Watch now (41 mins) | Economists work with two factors of production: labour and capital. The classical economists worked with three. Land and rent got buried inside capital, and nobody noticed what that cost
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In this conversation, Fred Harrison explains the basics of the economy in plain terms. Using the UK as a benchmark, he shows that rent makes up around half of national income. Yet it doesn't appear in the models economists use to advise governments.
We cover:
Why the global economic system is effectively bankrupt How land and rent were erased from economic theory Why all taxes ultimately come out of rent Why subsidising first-time buyers pushes up land prices Where rent really comes from, and why London's wealth belongs to the whole country How the 18-year cycle builds to a crash, and why 2010 matters Why AI is behaving like a classic land boom Why Keynesian money printing and right-wing tax cuts both fail Why both left and right end up funding higher rents How authoritarianism grows when politics keeps failing
Fred's last book, Cheating, traces how rent has been captured and abused over 5,000 years.
Do you think left and right are the wrong frame? Put your challenge in the comments. We'll bring the best questions back to Fred in a future broadcast.
Subscribe for the weekly conversations with Fred, and read more on my Substack.
Fred's new book unpacks the full argument. https://shepheardwalwyn.com/product/cheating-the-human-project-and-its-betrayal/
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