Re:The wealthiest 10% of Americans own a record 89% of all U...
by imtringued on Monday October 18, 2021 @02:33PM
(#28909434)
Real estate (land to be specific) is a popular investment because it lets you extract economic rents.
You can build a dynasty around land because ownership is barely taxed. Land does not degrade by simply keeping it vacant. Meanwhile everyone around the land needs it to live on or to work or to extract resources. Inequality isn't driven by well deserved high returns, it is driven by monopolistic extortion where you cannot refuse even if you know you're getting ripped off.
You can build a dynasty around land because ownership is barely taxed. Land does not degrade by simply keeping it vacant. Meanwhile everyone around the land needs it to live on or to work or to extract resources. Inequality isn't driven by well deserved high returns, it is driven by monopolistic extortion where you cannot refuse even if you know you're getting ripped off.