The most fundamental problem today?

The most fundamental problem today seems to be in making sure that everyone has a way to earn a living.

Which the poor of the world do not have. Mainly because they, by definition, command almost no resources (to work with, or that they can offer). And the economies of whole countries, like Spain, France or Italy, and the Maghreb, have not found a way to provide jobs for many of their youth and minority groups. In rich countries of the economic North, we engineer full employment only via massive over-consumption and gross waste of resources.

Will the new leaders, of the Labour Party or in the second Tory government, find the radical ideas that are indeed needed? To address a world bedevilled with climate change, hollowing of jobs and inequality.

One such radical idea could be giving substantial unearned income, from trading what some like to call the "licences, that they can buy and sell" that are so disparaged.

Like permits, granted to every person for sustainable quantities. Of things such as transport congestion, overcrowded parking, CO2 and greenhouse gases, air pollution, airport capacity as well as flight and traffic noise - which disrupt people's lives - and, in the case of cars, kill tens of thousands and maim half a million yearly in Europe. Or even for social goods, like housing vouchers. And possibly, more contentiously, education vouchers.

The same incentives could also be made to work to dis-incentivise abuse of animals (via taxes - which are after all negative permits). Which would be a lot more effective, and humane, than today's free for all.

Unearned income, from the sale of permits, is in many ways like the "Basic Income". Which is a grant of income to everyone - with which people are experimenting in Utrecht, Finland and formerly in Canada. But permits will not worsen, as do basic incomes, existing inequalities in wealth. Because they recycle money from the wealthy to the poorly resourced.

And such granting of tradeable permits retain motivations to be frugal and productive. So, to flourish, skill and virtue would still be needed. And the market economy will continue to offer its great strengths - of opportunity, innovation and productivity.

Permit traders, it's my guess - along with sports and the arts - will be a big part of the next economy.

[383 words]

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[GRAPHIC??: EU denizen and Kerala/Sri Lanka peasant, respectively next to their allotted: tonnes of oil equivalent; sacks of grain; small barrels of veg oil; and sides of meat, poultry and fish; fractions of a car (requires research)]

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Mark Reader is an economist in Cambridge, and community worker.

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