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Rent/interest are payments for nothing.

Well, no.

Rent is payment for the use value of the land you are occupying. That land could have been used for warehousing, farming, water storage, sewage treatment or any number of other things. The fact that you are living there means that it can't be used for those things. Rent is what you pay to make sure people don't use your living room for sewage processing. That has a real value.

Interest is payment for deployment of state power (money) to serve your goals. That, as well, has a real value.

If this money is instead used for public consumption (as taxes)

But taxes do not create or enable public consumption. Public spending creates public consumption. You do not need to tax in order to spend - you need to tax in order to prevent other people from spending (because you want to free up more capacity in the private economy than the inefficiencies in the private sector create automatically).

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Mon Jun 6th, 2011 at 01:49:04 PM EST
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