better judgment

Today's top story on the BBC is about gambling. The big question is, do casinos do more good than harm? Supporters point to the money they attract. Critics point to gambling addiction and crime. Who is right? Land rent helps us find the answer.

If casinos attract people and business to the neighborhood, this increases land values. But if casinos create crime and local people spend less money on other services, people leave and land values go down. For example, this is from a report on Atlantic City:

The study shows that casinos have had an effect on increases in crime in the region, especially in Atlantic City, its adjacent localities, and localities accessible via major arterial roads. Crime levels in accessible areas diminish with distance from Atlantic City. This possibly results from crime committed by crime-inclined visitors to the casinos or others related to the industry. The casino-related crime increase is reflected in depressed property values, an effect which diminishes with distance from the city.

On the other hand, the casinos create a lot of employment. So a calculation can be made. The calculation will not cover every possible cost and benefit, but even a marginal change results in movements of millions of dollars. This is more than enough to demonstrate whether casinos are a good thing (attracting people) or a bad thing (increasing crime). A land rent system constantly measures land values, so these calculations are made all the time.

Better judgment - another benefit of land rent.