 '01 '03 '05 The Economy’s Barometer total real estate sales prices divided by GDP % 1988/89 comm/ind peak 30 25 2004 residential peak 1973 comm/ind peak Queensland boom, and end of distress sales from late 1980s boom in other States 1981 residential peak 20 15 10 '91-92 recession. Hewson-led opposition loses 'unloseable' 1993 election 1982-'83 recession. Fraser government defeated 1974-'75 recession. Whitlam government dismissed Keating federal & Goss Q’land governments defeated in 1996. Queensland recession only 5 0 1972 75 77 79 81 83 85 87 89 91 93 95 97 99 '01 '03 '05 Let’s define a bubble ... % 1988/89 comm/ind peak 30 25 2004 residential peak 1973 comm/ind peak Queensland boom, and end of distress sales from late 1980s boom in other States 1981 residential peak 20 19% 'bubble' line 15 10 '91-92 recession. Hewson-led opposition loses 'unloseable' 1993 election 1982-'83 recession. Fraser government defeated 1974-'75 recession. Whitlam government dismissed Keating federal & Goss Q’land governments defeated in 1996. Queensland recession only 5 0 1972 75 77 79 81 83 85 87 89 91 93 95 97 99 '01 '03 '05 The Economy’s Barometer total real estate sales prices divided by GDP % 1988/89 comm/ind peak 30 25 2004 residential peak 1973 comm/ind peak Queensland boom, and end of distress sales from late 1980s boom in other States 1981 residential peak 20 19% 'bubble' line 15 10 '91-92 recession. Hewson-led opposition loses 'unloseable' 1993 election 1982-'83 recession. Fraser government defeated 1974-'75 recession. Whitlam government dismissed Keating federal & Goss Q’land governments defeated in 1996. Queensland recession only 5 0 1972 75 77 79 81 83 85 87 89 91 93 95 97 99 '01 '03 '05 The Economy’s Barometer total real estate sales prices divided by GDP % 1988/89 comm/ind peak 30 25 2004 residential peak 1973 comm/ind peak Queensland boom, and end of distress sales from late 1980s boom in other States 1981 residential peak 20 19% 'bubble' line 15 10 '91-92 recession. Hewson-led opposition loses 'unloseable' 1993 election 1982-'83 recession. Fraser government defeated 1974-'75 recession. Whitlam government dismissed Keating federal & Goss Q’land governments defeated in 1996. Queensland recession only 5 0 1972 75 77 79 81 83 85 87 89 91 93 95 97 99 '01 '03 '05 The Economy’s Barometer total real estate sales prices divided by GDP % 1988/89 comm/ind peak 30 25 2004 residential peak 1973 comm/ind peak Queensland boom, and end of distress sales from late 1980s boom in other States 1981 residential peak 20 19% 'bubble' line 15 10 '91-92 recession. Hewson-led opposition loses 'unloseable' 1993 election 1982-'83 recession. Fraser government defeated 1974-'75 recession. Whitlam government dismissed Keating federal & Goss Q’land governments defeated in 1996. Queensland recession only 5 0 1972 75 77 79 81 83 85 87 89 91 93 95 97 99 '01 '03 '05 Stock markets don’t drive economies .... GDP 1.25 ASX 2 1.20 1.8 1.6 1.15 ASX growth 1.4 1.10 1.2 1 1.05 GDP growth 0.8 0.6 1.00 86 88 90 92 94 96 98 '00 '02 '04 ... real estate markets do 1.25 1.7 real estate sales growth 1.5 1.20 1.3 1.15 1.1 1.10 0.9 1.05 GDP growth 0.7 1.00 1972 74 76 78 80 82 84 86 88 90 92 94 96 98 '00 '02 '04 The economy’s barometer % GDP growth % 30 25 25 20 20 15 15 10 10 5 5 0 1972 0 1982 1992 2002 The economy’s barometer % GDP growth % 30 25 25 20 20 15 15 10 10 5 5 0 1972 0 1982 1992 2002 Land value/GDP: Australia 2.5 2 Australia’s population increased 1.36 times (from 15.0 million to 20.4 million) over the period 1984 to 2004 Real GDP increased 1.86 times Real land values increased 3.2 times 1.5 1 0.5 0 1911 1924 1932 1944 1953 1972 1976 1989 2004 From Terry Dwyer’s The Taxable Capacity of Australian Land and Resources Australian Tax Forum, Vol 18 No. 1, 2003 The charter of the Reserve Bank of Australia is to ensure ... (a) ... the stability of the Australian currency; (b) ...the maintenance of full employment in Australia; and (c) ...the economic prosperity and welfare of Australians It breaches its charter each time it permits a bubble, such as the recent housing bubble, to develop At a recent RBA meeting ... So our barometer is indicating that “Mr Housing Bubble” is about to mock the RBA once again If cartoonists can joke about it .... If cartoonists can joke about it .... ... Can’t the RBA or APRA fix it? If cartoonists can joke about it .... ... Can’t the RBA or APRA fix it? APPARENTLY NOT! Modern economists have been reduced to playing a placatory role .... Neo-classical economics a scandal? Neo-classical economics a scandal? Neo-classical economics a scandal? "Land-based revenue systems are inappropriate because we are no longer agricultural economies” There is a general ignorance of the dynamics between the annual value of land and the economy - and the amount of economic rent is usually grossly understated, eg. ... “Henry George’s ...theory still has it adherents, likeable and mainly older people who overlook the fact that land rent forms such a small percentage of national income: that 2% is nothing compared to the present tax percentages, which are around 30.” - Jan Pen (Groningen Uni) in Income Distribution The heartening story of growth of publicly-created resource rents .... 100% 9% Resource rents 31% 80% 60% 40% 32% 85% 20% Based upon Dr Terry Dwyer,The Taxable Capacity of Australian Land and Resources in Australian Tax Forum, Vol 18 No. 1, 2003 0% 1911 1924 1934 1944 1954 1964 1974 1984 1994 2004 ... degenerated into the privatisation of rents and the levying of taxes to such an extent ... 100% 9% Resource rents 6% 31% 80% taxes 60% 40% 31% 85% 20% Based upon Dr Terry Dwyer,The Taxable Capacity of Australian Land and Resources in Australian Tax Forum, Vol 18 No. 1, 2003 0% 1911 1924 1934 1944 1954 1964 1974 1984 1994 2004 ... that the legacy is a sad tale of declining after-tax incomes 100% 9% Resource rents 6% 31% 80% taxes 60% 40% 31% 85% NET Incomes OF Labour & Capital 20% 38% Based upon Dr Terry Dwyer,The Taxable Capacity of Australian Land and Resources in Australian Tax Forum, Vol 18 No. 1, 2003 0% 1911 1924 1934 1944 1954 1964 1974 1984 1994 2004 How we distribute the GDP ‘pie’ now Less than $30 billion (12%) of Australia's publicly-created $245 billion in resource rents was collected to the public purse in 2004 99.9% of those in BRW’s “Richest 200” list are rentiers As rentiers and homeowners were allowed to privatise $215 billion in publicly-created resource rents, it was necessary to tax incomes and goods and services to that extent Consequently, household debt has risen from $289bn in 1996 to $818bn in 2004 ($41,000 for every man woman and child) The bottom line is that as a proportion of GDP since 1972: net incomes have declined by 40% taxes have grown by 28% annual land values (resource rents) have grown by 150%! Land-based revenues cannot be passed on in prices? “Pure rent is in the nature of a ‘surplus’ which can be taxed without affecting production incentives” - Samuelson Hancock and Wallace, Economics, 2nd Australian ed., p. 623 Land-based revenues cannot be passed on in prices The case of the Poor Widow is always trotted out when increased land value charges are proposed Even when she’s a pensioner, the “Poor Widow” pays for food, clothing and shelter, much of the price of which is the accumulation of cascading taxes She would be greatly advantaged by substantially cheaper prices under a land value charge, provided other taxes are reduced accordingly Any landholders with real payment problems, can defer the charge against their estate “As is” Tax 31.0 % Rent 31.0% Net incomes (L&C) 38.0% If we captured land values Rent 31.0% Net incomes (L&C) 69.0% The Australian GDP pie since 1972.... 100% 12% Resource rents 31% $250 bn 80% 25% taxes 60% 31% $250 bn 40% 63% 38% of $811 bn or $308 bn NET Incomes OF Labour & Capital 20% 0% 1974 1984 1994 2004 .... could have looked like this had we taken more resource rents to eliminate real estate bubbles 100% 12% 80% 12.5% $250 bn Resource rents 12.5% $250 bn 15% taxes 60% 40% 75% of $2000 bn or $1500 bn NET Incomes OF Labour & Capital 73% 20% 0% 1974 1984 1994 2004 Australia’s actual and ‘repaired’ GDP $2005 million 2500 $2050 2000 Effect of doubling charges on land in the early 1970s and then graduating land value capture up to 50% in 2004 1500 1000 $830 actual 500 $302 $302 0 1972 1982 1992 2002 GDP growth (current prices): Australia % 25 1975 20 15 growth off low base 10 5 0 1952 1962 1972 1982 1992 2002 GDP growth (current prices): Australia % 25 1975 20 15 “Property taxes are out of control !” growth off low base 10 5 0 1952 1962 1972 1982 1992 2002 GDP growth (current prices): Australia % 25 1975 20 15 growth off low base 10 5 0 1952 1962 1972 1982 1992 2002 GDP growth (current prices): Australia % 25 1975 20 15 growth off low base 10 5 0 1952 1962 1972 1982 1992 2002 GDP growth (current prices): USA % 16 14 growth off low base 1978 12 10 8 6 4 2 0 1952 1962 1972 1982 1992 2002 GDP growth (current prices): USA % 16 14 growth off low base “Property taxes are out of control !” 1978 12 10 8 6 4 2 0 1952 1962 1972 1982 1992 2002 GDP growth (current prices): USA % 16 14 growth off low base 1978 12 10 8 6 4 2 0 1952 1962 1972 1982 1992 2002 GDP growth (current prices): USA % 16 14 growth off low base 1978 12 10 8 6 4 2 0 1952 1962 1972 1982 1992 2002 GDP growth (current prices): UK % 30 1975 25 20 15 growth off low base 10 5 0 1952 1962 1972 1982 1992 2000 GDP growth (current prices): UK % 30 “Property taxes are out of control !” 1975 25 20 15 growth off low base 10 5 0 1952 1962 1972 1982 1992 2000 GDP growth (current prices): UK % 30 1975 25 20 15 growth off low base 10 5 0 1952 1962 1972 1982 1992 2000 GDP growth (current prices): UK % 30 1975 25 20 15 growth off low base 10 5 0 1952 1962 1972 1982 1992 2000 State of the Market: have we been here before? % 1988/89 comm/ind peak 30 25 2004 residential peak 1973 comm/ind peak Queensland boom, and end of distress sales from late 1980s boom in other States 1981 residential peak 20 19% 'bubble' line 15 10 '91-92 recession. Hewson-led opposition loses 'unloseable' 1993 election 1982-'83 recession. Fraser government defeated 1974-'75 recession. Whitlam government dismissed Keating federal & Goss Q’land governments defeated in 1996. Queensland recession only 5 0 1972 75 77 79 81 83 85 87 89 91 93 95 97 99 '01 '03 '05 Have we shattered some shibboleths? Have we shattered some shibboleths? Repetitive cycles of boom and bust are NOT natural Land values DO constitute an adequate revenue base High taxation and land prices are NOT inevitable A revenue switch to resource rents WILL create sustainable economic growth The poor widow will NOT lose out if we capture land values There IS a natural growth fund we can tap for the provision of quality public education, health and infrastructure Untaxing labour and its products and capturing more land value FREES labour and CONSERVES the environment State of the Market Have we been here before? Bryan Kavanagh Land Values Research Group State of the Market Have we been here before? Bryan Kavanagh Land Values Research Group State of the Market Have we been here before? Bryan Kavanagh Land Values Research Group In the 1845 parliamentary Corn Law debates, Richard Cobden (1804-1865) noted how the people had been “cheated, robbed and bamboozled”: “ or a period of 150 years after the conquest, the whole of the revenue of the F country was derived from the land. During the next 150 years it yielded 19/20ths of the revenue. For the next century, down to the reign of Richard III it was 9/10ths. During the next 70 years to the time of Mary it fell to about 3/4ths. From this time, to the end of the Commonwealth, land appeared to have yielded one half the revenue. Down to the reign of Anne it was 1/4th. In her reign it was 1/6th. For the first 30 years of the reign of George III the land yielded 1/7th of the revenue. From 1793 to 1816 (during the period of the land tax) land contributed 1/9th. From which time to the present 1/25th only of the revenue had been derived directly from the land.“ In the 1845 parliamentary Corn Law debates, Richard Cobden (1804-1865) noted how the people had been “cheated, robbed and bamboozled”: “ or a period of 150 years after the conquest, the whole of the revenue of the F country was derived from the land. During the next 150 years it yielded 19/20ths of the revenue. For the next century, down to the reign of Richard III it was 9/10ths. During the next 70 years to the time of Mary it fell to about 3/4ths. From this time, to the end of the Commonwealth, land appeared to have yielded one half the revenue. Down to the reign of Anne it was 1/4th. In her reign it was 1/6th. For the first 30 years of the reign of George III the land yielded 1/7th of the revenue. From 1793 to 1816 (during the period of the land tax) land contributed 1/9th. From which time to the present 1/25th only of the revenue had been derived directly from the land. Thus the land, which anciently paid the whole of taxation, paid now only a fraction ... notwithstanding the immense increase that had taken place in the value of rentals. The people had fared better under despotic monarchs than when the power of the State had fallen into the hands of a landed oligarchy, who had first exempted themselves from taxation, and next claimed compensation for themselves by a Corn Law for their heavy and peculiar burdens.” UK revenue base over six centuries % 100 Revenue & Cost of Living = 100 80 60 LAND REVENUES TAXES 40 20 Derived from Richard Cobden’s parliamentary Corn Laws debate (1845) 0 1290 1215 Magna Carta 1390 1490 1590 1690 1790 Land Values Research Group 2005 1890 Thorold Rogers (1823-1890): wages decline people are denied cheap access to land when “The 15th century and the first quarter of the 16th were the golden age of the English labourer, if we are to interpret the wages which he earned by the cost of the necessaries of life. At no time were wages, relatively speaking, so high, and at no time was food so cheap .... It is possible that as the distribution of land became more general, and the tenancy for a term of years became habitual, the phenomenon which has often been noticed of peasant proprietorship, a high rate of wages paid to the free labourer, may have been exhibited in the period” James Edwin Thorold Rogers, “Six Centuries of Work and Wages”, 11th edition, 1912, p.326 Disposable income of English Labourer (family of five) % 300 Revenue & Cost of Living = 100 280% 'Merrie England' 250 HIGH DISPOSABLE INCOMES 200 Chart by Rev WDP Bliss, based on Thorold Rogers 150 LOW DISPOSABLE INCOMES cost of living line 100 50 0 1290 1390 1490 1590 1690 1790 1890 Disposable income of English Carpenter (family of five) % 400 Revenue & Cost of Living = 100 'Merrie England' 380% HIGH DISPOSABLE INCOMES 300 Chart by Rev WDP Bliss, based on Thorold Rogers’ “Six Centuries of Work andWages” LOWER DISPOSABLE INCOMES 200 cost of living line 100 0 1290 1390 1490 1590 1690 1790 1890 Disposable income of English Labourer and Carpenter (families of five) % 400 Revenue & Cost of Living = 100 'Merrie England' 380% HIGH DISPOSABLE INCOMES 300 Chart by Rev WDP Bliss, based on Thorold Rogers’ “Six Centuries of Work andWages” LOWER DISPOSABLE INCOMES 200 cost of living line 100 0 1290 1390 1490 1590 1690 1790 1890 Labourer’s disposable income against revenue base % 300 Revenue & Cost of Living = 100 'Merrie England' 250 280% Chart by Rev WDP Bliss, based on Thorold Rogers’ “Six Centuries of Work andWages” HIGH DISPOSABLE INCOMES 200 150 LOWER DISPOSABLE INCOMES 100 cost of living line 50 land rents taxes 0 1290 1390 1490 1590 1690 1790 1890 Disposable income of English Labourer (family of five) % 300 Revenue & Cost of Living = 100 280% 'Merrie England' 250 HIGH DISPOSABLE INCOMES 200 Chart by Rev WDP Bliss, based on Thorold Rogers 150 LOW DISPOSABLE INCOMES 100 cost of living line 50 land rents taxes Chart based on Richard Cobden 1845 0 1290 1390 1490 1590 1690 1790 1890 Carpenter’s disposable income against revenue base % 400 Revenue & Cost of Living = 100 'Merrie England' 380% HIGH DISPOSABLE INCOMES 300 Chart by Rev WDP Bliss, based on Thorold Rogers’ “Six Centuries of Work andWages” LOWER DISPOSABLE INCOMES 200 cost of living line 100 land rents taxes 0 1290 1390 1490 1590 1690 1790 1890 Homer Hoyt: the bursting of land price bubbles precede financial collapse including Wall Street’s in 1929 Real estate peak 1925 1929 stock market collapse We remember that the OPEC oil crisis in October 1973 created worldwide recession? We remember that the OPEC oil crisis in October 1973 created worldwide recession? Do we? We remember that the OPEC oil crisis in October 1973 created worldwide recession? Do we? Can we remember the land boom that preceded the OPEC crisis? We remember that the OPEC oil crisis in October 1973 created worldwide recession? Do we? Can we remember the land boom that preceded the OPEC crisis? Usually not. As with the 1925 land boom, it’s almost as though it has been written out of history We remember that the OPEC oil crisis in October 1973 created worldwide recession? Do we? Who remembers the land boom that preceded the OPEC crisis? Usually not. As with the 1925 land boom, it’s almost as though it has been written out of history Sir William Petty (1623-1687) The first thing Oliver Cromwell did after he conquered Ireland (16491652) was to have it valued William Petty won the contract using cheap labour Physician, inventor, economist .... duellist Completed his ‘Down Survey’ in an amazing 13 months Understood theory of rent before Ricardo: in 1661 he said Ireland was “worth but 7 years’ purchase”(of its rents), or a yield of 14.3%! John Locke apostle of freedom 1632-1704 I“t is in vain in a country whose great fund is land to hope to lay the public charge on anything else; there at last it will terminate. The merchant (do what you can) will not bear it, the laborer cannot, and therefore the landholder must: and whether he were best to do it by laying it directly where it will at last settle ... let him consider.” -Some Considerations of the Lowering of Interest In the beginning ... - “Put to the vote: as many are of the opinion that a public tax upon the land ought to be raised to defray the public charge say ‘yea’. “ - “Yea! “ - “Carried in the affirmative - none dissenting. ” [Philadelphia's first tax law 30 January 1693] Average Weekly Wages: USA workers on non-farm payrolls 350 Constant 1982 $ per week $315.44 (1972) -13.8% 300 $271.96 -19.2% 250 $254.87 (1993) First half of Kondratieff Wave Second half of Kondratieff Wave 200 $196.47 150 1947 1950 1960 Source: US Bureau of Labor Statistics 1970 1980 1990 2000 Average Weekly Wages: Australia 350 Constant 1983 $ per week $318.40 2004 $312.60 1983 300 $285 .00 1991 250 First half of Kondratieff Wave Second half of Kondratieff Wave 200 150 1947 1950 1960 Source: Australian Bureau of Statistics 1970 1980 1990 2000 Kondratieff Long Wave Cycles Nikolai Kondratieff 1892-1938 1814 1873 First Wave 1789 1920 Third Wave Second Wave 1849 Smoothed - Diagrammatic only 1896 Kondratieff Long Wave Cycles - the seasons Nikolai Kondratieff 1892-1938 Kondratieff Long Wave Cycles - the seasons Nikolai Kondratieff 1892-1938 Kondratieff Long Wave Cycles - the seasons Nikolai Kondratieff 1892-1938 Kondratieff Long Wave Cycles Nikolai Kondratieff 1892-1938 An impending Kondratieff ‘winter’ could be allayed by switching the revenue emphasis: ....from tax imposts upon people and businesses who are doing productive work ... ....to revenues based upon the value of privately held lands THE RICHES OF OZ The Economic Consequences of Bubbles Australia: A Case Study Burst bubbles and rising unemployment % 35 total real estate sale prices divided by GDP 30 25 20 ? ? 15 10 5 unemployment 0 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 Australian Land Price Indices Five major States 3 WA Q'ld 2.5 Vic NSW 2 SA 1.5 1 1984 1985 1986 1987 Commonwealth Grants Commission 1988 1989 1990 1991 1992 1993 Sir George Edward Gibbon Grey v. Wakefield 1812-1898 1796-1862 Characterise both sides of the battle to privatise rent Grey: soldier, explorer of WA, public administrator Wakefield: brat, sociopath, devised ‘Wakefield Plan’ Wakefield: England, Canada, New Zealand Grey: Ireland, South Australia, New Zealand, Cape Town Grey won the battle but Wakefield has won the war because we have come to accept high land prices and taxation as the natural order of things