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This does depend on definitions. In classical economics the factors of production were labor, land and capital stock. Notably "land" means any non-man-made reso
by jampekka 3y ago
This does depend on definitions. In classical economics the factors of production were labor, land and capital stock. Notably "land" means any non-man-made resource, probably including legal monopolies like intellectual property, which contemporary neo-Georgists seem to totally ignore. Capital stock means man-made stuff that is used to produce something, e.g. buildings and machines.
Marx generalized capital to roughly mean anything that makes money for the owner without them doing work.
Neoclassical (the current mainstream) definition is quite close to Marx's.
Land is capital.
- eru 3y agoFor purposes of taxation, what's important is how 'elastic' a taxed good is. If you tax beer a lot, people drink wine instead. If you tax labour or capital, you get less of them. Especially in a globalised economy. But the supply of land is fixed, it's perfectly inelastic. So you can tax land without any deadweight losses to the economy.