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Article #6763

Re: more Welfare Cowboys? (eco)

#6763
From: Don Baccus
Date: Wed, 02 Aug 1995 00:00
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Phil Ronzone (phil@netcom.com) wrote:
: I'd suggest you take a course in micro-economics. Since the State controls
: (sets) the initial (non-market) price, and in some states, controls who
: can use the land and how, there is no market.

As has been pointed out many times, in some instances the leaseholder
turns around and sub-leases the allotment, at market price, and
pockets the difference.

The fact the leaseholder can do so would seem to indicate two things
to me:

1. There is a market.
2. The government is charging less than market price.

It's also true that some states lease their holdings on a competitive
bid basis.  Lands leased in such a manner bring in more than the
pitiful $1.6x/AUM we get for our federal lands.

--

- Don Baccus -
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From: donb@rational.com (Don Baccus)
Subject: Re: more Welfare Cowboys? (eco)
Date: 1995/08/02
Message-ID: <3vo6bq$gfa@rational.rational.com>
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