Does Georgism work? Five years later (astralcodexten.com)

Article summary

The article discusses the concept of Georgism, an economic philosophy that advocates for a land value tax (LVT) as a means to address issues of poverty, wealth disparity, and urban development. The author reflects on their previous writings on the topic and updates their thoughts based on new developments, including the passage of LVT enablement laws in two US states. The article also explores the potential benefits and challenges of implementing LVT, including its impact on landowners, tenants, and urban planning. The author argues that LVT can help to reduce inequality and promote more efficient use of land.

Main themes

• Georgism and land value tax
• urban development and planning
• economic inequality and poverty
• taxation and public policy
• sustainable development and resource management
• market power and monopoly formation

What commenters say

• Implementing a land value tax can help to reduce inequality and promote more efficient use of land, but its effectiveness depends on various factors, including the tax rate and exemptions.
• Some argue that a land value tax is unfair to long-time residents who may be forced to sell their properties due to increased tax burdens, while others see it as a necessary measure to address urban development issues.
• The concept of Georgism can be applied to other scarce resources, such as radio frequencies or clean water, and can help to internalize externalities and promote sustainable development.
• Taxing economic rent, rather than labor or capital, can help to reduce distortionary effects and promote economic efficiency, but its implementation can be challenging due to political and social factors.
• The use of a land value tax can help to prevent monopoly formation and promote competition, but it may not be sufficient to address all issues related to market power and inequality.
• Some argue that a land value tax is not a panacea for urban development issues and that other factors, such as zoning regulations and transportation infrastructure, also need to be considered.
• The assessment of land value can be complex and may require significant resources and expertise, which can be a challenge for implementation.
• A land value tax can help to promote dense cities and transit-oriented development, but its impact on different stakeholders, including homeowners and businesses, needs to be carefully considered.