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Where Does the Wealth Go?
Everything an economy produces is divided three ways: wages to workers, returns to capital, and rent to landowners. Because land is fixed in supply, growth flows disproportionately into rent. Grow the economy and watch rent’s slice swell — then collect that rent for the commons and watch it return to people as a dividend.
100
Total output
18%
Rent’s share
3
Deadweight loss
53
Household take-home
As the economy grows, land rent claims a bigger and bigger share — squeezing wages and capital. And because public revenue is raised by taxing work and investment instead of land, part of the output is simply lost to deadweight loss.