Working Papers

The 25th John Bonython Lecture and CIS Annual Dinner


A taste of PJ.


posted on 11 February 2009 by skirchner in CIS

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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”. [281]*

Hello? Can’t you say the same about any final good or service - it must be paid for out of some other income?

Posted by .(JavaScript must be enabled to view this email address)  on  02/14  at  09:54 PM

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  04:31 PM

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