FAQ About Location Value Covenants
Is the increasing price of locations the only economic rent?
No, but it’s by far the largest. Some 70% of the value of every nation is the location value of land - the demand for the best locations have the highest value. Others are the profit collected by banking, mostly for mortgages. But these profits are really a derivative of economic rent, not interest per se. Followed by the profits of monopoly corporations granted for free by the state as handouts and bailouts - benefit scrounging and corporate welfare. And then more remotely, the profits from the rights the state gives to intellectual property are partially an economic rent. Any unearned income qualifies - incomes where no further investment of labour or capital is required to maintain the asset value. Even crypto is made up from economic rents, where else can it be made from, there is no wealth involved in crypto!
