You are Quintuply Repaid for Paying Resource Rents (Land Rents) to Yourself (Society)
Everyone feels threatened when they hear of society collecting resource (land) rents. They view it as a tax. But it is not a tax. Society puts value on land and resources simply by forming and it is they (meaning you) who are properly entitled to those rental values.
Whenever land or a resource of nature is unconditionally privately owned, those privately collected rents are unearned.
However, when nature’s wealth is conditionally owned, all taxes disappear as society collects those rental values and turns those funds right back to the citizenry in the form of infrastructure, health care, retirement, and running governments, the citizenry are quintuply repaid.
That is the potential of each citizen of this earth earning themselves a quality life while employed outside the home only two days per week and all this while reducing impact on resources and the environment.
Those potential gains measures the massive waste withing the superstructures of the current monopoly system we are told does not exist. As you read on each sector of the economy within these pages, you will see that massive waste and the potential of its elimination.
As rental values are only slightly lower than current payments on purchases of monopolized land, the annual cost of owning land appears to drop only slightly. But with
1) no initial costs to own land,
2) the elimination of taxes, the savings possible in banking, and those
3) rental values and socially earned interest being spent on infrastructure (education, water systems, sewers, roads, communication systems, railroads, ports, airports, post offices, any natural monopoly),
4) single-payer universal health care,
5) retirement, and other social needs,
all citizens are quintuply repaid for abandoning private collection of resource rents. The enormous gains over private collection of rental values, denying others their rightful share of what nature offers to all for free, gives meaning to the term “rent seeking,” “the extraction of uncompensated value from others” (search for rent seeking).
When Licensing Doubles Costs
Land has unearned capitalized rental value and so do taxi medallions. The connection between them is that their values were not produced by labor but by exclusive titles (monopolization) which gives them rental values.
Like taxi medallions, banking, insurance, law and health care are all technologies, a part of nature which must be discovered and refined over time, licensed within a monopoly system, and that legal structure gives them monopoly, non-tangible, rental values.
Land has tangible value but it is produced by nature and offered to all for free.
Banking and insurance are only social technologies and their licenses within a monopoly system give them monopoly, non-tangible, values. There are no values produced by labor.
Healthcare and law have tangible labor values (years of study) but their market prices are primarily unearned monopoly values created by license as well as the values created by productive labor. This is proven by single payer health care in England and other countries costing 43% per person as in America and they all having quality health care while 68 million Americans essentially have no health care.
Patents have some tangible labor values, but the much greater non-tangible monopoly values double the costs to consumers. Possibly 80% of that overcharge is wasted overseeing these monopolies and possibly 20% is banked as monopoly profits.
Over the centuries, to protect and increase their wealth and power, powerbrokers have extended the principle of monopolization of land through exclusive titles to include banking, patents, communications, insurance, health care, the legal system interpreting those rights for us, and other more minor sectors of the economy (run an Internet search for “rent seeking”). Most are licensed monopolies.
To both protect their system of wealth appropriation and lay claim to even more wealth, this system of unequal rights, privatization of every aspect of nature’s resources and technologies, denying others their rightful share at a reasonable price, is being imposed upon the rest of the world.
Each having the possibility of attaining those exclusive titles gives the appearance of equality. But superior rights are contradictions in terms. Some will win, some will lose, and the structure of a wealthy few and impoverished many stay firmly in place.
Converting marketing rights to banking, health care, insurance, etc, for a few to a social or human right for all eliminates battles for market share and drop costs by half. The resulting full and equal rights eliminating most legal battles are part of the cost savings.
We use the term full and equal rights throughout our books. This entire story could be put together as reclaiming currently denied social rights and human rights.
Paying for Wealth Appropriated From You in Perpetuity
Appropriations of wealth through exclusive titles, no matter where or how they are invested, engender a continual appropriation of more wealth. The owners of those unearned funds, searching for a safe place to invest, typically settle for buying treasuries issued to cover the costs of the federal government, bonds for education, sewers, water systems and other crucial infrastructure.
Citizens from whom that wealth was appropriated in the first place pay taxes to pay off that principal and interest. As those debt instruments are paid off, that money is reinvested.
The same citizenry, through either taxes or the purchase of products and services at excessively high prices, again pay off those debts.
And that impoverishing cycle goes on in perpetuity interrupted only by economic collapses due to too much wealth in the hands of the few and too little buying power in the hands of the many.
It is the potential of doubling economic efficiency through conditional titles to nature’s resources and technologies, eliminating all appropriation of others’ rightful wealth, which tags those continual repayments of appropriated wealth as “impoverishing cycles.”
Those inefficiencies under the founding principles of classical economics alert us they were only justifying a system of excessive rights; they were not laying out principles of an efficient economy. Those justifications, rationalizing unequal property rights within classical and neoliberal principles, are pouring out yet today.
Common Threads of Monopolies: Common Threads of their Elimination
There are three common threads within monopolies:
1) Exclusive titles to nature’s resources and technologies denying others their rightful share to what nature offers to all for free.
2) Huge blocs of unearned wealth accrue to those owners.
3) The loss of, or restriction of, social rights and human rights.
The common features of their elimination are:
1) The conversion of rent collecting rights or marketing rights for a few into social rights and human rights for all.
2) The huge blocs of capital buying and selling capitalized appropriated values (an unearned value normally double labor created values or use values) and its shadow appropriation economy (the ethereal world of high finance) are transposed into equally-shared use values (values added by labor to rental values of resources used), typically dropping costs by half even as labor time to produce and distribute the amenities of life drops an equal amount. That drop in labor and prices measures the previously wasted labor and resources.
3) The elimination of each monopoly eliminates the need for finance capital buying and selling their capitalized appropriated values (misnamed profits) and running that shadow appropriation economy, the ethereal world of high finance.
4) Upon the elimination of all monopolies and the realization of full and equal rights, the ethereal world of high finance disappears, there are no taxes, and consumer prices—measured in employed working hours— are reduced in step with the elimination of that waste.
The many complexities of property rights theory discussed for centuries would be quickly set aside by those same theorists if they realized the enormous gains possible by restructuring to full and equal rights for all. The only intellectually valid challenge to this thesis will be one recognizing these monopolies and addressing their elimination.
Visualize A Thousand Pilgrims Settling A Resource-Rich Uninhabited Island
Visualize a thousand pilgrims settling a resource-rich uninhabited island with fruit, nuts, berries, vegetables, grains, and thatch for homes available for the harvesting. As nature offered those rich resources to all for free, obviously each should have an equal share of the fruits of that natural wealth.
If a crafty few laid claim to large areas of land and gathered a few tough guards around them to protect “their property” others would have to pay a rental value to use that land. The aristocratic property rights we have today will have been established.
However, if they established full and equal rights, those resources would be privately owned and managed but society collecting those rental values would quintuply repay the citizenry through funding for health care and retirement, for building roads and railroads, for an education system, for water and sewer systems, etc, all natural monopolies, for eliminating all other taxes and giving all access to land through its initial cost being zero even as its use value is maximized.
Assuming other amenities of full and equal rights, equal pay for equally-productive labor and a sharing of productive jobs, their share of the wealth produced utilizing those fruits of nature will not be taken from the citizenry in the first place and there will be no poverty. The flow of money will be half as much as within a monopolized economy even as the quality of life is maximized.
How is it possible that intelligent, conscientious, and moral people put together such a violent and wasteful economic and political structure?
It is because, as Western cultures evolved from aristocracy, the powerbrokers were, at all times, creating those laws to protect and expand their wealth and power.
In that process, rights to and for the people has been deeply addressed. But rights to each one’s share to nature’s wealth and technologies which nature offers to us all for free, and that lack of full and equal rights being the real cause of poverty and wars, are not brought up as those laws are being passed.
And they are just as seldom brought up within the university system which is supposed to be teaching us. They and the media are key parts of the perception management process. In the group Fabricating Incidents to Start Wars there are several discussions of that process.
In the next article of this group, The Feudal Origins of Land Titles, we address the 700 year history of that supposed evolution from aristocratic law.
We say “supposed evolution” because aristocratic law is still firmly in place as it is applied to natures resources and technologies and denying others their rightful share of what nature offers to all for free.
Those crucial 170 words describing an honest, efficient, capitalist economy. Does anyone have the ear of President Barack Obama’s Economic Recovery Team?
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More pages in the “My Eureka Moment, Others, Possibly You, Can Paint an even Bigger Picture” section
- The simplicity of eliminating poverty and war will stun you
- The Simplicity of Eliminating Poverty is Paying the Rental Value of Nature’s Resources to Yourself
- You are Quintuply Repaid for Paying Resource Rents (Land Rents) to Yourself (Society)
- The Feudal Origins of Land Titles
- Our outstanding new book on the elimination of poverty by Alanna Hartzok