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> Try explaining rent to kids. When it comes to kids, we often call it sharing. Billy has a toy truck you want to play with. You have a action figure he wants
by randomdata 10y ago
> Try explaining rent to kids.
When it comes to kids, we often call it sharing. Billy has a toy truck you want to play with. You have a action figure he wants to play with. If you each share what you have, then everyone is happy.
That is all rent is. Billy has a house, you have cash. He wants to play with cash, and you want play house. If you each share what you have with each other, everyone is happy. Pretty simple.
- branchless 10y agoIt's a very simple analogy that in no way reflects the real world complexity of fiat money and limited land supply.
- randomdata 10y agoYou're right. If we're explaining this to adults, it is even simpler: Create something of value and you can exchange it for things other people have created of value.
- branchless 10y agoand the landlord creates nothing
- randomdata 10y agoThe landlord either created the house, or the landlord created someone else of value and traded it for the house that someone else created. Houses don't appear out of thin air.
- branchless 10y agoNo they got it in the main on credit which they and the bank then use to share the labour of a working person. Also the house is often worth far less than the land.
- randomdata 10y agoCredit is just sharing value that was already created. Credit has to be repaid with value that will be created in the future. > Also the house is often worth far less than the land. While that can be true, it is only true if someone has created value around it, or has exchanged the value that they created elsewhere for it. It is not like land itself is all that valuable. A quick look at the real estate listings showed me all kinds of vacant lots for just $2,000. It takes more than dirt to derive value. Something has to be created.
- branchless 10y agoThe state confers value through infra and planning permission. Credit is created from nothing and then repaid with real labour, it is not value already created. Banks rent money they create. The people add value through taxes, the landlord waits.
- kesselvon 10y agoSharing is a two-way transaction with the object being returned. Rent is one way, as the landlord isn't giving you your rent back.
- branchless 10y agoAlso rent is a proxy for labour. You are labouring and then handing it over via a medium of exchange to your landlord who does very little work. He doesn't have to because our banks and govt allow exploitation through land.
- randomdata 10y agoWhy aren't you getting your money back? The only reason why you would want to occupy someone else's space is precisely because you see an opportunity to get all your money back.