Michael Hudson / Real Estate, Technology and the Rentier Economy: Pricing in excess of Value, producing Income without Work

Economic Dystopia vs. the Economy of Abundance

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At the dawn of the industrial era, observers like Simon Patten imagined a future where technological advancements would lead to an abundance of leisure and wealth for all. As we catapulted through the 20th century, witnessing astonishing progress, the anticipated utopian landscape has remained frustratingly out of reach. With soaring Gross National Products and diminishing real wages, the question begs to be answered - where are the fruits of productivity going?

Economic Rent in Industry

Michael Hudson points to "rent" - the concept of gaining income without contributing equivalent labor or production. This rentier effect extends beyond real estate to encompass other sectors, including finance, insurance, and various forms of intellectual property. Organizations in industries from pharmaceuticals to information technology reap financial benefits far exceeding the production costs, thus garnering inflating profits that are often rent-seeking by nature.

Conclusion

In a fair economy, all income would be attributed to productivity, not the mere holding of assets or property. Progressive-era reformers dreamed of a system where rent and interest did not distort the economic landscape. Yet, the contemporary scenario shows a divergent reality where the wealth created by technology does not accringle to society as a whole, but is captured by the top echelons of the rentier economy, creating a landmine of economic disparity and inflated asset prices.

The Integration with the Hospitality Sector

The rentier economy molds various aspects of society, including travel and the hospitality industry. The high cost of property and the speculative nature of real estate impact the affordability and availability of accommodations, catering to a wealthier clientele and perpetuating the cycle of income without work. As tourists navigate these economic landscapes, their experiences are influenced by the very dynamics of rent-seeking behavior that drives pricing beyond the intrinsic value of a stay, thus informing and perhaps even constraining the evolution of travel and leisure in modern society.

Michael Hudson / Real Estate, Technology and the Rentier Economy: Pricing in excess of Value, producing Income without Work

Economic Dystopia vs. the Economy of Abundance

Economic Rent in Industry

Conclusion

The Integration with the Hospitality Sector

Puerto Rico (Gran Canaria)

Playa del Ingles (Gran Canaria)

San Agustin (Gran Canaria)

Maspalomas (Gran Canaria)

Puerto De Mogan

Las Palmas de Gran Canaria

Arguineguin