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J LouLand value tax would solve this when combined with a UBI from the revenue it generates
inflation: exists
if the revenue from the tax is used for the UBI, there is no change in the money supply compared to the current situation. So, can you explain where the inflation you’re predicting is coming from?
Rent seeking
That’s the benefit of a land value tax. It captures all the economic rent, without penalizing investment in improvements.
If you’re an anarchist, then the economics work the same way in a geoanarchist society.
LVT doesn’t really address the fundamental class antagonism between landlords and tenants.
Let’s say landlords pay more taxes because of LVT, and that goes to UBI. Landlords can just jack up the prices to make their money back.
I agree that LVT doesn’t address the fundamental class antagonism. It only addresses economic rent.
Landlords can’t just jack up prices. LVT doesn’t distort prices because the supply of land is perfectly inelastic - the revenue comes entirely out of landlord surplus. UBIs so far haven’t caused significant inflation, which makes sense if the total amount distributed equals the total amount taxed.
Okay, imagine a hypothetical. You’re a landlord with 90 percent occupancy rate across 100 apartments. For simplicity let’s say they all pay you 1000 dollars a month. With the lvt tax you pay 100 dollars a month per apartment. Your renters simultaneously get 90 dollars a month(let us assume that renters make up 50 percent of the population and slightly more than half of the tax comes from residential land, giving us 90 dollars)
You’re going to raise rent by 90 dollars, at least. Maybe 111 dollars, to compensate for the empty apartments.
If I jack up my prices, then my tenants would move to other apartments because overall market prices have not been distorted.
As a hypothetical landlord, i do want to continue making the same amount. Heck, I’d make more if I could! But I don’t want to lose it all on empty rental units.
What determines tax incidence - “I make less” or “you pay more” - is elasticity. The supply of land is inelastic, so the supplier (not the consumer) bears the burden of the tax.
if all landlords’ costs go up, ALL monthly rent goes up? you’ve gotta follow the bouncing ball
Nope, see diagram
source?
Supply and demand diagrams are covered in introductory economics classes worldwide. Hint hint.
how does supply and demand relate to……land value taxes…….
You are arguing about a subject for which you have chosen to not educate yourself whatsoever.
hmmmmmm
Don’t sweat it to much, you are arguing against someone with an anti-education on how economics actually works to the point you can intuit how they’re wrong without knowing any of the theory behind their argument.
someone with an anti-education
This is anti-intellectualism. Please either take a single econ class or stop spreading misinformation.
You’re literally doing anti-intellectualism by trying to argue from a half remembered econ 101 class against someone who has spent more than a decade studying economics inside and outside of academia.
Literally read the first few chapters of capital and stop trying to explain to explain geocentricism to someone who understands heliocentrism.
The diagram shows how price goes up and less consumers are able to access goods when you raise taxes within a market economy.
It is also an econ 101 level oversimplification, but it is arguing against your claims.
No it doesn’t. As you can see, market price is where the supply line meets the demand line. Since supply is perfectly inelastic (vertical), a higher tax rate cuts into producer surplus without changing where supply and demand meet.
That isnt true, housing supply isn’t inelastic. Houses decay, new homes are built, and landlords remove homes from the market to artificially constrain supply.
Also that isnt what the graph illustrates.
LVT taxes the unimproved value of land, so we are talking about land itself not what is built on top of it such as housing. Since land is a product of nature, the supply of it is perfectly inelastic
People live in housing though, which is distinct from land, and the thing they’re claiming is static