Monday, April 7, 2025

East Russian Infrastructure


The vast majority of Russia has no infrastructure. Neither does Alaska or northern Canada. Cities have roads, but are not interconnected. There is a reason for this - no people.

Russian and Chinese population figures are not honest. They don't have the same census infrastructure found in the United States - and overestimation is endemic. The only obstacles to freedom for Russia Asia is for the ethnic Russians to leave (the inevitable result of the war on Ukraine) and the expense of food. If American style lab grown meat and Dutch green house technology is developed from the Urals to Greenland, this obstacle is overcome - provided resource extraction income is adequate until an independent economy is developed - which takes people to do. Lower food prices will mean more population - especially if jobs are created.

South Asian Russia, which is Muslim, needs to be set free for Turkic and Persian nations to absorb. Inuit, Mongolian and First Nation peoples can reunify to an ethnically similar nation, provided they are allowed a fair share of extraction income. They could be the Saudis of the north. 

Trump Ends Neoliberalism


Trump has broken the back of neoliberalism - as his voters wanted. He mimics their social biases (which he does not believe privately - except the racism) and has essentially thrown the wealthy and upper middle class under the bus. 

He has also created industrial policy, with tariffs which, with correct support, can be used to provide what his voters want while making prices rise for everyone else. He has also created conditions for value added taxes. The question is whether he or a successor adopt this solution and the extent to which exemptions and exclusions from the VAT are allowed and, if so, who controls them. The Congress cannot really do the fine work on doing this fairly that the executive branch can - like tariff policy.

The question is whether or how to give more money to the bottom third of income holders - which is about 77% of the population - either through a higher minimum wage & higher child tax credits - distributed through wages rather than either the IRS directly or indirectly through individual tax filing.

Also, the financial assets that hold pensions are not doing poorly. The speculative side is losing money. His voters don't care. I don't either. The bottom 77% of households have tax free income (and if they are invested in speculative assets, they are getting what they deserve) or are temporarily poor because they have had business losses - including those carried over. Switching to a VAT economy eliminates these advantages - especially if an ASSET VALUE ADDED TAX allows for employer based taxation of high wages, dividends and interest and ignores individual capital gains and losses. The latter can also lead to employee ownership - an essentially cooperativists concept that libertarian socialists support.

A tariff policy favors workers (and by implication overseas workers) over capital. Because it (or VAT) can be manipulated by the executive branch, using them (or VAT exemptions) creates industrial policy that the Soviets and Chinese would envy. 

While Trump voters do not understand this, the Russian and Chinese systems where the connected have the power are the same as the old Soviet system. Oligarchs and senior party members have the some crony relationships with the supreme leader  (and his secret policy) in either case. For some reason, American conservatives don't get the joke. Too funny.

Wednesday, April 2, 2025

How The Finance Industry Destroys Economies


Capital is the stock of productive equipment. The capital your chart refers to is wealth. Wealth uses finance to allocate value. Wealth increases are under taxed in Trump world and his donors want this to continue. The way to overcome this is an Asset value added tax that can be adjusted to regulate the velocity of finance. 

The problem with the wealth I'm balance is the power the wealthy have over workers/consumers. The only real cure is the rise of a cooperative system that abandons finance by having worker controlled firms provide non-financial debt and democratic control of the means of consumption (make v buy).