Property premium is the key concept in the system of property-based economics developed by Gunnar Heinsohn, Otto Steiger, and Hans-Joachim Stadermann. It is an insight derived from the legal distinction between property and possession which is made by jurists, but not by economists.
The distinction between property and possession is used by Heinsohn and Steiger to classify forms of society. "Three distinctive systems of material reproduction are known to man: (i) custom or tribal societies, (ii) command or feudal societies and (iii) ownership- or property-based societies."[1] The first two are based on possession, which is a physical, material concept. Property, on the other hand, is an abstract, intangible concept, and thus can only exist as a creation of law and within the realm established by the rule of law. Where such a regime of law is established, property arises; and it is accompanied by the phenomenon of property premium. "As soon as property is created it carries an unearned and immaterial premium, the property premium. This premium exists in addition to the physical use of goods or resources in their possessional state and consists of two powers: (i) its capacity of backing the issue of money which can be created only in a credit contract and (ii) its eligibility to serve as collateral for obtaining credit."[2]
It is this property premium which explains the phenomenon of interest. The owner gives up his property premium by using his property to back the issue of that money; what he gains in exchange is interest. The borrower likewise forgoes property premium in engaging a loan, because he must back his promise of repayment with collateral, pledging his property as security for repayment of the loan. What he receives in return is liquidity premium, which is the capacity to cancel indebtedness.[3] "Keynes's idea that interest is the payment for forgoing liquidity premium, therefore, falls short. The debtor's payment of interest materializes the creditor's property premium, while the debtor's property premium gives rise to liquidity premium."[4]
This ingenious explanation for the existence of interest also demonstrates that interest is simply an aspect of property within the regime of private law. Within that regime it is inescapable; outside of it, in possession-oriented regimes whether tribal or communist, it is unobtainable.
^Heinsohn and Steiger, Eigentum, Zins und Geld: Ungelöste Rätsel der Wirtschaftswissenschaft (Marburg: Metropolis-Verlag, 20064), p. 471 (abstract in English).
^ibid.
^"The liquidity premium is a measure of a debtor's capacity to fulfil contracts, credit contracts and sales contracts alike. Money as the only asset to finally settle contracts, therefore, carries liquidity premium per se. Other assets which are not money, from demand deposits over marketable debt titles to capital assets, have a liquidity premium bequeathed to them by the very existence of money and according to their degree of transformability into money." ibid., p. 472.
Propertypremium is the key concept in the system of property-based economics developed by Gunnar Heinsohn, Otto Steiger, and Hans-Joachim Stadermann...
"Premium Outlet Collection Edmonton International Airport Celebrates Its Grand Opening" (Press release). PR Newswire. May 2, 2018. "Simon Property Group...
YouTube Premium (formerly Music Key and YouTube Red) is a subscription service offered by the American video platform YouTube. The service provides ad-free...
this was cheaper than paying insurance premiums. Since many UK government buildings have been sold to property companies and rented back, this arrangement...
owned and managed by Simon Property Group, and is part of Simon's Premium Outlets chain. It was co-developed with Chelsea Property Group, and was opened on...
The Premium Residency, informally known as the Saudi green card,[citation needed] is a residence permit in Saudi Arabia that grants expatriates the right...
platforms. Premium financing is mainly devoted to financing life insurance which differs from property and casualty insurance. To finance a premium, the individual...
Wrentham Village Premium Outlets®, a Simon Property". business.simon.com. "Do Business at Merrimack Premium Outlets®, a Simon Property". business.simon...
properties owned by Simon Property Group, an American property management corporation. Parndorf Designer Outlet Premium Outlet Collection EIA Premium...
acquired by Simon Property Group's Premium Outlet sector along with the majority of the Prime Outlet centers and was renamed Orlando Premium Outlets-International...
When a non-life (property and casualty) insurance company issues a contract to provide insurance against loss, the revenues (premiums) expected to be received...
2 (Expressway 83). It is owned and managed by Simon Property Group, and part of Simon's Premium Outlets family of outlet malls. The shopping center has...
also known as subscription television, premium television or, when referring to an individual service, a premium channel, refers to subscription-based...
Group and managed as part of Simon's Premium Outlets division. The mall was originally developed by JMJ Properties of Muskegon, Michigan. The southern...
Woodbury Common Premium Outlets is an outlet center located in the Central Valley section of Woodbury, New York. The center is owned by Premium Outlets, a...
mortgage unit of Lloyds Bank has published pricing research that examines the premiums commanded by homes in a given neighbourhood against comparables in the...
Camarillo Premium Outlets is owned and managed by the Simon Property Group. The Camarillo Premium Outlets include around 160 stores, including Versace and...
nearly twice that of the United States, but only 5 per cent sold were premium beers, compared with 50 per cent in France and Germany. A widely publicised...
collateral for issuing bank notes. Interest is being explained as a propertypremium instead. The paradigm provides institutional microfoundations for monetary...
the property with the plans and permits to a builder at a premium price. Alternatively, a developer that is also a builder may purchase a property with...
regards to various factors and the periodical amount of premium is fixed. Theft insurance Property insurance Aviation insurance Livestock insurance Crop...
it opened in 1986. It is managed by Premium Outlets, a division of Simon Property Group. The Birch Run Premium Outlets are located approximately halfway...
mill owner, attempted to reduce the insurance premium on his Rhode Island, USA, mill by making property improvements that he believed would minimize the...
gasoline are available: Premium Plus, Premium (mid-grade) and Regular. Law requires the Premium Plus grade to be 97 RON or higher; Premium at 95 RON; Regular...
cost of repairing or replacing the property with like kind & quality regardless of depreciation or appreciation. Premiums for this type of coverage are based...
Assessable value. HK property tax payable = Net assessment value X Property tax standard rate Assessable value = Rental income + Premium + (Rental bad debt...
lower property-damage premiums because the risk of damage to other vehicles is minimal, yet have higher liability or personal-injury premiums, because...
Power Plant. It is owned by the Premium Outlets division of Simon Property Group. Construction of the Philadelphia Premium Outlets began on September 20...
Global Information