Wednesday, Apr 01, 2015

High Land values is now the biggest drag on our economy

The Economist: The paradox of soil

Interesting article in the Economist on Ricardian Land theory & the high cost to the economy of high house prices - of course our resident 'economic experts' tell us Ricardo's law is rubbish

Posted by pete green @ 03:31 PM (4256 views)
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11 Comments

1. debtserf said...

"...A new underground railway line in London, Crossrail, is currently Europe’s most expensive infrastructure project...."

Housing projects on the other hand...

They bring up land tax, then instantly discard it as it would adversely affect the rich. Isn't that the whole point of land tax?

Wednesday, April 1, 2015 10:07PM Report Comment
 

2. landofconfusion said...

"...A new underground railway line in London, Crossrail, is currently Europe’s most expensive infrastructure project...."



I like this image. I think it's an excellent if unintended illustration.

They bring up land tax, then instantly discard it as it would adversely affect the rich. Isn't that the whole point of land tax?

No, for the Conservatives it's aim is to make the poor pay for the rich and for Liebour it's to make the poor poorer so they vote Liebour.

Thursday, April 2, 2015 04:11PM Report Comment
 

3. landofconfusion said...

Hmm... image didn't link though. It's here though:

http://i.telegraph.co.uk/multimedia/archive/03164/crossrail_3164835b.jpg

Thursday, April 2, 2015 04:13PM Report Comment
 

4. Rentilidie said...

The article kind of dismisses Ricardo and his theories in the last few sentences. I'm sure discussing people like him makes for good Islington New Labour dinner chat but people like me need proper rent laws to protect us against abusive landlords. Why is there not more discussion about useful stuff like that on this site?

Thursday, April 2, 2015 04:36PM Report Comment
 

5. pete green said...

Because land value taxes (and building more council houses) will protect you and allow us to really get to grips with the root cause of the housing problem. But rent controls have horrible unforeseen consequences such as physically abusive landlords getting you to move on so rents can increase, lack of investment in property & dilapidation etc. Its just a question of learning economic and historical consequences of different policies.

Thursday, April 2, 2015 09:11PM Report Comment
 

6. pete green said...

An easy to understand video on how Ricardo's Law is at the root of our problems housing and poverty


Thursday, April 2, 2015 09:17PM Report Comment
 

7. Rentilidie said...

As a rule I'm wary of YouTube clips posted on blogs, so I looked up the guy in the video. In his case looks are not deceiving. He actually is a convicted fraudster!! Thanks but no thanks. I agree with the article where it dismisses Ricardo because his theories didn't account for things like broadband, high rises and modern infrastructure. By the way, I didn't mention rent controls. I'd just like to see a a few more sensible laws to protect me against landlords. You would too if you'd been evicted three times in the last five years and had your deposit ripped off each time.

Friday, April 3, 2015 08:29AM Report Comment
 

8. libertas said...

Ricky from Eastenders is oh so 1990's. Yes, he is now priced out of Tower Hamlets, but thank goodness he no longer "graces" our screens.

Friday, April 3, 2015 10:05AM Report Comment
 

9. This comment has been removed as it was found to be in breach of our Blog Policies.

 

10. letthemfall said...

libertas, you make Ricky sound like an intellectual.

Saturday, April 4, 2015 03:33PM Report Comment
 

11. clockslinger said...

I tend to agree with Libertas on this much...rather than reading this 19th centuary theoretical s**t in the Economist, (home of those not good enough at maths to be real scientists) one's time would be better spent getting an extra part time job and mortgaging up to buy in an area that isn't what you really want, but is better than nothing. Paradox of too much thinking about house prices.

Monday, April 6, 2015 05:39PM Report Comment
 

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