Socialization of a Land Rent as a Way of Reconstruction of Social Structure for the Benefit of Ensuring Cost Efficiency

The revolution proclaimed, inter alia, to transfer the ownership of land to those who worked on it for their own benefit. Still, even in theory, it was yet to be defined what kind of ownership was needed to meet its primary objective.
It is always troublesome, when a capitalizable object is transformed into a public asset because in the context of the surplus product situation, no mechanism of such transformation has ever been developed. Nevertheless, soviet socialism achieved some progress in a more specific issue of transforming land into a public asset via socialized land rent, in particular, via a differential land rent. In the socialist time, an absolute land rent was challenged by the non-match between socialist monopoly and monopoly in terms of classical political economy as a source of absolute rent; lack of clear distinction between rent and profit on capital where there are no restrictions on capital overflow between economy sectors thus, rendering absolute rent literally non-existent in Pareto terms.
Since the end of socialism, the egalitarian process has lost its gain of a socialized differential land rent and had to look for other options, this time in the new situation of private land ownership. This brings us to the works of Henry Georges where he suggests replacing taxes by land rent. Thereby socialization of a land rent from the instrument of elimination of social inequality will be transformed to the tool of economic efficiency.

1. Blaug M. Economic theory in retrospect. M. : Business LTD., 1994. (In rus)

2. Kirillina M. V. Socialization of a land rent as factor of improving competitiveness of national economy // Social state: calls of the 21st century. Works of XIII Chayanov readings / ex. edition of N. I. Arkhipov. M. : Russian State Social University, 2013. P. 314–319. (In rus)

3. Latkov A. V. Rent-oriented behavior of political actors in the states of Eastern Europe: theoretical aspects // Person and the power in modern Russia: Interuniversity scientific collection. 2006. Issue 8. P. 112–119. (In rus)

4. Latkov A. V., Barashov N. G. Centre-peripheral relations in economic and political development of Russia // Russian-European partnership in a context of the international relations: Materials of the international scientific and practical conferences (Saratov, on October 15, 2003, on November 10, 2004). Saratov : SSSEU, 2005. P. 52–57. (In rus)

5. Latkov A. V., Pogrebinskaya E. A. Features of withdrawal of an administrative rent at the different levels of economy // Theory and practice of inter-level interaction of economic systems: materials of the international scientific and practical conference (Saratov, on May 27–28, 2004). Saratov: SSSEU, 2004. P. 56–58. (In rus)

6. Lenin V. I. The agrarian program of social democracy in the first Russian revolution of 1905–1907 / Works. 5th edition. V. 16. M. : State publishing house of political literature, 1961. P. 193–413. (In rus)

7. Marx K. Capital. Criticism of political economy. M. : Politizdat, 1978. V. III. Book III. Part II. I–IV, 509–1084 p. (In rus)

8. Marshall A. Principles of economic science. In 3 v. / translation from English. M. : Publishing group Progress, 1993. V. 3. (In rus)

9. Nikolaychuk O. A. Modern agrarian relations and problems of a land rent. Pskov: Pskov pedagogic Institute of S. M. Kirov, 2001. 156 p. (In rus)

10. Nikolaychuk O. Ways of withdrawal of a land rent // Agrarian and industrial complex: economy, management [APK: ekonomika, upravlenie]. 2004. N 2. P. 63–71. (In rus)

11. Rakhmatov H. B. Regulation of the land relations taking into account interrelation of form of ownership, a land rent and the system of taxation of income of agricultural producers // Messenger of the university [Vestnik universiteta] (Russian-Tajik (Slavic) University). 2015. V. 1. N 1 (48). P. 112–119. (In rus)

12. Ricardo D. Beginnings of political economy and taxation // Anthology of economic classics. M. : Econov ; Key, 1993. 475 p. (In rus)

13. Satalkina N. L. Rent as economic fundamentals of the Russian economy // Messenger of scientific conferences [Vestnik nauchnykh konferentsii]. 2016. N 2–2 (6). P. 103–106. (In rus)

14. Satalkina N. L. The rent relations in the course of economic transformation of subjects of economic society // Messenger of the Tambov University. Series: Humanities [Vestnik Tambovskogo universiteta. Seriya: Gumanitarnye nauki]. 2008. N 11 (67). P. 414–417. (In rus)

15. Satalkina N. L. The system of economic interactions of the rent relations in the conditions of transformation of economic society: dissertation. Kostroma, 2008. 106 p. (In rus)

16. Satalkina N. L. A status rent as a form of the non-systemic economic relations // Science and education in the 21st century. The collection of scientific works on materials of the International scientific and practical conference on October 31, 2014 Tambov, 2014. P. 140–141. (In rus)

17. Smith A. An Inquiry into the Nature and Causes of the Wealth of Nations / Anthology of economic classics. M. : Econov ; Key, 1993. 475 p. (In rus)

18. Tlyashok Z. H., Tlyashok T. R. Natural rent as source of national welfare // Modern science: theoretical and practical look. The collection of scientific works on materials XIII of a regional scientific conference. Maykop, 2016. P. 236–240. (In rus)

19. Heilbroner R. L. Economics as Universal Science // THESIS: theory and history of economic and social institutes and systems [THESIS: teoriya i istoriya ekonomicheskikh i sotsial’nykh institutov i sistem]. 1993. Issue 1. P. 41–55. (In rus)

20. Harrison F. Tax reform and city economy. SPb. : Research center Ecograd; London: Association of scientific research in the field of economic and social sciences, 1993. (In rus)

21. Chistyakova T., Harrison F. A land rent — strategic weapon of Russia. SPb. : Research center Ecograd ; London: Association of scientific research in the field of economic and social sciences, 1993. (In rus)

22. Chistyakova T., Harrison F., Smith F. Change of a system of taxation and demonopolization of the industry. SPb. : Research center Ecograd ; London: Association of scientific research in the field of economic and social sciences, 1993. (In rus)

23. Yarullin R. R. About a land rent as a basis of public finances // Bulletin of the Bashkir State Agricultural University [Vestnik Bashkirskogo gosudarstvennogo agrarnogo universiteta]. 2006. N 2. P. 45–46. (In rus)

24. Yarullin R. R., Tsykalo A. P. A value added tax as the instrument of collection of a land rent // Achievement of agrarian science — to production. Materials of the 110th scientific and practical conference of teachers, employees and graduate students of the university. Ufa : Publishing house of the Bashkir State Agricultural University, 2004. P. 204–206. (In rus)

25. Yakhina R. R. Land tax as a form of alienation of a land rent // Achievement of young scientists — to agrarian production. Materials of a republican scientific and practical conference of young scientists and graduate students. Ufa : Publishing house of the Bashkir State Agricultural University, 2004. P. 292–294. (In rus)

26. Andelson R. (ed.). Critics of Henry George. A Centenary Appraisal of Their Strictures on Progress and Poverty. Rutherford, n. J.: Fairleigh dickenson University Press, 1979.

27. Barkai H. Ricardo’s Second Thoughts on Rent as a Relative Share // Southern Economic Journal. 1966. Vol. 32. N 3. P. 285–293.

28. Cord S. B. Henry George: Dreamer or realist? (1965). N. Y. : Robert Schalkenbach Foundation, 1984. 272 p.

29. George H. A Single Tax on Land Values. In: Gherity J. A. (ed.). Economic Thought: A Historical Anthology. L., 1965.

30. George H. Progress and Poverty. L., 1955.

31. Johnson H. G. An Error in Ricardo’s Exposition of his Theory of Rent // The Quarterly Journal of Economics. 1 November 1948. Vol. 62. Issue 5. P. 792–793.

32. Krueger A. O. The Political Economy of the Rent Seeking Society // American Economic Review. 1973. N 3 June. P. 291–303.

33. Rodbertus J. K. Sociale Briefe an von Kirchmann. Dritter Brief: Widerlegung der Ricardo’schen Lehre von der Grund rente und Begrundung einer neunen Renten theorie. Berlin, 1851.

34. Samuelson P. A. A Modern Treatment of the Ricardian Economy I. The Pricing of Goods and of Labor and Land Services // The Quarterly Journal of Economics. 1 February 1959. Vol. 73. Issue 1. P. 1–35.

35. Samuelson P. A. A Modern Treatment of the Ricardian Economy: II. Capital and Interest Aspects of the Pricing Process // The Quarterly Journal of Economics. 1 May 1959. Vol. 73. Issue 2. P. 217–231.

36. Shutaeva E. A., Pobirchenko V. V., Kakutich E. Y. Socialisation as a factor of the world economy development in the conditions of globalisation // Экономика и предпринимательство. 2016. N 1–1 (66). С. 465–469.

37. Teilhac E. Pioneers of American Economic Thought in the Nineteenth Century (translated by E. A. Johnson). N. Y. : Macmillan, 1936.

38. Tullock G. The Economics of Special Privilege and Rent Seeking. Boston : Kluwer Academic Publishers, 1989.

39. Thünen J. H. Der isolierte Staat in Bezielung auf Landwirtshaft und Nationalekonomie. Berlin, 1875.

40. Worcester D. A. Jr. A reconsideration of the theory of rent // American Economic Review. June 1946. N 36 (3). P. 258–277.

41.