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How could the government systematically get rid of the "unearned part of rent", and why do you think doing so would only slightly lower profit?
by jamilton 2y ago
How could the government systematically get rid of the "unearned part of rent", and why do you think doing so would only slightly lower profit?
- roenxi 2y ago1) Land tax. See Georgism [0]. Would be a great direction for society to go in. 2) Well, you can make something like 5% buying bonds. So if renting a house is making less than that people will sell the house then go buy bonds which are lower risk. The logic of alternative opportunities suggests the rate of profit for renting out a house won't change much. I'd expect that profits would drop by a bit and then the supply of rentals would adjust if a bunch of landlords want to leave the market. But IMO most renters aren't in a position to buy houses so I don't think the supply would be able to contract by much. So I think the net effect is profits would drop a bit and then life continues. Doesn't matter if I'm wrong on that point though. Whatever happens it'd still be an improvement. [0] https://en.wikipedia.org/wiki/Georgism https://en.wikipedia.org/wiki/Georgism
- HDThoreaun 2y agoLVT baby