Re: Economic Rent As Sum of Externalities

On Sun, 10 Jun 2007 03:12:24 +0000, jmh wrote:

On Sat, 9 Jun 2007 17:22:53 +0100, Andy F. in sci.econ
confessed to the world saying:

"jmh" <jmhall@xxxxxxxxxxxxxxxx> wrote in message


Technological advancement and dispursed ownership of land
should drive whatever rent the land owner gets to a minimum
within the society.

There's no reason to suppose that it should.In fact it may well do the
opposite. Any rise in labor productivity will lead to an increase in land
rent, other things being equal.

But other things are not equal and the classical
theory being promoted here also argues that
technology will reduce the rents earned.

Two things: Rent is never "earned". And technological development and
capital development in fact DOES reduce scarcity rents. At the same time,
population increase will be increasing scarcity rents. This is why
conservatives hate technology and love organized religion.

However

innovation seems to have the opposite effect on Ricardian rents and
monopoly rents. The effect on the total fabrication and smoke blowing
bull*** called "opportunity cost" is probably nothing.

The mistake is thinking that land is what captures all
the rents within a society.

Few would ever make such a claim. Nonetheless, it is the 500 pound
gorilla.

--
"I know no safe depository of the ultimate powers
of society but the people themselves; and
if we think them not enlightened enough to
exercise their control with a wholesome
discretion, the remedy is not to take it from
them, but to inform their discretion by
education." - Thomas Jefferson
http://GreaterVoice.org

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