Perhaps what is worth revisiting is the absolute influence of legal change, and its real impact on prices.
One of the more recent events was the tax reform act of 1986. At the stroke of the pen, a tax dependent real estate valuation and all the jobs surrounding it were wiped out by a handful of individuals and their opinions.
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To keep it simple, the US has no choice but to create true value through legal change. The reason being is that wealth has been very poorly distributed in that 1% of the population controls 80% of the assets, and the large part of the remainder is basically insolvent, in that savings were transferrred to debt, and then the financed debt ladened asset prices declined.
The US has a choice.
The US is trying to continually support bubbles that should be allowed to pop. As long as this activity continues , real enterprise and those that have savings have to keep paying until there is nothing left but the bubble assets which are really equal to lessor underpinnings.
What needs to occur is to allow savings and the strongest enterprises to proceed with wealth gaining in that they represent the truer hardfast wealth, that made it possible for bubbles to exist in the first place.
In order to accomplish this , one needs to eliminate that which keeps the best enterprises and savings from reaching their pinnacle.
These items are:
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The US Two party system that has badly managed the assets that it has. Rather than the best choices which would have provided support for true enterprise and savings, other special interest choices were made. This approach has been given its time, and because of the result must be replaced by a better approach.
Common sense hands on management, and taxes paid for actual usage make the most sense. The US should be managed from the township level, whereby each citizen has 1 township interest that is a bankable asset whose value is decided by consumption taxes via sales taxes collected locally. Thus each township will in effect be owned by its people, and its heros will be those responsible for leading the way to increasing sales/consumption tax revenues. The consumption/sales tax is the only tax paid/allocated to any government.
What is very important at this point is that the local township will vote by internet how the consumption/sales tax revenue is to be allocated. Each project will be awarded to the most qualified, and the township will be rewarded for making good choices or bad choices. But since the township is owned by its people, there will be reason to make the best choices.
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For the private sector responsible for manufacturing and innovation of the products whereby when purchased create the tax base, and thus the value of the township......the private sector will be represented by common stock that trades on an electronic stock exchange whereby all employees are paid on merit. The percentage of revenue/stock that is compensated is voted on by the employees, and the progress of the company depends on the job done by the responsible employees. Of course common stock is non-obligatory non-interest debt.
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The above sounds very simplistic, however would be a far better approach than what the US currently has.
Other items....
Education.........The internet is the core
Health............Innovation is rewarded, but the practice is not run as a business......
Banking........The current fractional system is disallowed and all loans heavily discount the assets in play.
Legal largesse.....needs to be at a minimal cost to productivity in that it negates township and common stock valuation.....
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The point is whether or not one's economy is progessing or not progressing, the economy is held together by legal contraints.
Legal constraints hold the key to property evaluation and are most real when supported by capitalistic demand. Socialistic demand lends itself to weaker valuations......
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The Township/Common Stock Model would create a strong country, no matter which country adopts it.
Everyone has skin in the game.
