Tuesday, October 25, 2005

the solution to a divided country is land rent

Today's top BBC story is the Iraq constitution. Most voters supported it, but some opposed it. The opposition fears that increased autonomy means the oil-rich states can keep wealth instead of sharing it with oil-poor regions.

Land rent is the answer. With land rent, the value of all land is, in effect, equalized. One result is that no region has an advantages over another region simply because it sits on an oil field. (See the main web site for how land rent is calculated.) There are many other advantages, but this is the one that is relevant to today's news.

Justice between national regions: another advantage of land rent.

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