THEY MISSED THE SOLUTION!

In an interesting article in today’s Fairfax, purporting to reveal the truth about the declining share of wages, Jessica Irvine and Adam Gartrell failed to mention that David Ricardo, Adam Smith, JS Mill and Henry George all said that land rent needed to be taxed away if wages and profits were to receive their fair share of the national cake.

This chart shows the astounding growth in land prices in Australia. It needs to be recognised that land price represents the private capitalisation  of land rent, and, that if more land rent were captured instead of taxes upon labour and capital, as per the aforementioned gentlemen, wages and profits must increase!

Simple – but overlooked, guys!