Booms busts and misguided policy Avoiding bubbles and the busts that follow In 1910 Winston Churchill expressed himself particularly forcefully on the results of leaving the unearned wealth of land owners and speculators untaxed. He argued that the landlord's: "...unearned increment [was] in exact proportion not to the service [they do] but to the disservice done".
Unemployment and poor government Tax the wealth that comes from increasing land values rather than levying taxes which discourage growth in employment In the same speech, to paraphrase Churchill, he also pointed out that: landlords with well situated plots of land could sit idly by 'and watch the busy population around them making the city larger, richer, more convenient and, all the while, grow wealthier by the efforts of others rather than their own'.
