Saturday, 6 February 2016

Economies of Scale: The most valuable Land there is.

Here (part 1 of 3) Prof Geoffrey West explains that all biological entities from DNA to cities have evolved from the exploitation of economies of scale (agglomeration effects).

This scaling effect is a Universal Law, hence Land. It gives us aggregate demand, the ability to produce capital, and gives natural resources their value.

Under a system whereby the State gets the majority of its revenue directly from land rents, they would have two explicit priorities. To increase the efficient exploitation of agglomeration effects,  and to compete against privately produced goods and services by providing(regulating) high locational amenity.

Another reason why LVT is as hardcore as Capitalism gets.


DBC Reed said...

Dunno why you are referencing Capitalism.What we are enduring now is not capitalism; things have evolved for the worse way beyond that. As a lefty, I would see a return to capitalism as a distinct improvement.

Bayard said...

Completely agree. That is something that should be said much more often. Pluto-democracy "plutocracy masquerading as democracy" is a better description of what we endure now (term coined in 1895, so not a new problem).