A Land Value Tax would tend to reduce the appeal of land speculation, by encouraging land owners to do something productive with the land, rather than just speculate on it.<p>A Georgist might say that wealth <i>is</i> actually created in the scenario you describe, but that it&#x27;s created &quot;by the community&quot; in the sense that it&#x27;s only because of many variables of the surrounding community that the land has become more desirable and therefore more expensive; and that the speculator&#x27;s current ability to capture all of that increase via his untaxed monopoly on the ground rent creates a deadweight loss for the broader economy.