1. Rent Unmasked commentary, Fred Foldvary
Kriss Feder’s chapter 2:
Economics from the Ground Up:
Public Revenue and the Structure of Production

2. The Turnover of Capital Goods
Always say “capital goods.” Not “capital”.
From Austrian-school economics:
The time structure of capital goods.
Based on the duration of turnover.
Austrians emphasize the interest rate.

3. Labor and the Structure of Capital Goods
A stock of capital goods generates more income and employment as it turns over faster.
Taxes on gross revenue slow down the turnover.
The rate of turnover: the duration in which capital goods are fully depreciated and replaced.
Capital goods with a short duration, or quick turnover, have a high “valence” for labor.

4. The Quantum Leap Effect
Taxes on gross revenues can push land to less productive uses.
The surplus of an enterprise after paying for labor and capital goods, is land rent.
The “producer surplus” is rent.
Do all taxes come out of rent?