Take another peep at the incredible increases in Australian land prices, then read this excellent piece by Terrence Duffy.
Simply a matter of supply and demand? Nup! Simply a matter of property spec and the under-taxation of land values.
![](https://thedepression.org.au/wp-content/uploads/2022/12/2022-Total-Australian-land-values-349x700.jpg)
Scenario 1: Abolish taxes, capture land and resource rents. Some people receive no income, so they must be given exemption and a means test instituted. …. Game over.
Scenario 2: Abolish taxes, capture land and resource rents. No exemptions are required as a living wage universal income has been introduced. Abolish poverty and welfare. …. Win/Win.
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The government has just had legislation passed to achieve real wage increases, but it doesn’t understand that it’s unattainable without a decline in land prices.
These charts suggest an inverse relationship between wages and land prices.
Here’s the explanation:
And again:
But unions and government believe real wage increases can be obtained by ‘bargaining’. Good luck with that one!
Only if the federal government keeps ‘borrowing’ to ‘pay for’ deficit budget spending.
This bloke knew better 143 years ago.
We used to know the story was false, but now we have the Reserve Bank of Australia promoting this canard, along with the media.
What retrogression!