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Dirt is so very sticky over a period of a moving 7-year average because it is our era's store of wealth gold semi-equivalent compared to back when gold backed c
by yourapostasy 4y ago
Dirt is so very sticky over a period of a moving 7-year average because it is our era's store of wealth gold semi-equivalent compared to back when gold backed currencies. Equities are our silver semi-equivalent compared to back when we had a bi-metal backing. What really backs currencies today is far more complex, but that's a gist.
If it wasn't, then you wouldn't have so many companies whose financial "ballast" so-to-speak driven largely by dirt, like McDonald's as a famous example but this is far more prevalent in business than you'd think if you haven't been around lots of businesses.
Stack on all the structural advantages conferred to real estate asset characterization and outright subsidies, and it isn't surprising that dirt pricing follows more of a subsidized pricing behavior than an open market with rapid value and price discovery.
- naveen99 4y agoDirt will be largely irrelevant in the age of AI. the gold standard had to be abandoned. Real estate standard will have to be abandoned as well. May take some time though.
- reducesuffering 4y agoCEO of OpenAI, Sam Altman, still thinks land will be valuable. https://mobile.twitter.com/sama/status/1371893244636717058?lang=en https://mobile.twitter.com/sama/status/1371893244636717058?l...
- naveen99 4y agoI think a federal us property tax makes sense. In fact the rest of the world needs real estate property taxes similar to us states. But taking equity as a tax makes no sense, that’s communism. capitalist governments just take the profits without the burden of running the company. If government owns the company, there is no tax, as the employees are then paid by the government (a negative tax). All government employees have a negative effective tax rate equal to their take home income.
- imtringued 4y agoThe Earth is humanity's treasure and you argue that some stupid AI is going to replace it? Hello we already have advanced natural intelligences called humans.
- naveen99 4y agoNot the whole earth. Just the imbalance between parts of the earth. Location just isn’t as important when you communicate at light speed. real estate values are entirely based on location.