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Add 10% to the economy, let's imagine for once it's passed onto wages, also up 10%. Rents up 10%. Everyone working longer for the landlords. Gains go to land
by branchless 8y ago
Add 10% to the economy, let's imagine for once it's passed onto wages, also up 10%.
Rents up 10%. Everyone working longer for the landlords.
Gains go to land under the current system. We already added women to the workforce more, rents went up.
- fwn 8y agoThe proposition that all gains in productivity are absorbed by rental charges sounds completely off to me. How would that even work? Just imagine: If housing were that great of an investment, everyone would get enough credit to build, making effectively everyone a landlord.
- robryan 8y agoIt depends how tight the rental market is, if there is a lot more demand than supply it is possible that the full increase would be absorbed in rental increases.
- branchless 8y agoWhich is the case in most urban centres, where most people are.