Animated Phillips machine showing credit flowing into a land price reservoir and productive capacity tank, with a rent valve linked to land price that periodically triggers a crash roughly every 18 simulated years, and a land value tax valve that can damp the cycle

Phillips machine simulation of the land rent cycle Credit flows from a pump into a land price reservoir and a productive capacity tank. A rent valve, linked to the land price level, siphons a growing share of output as rent. When land price crosses a threshold the reservoir crashes. An optional LVT valve bleeds the reservoir continuously. Year 0 Crashes: 0 Credit creation Land price reservoir Productive capacity LVT valve Off Output 0 Rent valve, width set by land price Rent: 0% of output Land price: 0% Capacity: 0 Output: 0