Land Ownership and Its economic value

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Along with labor and capital, Land is one of three major factors of production in classical economics and an essential input for housing and food production. Therefore, proper land use can effect on agricultural economies significantly and benefit whole society. This special status made the land ownership a big factor that government would like to control and it is mostly important in U.S but highly feasible in China.

As Jun Jie Wu, who is an author from Choices Magazine, calmed “Land use change is necessary and essential for economic development and social progress”. Remodel the land used is a station that every growing country must go though because every human activity need land and everything improve by making changes. For example, when a field have huge flow of people because of it is a main traffic, people who own that field will try to turn it into a town or a place for resting and gathering since that can produce more for the landowner. Both, China and U.S’s reaction on the land ownership can be explained by this idea and the state that country at.

According to the Wikipedia, “Each U.S. State except Louisiana has its own laws governing real property and the estates therein, grounded in the common law”. Which mean the property, or the land, is owned by individual or group of individual. Based on the history of American that is “discovered” by government funding but mostly “explored” by self-funding or non-government funding, the U.S government is mostly impossible to control all the land. The land will be used in the best way because of the profit motivation. This situation make the economy system of American grow faster.

Different to America, ALL the land is owned by government and people can only pay for a land usage right for a period of time. As the Article Is it possible to buy land in China pointed out, “no person, body or organization has the right to buy, sell or transfer ownership of land” and people can “legally transferred, traded, rented, given, exchanged, inherited, pledged or invested” those land usage rights. Since the People’s Republic of China is a unitary socialist state, Chinese government must have a higher level of control compared to America. To control the land ownership give the government power to change the use of the land when needed and that make the economy system become have a better stability while growing because government can react immediately to any kind of financial problem.

All in all, every government have their own system of land ownership based on the government current situation and needs.