The core to learning the mechanics of the 18.6-year land cycle is fully understanding the role of economic rent (unearned income) and rent-seeking in the economy.
This is the ‘free lunch’ that so many desire — and the rights to which are protected by the elite at all costs.
Throughout the cycle, the greatest economic gains always come from owning the rights to land.
However, rent-seeking can take on many forms.
Cast your minds back to the taxi licencing monopoly, for example.
It was more profitable to hold a licence than it was to run a taxi company!
When Uber and Lyft entered the ridesharing industry around 2012–14, they were repeatedly stifled globally by government intervention.
Taxi drivers from London to Berlin staged mass protests. An estimated 30,000 London cabbies parked their cars, shut off meters, and blockaded streets!
However, just like land, the rental value of taxi fares went directly to the owners of the plates.
Not the drivers.
The drivers were left paying the licence holder an exorbitant share of their fares — often more than 50%!
Little was left over. The drivers were poor.
With the onset of Uber, consumers benefitted from lower fares and increased competition that ushered in better services.
However, Uber was not designed to give the drivers a greater advantage.
It’s not a worker-owned cooperative.
The company kept its fares unreasonably low to increase the number of users.
Drivers still struggle to make a profit.
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