land rent sites:
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Land rent ensures efficient markets

Conservatives correctly point out that free markets are the best way to spread freedom, wealth and justice. But markets only work if theft is minimized. And markets work best if there are low barriers to entry. For these reasons, land rent creates the healthiest markets.

Land rent ensures economic justice

Liberals correctly point out that free markets can crush the poor. The poor cannot compete, and anyone who can grab land through unfair means is rewarded. But land rent changes all of that. It reduces the barriers to entry, and does not reward anyone simply because they are own land (or other resources). So land rent is the key to global justice and hence and end to poverty, most oppression, and the evils they create.

The great thinkers and leaders saw this clearly. Whether you are conservative or liberal, land rent is the answer.

A short history of global business

A thousand years ago, kings owned all the land and only allowed their wealthy friends to control some of it. (The term “real estate” comes from “royal estate” meaning it is ultimately controlled by the king.) Ordinary people were extremely poor and had very few rights. The rich had all the power. The situation must have seemed hopeless.

But the ancient regime of landed gentry was fundamentally inefficient. Gradually the principles of monopoly and privilege were undermined, in four ways:

1. Education. As people began to question, they would no longer accept the old “divine right of kings” and land-based class system.
2. Trade. Trade could generate far more money than simply working the peasants on the land. “New money” beat “old money.”
3. Technology. Traders were leaner and fitter than the gentry, and could make better use of the new technologies. This increased the lead of traders over landowners.

Now, in the early years of the twenty first century, major land owners still own most of the world’s resources, largely tax free, but they are in long term retreat. They are no longer the undisputed masters of the world. Even governments cannot oppose markets. Trade-based power is increasing. Land-based power is in retreat.

The future of global business

Businesses force governments to support free trade. Please note that this is not altruistic. Businesses simply want profit, and profit is blind to starvation and injustice. However, profit needs efficiency, efficiency created land rent principles, and land rent creates justice.

Time scale

Please note that civilization does not progress at a smooth, even pace. Democracy took hundreds of years to evolve and seemed to go backwards at some points. Similarly, free trade took hundreds of years. Both democracy and free trade are still not complete. Land rent may take a similar period of time, and for the same reasons: inefficient vested interests do not like it. But there comes a point where the benefits of free trade, or democracy, or land rent, become so obvious that a critical tipping point is reached and progress accelerates. When that point comes, the major obstacles may be overcome in decades rather than centuries. It could all happen sooner than we think!

Opposition from land owners?

Most people and businesses own a small amount of land for their house. With land rent, they can own more land, because land is cheaper. Why is it cheaper? because unproductive users sell their land. So demand goes down and supply goes up - hence prices go down.

Of course, this land will now be subject to rent, but for most people this will be less than they currently pay in taxes. How can we be sure? Because if nothing else changes, the government now gets income from previously untaxed land, so all other taxes can be reduced.

That is if nothing else changes. But the whole point of land rent is to change everything - for the better. As a home owner, you are free to improve your home without it attracting more taxes. And of course you benefit from the general improvement in the economy, such as lower prices, more justice, etc.

Opposition from fat cats?

What about opposition from businesses that get most of their money by taking it from society? These businesses add very little to their land, pay very little rent, but gain from increasing land value and rent? Put bluntly, they make no net contribution to society. They redistribute wealth, but create nothing. 

Why would government ignore the fat cats, their traditional (if unproductive) allies? Because it makes the government more popular with everyone else. But what about the raw power of traditional land owners? When land rent becomes a possibility, the value of idle land is reduced, and unproductive landowners lose their power.

But all is not lost, even for fat cats. The transition to land rent will take time. Enough time for business that rely on unproductive land to move their businesses in more productive directions. So everyone wins.

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