Comment by kiba
3 days ago
You're getting at the problem but you still don't understand the essence. Land is special because you can't make more of it. Even the Netherlands don't count since what they did is considered an 'improvement'.
Yes, you still need to solve the problem with 'money', or more accurately a tax. That tax is based on the assessed land value using market knowledge, but it would ideally be set to drive down the price of land to zero. However since we don't live in a world of spherical cow, tax would be set below that ideal to avoid land abandonment.
This is not even new by the way. The crisis we face is the same as in the 19th century when Land Value Tax and Georgism was proposed.
I like Georgism just fine but you don't need it to solve this problem; LVTs are just a prompt align people's incentives with upzoning and increased supply. Instead of doing that (it's not going to happen), you can just outlaw the municipal measures that are used to restrict supply.