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Progress and poverty
That economist is Henry George. He was a 19th century land reformer and economist who in his seminal work “Progress and Poverty” laid the foundations for a single tax policy where the state levied one tax upon bare land sufficient to capture the totality of the natural economic rent of said land. I will speak to the economic rent in a moment.
His goal was to remove any and all speculation of land, whilst removing taxes from all productive activity within the economy. So, no taxes on income, business profit, sales or anything like that.
His goal was nothing short of eliminating the boom-and-bust cycle and addressing economic inequality entirely. If it wasn’t for George, we wouldn’t know anything about the 18-year Real Estate Cycle.
He was also a proponent of free trade, and it is his writings about that subject that we now turn to. Henry George, in his arguments for free trade over protectionism, emphasized that tariffs and trade restrictions primarily benefit landowners and monopolists while harming workers and the general public.
Tariffs lift the prices of goods by removing competition. With less competition, domestic (in this case think US) production can now increase their own prices, which they then pass on to the US consumer. However, what actually occurs is these excess profits end up flowing into land values instead.
So, in other words, landowners and monopolists are the true winners of the Trump led global tariff campaign.
This concept is not understood by the mass media, so please bear with me as I dive deeper into this. It’s the absolute key to interpreting and understanding Trump’s true agenda.
Henry George showed that tariffs and protectionism create economic distortions that only benefit rent-seeking landowners and monopolists, ensuring that rather than workers and consumers, it is the privileged few who truly benefit from economic growth.
While Trump and his cronies argue that tariffs create jobs, George contended that they do not increase wages. Instead, they raise the cost of living because imported goods become more expensive, and domestic goods remain artificially high-priced. Workers ultimately pay more for necessities without seeing a proportional rise in income.
I mentioned the economic rent. What I refer to is the Law of Economic Rent (Ricardian Rent Theory). First proposed by English economist David Ricardo, George built upon this law which states that rent is determined by the productivity of land relative to the least productive land in use.
In other words, as economic activity increases (for instance, due to tariffs or other interventions), land in desirable locations becomes more valuable, and landlords can charge higher rents. George argued that tariffs artificially inflate profits, but these profits ultimately flow into higher land rents rather than benefiting workers or capitalists.
Now, consider once again who the US president has decided to surround himself with. Tech and finance billionaires. By pursuing this policy, it’s you and I who end up paying far more for basic goods and services that we need to survive. And it concentrates the wealth of nations into the hands of monopolists and the biggest landowners.
Now can you see the utter nonsense of Trump’s pronouncements and thanks to the words of George see straight through the noise to his true agenda. Only a real estate mogul could do it.
Make America Grotesque Again
If you think because you reside outside the US, and the ultimate cost doesn’t concern you, think again. We are seeing a cycle of reciprocal rounds of retaliatory tariffs on imported US goods by many nations.
Unfortunately, it isn’t that simple. Henry George saw retaliatory tariffs as self-defeating. They don’t punish the foreign country effectively, but they do hurt domestic consumers, benefit landlords, and reduce overall economic efficiency. His argument aligns with the idea that free trade is a unilateral good—a country should keep its markets open regardless of what others do.
And if you place land at the centre of your research when it comes to finance, economics, and investments, it just makes too much sense not to retaliate.
Because the outcome here, should every nation engage with tit-for-tat tariffs themselves, is this.
Your cost of living will increase. Your take home wages will decrease. The cost of buying a home will increase.
Plus, we can look at history to determine what the ultimate outcome of reciprocal tariff increases is. An all-out trade war where no-one wins, and everyone’s economy suffers.
Geroge was very clear and succinct too when providing alternative strategies. He suggested instead of tariffs, keep your markets free and open.
This will keep prices low and market efficiencies in place. Make domestic industries more efficient by placing the tax burden on land, not productive parts of the economy. Finally, use diplomatic or economic pressure on any trade partners engaging in a trade war instead of relying upon costly tariffs yourself.
The thing is you and I know full well that Trump is surrounded by sycophants who create an echo chamber around the president. He won’t listen to any discerning or contrary opinion, and after today, you understand that he actually shouldn’t anyway.
Because this whole charade isn’t about tariffs at all. It is instead about personal enrichment for himself, his family, and his billionaire friends.
But what about you?
I trust you have determined just how poorer we as a society are by ignoring the teachings of economists like Henry George. But like I wrote to you about last week, Trump couldn’t have picked a worse time to be doing this. We are fast approaching the final peak then bust of the US land markets.
This represents yet another nail into the coffin of the US economy that’s coming. It’s incredible to witness Trump’s electoral base still walking around with their MAGA caps on their heads, proclaiming him as the savior of the US. Like some sort of golden age is about to break out for them and their country.
Their savior is destroying their hopes and dreams instead, and ensuring Trump himself enriches himself. Any worthwhile real estate mogul would do no different.
So, are you ready? Have you started preparations for what’s coming? Are you clear on what’s needed and most important of all, do you have any idea of “when” this is going to happen?
The end is approaching.
Trump will lead the world directly into ruin. You, however, do not have to share his fate. Because you can arm yourself with a tool even the US president lacks.
The knowledge of the history of the 18.6-year Real Estate Cycle.
And that starts here, with membership of the Boom Bust Bulletin (BBB). Let the BBB guide you on the inherent timing of the economy only knowledge of the land market can give you.
Each month this history and knowledge will be yours via monthly written editions and video postcards that will help explain the real estate cycle like never before.
The set-up we are witnessing is becoming clearer by the day. And it is far more damaging than it appeared even six months ago.
Trump’s presidency began with America in a period of weakness not strength. The president is now prepared to sacrifice this economy on the altar of personal enrichment at the expense of the rest of us.
It’s even possible, should these policies continue, the end may in fact accelerate towards you.
Time now is critical. Every extra day you have to prepare will bear fruit when boom turns to bust.
So, sign up now.
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