Wednesday, 12 May 2010

Land and housing inequality can be alleviated with a property tariff

There is a problem if the ownership of resources in an area is dominated by too few individuals. This means that the resources are not being put into use effectively; other people could make more efficient use of them. Would it not be better if a charge or penalty were to be imposed on those who have more than an appropriate amount, according to the concepts held in the Lockean proviso.

The cost to protect the land is often borne by those who suffer from the inequality.

Socialism is designed to protect the landowners.

We are prevented from having access to land and property that we would otherwise be able to use, as a result of the inequality. The property is being occupied by people who do not derive efficient use from it. Rich people will not sell their homes without incentive to do so. House prices will not fall unless people want to sell their homes. People use their homes as an investment. For property to be a useful investment it must be the case that there is a market price to cease the denial of access to the property, at least to a particular person. If a house is expensive it is because people want it.

To redress housing (land) inequality we might impose a tariff or charge on property ownership.

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