We are preparing a booming Renegade Economists radio show this afternoon with none other than Dr Gavin Putland critiquing the budget.
The sad thing about the lack of knowledge between infrastructure and land values is that the Ruddites look like building an underground rail tunnel and station in Northbridge, WA for $236m. However, not content at the boon this will provide to surrounding property owners, the government looks set to sell off the 50,000 square metres of land freed up by the tunnel to private (no doubt well-connected) interests!
Land Value Capture could save us the $8bn outlayed for road and rail projects, reducing the deficit stress for future taxpayers.
See more budgetary commentary on how $539 million can turn into a $4.6bn handout for the property lobby.