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Land Rent, Ethics, and Capitalism's Gestation Crisis:
Author(s) -
Levy Jay
Publication year - 1997
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.1997.tb03448.x
Subject(s) - capitalism , lagging , economics , unemployment , distribution (mathematics) , market economy , population , payment , value (mathematics) , income distribution , inequality , economic growth , law , politics , political science , sociology , finance , medicine , mathematical analysis , demography , mathematics , pathology , machine learning , computer science
As population increases land rises in value and this causes greater and greater payments to land owners without any contribution to production by them. This wrongly deprives producers of increasing amounts of income that they produced and are entitled to. As the process proceeds, it threatens the viability of capitalism itself as it lowers profits for the prime movers in the economic system. Home ownership in the US is becoming increasingly difficult for young people as the price of land keeps rising. Economic progress has been very fast in countries that tax land and seek its equitable distribution and is lagging in those that do not. The high unemployment rates in Europe are related to this unfair distribution of income.