Land Value Taxation Campaign

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Home Blog Free markets and safety nets

Free markets and safety nets

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Free markets are not truly free unless land is freely available at the margin. Which is a complex idea and depends on an understanding of Ricardo's Law of Rent. You cannot have a partially free market any more than one can be partially pregnant.

The economy is not a circus stunt

In order to show that they are not totally lacking in compassion, advocates of these "free markets" then argue for a safety net for those who fall out of the system. But a safety net should not be necessary. The economy should not be a circus stunt. The system should be safe to start with. That is not an unattainable ideal.

Government would then only have to step in cases of emergencies such as natural disasters, wars, etc. Once there is a safety net, it becomes necessary to levy taxes in such a way that the two combine to establish a poverty trap and drive up employment costs. A vicious cycle is then set in place which is not sustainable.

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