A taste of PJ.
posted on 11 February 2009 by skirchner
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“A dwelling-house, as such, contributes nothing to the revenue of its inhabitant,” Smith said in The Wealth of Nations. “If it is lett [sic] to a tenant for rent, as the house itself can produce nothing, the tenant must always pay the rent out of some other revenue.” Therefore Smith concluded that, although a house can make money for its owner if it is rented, “the revenue of the whole body of the people can never be in the smallest degree increased by it”. *
Hello? Can’t you say the same about any final good or service - it must be paid for out of some other income?
The prejudice against housing as a productive investment has deep historical roots, even in the classical liberal tradition!
Posted by skirchner on 02/16 at 05:31 AM