Re: Government/society in post-scarcity interstellar environments

Eivind Kjorstad wrote:
Quadibloc skreiv:
Eivind Kjorstad wrote:

But even if it wasn't -- aslong as *wealth* grows among those desiring
use of the land, the price is likely to follow.
Think about it. If you can't understand why, really, the fault is with
your reasonining, not with my logic.

Oh, yes: if the economic activity stimulated by people selling each
other Britney Spears records leads to more money in circulation, you
will need more of this money to buy land. That I can understand, as
it's part of my argument.

Develop reading-comprehension. I explicitly did not say "money", I said
"wealth". It's not the same thing.

The amount of money in circulation is completely irrelevant to the wealth.

Yes, but if you define wealth as the ability to afford land, then the
price of land doesn't increase; an acre of land is worth an acre of
land.

Normally, one thinks of inflation as something that can happen to
paper money.

But there were times when copious supplies of gold led to prices in
terms of gold inflating. Yet, gold is a metal of genuine value, so it
is also a form of wealth, not just a form of money.

When the price of one commodity rises in relation to another
commodity, that other commodity is behaving a bit like money - it,
too, is suffering inflation. Because people are using it as money -
they're trying to sell it to obtain the other one, and this affects
the market.

You are right that the number of zeroes on the paper is irrelevant to
the wealth, but getting into such subtle distinctions only makes the
discussion more complicated to no purpose.

An increase in *real wealth* doesn't necessarily make land prices
increase, since if the new items of value which people can have really
are just as valuable as land, people will enjoy these new forms of
wealth fully, and demand for them will correspond to their
availability.

Only when these other forms of wealth are not really as important as
land, so that people would rather place more of their wealth in land
and less in these new forms of wealth, than their existing
availability and pricetags correspond to, is there added demand for
land making its price go up. In that case, the value of these new
forms of wealth is partly illusory - and they therefore behave like
money, and experience inflation.

When wealth grows, people's choices grow. If they can't still choose
land just as easily, their choices haven't grown as much as you
thought they did.

John Savard

.

Relevant Pages

  • Re: Refuting supply-side economics
    ... > movement of real capital between investments. ... > invests financial capital in some project, the money buys real things ... > of land in relation to other commodities like money. ... is less land available then the trade price of land will increase. ...
    (sci.econ)
  • Re: State Theory of Money
    ... government debt, the third largest is business debt, ... Theory of Money concept that has recently been ... and exchange price of land. ... virtually destroying the selling price of land. ...
    (sci.econ)
  • Re: Santorum introduces more rent collection opps
    ... >You do not need to "buy" an election, however it takes wealth to run a ... >Land can always spend more than labour, ... >You, of all people, know that labour ends up short. ... political power in their own interests, ...
    (sci.econ)
  • Re: Santorum introduces more rent collection opps
    ... You do not need to "buy" an election, however it takes wealth to run a ... Land can always spend more than labour, thus land always wins, in fact ... You, of all people, know that labour ends up short. ... interested in making such reforms. ...
    (sci.econ)
  • Re: Santorum introduces more rent collection opps
    ... >> evidence of history is that it is, ... Land rent is "only" about 20% of GDP. ... >any means to accumulate the wealth needed to take control away from the ... >Because wage slavery is far more efficient than chattel slavery. ...
    (sci.econ)