Cause and Effect: Value Capture ignored, ICAC Rent Seekers revealed

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Ugandan anti-corruption sign

Renegade Economists podcasts 337 & 338

Broadcast on 3CR each wednesday 5.30 – 6pm.
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The last two episodes reveal some of the most pertinent pressures on society. How to finance the much needed (rail) infrastructure to relieve gridlock pressures? And if we do get infrastructure built, does the public accept that infrastructure makes life easier? If so, this will be reflected in higher nearby land values. But what happens if we leave this magic money, this publicly funded private windfall – untapped?

The answer can be seen in the rampant misconduct unveiled at NSW’s Independent Commission Against Corruption. Whether they are donations from miners or developers, both are chasing lightly taxed windfall gains. These are known in economics as economic rent or unearned income. Twisting the truth in such a manner is known as rent-seeking.

Windfall gains have delivered the seemingly overnight riches to Nathan Tinkler and blasted Gina Rinehart into the top 0.01%. The same can be seen in property.

The urgent need for Value Capture as a means of financing infrastructure was discussed with Melbourne Uni lecturer Chris Hale in episode 337. Listen

Read this interesting piece for more detail on TIF’s and VC.

This week’s interview with citizen journalist Margo Kingston (nofibs), fmr Fairfax journalist, focused on the extraordinary ICAC hearing. Follow Margo on twitter.

Mentioned is an article by Neil Chenoweth. I believe more is to be revealed about McNamara. How did she raise $300K and importantly, how did she leapfrog other candidates into the Federal Parliament?

Lobbyocracy – the hypocrisy of democracy!

Stay tuned to to the weekly Renegade Economists podcast, with another high profile guest coming up next.

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