GROUND RENT A SOCIAL PRODUCT 13
Ground rent may be said to result from at least
three distinct causes, all connected with aggregated
social activity:
(1) Public expenditure: All wise public
expenditures are direct feeders of ground rent.
Streets, lights, water, sewerage, fire and police systems,
public schools, libraries, museums, parks and play
grounds, all contribute to enhance the value of land,
and a corresponding depreciation would follow the
abolition of any of these systems. It follows, there
fore, that expenditure for maintaining these services
constitutes the maintenance of ground rent, if not
in a literal sense, at least in an all-sufficient common
sense.
(2) Quasi-public expenditure; In the same way,
the expenditure by the municipality or by private
corporations for steam and electric railways, gas and
electric lights, telegraph and telephone facilities,
subways and ferries, contributes to the value of land,
at least to the extent of their actual cost.
(3) Private expenditure; Equally, and by parity
of reasoning, private or voluntary social expenditure
for churches, private schools, colleges and universities,
all private buildings, apartment houses, stores, and
office buildings, contributes to ground rent, the annual
value of land.
In an enumeration of the causes of ground rent,
population is usually the one first named. But a
passive population gives little value to land; it is
rather the activities consequent upon the character
population that create the value.
It is generally conceded that, as a matter of fact,
ground rent is what land is worth annually for use;