if the revenue from the tax is used for the UBI, there is no change in the money supply compared to the current situation. So, can you explain where the inflation you’re predicting is coming from?
LVT doesn’t really address the fundamental class antagonism between landlords and tenants.
Let’s say landlords pay more taxes because of LVT, and that goes to UBI. Landlords can just jack up the prices to make their money back. The only people who benefit are people who don’t rent.
Also geoanarchism doesn’t sound like anarchism, unless we are being pejorative toward anarchism.
I agree that LVT doesn’t address the fundamental class antagonism. It only addresses economic rent.
Landlords can’t just jack up prices. LVT doesn’t distort prices because the supply of land is perfectly inelastic - the revenue comes entirely out of landlord surplus. UBIs so far haven’t caused significant inflation, which makes sense if the total amount distributed equals the total amount taxed.
Okay, imagine a hypothetical. You’re a landlord with 90 percent occupancy rate across 100 apartments. For simplicity let’s say they all pay you 1000 dollars a month. With the lvt tax you pay 100 dollars a month per apartment. Your renters simultaneously get 90 dollars a month(let us assume that renters make up 50 percent of the population and slightly more than half of the tax comes from residential land, giving us 90 dollars)
You’re going to raise rent by 90 dollars, at least. Maybe 111 dollars, to compensate for the empty apartments, if you want to continue making the same amount of money.
If I jack up my prices, then my tenants would move to other apartments because overall market prices have not been distorted.
As a hypothetical landlord, i do want to continue making the same amount. Heck, I’d make more if I could! But I don’t want to lose it all on empty rental units.
What determines tax incidence - “I make less” or “you pay more” - is elasticity. The supply of land is inelastic, so the supplier (not the consumer) bears the burden of the tax.
Okay, no, youre operating off of faulty logic. Everyone is going to be jacking up their prices the same amount, because they all can and they all want to maintain income. They will move in a coordinated fashion to raise prices as they always have historically done, whether that coordination is merely born of the same interests or active conspiracy.
Also even within neoclassical logic demand would increase as people have more money, the supply would stay the same, so prices would equalize higher.
There’s two things at play here: the LVT and the UBI.
LVT does not distort prices. It doesn’t matter if they want to maintain income any more than they currently want to increase income. Their income has always been based on the chart above; it’s not a conspiracy.
The UBI doesn’t significantly increase demand for housing in practice. We hear this same argument about minimum wage increases or anything else that puts more money in the hands of the working class. People having more money doesn’t make them spend it all on more housing.
I’m trying to explain the logic behind the underlying economics, but these have both been tested in practice too.
if the revenue from the tax is used for the UBI, there is no change in the money supply compared to the current situation. So, can you explain where the inflation you’re predicting is coming from?
Rent seeking, unless you also combine it with rent control and a bunch of other measures and have a monopoly on violence.
That’s the benefit of a land value tax. It captures all the economic rent, without penalizing investment in improvements.
If you’re an anarchist, then the economics work the same way in a geoanarchist society.
LVT doesn’t really address the fundamental class antagonism between landlords and tenants.
Let’s say landlords pay more taxes because of LVT, and that goes to UBI. Landlords can just jack up the prices to make their money back. The only people who benefit are people who don’t rent.
Also geoanarchism doesn’t sound like anarchism, unless we are being pejorative toward anarchism.
I agree that LVT doesn’t address the fundamental class antagonism. It only addresses economic rent.
Landlords can’t just jack up prices. LVT doesn’t distort prices because the supply of land is perfectly inelastic - the revenue comes entirely out of landlord surplus. UBIs so far haven’t caused significant inflation, which makes sense if the total amount distributed equals the total amount taxed.
http://www.ozarkia.net/bill/anarchism/library/Geoanarchism-FredFoldvary.html
Okay, imagine a hypothetical. You’re a landlord with 90 percent occupancy rate across 100 apartments. For simplicity let’s say they all pay you 1000 dollars a month. With the lvt tax you pay 100 dollars a month per apartment. Your renters simultaneously get 90 dollars a month(let us assume that renters make up 50 percent of the population and slightly more than half of the tax comes from residential land, giving us 90 dollars)
You’re going to raise rent by 90 dollars, at least. Maybe 111 dollars, to compensate for the empty apartments, if you want to continue making the same amount of money.
If I jack up my prices, then my tenants would move to other apartments because overall market prices have not been distorted.
As a hypothetical landlord, i do want to continue making the same amount. Heck, I’d make more if I could! But I don’t want to lose it all on empty rental units.
What determines tax incidence - “I make less” or “you pay more” - is elasticity. The supply of land is inelastic, so the supplier (not the consumer) bears the burden of the tax.
if all landlords’ costs go up, ALL monthly rent goes up? you’ve gotta follow the bouncing ball
Nope, see diagram
Okay, no, youre operating off of faulty logic. Everyone is going to be jacking up their prices the same amount, because they all can and they all want to maintain income. They will move in a coordinated fashion to raise prices as they always have historically done, whether that coordination is merely born of the same interests or active conspiracy.
Also even within neoclassical logic demand would increase as people have more money, the supply would stay the same, so prices would equalize higher.
There’s two things at play here: the LVT and the UBI.
LVT does not distort prices. It doesn’t matter if they want to maintain income any more than they currently want to increase income. Their income has always been based on the chart above; it’s not a conspiracy.
The UBI doesn’t significantly increase demand for housing in practice. We hear this same argument about minimum wage increases or anything else that puts more money in the hands of the working class. People having more money doesn’t make them spend it all on more housing.
I’m trying to explain the logic behind the underlying economics, but these have both been tested in practice too.
wtf is that source lol
Don’t you have something better to do than troll?
yeah, years of economic science dating back to post WW2. not just an emotional comment on lemmy.
They asked a fair question. And economics was more a branch of philosophy than a science at that time.
philosophy is a science mr smartypants
lol mfw
Ok thanks for your contribution Dr. Science.
u too mr hypothetical