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What Capital Never Told You About Rent

58 points · 46 comments · longitudinal93

  1. jstanley · · focus · HN ↗
    > There is no more intrinsic reason for the scarcity of capital than there is none for the scarcity of air.

    You're suggesting that capital holders restrict the supply of capital so that they can extract rent on it? And if they didn't do that we'd just have unlimited capital and everybody would get to be arbitrarily rich?

    Then what do capital holders get out of restricting the supply? Wouldn't they rather be arbitrarily rich instead?

    > Every claim on human effort that exits the productive system as rent is a claim that cannot circulate internally, cannot pay workers fairly, cannot fund the next big idea or reduce the cost of the next product.

    What? Why? When you pay rent do you think your landlord isn't going to spend that money?

    1. asdfasgasdgasdg · · focus · HN ↗
      The rich are hoarding the pocket dimensions in the West Village where there is unlimited space for people to live, in order to extract higher rents!
      1. fhdkweig · · focus · HN ↗
        As they say, "The sky's the limit." Just build taller buildings.
        1. asdfasgasdgasdg · · focus · HN ↗
          I'm all in favor of that. But in NYC, wealth or poverty are hardly predictors of YIMBYism. Most of the vocal opponents of building more housing are tenants. Given that renters are a solid majority, if they desired pro-housing policies, they could certainly elect representatives who would enact them.
          1. ElevenLathe · · focus · HN ↗
            One might surmise, given these facts, that there is some force other than democracy in control of the levers of power.
            1. asdfasgasdgasdg · · focus · HN ↗
              I would surmise no such thing! I think the far simpler explanation is either that renters are ignorant of housing economics, or that they have other priorities that override reducing market rents. Having talked with many renters, I think the former explanation carries most of the weight, with a little of the latter mixed in.
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