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Cameron is the man with a plan

Speaking at the Conservative Conference, David Cameron claimed to be “a man with a plan”. He is not. Neither party has given any indication that they are capable of coming up with any policies that would be better than letting events take their course, which should lead to a natural recovery from about 2015, though the Japanese problems have taken much longer and still there is trouble with the economy there.

Ttax cutting may prove disappointing and will end up in higher land prices. Where taxes are exceptionally high, for example in Sweden, house prices tend to be low, except in a few hot spots. One reason could be the high taxes which leave people with less money over to stoke up the house (land) prices there. The net result is that the money goes on providing decent public services instead of forcing people to work for 20 years or more to pay the interest on their mortages. The real problem with the Swedish high-model is the usual one – wrong sort of tax. However, the Tories in particular might ponder that and a lot more else about Sweden, especially given their interest in its school system, which incidentally would end up having entirely different consequences.

The policy that would promote recovery is land value taxation.