W3 academic lecture - Josh Ryan-Collins: Economic rent, land and housing

Rethinking Capitalism undergraduate module
Week 3 academic lecture: Economic rent, land and housing by Josh Ryan-Collins
This week’s lecture focuses on a much neglected issue in maintstream economics and the source of increasing concern in public policy: land and housing. The classical economists recognised that land had distinctive properties from capital and labour, the other two ‘inputs’ in the production process. Today, the main use of land is a site of housing, with housing affordability becoming a major issue of concern in advanced economies.
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UCL Institute for Innovation and Public Purpose
The Bartlett Faculty of the Built Environment
Website: ucl.ac.uk/iipp
Twitter: / iipp_ucl
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The Rethinking Capitalism undergraduate module provides students with a critical perspective on these ‘grand-challenges’ and introduces them to new approaches to economics and policy which challenge standard thinking.
The module draws on the book “Rethinking Capitalism”, edited by Mariana Mazzucato (Director of IIPP) and Michael Jacobs (Visiting fellow in the UCL School of Public Policy). It features guest academic lectures from some of the chapter authors. These academic lectures are combined with presentations by policy makers working at the frontline of the issues under discussion, including from the Bank of England, the UK Treasury and government departments dealing with innovation and climate change.

[@OscarMarohn23]

He’s easy on the eyes and also clearly educated. What a catch

[@mikecool71no1fan]

mean lecture brother speak really well

[@josephgallagher4279]

If I can’t, first secure a loan to open my first business, how can I gain the “luxury” of home ownership and my own financial autonomy? There’s got to be a better way... and it’s called Georgism. Get with Fred Harrison and find out why. Great lecture. Thank you. - Smart Alack

[@nthperson]

If the UK Parliament ever gives up control over how property is taxed, then local governments could be given a local option to exempt all property improvements and rely completely on a determination of the rental value of every location for its revenue. It is worth nothing that government should be required to determine the rental value of its own locations as this is the potential revenue that might be raised by leasing the location to a private owner. Some public facilities located in high value areas might be more efficiently relocated elsewhere.

[@josephgallagher4279]

Fuzzy on the facts but I believe Churchill was keen on Land Value Taxation and it was the House of Lords who shot it down. Faster, smarter, richer... connected... we know the game.

[@nthperson]

@@josephgallagher4279 Churchill delivered a number of speeches against land monopoly during his 1909 campaign for a seat in the House of Commons. When many Liberals moved t the left and joined with Labour, Churchill pretty much abandoned the issue. Britain's landed interests have been quite success in the protection of their privileged position. Margaret Thatcher astutely increased voter support for low property taxes introducing measures that increased the rate of homeownership. From what i have learned about Britain's tax system from British friends, there is great inequity in how properties are taxed: higher taxes on lower value properties than on higher value properties. As you say, wealth has all the power when it comes to who carries the cost of government.

[@nalo6310]

Josh Ryan-Collins

[@davidwilkie9551]

So because The Law is decided by facts in evidence, a return of ownership to the state of Commons, and a prevention of private money creation, lending against the ownership that is basically privatisation by Control Fraud, can be resolved by policy in Elected Parliamentary Representatives..

[@wouldbegood]

1 BTC = 10 House

[@waikanaebeach]

Please, be consistent with accounting practice, credit is a flow and debt is a stock. So stock of credit is incorrect. This is a common mistake by Macro-economists in the Neoclassical tradition.

[@joshuaryan-collins8146]

Hi Richard, agree that credit is best understood as a flow concept but the charts I use show outstanding commercial bank loans as recorded by central banks. These are commonly referred to as 'credit stocks' or 'stock of loans' in the literature (not just the neoclassical literature).

[@Chris-eo1bp]

@@joshuaryan-collins8146 basically the wording and thinking are part of the problem. His point stands and I think you know hes correct in a less technical sense.

[@BenJamin-rt7ui]

Any discussion regarding land should first tackle the fact those excluded from its use when valuable suffer a loss of opportunity, that if uncompensated leads a net transfer of incomes, baked in excessive inequalities, and symptoms like affordability issues for some groups in society. The second point should be to discuss that when that compensation is paid, the selling price of land drops to zero. Thus the selling price of land is but a measure of value and economic injustice (capitalised net transfer of incomes). Any discussion of this topic that doesn't make clear those two points isn't worth having.

[@nthperson]

One proposal is for the community or society to collect the rent of land (i.e., the full potential annual rental value of all privately-held locations) and distribute some meaningful amount to each person (subject to reasonable eligibility requirements). Of course, this distribution as a "citizens dividend" would need to occur after funds are channeled to government to pay for budgeted public goods and services. You are correct that economic theory indicates that when the full potential annual rental value of locations is publicly collected, the price of locations would drop TOWARD zero. However, with potential buyers with high disposable incomes competing for the best locations, a price would most likely still be required to be paid.

[@Chris-eo1bp]

The problem with reprimanding is when it succeeds it will simply increase the victims standing for a payout but I think some minorities could def benefit from something like that or specifically African Americans