tag:blogger.com,1999:blog-1141932539860553199.post7163532283009052138..comments2024-03-05T10:52:24.691+00:00Comments on Mark Wadsworth: Reader's Letter Of The DayMark Wadsworthhttp://www.blogger.com/profile/07733511175178098449noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-1141932539860553199.post-45821152039152663992013-11-18T20:00:29.149+00:002013-11-18T20:00:29.149+00:00B, that's not science fiction, that's New ...B, that's not science fiction, that's <a href="http://en.wikipedia.org/wiki/Air_rights#Transfer_of_development_rights" rel="nofollow">New York city</a>.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-89741415731377160192013-11-18T19:38:47.301+00:002013-11-18T19:38:47.301+00:00"that "fresh air' plays a part in pr..."that "fresh air' plays a part in production etc."<br /><br />That reminds me of a sci-fi story I read where the concept of land had been taken to the next logical step, where not only land was rented out, but also space, so you were charged for every cubic metre of space you occupied above the land as well as every square metre of land. Obviously the cubes of space of which you rented were far more expensive if one side was land.Bayardhttps://www.blogger.com/profile/15211150959757982948noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-37638606790306510362013-11-18T18:23:19.534+00:002013-11-18T18:23:19.534+00:00D, Brian is one of us so I am sure his book is mor...D, Brian is one of us so I am sure his book is more nuanced.<br /><br />It's just the "land is a factor of production" meme gets my goat. That sort of suggests that "land" takes part in the productive process and is due a payment, but being inanimate, the owner is sort of entitled to collect it on the land's behalf.<br /><br />Fact is, it's not rent, it's ransom. Neither land nor the owner thereof play any part in the production whatsoever. If you believe in that, then you can just as well argue that "fresh air' plays a part in production etc.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-73826866092143600782013-11-18T18:02:27.361+00:002013-11-18T18:02:27.361+00:00The land issues that Brian was dealing with in his...The land issues that Brian was dealing with in his book weren't so much resource ones as location ones. Among other things he was talking about the fact that the source of rubber is perhaps 3000 miles from the factory which is perhaps 500 miles from the consumer and pointing out that therefore there are always transport costs as part of any exchange. Supply and demand diagrams need to take that into account but the standard analysis fails to do so.Derekhttps://www.blogger.com/profile/06296053477905542366noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-72873003612220514672013-11-18T10:10:30.257+00:002013-11-18T10:10:30.257+00:00D, Brian is top man and everything, but what worri...D, Brian is top man and everything, but what worries me is the concept that "land is a factor of production".<br /><br />It is for farming (in a physical sense), but apart from that, any payment for land is a ransom payment, pure and simple. <br /><br />Land does not produce anything at all, ownership thereof merely allows you to prevent others from producing, so the landowner has the productive economy over a barrel.<br /><br />It's not saying "I want to build cars so I need metal, rubber, skilled workers, electricity and machines".<br /><br />Those are all factors of production (if one is missing, then no cars will be built), you could in theory set up a floating factory and not use any physical land at all.Mark Wadsworthhttps://www.blogger.com/profile/07733511175178098449noreply@blogger.comtag:blogger.com,1999:blog-1141932539860553199.post-45451044961211277692013-11-18T08:40:08.065+00:002013-11-18T08:40:08.065+00:00Good for Brian. I read his book on mainstream econ...Good for Brian. I read his book on mainstream economics recast to include location issues a few years ago. It was a valiant attempt. Unfortunately mainstream economics has other problems in addition to the location ones, so his recasting is a big improvement but won't quite fix things. However he is spot on in calling for a new analysis.Derekhttps://www.blogger.com/profile/06296053477905542366noreply@blogger.com