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Land isn’t a primary factor of production any more

From a discussion group…

Land isn’t a primary factor in a knowledge based, high technology economy. It’s a primary factor in an agricultural economy. You are a few hundred years behind the times.

Why does this idea keep popping up?

Nobody is growing food in the City of London or Canary Wharf, so if land does not matter any more how come that land rents and land prices there are tens of thousands of times higher than they are for the best agricultural land? Nobody is giving land away. Great Portland Estates are complaining (below) because they only got £35 million for the few square metres of 18/19 Hanover Square, compulsorily purchased by Transport for London for construction works and they want £60 million. If land didn’t matter any more surely they would not care and would have just given it way? Behind the times?