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While a drop in house prices might, in theory, negatively effect the economy in the short term as homeowners, in theory, have less disposable income, in the lon

While a drop in house prices might, in theory, negatively effect the economy in the short term as homeowners, in theory, have less disposable income, in the long term land prices/speculation (and when people talk about house prices, they really mean land prices) are a huge rentier suck on the economy, and should be taxed to the point that speculation or 'investment' in land itself (not the development of it) reaps zero gains. After all, why should anyone profit merely by owning land, when the value of that land really reflects other people's economic activity and development in the surrounding area.

saiya-jin 9y ago
> After all, why should anyone profit merely by owning land, when the value of that land really reflects other people's economic activity and development in the surrounding area. After all, why should anybody profit from merely owning a stock? Or vintage car/painting, whatever that can appreciate over time because of supply/demand. This is how people invest. I understand that being on the other side of equation might suck, but that't not the problem of equation.