Hi!
This piece I abstracted from a letter from the right hand man of the
Mayor of London (the author of the congestion charge for central London).
The relationship of the land-values to other parts of the economy are
sometimes not considered important, when in fact they are significant. Most
people – including economists don’t realize how much of produced
wealth disappears into the hands of those who own the land.
Here’s the excerpt.
“A major transport planning company
with over 50 staff recently moved from freehold premises in Paddington which
they had occupied for over 30 years.
The unearned increase in property value was
enormous.
(Remember in this context "property
value" really means "land or site
value"; buildings deteriorate over time,
bricks, roof tiles, floor boards,
windows do not escalate in value - it is the
site or land value which we see spiral).
Consequently, this firm earned more from their
trade on property value than they had earned gross profits as a trading
organisation over 30 years!”
Harry
|
_______________________________________________
Futurework mailing list
[email protected]
http://fes.uwaterloo.ca/mailman/listinfo/futurework
