Thanks to Windypundit for this tip.
Archive for September, 2009
“Health” care reform
September 28th, 2009 by Administrator
I don’t see much thoughtful discussion of “health” care reform. (The quotes are because we’re really just talking about medical care. Health is much more impacted by things like sewers, water treatment, and garbage collection than by physicians and hospitals). So I enjoyed this discussion of the Australian system compared to the U. S., with some talk of the UK and France thrown in. Especially the comments are enlightening.
The conclusion seems to be that to make decent medical care available pretty much universally and at a reasonable price, we need to squeeze the providers and work around the insurance companies. One commenter proposes mandatory catastrophic insurance combined with 100% consumer-paid routine care (which, to give this item a Georgist theme, can be funded out of the citizens’ dividend). This is too reasonable to gain a fair trial in my lifetime.
Global climate data disappeared?
September 26th, 2009 by Administrator
That’s the inference from this article. The original global climate data compiled in the 1980s seems to have been lost. Adjusted data remain, but the adjustment methods apparently aren’t fully documented.
I doubt that this development is going to change anybody’s mind, especially because it originated in National Review. But it will be interesting to see whether it even gets much media coverage.
What Sam Zell knows
September 23rd, 2009 by Administrator
Several times each year I give a little talk at HGS about “What the Rich Know.” And I always point out that the richest man in Chicago, Sam Zell, got that way not so much from smart investments in real estate and other monopolies, but more because he is extremely clever in taking advantage of income tax laws and regulations. (And that’s why increasing tax rates on high incomes doesn’t really bother the rich much, nor does it raise much revenue, except for tax lawyers.)
We see another example today, with a Sun-Times report that tax expert Robert Willens suggests that IRS will eventually examine the (pending) “sale” of the Cubs, which has been structured to avoid $300 million in capital gains tax that would otherwise be due.
Update Sept 27 2009: Kevin Horrigan suggests that, if Zell doesn’t want to pay the tax, America’s taxpayers should be entitled to a share in the team.
For those who say government can’t run anything right, I say, compared to what? Not winning a World Series for 101 years?
Thanks to Al Katzenberger of Public Revenue Education Council/ Common Ground USA for the tip.
Walkability pays
September 20th, 2009 by Administrator
Lots of folks like to live at relatively high densities. Though a big house and yard are nice, they prefer easy access to facilities and services. That’s why land prices are usually high in densely-developed areas (One might say that high price is the market’s way of maintaining density).
None of this is news to Georgists or observant urbanites, but it’s nice to note that it’s been documented that “walkability raises home values in U. S. cities.” How much? Well, computing a “walkability score” based strictly on proximity to 13 different services (apparently with no consideration of whether there are maintained sidewalks or paths), in Chicago each one point increase (equivalent to one percent of the total range) increases residential land value by $5260. This incidentally is the highest amount for any of the 15 cities studied
Public transportation is not directly recognized in this study, altho it is acknowledged that walkability is somewhat correlated with transit service. Therefore part of this value may be due to transit.
The walkability study is among many interesting resources identified in VTPI’s new compilation and analysis “Where We Want to Be: Home Location Preferences and their Implications for Smart Growth (pdf). “
Mongolia plans Citizens’ Dividend
September 11th, 2009 by Administrator
Mongolia Fund to Manage $30 Billion Mining Jackpot
Sept. 11 (Bloomberg) — The Mongolian government will set up a sovereign wealth fund using mining royalties and tax revenue, and distribute part of the income to citizens to alleviate poverty, said Finance Minister Sangajav Bayartsogt.
The fund, to be run by professional managers from 2013, will disburse part of its annual income to every Mongolian…
Currently, per capita income is estimated at $1680/year for the 2.7 million Mongolians. A single large mining project is expected to generate $30 billion in tax revenue over 50 years. Apparently this estimate includes royalties. Distribution of “mining wealth” to the people had been an issue in May’s elections.
Less encouraging:
Mongolia’s government on Aug. 25 passed laws allowing companies to carry forward their losses for eight years, build private roads and let Oyu Tolgoi developers use water they find on their land. The parliament will also repeal from Jan. 1, 2011, a 68 percent windfall profit tax on copper and gold.
Land speculation in Khartoum
September 10th, 2009 by Administrator
Georgists will not be surprised that the Sudanese capital of Khartoum suffers from land speculation. A perceptive article in the Sudan Tribune notes that downtown building lots go for $500,000 to $2 million USD. “The rents in Khartoum have also increased due to huge demand from the oil companies and UN agencies…” Another source of speculative increase:
The Bank of Khartoum recently initiated the first mortgage policy in the history of Sudan and they announced that their customers could buy, through the bank’s policy, a house or an apartment and pay in installments over a period of 15 years.
Although he doesn’t draw the direct link between speculation and finance, Ahmed Elzobier’s article notes that “land speculation is, at best, a high-risk, high-return investment. At its worst, it is the playground of scam artists and rife with high-level corruption.”
Henry George’s analysis is brought in thru a Progress Report of Fred Foldvary. However, Elzobier does not mention George’s remedy, the taxation of land value. Instead, he suggests that Mozambique “has the best land policy in Africa. According to the country’s 1997 Land Law, land in Mozambique is still owned by the state and cannot be bought or sold, but the rights of people or communities to use the land, and sell assets on it, are recognized.” Being truly ignorant about Mozambique, I wonder how well this works.
Although the Sudan Tribune site claims to allow comments, I could not figure out how to make this function work, so I cannot comment on the story.
Medallion Prices– upward trend continues
September 5th, 2009 by Administrator
Month Price Source
July ‘09 $175,000 Chicago Dispatcher
May ‘09 $170,000 Chicago Dispatcher
April ‘09 $164,500 Chicago Dispatcher
March ‘09 $165,000 Chicago Dispatcher
February ‘09 $158,000 Chicago Dispatcher
Feb ‘07 $ 77,000 Chicago Tribune
2004 >$40,000 Chicago Tribune
1991 $28,000 Chicago Sun Times
August 25th is the most recent date for which sales are reported on the Chicago City web site. Three of four sales that day were at $184,000.