No it doesn’t. As you can see, market price is where the supply line meets the demand line. Since supply is perfectly inelastic (vertical), a higher tax rate cuts into producer surplus without changing where supply and demand meet.
That isnt true, housing supply isn’t inelastic. Houses decay, new homes are built, and landlords remove homes from the market to artificially constrain supply.
LVT taxes the unimproved value of land, so we are talking about land itself not what is built on top of it such as housing. Since land is a product of nature, the supply of it is perfectly inelastic
Don’t sweat it to much, you are arguing against someone with an anti-education on how economics actually works to the point you can intuit how they’re wrong without knowing any of the theory behind their argument.
Anti-intellectualism would require you to have more formal or informal economics education, you’re calling electron fields anti-intellectual because you’ve only learned electron orbits
if all landlords’ costs go up, ALL monthly rent goes up? you’ve gotta follow the bouncing ball
Nope, see diagram
The diagram shows how price goes up and less consumers are able to access goods when you raise taxes within a market economy.
It is also an econ 101 level oversimplification, but it is arguing against your claims.
No it doesn’t. As you can see, market price is where the supply line meets the demand line. Since supply is perfectly inelastic (vertical), a higher tax rate cuts into producer surplus without changing where supply and demand meet.
That isnt true, housing supply isn’t inelastic. Houses decay, new homes are built, and landlords remove homes from the market to artificially constrain supply.
Also that isnt what the graph illustrates.
LVT taxes the unimproved value of land, so we are talking about land itself not what is built on top of it such as housing. Since land is a product of nature, the supply of it is perfectly inelastic
People live in housing though, which is distinct from land, and the thing they’re claiming is static
source?
Supply and demand diagrams are covered in introductory economics classes worldwide. Hint hint.
how does supply and demand relate to……land value taxes…….
You are arguing about a subject for which you have chosen to not educate yourself whatsoever.
hmmmmmm
Don’t sweat it to much, you are arguing against someone with an anti-education on how economics actually works to the point you can intuit how they’re wrong without knowing any of the theory behind their argument.
This is anti-intellectualism. Please either take a single econ class or stop spreading misinformation.
Anti-intellectualism would require you to have more formal or informal economics education, you’re calling electron fields anti-intellectual because you’ve only learned electron orbits