A New Generation Can’t Afford to Advance
|April 28, 2014||Posted by Staff under Good Press|
The Unnatural End of American Social Reproduction
This 2014 excerpt of Law School Tuition Bubble, Apr 03, is by Matt Leichter.
The cog in the generational lifecycle is the Georgist land cycle. Because the supply of land (especially urban locations) is fixed, its value is inevitably whipsawed by speculation. The more people buy land at the peak of the land cycle and lose out, the more land ends up in the hands of the wealthy (banks), who can afford to wait to sell the land when prices rise again. Everyone else must suffer.
If after several of these cycles, people lack the purchasing power to buy out the previous generation, they cease to reproduce and existing landowners hoard land for longer, exacerbating the disruption of the generational lifecycle.
Without reform it could take many years for the negative feedback from the land cycle to stop disrupting social reproduction.
Ed. Notes: Actually, we should not fear high land prices but welcome and share them; as they go up, so would our share. With a heftier share, we could wean ourselves from government “services”. With a slimmer government, we could repeal taxes, especially the counterproductive ones that shrink their base (which we could do any time, anyway).