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Today I’m coming to you once again from Dublin, Ohio where I’ve just completed my first ever U.S. meet and greet.

And a question I often get asked is along the lines of, if there’s so much that’s
unprecedented, so much that’s new… maybe this cycle will be different?

Today I’ll explain that, no matter what may look “new”… every time, it’s the economic rent that takes the gains.

You must understand this… because it becomes much easier to have a long-term view, which is critical.

Check out the video and transcript below.

PSE members only.

Transcript

All right, good afternoon. We are in Dublin, Ohio. We’re just wrapping up after the meet and greet here. First one I’ve done in the U.S. It’s out in the Midwest of the U.S. It’s a particularly beautiful part of the country.

It’s interesting for me in a sense. Dublin was put on the map a couple of decades ago when Jack Nicklaus, of all people, a very famous golfer if you don’t know that already, created the Memorial Golf Club. After that, I always wanted to be a pro golfer.

When I was young, Jack Nicklaus was my favorite golfer, and I had a set of Jack Nicklaus golf clubs that I used at the very start. So, things come full circle.

One of the questions I’m often asked from subscribers is, maybe “everything that’s happened these days, maybe this time it’s different.”

I was just reading the papers and came across an article about a guy named Max Alexander who has an eye for fashion.

He’s been meeting with serious fashionistas and designers, and he has a following of millions. He’s just been invited to the Metropolitan Museum of Art to do a design.

The kid is eight, yes? Eight. Making millions, millions of followers, and doing some fantastic designs. Now, that’s not unusual for kids. They say that famous designers knew they wanted to be designers by the time they were five.

So that’s not unusual. So here we are in a society with iPhones and technology where kids can really be creative and do some amazing things, some enormous things. Is that going to be different?

I urge you to understand economic rent, and it’s the economic rent that’s going to take those gains. At the end of the day, average wages never really rise above what people are willing to afford when economic conditions are enclosed, when the earnings of land are enclosed.

Now, compare this to another article I saw in The New York Times in the business section last Thursday, September 12th. It’s about dock workers in Norfolk, Virginia, who are on strike because management is bringing in more automation and technology into the docks. They employ about 47,000 people America-wide, across the eastern Gulf coasts.

They’re striking about a gate through which trucks enter a small port in Mobile, Alabama. The International Longshoremen’s Association has more than 47,000 members. The president there said, “We will never allow automation to come into our union and try to put us out of work as long as I’m alive.”

Now, if you’ve read my book, in the early days of development here in the United States, when land was still free in the sense that the frontier hadn’t closed, Americans were the only people in the world who welcomed automation. Why? Because they knew it lifted wages and increased productivity and they welcomed it.

But once the frontier closed, things got a little different.

When the enclosure takes place, it means that wages will only ever be as high as what the pressure is on, the least men will accept. If you didn’t understand what I’m talking about there, it’s really critical that you do understand it I’ll provide a link to my Citizen’s Dividend report that shows you what can happen if you collect the earnings of land, put them into a communal fund, and then redistribute that as a citizen’s dividend.

When we don’t do that, we end up with a society that you see around you, where land prices are exorbitant, house prices are expensive, and union workers fear for their jobs.

Alright, so we’ll wrap it up today. It’s really important that you see the paradigm shift and what economic rent is all about. The reason I teach it, the reason I write about the citizen’s dividend, is to ensure that you can become a better investor.

Once you see it, you know what to look for, and it becomes much easier to have a long-term view.

Alright. Well, that’s it from Dublin, Ohio today. We’ll talk again soon.

Best wishes,

 

 

Phil Anderson
and your Property Sharemarket Economics Team

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