Simultaneously, the national income rises due to this tax. After the financial conditions improve sufficiently and the Government income is partly restored, it is possible for it to reduce all the other kinds of production-based taxes on earnings, consumption and capital gains. These beneficial changes greatly stimulate the demand for goods and investment within the macro-economy, enabling it to overcome the adverse effects of the slump far more quickly than if it was left to recover by itself.
Whilst some of the other proposals to overcome the slump will have beneficial effects, they are of a secondary magnitude compared to this proposal, which is unique because it rapidly removes the effect of the slump and also attacks the cause of it, inhibiting the possibility of its recurrence.
Briefly:Land Value Taxation (LVT) lowers production costs, raises demand and employment. Stops land speculation and associated corruption. Eliminates the need to keep land development plans secret. Only disadvantage is to the land owners, who don't use their land.
References:
[1] "General Theory of Employment, Interest and Money" by John Maynard Keynes,
Palgrave Macmillan, 1936.
[2] "Economics in One Lesson" by Henry Hazlitt, Harper and Brothers,1946.
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