Renegade Economists Show 417
Jason Murphy joins to discuss his wake up call that small business has dried up in the face of the immense profits in real estate speculation. Economics IS interesting!
Falling Land Prices Could Make us Richer – Jason Murphy
How Land Tax works, taken from my recent submission to a Parliamentary select committee (no time to even mention this!):
As a cost of ownership, property buyers incorporate effective future value capture (Land Tax) charges and reduce their purchase price offering by the according amount. This acts to channel the naturally rising value of prime locations away from property owners and towards government. In effect, this is directly inverse to current behaviour, where buyers and investors incorporate expected future capital gains into a purchasing price that is often triple what net rents OR wages can justify.
#Notetoself – don’t lie down doing interviews, you sound a little laconic!
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