The land owned by an individual will aggregate when they are able to lease the land for more than their living costs. Then, even with doing nothing, the person is able to accumulate more property which may also be leased out. In this way the first few people to reach the critical threshold for land aggregation will end up with a preponderance of the land.
The way to avoid this is to revoke the right for landowners to own the land for all time, they should only be ale to own the land for limited periods, after which it is put up for auction once more. This is better because then the owner will eventually be excluded from the land themselves. The aristocrats have not established their superiority for all time, it is only ever temporary.
If the cost to purchase the initial lease, in auction, is greater than it can be loaned out for, then there is no profit in landownership and the landlord will not be inclined to purchase the land in the first place. If it is not, the lessee, the tenant will want to purchase the lease directly from the State. Then, there can be no profit in becoming a landlord since the tenant will purchase the lease directly...
Permanent ownership is harmful because it means the 'owner' is able to inconvenience the others at no cost. Literally, it is a freehold. A Land Value Rent would be more appropriate than a Land Value Tax.
Sunday, 24 January 2010
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