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My best teacher - my freshman HS History teacher - taught us the definition of "capital"... and then proceeded to illustrate his assertion that "The only capita
by IAmBroom 1y ago
My best teacher - my freshman HS History teacher - taught us the definition of "capital"... and then proceeded to illustrate his assertion that "The only capital is land, people! Factories can burn down; ships sink; only land stays."
That is why the rich seek out asset purchases, which is partly a proxy for: land.
- tharmas 1y agoWhich is why, when the rich buy up assets (ie land), its inflationary. They are not adding to the pool of assets (supply), they are consuming them. Sure, I understand, land can be "developed" so that it can become useful (eg draining a swamp, building a high-rise instead of single storey) so in effect that is adding to the supply. But as your History teacher pointed out land is still effectively a fixed supply. It would be nice if govt policy could help create the conditions such that a return on investments in production where more attractive (ie profitable) than buying up a fixed supply of assets. But instead govt policy did effectively the opposite. Henry George and his LVT (Land Value Tax) comes to mind.