| Subject: | [socialcredit] The Bottom line of Price escalation? | | Date: | Thursday, September 9, 2004 17:41:37 (+0200) | | From: | Jessop Sutton <sutton @...........za>
|
On Wednesday 08 Sep 2004 5:12 pm, william_b_ryan@yahoo.com wrote:
> The new assumptions are:
> [1] Resources are abundant.
> [2] Growth occurs through entrepreneurial initiative,
> [3] facilitated by credit,
> [4] resulting in the displacement of labor.
> From these assumptions it may be concluded that
> saving is the dependent variable of investment,
> rather than investment being the dependent variable
> of saving.
======================
Not on the same subject, but may I chip in here?
> [1] Resources are abundant.
It seems to me that there is one resource which is scarce, and that is land.
It must surely be pressure upon land that gives rise to the unstoppable
increase in prices of urban erven and farmlands? Since land is at the very
bottom of the capital-pile, it must have a continuous effect upon PRICES of
every new production round, must it not?
And it is the land more than the buidings errected on it that is the factor.
Here in a CBD a multi-story building can sell for the full market price only
to be demolished so that a new and bigger, posher, building can be errected.
We bought a house in 1976 for R25,000. I couldn't buy the same house today
for R800,000. Of course, locality, locality, locality is the important
catch-word, but effect on prices ripples outwards to the remotest useable
pieces of land.
Population increase is at bottom of it in the long-term -- I can remember
gaspng at a world population figure of three billion (probably in the late
sixties). In mid-1994 the figure was about 5.5 billion, with a projection
(mid-range) of 9.7 by 2050. These people will need space to live, space for
more factories, more forests converted to farmlands for food production, even
with increases in farming and factory efficiencies.
These factors in themselves must surely spell out 'scarcity' in the total
living picture?
Would it not be true to say that land-scarcity (with resultant spiralling
prices of property) is a major factor in growth in money supply?
Jessop.
_______________________________________________________________________
http://www.eListas.com/
The Most Complete Mailing Lists, Groups and Newsletters System on the Net
|
The Bottom line of
Reply to this message