In London some years back, one enterprising duo, John Bird and Gordon Roddick, hit upon an idea to put the homeless back to work. They published The Big Issue for those on the streets to sell, thus providing a regular income that wasn’t welfare.
The idea worked and was copied in other cities, including San Francisco.
But sellers were quick to notice that those who stood on busy street corners (say, the corner of Market and New Montgomery) sold more magazines – for the same application of labour – than those at quieter sites.
Fights broke out for control over the best location. Soon, sellers were prepared to bid for these best locations, or defend theirs with violence.
This value – which arises naturally when people get together to work – is what you need to understand.
Phil’s done a further short video detailing more about the Economic Rent HERE.
It’s a video you should watch to learn how to increase your returns in the monopoly capitalist system in which you live today.
Best wishes
Cathryn Stacey
and your Property Sharemarket Economics team.