Dear Shaji, All commodities but one in the world can be produced in some way to satisfy demand of interested buyers, whether they are farm products likeMessage 1 of 1 , Nov 7, 2006View SourceDear Shaji,
All commodities but one in the world can be produced in some way to
satisfy demand of interested buyers, whether they are farm products
like vegetables and fruits, or manufactured products like cars and
refrigerators, or extracted products like oil and coal, just to name a
few. Market regulates prices. Thus when price of a commodity goes up it
attracts others to join the fray to produce that commodity to earn
benefits from its popularity, leveling the market playing field. Land
is the only commodity that can not be produced. Since the quantity of
available land is limited the price of land will always go up.
Controlling price of land means controlling private ownership of one
commodity while letting market set rates for all other commodities.
This is unfair and will not stand judicial questioning. In other words
the government can not control price of land as a special commodity. If
it wants to control price of land then it has to control prices of all
commodities which is logistically and psychologically impossible.
Logistically because it is a mammoth task, and psychologically because
people will turn to black market to sell their commodities.
On Nov 7, 2006, at 6:03 AM, FRIENDS_of_UP@yahoogroups.com wrote:
> Posted by: "Dr. P Radhakrishnan" prk@... radhakrishnan_mids
> Mon Nov 6, 2006 5:13 pm (PST)
> Dear Shaji,
> The question which Giridhar Rao has raised about land prices is very
> important and needs debate, particularly in urban context and in the
> context of unregulated real estate boom and encroachment on public