we don’t actually care if people panic about land being confiscated because buying land (rather than improving it) isn’t productive in any way.
Maybe I misunderstand. I haven’t seen the proposal that only applies to buying undeveloped land—all I’ve seen talks about the land value of highly-developed areas. You can’t currently buy (or build) a building without also buying the land under it. As soon as the land becomes valueless (because the government is taking all the land’s value), the prospect of buying/building/owning/running structures on that land gets infinitely less appealing.
Maybe I misunderstand. I haven’t seen the proposal that only applies to buying undeveloped land—all I’ve seen talks about the land value of highly-developed areas. You can’t currently buy (or build) a building without also buying the land under it. As soon as the land becomes valueless (because the government is taking all the land’s value), the prospect of buying/building/owning/running structures on that land gets infinitely less appealing.