Why do we have slums : because of lack of wealth tax on land ... not because there is not enough space (17-Oct-2012) No.2

October 17, 2012

https://www.facebook.com/mehtarahulc/posts/10151072755666922

Why do we have slums : because of lack of wealth tax on land ... not because there is not enough space

consider Delhi.

total area in sqkm = 1500 sqkm
say area allocated for residential purpose is just 20%
then residential land = 1500 * 0.2 = 300 sqkm
residential land = 300,000,000 sqm = 30 crore sqm
residential land = 300 crore sqft

Lets take FSI = 2
Then residential construction area we have = 600 crore sqft
So if each person is given 250 sqft, then 2.4 crore people can live WITHOUT slums or shanty houses

===

Now pls note that in my calculations, only 20% is used for residential. Some 20% is left for schools/commercial and some 60% for roads, parks and trees. And FSI used is just 2.0, where as we can use FSI of 4 to even 10 where elevators are allowed. (with FSI of 2.0, we can make 4 story buildings with no lift)

My point is : slums exist not due to population , but mainly due to lack of wealth tax.

Due to lack of wealth tax, investors hoard large number of flats and plots, and so land prices rise and so poor have to live in slums or shanty homes.