Tuesday 15 January 2013

Only land reform will help the poor

Capitalism doesn't work very well if there is not some kind of impediment on owning an excess of land. The reason for this is that if people are permitted by the economy to accumulate land there is no natural impediment on excessive disparities emerging. If people can own an unlimited amount of land they will do so to the detriment of the rest of the economy. People with land are able to lease the land (or work it themselves) which means they have a certain (high) income above their costs. They can earn much more than they spend and (if it is available) they are able to buy yet more land increasing the problem. People without land find it very difficult to get land of their own because those with land have no reason to sell it... in fact they want more. If land is made cheap by a tax or levy... or an upper limit imposed on the amount of land a single person is able to own then this problem is remedied. If people cannot own more than an upper bound of land (in value) then this enables the rest of the economy to acquire their own which means they can get out of poverty. People cannot get out of poverty if they are not able to get their own land which they will not be able to do if there is no (non-market) restriction imposed on the ownership of land. If the government (or those who dictate property rights) do not pay attention to the accumulation of land then the economy will become increasingly dysfunctional and oppressive to the poor. The poor will not be able to get out of poverty and have their own land if the government (or similar) does not pay attention to land and prevent monopolisation of land. If the government is not attentive to this issue the poor will get increasingly poor. The poor will not be able to get out of poverty if the government does not pay attention to the accumulation of land by the few. If there is not a Land Value Tax or similar the poor will be forever trapped without land. The poor will not be able to get land if there is not a Land Value Tax or similar. Capitalism will remain oppressive to the poor if there is not a LVT (or similar). If there is a LVT then land becomes cheap and everyone will be comfortable. Without a LVT land will be expensive and serve as the primary means to save wealth... placing a burden on those who are poor and have no land. The poor will be given (economic) freedom if there is a LVT or similar. If the government does not pay attention to the issue of land ownership the poor will remain poor. Capitalism doesn't work for the poor if there is no limit on land ownership. If land is able to be monopolised then the poor will remain poor. The only way for the poor to get out of poverty is if there is a LVT or something similar.