Hudson on Capital Gains v Rents

What’s the difference between land price and land value?

Karl Fitzgerald
Karl Fitzgerald

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2 Comments

  1. In one interview, Michael Hudson said he prefers “land price” instead on “land value”, because “value” is something created by labour and production.

  2. MMM thats the opposite of what theory tells us. I’m positive that if you revisit that interview he would have said land value is preferred as land price incorporates the speculative element. Land value reflects what labour can realistically earn form that location. Land price is what the speculator can extort from the market due to our lax tax system.

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