The Right to Collect the Rent
by Phillip Anderson
Editor, Cycles, Trends and Forecasts
NARITA, JAPAN:- This week judges in the UK ruled that Uber can continue operating.
The judges decided Uber’s smartphone app is not a taxi meter. The app is what connects user to the drivers.
Under British law, taxi meters are permitted only in black cabs. And those existing taxi drivers don’t want any competition. Or rather, the owners of the taxi licenses don’t want any competition.
So they are doing everything possible to stop Uber.
The UK government set these black cab laws up originally merely to preserve the value of taxi licenses.
Should this be the business of government though?
Such laws are sold as ‘necessary to preserve the free flow of business’ and to ‘preserve law and order’. They are nothing of the sort.
The biggest obstacle to genuine wealth today remains license owners who will stop at nothing to preserve their value.
A ‘government’ is needed to do this.
They’re winning in France by the way. The French court last month held that the Uber service is illegal. Two of the Uber executives will therefore stand trial for operating an illegal business in France.
What can you say, except ‘C’est la vie’?
But this clearly shows how such government driven decisions to protect vested interests are reducing people’s lifestyle choices and general wellbeing.
Remember, the largest government granted license of all is the right to collect the Rent. Governments grant this in perpetuity all around the world now.
It is so ingrained into the system that almost no one can conceive how the system could be run otherwise.
I point this out merely to remind you that this is the basis of the real estate cycle. It is where the cycle begins.
So, whilst this remains the case, we absolutely must get another real estate cycle. It cannot be otherwise.
Phillip Anderson is editor of Cycles, Trends and Forecasts