INVERTED ECONOMICS.

Waikato Times, Volume 119, Issue 19879, 7 May 1936, Page 9

INVERTED ECONOMICS.

(To the Editor.) Sim—The Times report of the Farmers‘ Union discussion on land values iwas of outstanding interest to me, !\\'hlch is my apology for asking perlmission to make further reference to it. ’ Relative to speculation in land !values, the following statement was linmic: “All the increased costs which [follow speculation in the city are ‘epassed on to the farmer in heightened ichurgos.” This is inverted economics, land is supported by neither economic theory uor actual fact. John Stuart Mill, though he laboured under some errors, such as the View that capital took proredence o\‘cr labour, and was misled by the Multhusian doctrine, nevertheless enunciated some sound prlm'iplcs which have stood the test of time. He showed that, an economic ‘ renl (rent of bare land values) could he [missed on in charges, or in any; other way. He laid it down that were i thin economic rent collected for public - revenue purposes it would be wholly l to the public advantage. since ~its rolluvtiun would be “no burthen on]

tthc consumer," and the landlords iwouhl hzwc no means of passing it on [to the shoulders of others. I will tloczitly illustrate the point. I Let us suppose that the merchants tin UuCen Street, Auckland, were all to ‘lruisc the prices of goods to ofl‘set their ,hign routs. They would then he yuudcrsold by the merchants in. say, itx’nruugnlmpe llnad. whore tlm rents [urn tuwcr. Furthcr. they would he itnnlciwsnld in a grcntcr degree liy Hucrrhnnts in Victoria Street. llmnil< .‘ton: and it' lht‘sc ‘tl'ird to puss on their {ground rcnt tln‘y would he beaten lu‘ :nnn'chunts in thc. secondary streets. Stirnntnnic rcnl is emphatically not, (I i‘u-us't nt‘ pruduotion," but, is an added, [or surplu-s. value due to superior site 'nr‘ t'crtillt)‘; it is recovcrcd in larger lturnm‘cr or gt‘cutcr production for lhc ‘ sumo cxncndtture of labour and capital. Noithrr merchants nor latl‘-: mom can pass it on. i } 'l‘ln- only sound policy is tn collt‘tl‘. ‘ [this nnuunl rcniul Value of bare hind} It‘tn- pulniic ruvcnuc, abolishing taxn—l Hunt. and thus :Jrcutlyv rrducin;.r costsi lut‘ production. thc prnduccr ihcu ‘hm'nn: tn lllillil‘ one payment instead lut‘ two, and <llcrulnthni tiring~ killcd. ‘F'l‘t up intcrl‘uriug Imnrds. :ind thcn, iinstcud of land mics, “‘0 will have tho ‘ultl English l't‘lltill aunt scrt‘ system—l.tndturd.<. t‘nrnicrs and farm lnlmul‘crs. thn lnltcr two living tln- slums of tinlh'sl lnvntiuuwt, a purcly \'cstcd in—-tt‘rt-si. ‘ .\lmtish mics. bring in (—leill‘atlll‘t‘tl stimuli-‘5, do what clsn you like (in—winding ulmlitinn of tariffs) and undcr ttm prlx'ntc “mvncrshtn” of hind 53'5 tcni it will .til<t he, again to quote Lord Suuwdcn, “slthbtdislng hind—lnrdisml” I do hope that thc FRHHE‘I‘S' I'nion l‘rt'n'incinl tioutcrcuca gcts really down to lucdruck un tilts vitally important. quostiun or the hind >ystrm.~l Hill. N".' ’l‘. H. .\thILLAN. .\latmnzttei. May 71. k