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The Georgists would like to disagree with you :-D And apparently we can thank the Petro dollar system for gutting US manufacturing.
by anon84873628 4y ago
The Georgists would like to disagree with you :-D
And apparently we can thank the Petro dollar system for gutting US manufacturing.
- nostrademons 4y agoGeorgism is largely orthogonal to monetary policy. Georgists hold that public improvements to land & location largely have their value captured by landlords, and as a result landlords enjoy large un-earned incomes simply by getting there first. This misallocation of resources can be fixed with a land-value tax, which returns the surplus to the state where it can be allocated to more public benefit projects, up until the return from those projects is less than the cost in taxes. Inflation and central bank policy is separate from this. If you have a highly inflationary monetary policy, landowners will still reap the benefits of inflation in increased rent, and they will still turn a profit on mortgages, which are paid back in dollars that are worth less. The main difference is that they'll also have a LVT that grows with inflation, and so they face continuous pressure to keep the land is uses that generates the most economic value (rent). But unexpected inflation is effectively a discount on their purchase price, if they pay with borrowed money; this doesn't change under a Georgist system.