Jun 9, 2014

Capitalism: It's why we are working harder and harder to pay our country

Why is the rent so high?

This video by earthsharing.org explains very well why people are paying higher and higher rents. The land owner demands higher rents when the workers get more productive with the land. It is the same with shopping malls. The mall owners demand higher rents once they think the tenants can afford to pay. The more profitable the tenants this year, the higher the rents next year.

Now consider the landlord to be your country. The state owns most of the land and leases it to the highest bidders. The same scenario as in the video will be played out. The more productive the citizens, the higher the rents the state collects. At least that is the way the Singapore government operates. They raise prices every year to the "affordable" levels. The more the citizens earn, the higher the prices set by the government. But, the prices are always "affordable".

That's why we have to work harder and harder to pay our country.

The video ends with a question of what alternatives there are.

There is one alternative. Citizens should reclaim our ownership of the country. Demand our citizen dividend. Whatever profit that is squeezed from the land must be returned to us in the form of a citizen dividend.

1 comment:

  1. There is something similar in this post by Tan Kin Lian about high taxes and high prices by government owned companies.