Why do we cycle out economic production and get little/nothing in return? Land price inflation is the #1 reason!

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When the price of land goes up,everything goes with it. What cause land prices to go up? "Improvements",from increase production to putting in house improvements cause land price inflation.(among speculation) The $64,000 question,how to keep land prices from creating "deflation"? Make land free for all except where there is production? Humans is the only life form that pay to live on this earth,what`s our problem????

tayl44's picture
tayl44
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Jul. 31, 2007 3:01 pm

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Since the mid 1970's the major wealth destroyers have been, probably in order - housing costs, (health) insurance premiums, and the combination of FICA tax and the fact that it has no personal deduction (making it so regressive that it prevents the young and low income from saving) combined with a low minimum wage.

doh1304's picture
doh1304
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Dec. 6, 2010 9:49 am

doh. you missed the exploding cost of a higher education, and the increase in prison population by 650% per capita since 1980.

On land prices, if we intituted a land tax, based on the value of the dirt, it would encourage hoarders of land to put the highest use, or sell to someone who will. Empty lots in the urban core, and mega farms owned by the idle rich used to only produce tax subsidies for mohair production are poor uses of land.

And, I have never met anyone who has "produced" land, before some conservatard tries to say otherwise. It was all created along time ago, (4.5 billion years, or 5000 years if you are superstitious fool) and no one can create any more surface area of the globe.

Phaedrus76's picture
Phaedrus76
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Sep. 14, 2010 7:21 pm

Our tax system is rule by the 1%,that mean only the 99% pay taxes,and the divide by landownership is as big as the divide with weath. Land should be free for all to live on and land that has some production should be tax for the common good.Land should be 100% own by the community.Community control of land can eliminate a lot of capitalism economic problems.(inflation/deflation)

tayl44's picture
tayl44
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Jul. 31, 2007 3:01 pm

I advocate taxing wealth instead of taxing behaviors (although admittedly hoarding wealth is a behavior.) But really we should be taxing real property, land and structures. We should tax, and we should develop, what we can protect (and what we can locate and evaluate.) It costs a lot more to develop and "protect" a Coca-Cola plant in Vietnam than one in California. If the investment in Vietnam is threatened, we wouldn't worry about losing it because we don't get any taxes out of it.

chilidog
Joined:
Jul. 31, 2007 3:01 pm

I think the 99% should tax only producing weath and land should be free for all as God/nature intended it to be. All the problems start when you "private property",then you have,"1% vs 99%".

tayl44's picture
tayl44
Joined:
Jul. 31, 2007 3:01 pm
Quote tayl44:

When the price of land goes up,everything goes with it. What cause land prices to go up? "Improvements",from increase production to putting in house improvements cause land price inflation.(among speculation) The $64,000 question,how to keep land prices from creating "deflation"? Make land free for all except where there is production? Humans is the only life form that pay to live on this earth,what`s our problem????

The fact that land is in fixed supply means that demand determines it's price - which does seem a bit unfair. However, the total supply of land is fairly large, so this keeps rents and prices on land itself low. Most of the price is in improvements and the proximity to other pieces of land. That is why prices are so cheap in agricultural places and so high in the city.

Dr. Econ's picture
Dr. Econ
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Jul. 31, 2007 3:01 pm

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