Renegade Economists Show 364
Jacob Wills (radicalhousingnetwork.org) discusses the protest movement against the international property convention MIPIM, held in London last week. Some shocking stats are revealed in this candid discussion on the commodification ofÂ housing. www.earthsharing.org.au (excuse the audio quality 🙁
The Radical Housing Network is at the vanguard of a global movement concerned about the rapid escalation in housing costs (read land prices). This is particularly the case so soon after the Global Financial Meltdown that was precipitated by the US fall in land prices in the June quarter of 2006.
Read more about the RHN’s MIPIM agenda. We sent a statement of support:
We at Prosper Australia fully support the UK MIPIM protest “Say NO to MIPIM: YES to housing justice for all!”
Rental Backed Mortgage Securities, the increasing use of Property Options and the control that lobbyocracy has over our MPs threatens our right to a place on this planet. The myriad of tax loopholes, derivatives and massive infrastructure projects delivering windfall gains to insiders can all be addressed with a very simple alteration to our tax code. Switch taxes off productive workers and onto landowners. Land Value Tax is the best and fairest way to share the naturally increasing value of the earth amongst all. The property that IS genuine theft is the rising value of the earth, the economic rents. Why? Because it is community created. If no-one lived in London, what would happen to the Duke of Westminster’s land holdings? Karl Fitzgerald, Prosper Australia
Boris Johnson speaks over the protest noise, mentioning that he bought an apartment for £93,000, now those in the same street are valued at £1.6m. An increase of £83,000 occurred in the last year alone.
My commentary on the video: Boris dispels the blame game behind ‘Bashing London’ and ‘Foreign investors’. He states the real solution – more housing. But his predictable response avoids the lightly taxed capital gains delivered to those who own prime locations on earth. With published vacancy rates ignoring those held empty for speculative gains, a better answer would be for more efficient use of our land, at prices more closely aligned to the earning capacity of people who live in the area. That’s whats possible with a Land Value Tax.
Boris is proud that (only) 100,000 houses will be built under his 8 year mayorialship. When investors can buy and sell from anywhere on the planet for great profit, that argument is old hat. More investment on a fixed land mass leads to higher land prices.
No MIPIM behind the scenes
39% of private renters in London live below the poverty line.