In regard to productivity, similar targets would be given to central banks – something recently advocated by the British Labour Party. This would incentivise funding the productive rather than speculative economy while increasing wages alongside the ratio of fixed capital to variable. Automation that serves the needs of people should be the heart of monetary as well as fiscal policy.
Repressing the Speculative Economy
As well as financing the economy of tomorrow – whether it be at the national level with central banks as they turn to meaningful metrics other than inflation, or local and regional banks funding worker-owned business – a critical task remains in shrinking the size and power of the speculative financial economy. In many countries, particularly Britain and the United States, capping house prices would be a major step toward achieving that. And moving the emphasis away from inflation-busting would mean creditors no longer enjoy the structural bias they presently do.
Reforging the Capitalist State
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