alt Hacker News> generates far more in economic activity
The LVT focus on profit above all else is why it is an unsatisfactory solution.
If the most important goal for every plot of land is to maximize its economic activity & tax revenue, that's going to be a miserable place to live.
All of the space uses that make a town nice to live in, are also underutilizing the land if the sole goal is to maximize economic activity.
Open space with native vegetation, parks, playgrounds, sports fields of all kinds like soccer fields, community pools, hiking trails.. all of that is wasted land if viewed through the lens of LVT maximization. All that space should be crammed full of high rise offices and apartments.
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> Open space with native vegetation, parks, playgrounds, sports fields of all kinds like soccer fields, community pools, hiking trails.. all of that is wasted land if viewed through the lens of LVT maximization.
No, because all of that would be open to the community. The waste is only if it was locked up for use by certain people.
LVTs focus is on maximizing land value, not profit. It just so happens that when a landowner maximizes the value a piece of their land provides, higher profits are almost guaranteed.
It's also a bit of a mistake to view LVT solely through an economic lense. Sure, we quantify it through a dollar amount or a difference in profits, but the value in LVT comes from how individuals value the land as a whole. So you are absolutely correct that a place without native vegetation, parks, playgrounds, etc. is going to be valued less than a place with those amenities by a lot of people. But only if people value greenspace and amenities more than pure economic output, which is mostly the case when it comes to residential spaces.
If people value greenspace, than the land around said greenspace will have a higher value. LVT would then incentivize those land owners to maximize their value, which would obviously include not destroying or removing the greenspace. Instead of would (likely) be to densify housing, or convert existing buildings to mixed-use spaces.