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The Drivers of the Land Cycle — the Pursuit of Economic Rent

Updated: Dec 1, 2023


We all desire a country built on the pillars of community, equity, and economic justice. But it’s simply not possible in a country pinned to the foundation of rising land values as a necessity to fund retirement and most other lifestyle and business needs.


The social consequence that arises from this costs Australians millions in welfare payments throughout the year.


Yet it is still advertised and promoted as the road to riches — unsurprisingly.

If I had the choice of being a rentier rather than a renter, I know which I’d rather be.


housing market australia
Source: ABC News
Rising housing costs have dramatically widened the gap between what Australians on high and low incomes can afford. Rising home prices paired with plummeting rates of home-ownership are driving up wealth inequalities.
ABC News

Thus, we have a ‘FIRE’ (finance, insurance, and real estate) economy choreographed around the land market — disproportionally inflating land costs without due acknowledgement of the consequence.


When you read today’s headlines about the housing crisis, you may as well be reading a timeless newspaper.


Rising rents, a housing shortage, struggling first home buyers, and an increasing number of singles retiring without owning their own home. These are all consequences of the process driving the land cycle.


Unfortunately, the web of confusion surrounding the subject has put capitalist democracy — which has managed to free so many from the dominance of politically oppressive and controlling regimes — under attack.


Yet, capitalism, which, in its truest form, is simply a free market system of competing goods and services, is not quite what we have today.


It’s important, therefore, to understand what wealth and capital are exactly.

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