Sunday, June 26, 2005

Iraq without theft

Headlines today about Iraq. More killing, more misery. So much could be said. Where to start? I want to make this short, so let's look at just one issue: land rent.

The most obvious result of a rational definition of property is Georgist style land rent. As explained on answersanswers.com, society creates part of the value the value of land (or other resources such as oil), and so it owns that value and can claim it as rent. One result is that nobody can profit unfairly from occupying land (or oil or water or anything else). This simple change, on its own, would have changed everything in the Iraq conflict:
  1. First, there would be no incentive for America (or anyone else) to covet Iraq's natural resources. Result: no danger of rushing too fast into war.
  2. Second result: more trust from allies, so more allies, greater support, and a much better job all round.
  3. Third result: more trust from Iraqis, and less insurgency. Nobody could credibly claim that Americans were out to steal anything. Any remaining insurgents would have no sympathy or support.
  4. Fourth result: if we assume that national borders are sacrosanct, then as far as Iraqi oil is concerned, "society" equals Iraq. So the ordinary Iraqis can claim their fair share of oil revenues. If land rent was written in stone, Iraqis would have no reason to fear foreign oil companies (or others using their resources), and every reason to welcome them.
Put land rent into the Iraqi constitution. It's as simple as that.

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