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via Job Automation Threatens Workforce – Bloomberg.

One of the dominant issues of this election campaign is the fitness of the contending leaders to manage the economy. Quite rightly people complain of this being a boring election campaign, as the big issues that concern us are largely ignored. Given the superficial nature of the campaign what is never mentioned is the incompetence politicians of all parties have demonstrated when managing the economy. Although my essay is about the UK, the issue of economic mismanagement is a characteristic of all governments of the Western world, there are no politicians of the calibre of Franklin Roosevelt or George Marshall. Instead we have a Rand Paul, David Cameron and Angela Merkel none of whom have an understanding of the current economic crisis.

When I was a teenager the recurrent problem was the balance of payments deficit, there were continuing runs on the pound sterling and the government was constantly having…

This article caught my eye. The author, Greg Ferenstein, concludes “it might be wiser to redirect anger towards those who get in the way of new housing, rather than rely on taxes to solve our problems.” Yes, and no.

Back up. What’s the general idea? Well, Matthew Rognlie found that “recent trends in both capital wealth and income are driven almost entirely by housing.” This is not entirely in contrast to the findings of Piketty, rather derived from Piketty’s data: “Also using Piketty and Zucman (2013)’s data, I find that a single component of the capital stock—housing—accounts for nearly 100% of the long-term increase in the capital/income ratio, and more than 100% of the long-term increase in the net capital share of income.”

This shouldn’t be a surprise. Individuals who are forced to spend almost all of their income on housing can’t save any money. We’re talking about people forced…