Our primary social adjustment is a denial
of justice. In allowing one man to own the land on which
and from which other men must live, we have made them his
bondsmen in a degree which increases as material progress
goes on. This is the subtle alchemy
that in ways they do not realize is extracting from the
masses in every civilized country the fruits of their
weary toil; that is instituting a harder and more
hopeless slavery in place of that which has been
destroyed; that is bringing political despotism out of
political freedom, and must soon transmute democratic
institutions into anarchy. — Henry George,
Progress & Poverty (below)
Edmund Vance Cooke: Uncivilized
An ancient ape, once on a time,
Disliked exceedingly to climb,
And so he picked him out a tree
And said, "Now this belongs to me.
I have a hunch that monks are mutts
And I can make them gather nuts
And bring the bulk of them to me,
By claiming title to this tree."
...
To gather nuts, he made his claim:
"All monkeys climbing on this tree
Must bring their gathered nuts to
me,
Cracking the same on equal shares;
The meats are mine, the shells are theirs."
.... Read
the whole poem
Henry George: The
Common Sense of Taxation (1881 article)
As to amount of taxation, there is no principle which
imposes any arbitrary limit. Heavy taxation is better for
any community than light taxation, if the increased
revenue be used in doing by public agencies things which
could not be done, or could not be as well and
economically done, by private agencies. Taxes could be
lightened in the city of New York by dispensing with
street-lamps and disbanding the police force. But would a
reduction in taxation gained in this way be for the
benefit of the people of New York and make New York a
more desirable place to live in? Or if it should be found
that heat and light could be conducted through the
streets at public expense and supplied to each house at
but a small fraction of the cost of supplying them by
individual effort, or that the city railroads could be
run at public expense so as to give every one
transportation at very much less than it now costs the
average resident, the increased taxation necessary for
these purposes would not be increased burden, and in
spite of the larger taxation required, New York would
become a more desirable place to live in. It is a mistake
to condemn taxation as bad merely because it is high; it
is a mistake to impose by constitutional provision, as in
many of our States has been advocated, and in some of our
States has been done, any restriction upon the amount of
taxation. A restriction upon the incurring of public
indebtedness is another matter. In nothing is the
far-reaching statesmanship of Jefferson more clearly
shown than in his proposition that all public obligations
should be deemed void after a certain brief term —
a proposition which he grounds upon the self-evident
truth that the earth belongs in usufruct to the living,
and that the dead have no control over it, and can give
no title to any part of it. But restriction upon public
debts is a very different thing from restriction upon the
power of taxation, and reasons which urge the one do not
apply to the other. Nor is increased taxation necessarily
proof of governmental extravagance. Increase in
taxation is in the order of social development, for the
reason that social development tends to the doing of
things collectively that in a ruder state are done
individually, to the giving to government of new
functions and the imposing of new duties. Our public
schools and libraries and parks, our signal service and
fish commissions and agricultural bureaus and grasshopper
investigations, are evidences of this.
But while no limit can be properly fixed for the
amount of taxation, the method of taxation is of supreme
importance. A horse may be anchored by fastening to his
bridle a weight which he will not feel when carried in a
buggy behind him. The best ship may be made utterly
unseaworthy by the bad stowage of a cargo which properly
placed would make her the stiffer and more weatherly. So
enterprise may be palsied, industry crushed, accumulation
prevented, and a prosperous country turned into a desert,
by taxation which rightly levied would hardly be felt.
...
For, keeping in mind the fact that all wealth is the
result of human exertion, it is clearly seen that, having
in view the promotion of the general prosperity, it is
the height of absurdity to tax wealth for purposes of
revenue while there remains, unexhausted by taxation, any
value attaching to land. We may tax land values as much
as we please, without in the slightest degree lessening
the amount of land, or the capabilities of land, or the
inducement to use land. But we cannot tax wealth without
lessening the inducement to the production of wealth, and
decreasing the amount of wealth. We might take the whole
value of land in taxation, so as to make the ownership of
land worth nothing, and the land would still remain, and
be as useful as before. The effect would be to throw land
open to users free of price, and thus to increase its
capabilities, which are brought out by increased
population. But impose anything like such taxation upon
wealth, and the inducement to the production of wealth
would be gone. Movable wealth would be hidden or carried
off, immovable wealth would be suffered to go to decay,
and where was prosperity would soon be the silence of
desolation.
And the reason of this difference is clear. The
possession of wealth is the inducement to the exertion
necessary to the production and maintenance of wealth.
Men do not work for the pleasure of working, but to get
the things their work will give them. And to tax the
things that are produced by exertion is to lessen the
inducement to exertion. But over and above the benefit to
the possessor, which is the stimulating motive to the
production of wealth, there is a benefit to the
community, for no matter how selfish he may be, it is
utterly impossible for any one to entirely keep to
himself the benefit of any desirable thing he may
possess. These diffused benefits when localized give
value to land, and this may be taxed without in any wise
diminishing the incentive to production.
To illustrate: A man builds a fine house or large
factory in a poorly improved neighborhood. To tax this
building and its adjuncts is to make him pay for his
enterprise and expenditure — to take from him part
of his natural reward. But the improvement thus made has
given new beauty or life to the neighborhood, making it a
more desirable place than before for the erection of
other houses or factories, and additional value is given
to land all about. Now to tax improvements is not only to
deprive of his proper reward the man who has made the
improvement, but it is to deter others from making
similar improvements. But, instead of taxing
improvements, to tax these land values is to leave the
natural inducement to further improvement in full force,
and at the same time to keep down an obstacle to further
improvement, which, under the present system, improvement
itself tends to raise. For the advance of land values
which follows improvement, and even the expectation of
improvement, makes further improvement more costly.
See how unjust and short-sighted is this system. Here
is a man who, gathering what little capital he can, and
taking his family, starts West to find a place where he
can make himself a home. He must travel long distances;
for, though he will pass plenty of land nobody is using,
it is held at prices too high for him. Finally he will go
no further, and selects a place where, since the creation
of the world, the soil, so far as we know, has never felt
a plowshare. But here, too, in nine cases out of ten, he
will find the speculator has been ahead of him, for the
speculator moves quicker, and has superior means of
information to the emigrant. Before he can put this land
to the use for which nature intended it, and to which it
is for the general good that it should be put, he must
make terms with some man who in all probability never saw
the land, and never dreamed of using it, and who, it may
be, resides in some city, thousands of miles away. In
order to get permission to use this land, he must give up
a large part of the little capital which is seed-wheat to
him, and perhaps in addition mortgage his future labor
for years. Still he goes to work: he works himself, and
his wife works, and his children work — work like
horses, and live in the hardest and dreariest manner.
Such a man deserves encouragement, not discouragement;
but on him taxation falls with peculiar severity. Almost
everything that he has to buy — groceries,
clothing, tools — is largely raised in price by a
system of tariff taxation which cannot add to the price
of the grain or hogs or cattle that he has to sell. And
when the assessor comes around he is taxed on the
improvements he has made, although these improvements
have added not only to the value of surrounding land, but
even to the value of land in distant commercial centers.
Not merely this, but, as a general rule, his land,
irrespective of the improvements, will be assessed at a
higher rate than unimproved land around it, on the ground
that "productive property" ought to pay more than
"unproductive property" — a principle just the
reverse of the correct one, for the man who makes land
productive adds to the general prosperity, while the man
who keeps land unproductive stands in the way of the
general prosperity, is but a dog-in-the-manger, who
prevents others from using what he will not use
himself.
Or, take the case of the railroads. That railroads are
a public benefit no one will dispute. We want more
railroads, and want them to reduce their fares and
freight. Why then should we tax them? for taxes upon
railroads deter from railroad building, and compel higher
charges. Instead of taxing the railroads, is it not clear
that we should rather tax the increased value which they
give to land? To tax railroads is to check railroad
building, to reduce profits, and compel higher rates; to
tax the value they give to land is to increase railroad
business and permit lower rates. The elevated railroads,
for instance, have opened to the overcrowded population
of New York the wide, vacant spaces of the upper part of
the island. But this great public benefit is neutralized
by the rise in land values. Because these vacant lots can
be reached more cheaply and quickly, their owners demand
more for them, and so the public gain in one way is
offset in another, while the roads lose the business they
would get were not building checked by the high prices
demanded for lots. The increase of land values, which the
elevated roads have caused, is not merely no advantage to
them — it is an injury; and it is clearly a public
injury. The elevated railroads ought not to be taxed. The
more profit they make, with the better conscience can
they be asked to still further reduce fares. It is the
increased land values which they have created that ought
to be taxed, for taxing them will give the public the
full benefit of cheap fares.
So with railroads everywhere. And so not alone with
railroads, but with all industrial enterprises. So long
as we consider that community most prosperous which
increases most rapidly in wealth, so long is it the
height of absurdity for us to tax wealth in any of its
beneficial forms. We should tax what we want to repress,
not what we want to encourage. We should tax that which
results from the general prosperity, not that which
conduces to it. It is the increase of population, the
extension of cultivation, the manufacture of goods, the
building of houses and ships and railroads, the
accumulation of capital, and the growth of commerce that
add to the value of land — not the increase in the
value of land that induces the increase of population and
increase of wealth. It is not that the land of Manhattan
Island is now worth hundreds of millions where, in the
time of the early Dutch settlers, it was only worth
dollars, that there are on it now so many more people,
and so much more wealth. It is because of the increase of
population and the increase of wealth that the value of
the land has so much increased. Increase of land values
tends of itself to repel population and prevent
improvement. And thus the taxation of land values, unlike
taxation of other property, does not tend to prevent the
increase of wealth, but rather to stimulate it. It is the
taking of the golden egg, not the choking of the goose
that lays it.
Every consideration of policy and ethics squares with
this conclusion. The tax upon land values is the most
economically perfect of all taxes. It does not raise
prices; it maybe collected at least cost, and with the
utmost ease and certainty; it leaves in full strength all
the springs of production; and, above all, it consorts
with the truest equality and the highest justice. For, to
take for the common purposes of the community that value
which results from the growth of the community, and to
free industry and enterprise and thrift from burden and
restraint, is to leave to each that which he fairly
earns, and to assert the first and most comprehensive of
equal rights — the equal right of all to the land
on which, and from which, all must live.
Thus it is that the scheme of taxation which conduces
to the greatest production is also that which conduces to
the fairest distribution, and that in the proper
adjustment of taxation lies not merely the possibility of
enormously increasing the general wealth, but the
solution of these pressing social and political problems
which spring from unnatural inequality in the
distribution of wealth.
"There is," says M. de Laveleye, in concluding that
work in which he shows that the first perceptions of
mankind have everywhere recognized a most vital
distinction between property in land and property which
results from labor, — "there is in human affairs
one system which is the best; it is not that system which
always exists, otherwise why should we desire to change
it; but it is that system which should exist for the
greatest good of humanity. God knows it, and wills it;
man's duty it is to discover and establish it." read the whole
article
Henry George:
The Increasing Importance of Social Questions (Chapter
1 of Social
Problems, 1883)
[01] THERE come moments in our lives that summon all
our powers — when we feel that, casting away
illusions, we must decide and act with our utmost
intelligence and energy. So in the lives of peoples come
periods specially calling for earnestness and
intelligence.
[02] We seem to have entered one of these periods.
Over and again have nations and civilizations been
confronted with problems which, like the riddle of the
Sphinx, not to answer was to be destroyed; but never
before have problems so vast and intricate been
presented. This is not strange. That the closing years of
this century must bring up momentous social questions
follows from the material and intellectual progress that
has marked its course. ...
[06] But with man the ascending line stops. Animal
life assumes no higher form; nor can we affirm that, in
all his generations, man, as an animal, has a whit
improved. But progression in another line begins. Where
the development of species ends, social development
commences, and that advance of society that we call
civilization so increases human powers, that between
savage and civilized man there is a gulf so vast as to
suggest the gulf between the highly organized animal and
the oyster glued to the rocks. And with every advance
upon this line new vistas open. When we try to think what
knowledge and power progressive civilization may give to
the men of the future, imagination fails.
[07] In this progression which begins with man, as in
that which leads up to him, the same law holds. Each
advance makes a demand for higher and higher
intelligence. With the beginnings of society arises the
need for social intelligence — for that consensus
of individual intelligence which forms a public opinion,
a public conscience, a public will, and is manifested in
law, institutions and administration. As society
develops, a higher and higher degree of this social
intelligence is required, for the relation of individuals
to each other becomes more intimate and important, and
the increasing complexity of the social organization
brings liability to new dangers.
[08] In the rude beginning, each family produces its
own food, makes its own clothes, builds its own house,
and, when it moves, furnishes its own transportation.
Compare with this independence the intricate
interdependence of the denizens of a modern city. They
may supply themselves with greater certainty, and in much
greater variety and abundance, than the savage; but it is
by the cooperation of thousands. Even the water they
drink, and the artificial light they use, are brought to
them by elaborate machinery, requiring the constant labor
and watchfulness of many men. They may travel at a speed
incredible to the savage; but in doing so resign life and
limb to the care of others. A broken rail, a drunken
engineer, a careless switchman, may hurl them to
eternity. And the power of applying labor to the
satisfaction of desire passes, in the same way, beyond
the direct control of the individual. The laborer becomes
but part of a great machine, which may at any time be
paralyzed by causes beyond his power, or even his
foresight. Thus does the well-being of each become more
and more dependent upon the well-being of all — the
individual more and more subordinate to society.
[09] And so come new dangers. The rude society
resembles the creatures that though cut into pieces will
live; the highly civilized society is like a highly
organized animal: a stab in a vital part, the suppression
of a single function, is death. A savage village may be
burned and its people driven off — but, used to
direct recourse to nature, they can maintain themselves.
Highly civilized man, however, accustomed to capital, to
machinery, to the minute division of labor, becomes
helpless when suddenly deprived of these and thrown upon
nature. Under the factory system, some sixty persons,
with the aid of much costly machinery, cooperate to the
making of a pair of shoes. But, of the sixty, not one
could make a whole shoe. This is the tendency in all
branches of production, even in agriculture. How many
farmers of the new generation can use the flail? How many
farmers' wives can now make a coat from the wool? Many of
our farmers do not even make their own butter or raise
their own vegetables! There is an enormous gain in
productive power from this division of labor, which
assigns to the individual the production of but a few of
the things, or even but a small part of one of the
things, he needs, and makes each dependent upon others
with whom he never comes in contact; but the social
organization becomes more sensitive. A primitive village
community may pursue the even tenor of its life without
feeling disasters which overtake other villages but a few
miles off; but in the closely knit civilization to which
we have attained, a war, a scarcity, a commercial crisis,
in one hemisphere produces powerful effects in the other,
while shocks and jars from which a primitive community
easily recovers would to a highly civilized community
mean wreck.
[10] It is startling to think how destructive in a
civilization like ours would be such fierce conflicts as
fill the history of the past. The wars of highly
civilized countries, since the opening of the era of
steam and machinery, have been duels of armies rather
than conflicts of peoples or classes. Our only glimpse of
what might happen, wore passion fully aroused, was in the
struggle of the Paris Commune. And, since 1870, to the
knowledge of petroleum has been added that of even more
destructive agents. The explosion of a little
nitro-glycerin under a few water-mains would make a great
city uninhabitable; the blowing up of a few railroad
bridges and tunnels would bring famine quicker than the
wall of circumvallation that Titus drew around Jerusalem;
the pumping of atmospheric air into the gas-mains, and
the application of a match, would tear up every street
and level every house. The Thirty Years' War set back
civilization in Germany; so fierce a war now would all
but destroy it. Not merely have destructive powers vastly
increased, but the whole social organization has become
vastly more delicate.
[12] Nor should we forget that in civilized man still
lurks the savage. The men who, in past times, oppressed
or revolted, who fought to the death in petty quarrels
and drunk fury with blood, who burned cities and rent
empires, were men essentially such as those we daily
meet. Social progress has accumulated knowledge, softened
manners, refined tastes and extended sympathies, but man
is yet capable of as blind a rage as when, clothed in
skins, he fought wild beasts with a flint. And present
tendencies, in some respects at least, threaten to kindle
passions that have so often before flamed in destructive
fury.
[13] There is in all the past nothing to compare with
the rapid changes now going on in the civilized world. It
seems as though in the European race, and in the
nineteenth century, man was just beginning to live
— just grasping his tools and becoming conscious of
his powers. The snail's pace of crawling ages has
suddenly become the headlong rush of the locomotive,
speeding faster and faster. This rapid progress is
primarily in industrial methods and material powers. But
industrial changes imply social changes and necessitate
political changes. Progressive societies outgrow
institutions as children outgrow clothes. Social progress
always requires greater intelligence in the management of
public affairs; but this the more as progress is rapid
and change quicker.
[14] And that the rapid changes now going on are
bringing up problems that demand most earnest attention
may be seen on every hand. Symptoms of danger,
premonitions of violence, are appearing all over the
civilized world. Creeds are dying, beliefs are changing;
the old forces of conservatism are melting away.
Political institutions are failing, as clearly in
democratic America as in monarchical Europe. There is
growing unrest and bitterness among the masses, whatever
be the form of government, a blind groping for escape
from conditions becoming intolerable. To attribute all
this to the teachings of demagogues is like attributing
the fever to the quickened pulse. It is the new wine
beginning to ferment in old bottles. To put into a
sailing-ship the powerful engines of a first-class ocean
steamer would be to tear her to pieces with their play.
So the new powers rapidly changing all the relations of
society must shatter social and political organizations
not adapted to meet their strain.
[15] To adjust our institutions to growing needs and
changing conditions is the task which devolves upon us.
Prudence, patriotism, human sympathy, and religious
sentiment, alike call upon us to undertake it. There is
danger in reckless change; but greater danger in blind
conservatism. The problems beginning to confront us are
grave — so grave that there is fear they may not be
solved in time to prevent great catastrophes. But their
gravity comes from indisposition to recognize frankly and
grapple boldly with them.
[16] These dangers, which menace not one country
alone, but modern civilization itself, do but show that a
higher civilization is struggling to be born — that
the needs and the aspirations of men have outgrown
conditions and institutions that before sufficed.
[17] A civilization which tends to concentrate wealth
and power in the hands of a fortunate few, and to make of
others mere human machines, must inevitably evolve
anarchy and bring destruction. But a civilization is
possible in which the poorest could have all the comforts
and conveniences now enjoyed by the rich; in which
prisons and almshouses would be needless, and charitable
societies unthought of. Such a civilization waits only
for the social intelligence that will adapt means to
ends. Powers that might give plenty to all are already in
our hands. Though there is poverty and want, there is,
yet, seeming embarrassment from the very excess of
wealth-producing forces. "Give us but a market," say
manufacturers, "and we will supply goods without end!"
"Give us but work!" cry idle men.
[18] The evils that begin to appear spring from the
fact that the application of intelligence to social
affairs has not kept pace with the application of
intelligence to individual needs and material ends.
Natural science strides forward, but political science
lags. With all our progress in the arts which produce
wealth, we have made no progress in securing its
equitable distribution. Knowledge has vastly increased;
industry and commerce have been revolutionized; but
whether free trade or protection is best for a nation we
are not yet agreed. We have brought machinery to a pitch
of perfection that, fifty years ago, could not have been
imagined; but, in the presence of political corruption,
we seem as helpless as idiots. The East River bridge is a
crowning triumph of mechanical skill; but to get it built
a leading citizen of Brooklyn had to carry to New York
sixty thousand dollars in a carpet bag to bribe New York
aldermen. The human soul that thought out the great
bridge is prisoned in a crazed and broken body that lies
bedfast, and could watch it grow only by peering through
a telescope. Nevertheless, the weight of the immense mass
is estimated and adjusted for every inch. But the skill
of the engineer could not prevent condemned wire being
smuggled into the cable.
[19] The progress of civilization requires that more
and more intelligence be devoted to social affairs, and
this not the intelligence of the few, but that of the
many. We cannot safely leave politics to politicians, or
political economy to college professors. The people
themselves must think, because the people alone can
act.
[20] In a "journal of civilization" a professed
teacher declares the saving word for society to be that
each shall mind his own business. This is the gospel of
selfishness, soothing as soft flutes to those who, having
fared well themselves, think everybody should be
satisfied. But the salvation of society, the hope for the
free, full development of humanity, is in the gospel of
brotherhood — the gospel of Christ. Social progress
makes the well-being of all more and more the business of
each; it binds all closer and closer together in bonds
from which none can escape. He who observes the law and
the proprieties, and cares for his family, yet takes no
interest in the general weal, and gives no thought to
those who are trodden under foot, save now and then to
bestow aims, is not a true Christian. Nor is he a good
citizen. The duty of the citizen is more and harder than
this.
[21] The intelligence required for the solving of
social problems is not a thing of the mere intellect. It
must be animated with the religious sentiment and warm
with sympathy for human suffering. It must stretch out
beyond self-interest, whether it be the self-interest of
the few or of the many. It must seek justice. For at the
bottom of every social problem we will find a social
wrong.
... read the entire essay
H.G. Brown: Significant
Paragraphs from Henry George's Progress &
Poverty: 11 Effect of Remedy Upon the Sharing
of Wealth (in the unabridged P&P:
Part IX Effects of the Remedy — Chapter 2: Of the
Effect Upon Distribution and Thence Upon Production
But great as they thus appear, the advantages of a
transference of all public burdens to a tax upon the
value of land cannot be fully appreciated until we
consider the effect upon the distribution of wealth.
Tracing out the cause of the unequal distribution of
wealth which appears in all civilized countries, with a
constant tendency to greater and greater inequality as
material progress goes on, we have found it in the fact
that, as civilization advances, the ownership of land,
now in private hands, gives a greater and greater power
of appropriating the wealth produced by labor and
capital.
Thus, to relieve labor and capital from all taxation,
direct and indirect, and to throw the burden upon rent,
would be, as far as it went, to counteract this tendency
to inequality, and, if it went so far as to take in
taxation the whole of rent, the cause of inequality would
be totally destroyed. Rent, instead of causing
inequality, as now, would then promote equality. Labor
and capital would then receive the whole produce, minus
that portion taken by the state in the taxation of land
values, which, being applied to public purposes, would be
equally distributed in public benefits.
That is to say, the wealth produced in every community
would be divided into two portions.
- One part would be distributed in wages and interest
between individual producers, according to the part
each had taken in the work of production;
- the other part would go to the community as a
whole, to be distributed in public benefits to all its
members.
In this all would share equally — the weak with
the strong, young children and decrepit old men, the
maimed, the halt, and the blind, as well as the vigorous.
And justly so — for while one part represents the
result of individual effort in production, the other
represents the increased power with which the community
as a whole aids the individual.
Thus, as material progress tends to increase rent,
were rent taken by the community for common purposes the
very cause which now tends to produce inequality as
material progress goes on would then tend to produce
greater and greater equality.
Who can say to what infinite powers the
wealth-producing capacity of labor may not be raised by
social adjustments which will give to the producers of
wealth their fair proportion of its advantages and
enjoyments! With present processes the gain would be
simply incalculable, but just as wages are high, so do
the invention and utilization of improved processes and
machinery go on with greater rapidity and ease.
But I shall not deny, and do not wish to lose sight of
the fact, that while thus preventing waste and thus
adding to the efficiency of labor, the equalization in
the distribution of wealth that would result from the
simple plan of taxation that I propose, must lessen the
intensity with which wealth is pursued. It seems to me
that in a condition of society in which no one need fear
poverty, no one would desire great wealth — at
least, no one would take the trouble to strive and to
strain for it as men do now. For, certainly, the
spectacle of men who have only a few years to live,
slaving away their time for the sake of dying rich, is in
itself so unnatural and absurd, that in a state of
society where the abolition of the fear of want had
dissipated the envious admiration with which the masses
of men now regard the possession of great riches, whoever
would toil to acquire more than he cared to use would be
looked upon as we would now look on a man who would
thatch his head with half a dozen hats.
And though this incentive to production be withdrawn,
can we not spare it? Whatever may have been its office in
an earlier stage of development, it is not needed now.
The dangers that menace our civilization do not come from
the weakness of the springs of production. What it
suffers from, and what, if a remedy be not applied, it
must die from, is unequal distribution!
Nor would the removal of this incentive, regarded only
from the standpoint of production, be an unmixed loss.
For, that the aggregate of production is greatly reduced
by the greed with which riches are pursued, is one of the
most obtrusive facts of modern society. While, were this
insane desire to get rich at any cost lessened, mental
activities now devoted to scraping together riches would
be translated into far higher spheres of usefulness. ...
read the whole chapter
H.G. Brown:
Significant Paragraphs from Henry George's
Progress & Poverty: 14
Liberty, and Equality of Opportunity (in the unabridged
P&P:
Part X: The Law of Human Progress — Chapter 5: The
Central Truth)
The truth to which we were led in the
politico-economic branch of our inquiry is as clearly
apparent in the rise and fall of nations and the growth
and decay of civilizations, and it accords with those
deep-seated recognitions of relation and sequence that we
denominate moral perceptions. Thus are given to our
conclusions the greatest certitude and highest
sanction.
This truth involves both a menace and a promise.
It shows that the evils arising from the unjust
and unequal distribution of wealth, which are becoming
more and more apparent as modern civilization goes on,
are not incidents of progress, but tendencies which must
bring progress to a halt; that they will not
cure themselves, but, on the contrary, must, unless their
cause is removed, grow greater and greater, until they
sweep us back into barbarism by the road every previous
civilization has trod. But it also shows that these evils
are not imposed by natural laws; that they spring solely
from social maladjustments which ignore natural laws, and
that in removing their cause we shall be giving an
enormous impetus to progress.
The poverty which in the midst of abundance pinches
and embrutes men, and all the manifold evils which flow
from it, spring from a denial of justice. In permitting
the monopolization of the opportunities which nature
freely offers to all, we have ignored the fundamental law
of justice — for, so far as we can see, when we
view things upon a large scale, justice seems to be the
supreme law of the universe. But by sweeping away this
injustice and asserting the rights of all men to natural
opportunities, we shall conform ourselves to the law
—
- we shall remove the great cause of unnatural
inequality in the distribution of wealth and
power;
- we shall abolish poverty;
- tame the ruthless passions of greed;
- dry up the springs of vice and misery;
- light in dark places the lamp of knowledge;
- give new vigor to invention and a fresh impulse to
discovery;
- substitute political strength for political
weakness; and
- make tyranny and anarchy impossible.
The reform I have proposed accords with all that is
politically, socially, or morally desirable. It has the
qualities of a true reform, for it will make all other
reforms easier. What is it but the carrying out in letter
and spirit of the truth enunciated in the Declaration of
Independence — the "self-evident" truth that is the
heart and soul of the Declaration —"That all men
are created equal; that they are endowed by their Creator
with certain inalienable rights; that among these are
life, liberty, and the pursuit of happiness!"
These rights are denied when the equal right
to land — on which and by which men alone can live
— is denied. Equality of political rights will not
compensate for the denial of the equal right to the
bounty of nature. Political liberty, when the
equal right to land is denied, becomes, as population
increases and invention goes on, merely the liberty to
compete for employment at starvation wages. This is the
truth that we have ignored. And so
- there come beggars in our streets and tramps on our
roads; and
- poverty enslaves men who we boast are political
sovereigns; and
- want breeds ignorance that our schools cannot
enlighten; and
- citizens vote as their masters dictate; and
- the demagogue usurps the part of the statesman;
and
- gold weighs in the scales of justice; and
- in high places sit those who do not pay to civic
virtue even the compliment of hypocrisy; and
- the pillars of the republic that we thought so
strong already bend under an increasing strain.
We honor Liberty in name and in form. We set up her
statues and sound her praises. But we have not fully
trusted her. And with our growth so grow her demands. She
will have no half service!
Liberty! it is a word to conjure with, not to vex the
ear in empty boastings. For Liberty means Justice, and
Justice is the natural law — the law of health and
symmetry and strength, of fraternity and
co-operation.
They who look upon Liberty as having
accomplished her mission when she has abolished
hereditary privileges and given men the ballot, who think
of her as having no further relations to the everyday
affairs of life, have not seen her real grandeur
— to them the poets who have sung of her must seem
rhapsodists, and her martyrs fools! As the sun is the
lord of life, as well as of light; as his beams not
merely pierce the clouds, but support all growth, supply
all motion, and call forth from what would otherwise be a
cold and inert mass all the infinite diversities of being
and beauty, so is liberty to mankind. It is not for an
abstraction that men have toiled and died; that in every
age the witnesses of Liberty have stood forth, and the
martyrs of Liberty have suffered.
We speak of Liberty as one thing, and of virtue,
wealth, knowledge, invention, national strength, and
national independence as other things. But, of all these,
Liberty is the source, the mother, the necessary
condition. ...
Only in broken gleams and partial light has the sun of
Liberty yet beamed among men, but all progress hath she
called forth. ...
Shall we not trust her?
In our time, as in times before, creep on the
insidious forces that, producing inequality, destroy
Liberty. On the horizon the clouds begin to lower.
Liberty calls to us again. We must follow her further; we
must trust her fully. Either we must wholly accept her or
she will not stay. It is not enough that men should vote;
it is not enough that they should be theoretically equal
before the law. They must have liberty to avail
themselves of the opportunities and means of life; they
must stand on equal terms with reference to the bounty of
nature. Either this, or Liberty withdraws her
light! Either this, or darkness comes on, and
the very forces that progress has evolved turn to powers
that work destruction. This is the universal law. This is
the lesson of the centuries. Unless its foundations be
laid in justice the social structure cannot stand.
Our primary social adjustment is a denial of
justice. In allowing one man to own the land on which and
from which other men must live, we have made them his
bondsmen in a degree which increases as material progress
goes on. This is the subtile alchemy that in
ways they do not realize is extracting from the masses in
every civilized country the fruits of their weary toil;
that is instituting a harder and more hopeless slavery in
place of that which has been destroyed; that is bringing
political despotism out of political freedom, and must
soon transmute democratic institutions into anarchy.
It is this that turns the blessings of
material progress into a curse. It is this that
crowds human beings into noisome cellars and squalid
tenement houses; that fills prisons and brothels; that
goads men with want and consumes them with greed; that
robs women of the grace and beauty of perfect womanhood;
that takes from little children the joy and innocence of
life's morning.
Civilization so based cannot continue. The
eternal laws of the universe forbid it. Ruins of
dead empires testify, and the witness that is in every
soul answers, that it cannot be. It is something grander
than Benevolence, something more august than Charity
— it is Justice herself that demands of us to right
this wrong. Justice that will not be denied; that cannot
be put off — Justice that with the scales carries
the sword. Shall we ward the stroke with liturgies and
prayers? Shall we avert the decrees of immutable law by
raising churches when hungry infants moan and weary
mothers weep?
Though it may take the language of prayer, it
is blasphemy that attributes to the inscrutable decrees
of Providence the suffering and brutishness that come of
poverty; that turns with folded hands to the All-Father
and lays on Him the responsibility for the want and crime
of our great cities. We degrade the Everlasting.
We slander the Just One. A merciful man would have better
ordered the world; a just man would crush with his foot
such an ulcerous ant-hill! It is not the Almighty, but we
who are responsible for the vice and misery that fester
amid our civilization. The Creator showers upon us his
gifts — more than enough for all. But like swine
scrambling for food, we tread them in the mire —
tread them in the mire, while we tear and rend each
other!
In the very centers of our civilization today
are want and suffering enough to make sick at heart
whoever does not close his eyes and steel his nerves.
Dare we turn to the Creator and ask Him to relieve
it? Supposing the prayer were heard, and at the
behest with which the universe sprang into being there
should glow in the sun a greater power; new virtue fill
the air; fresh vigor the soil; that for every blade of
grass that now grows two should spring up, and the seed
that now increases fiftyfold should increase a
hundredfold! Would poverty be abated or want relieved?
Manifestly no! Whatever benefit would accrue would be but
temporary. The new powers streaming through the material
universe could be utilized only through land.
This is not merely a deduction of political economy;
it is a fact of experience. We know it because we
have seen it. Within our own times, under our
very eyes, that Power which is above all, and in all, and
through all; that Power of which the whole universe is
but the manifestation; that Power which maketh all
things, and without which is not anything made that is
made, has increased the bounty which men may enjoy, as
truly as though the fertility of nature had been
increased.
- Into the mind of one came the thought that
harnessed steam for the service of mankind.
- To the inner ear of another was whispered the
secret that compels the lightning to bear a message
round the globe.
- In every direction have the laws of matter been
revealed;
- in every department of industry have arisen arms of
iron and fingers of steel, whose effect upon the
production of wealth has been precisely the same as an
increase in the fertility of nature.
What has been the result? Simply that
landowners get all the gain.
Can it be that the gifts of the Creator may be
thus misappropriated with impunity? Is it a light thing
that labor should be robbed of its earnings while greed
rolls in wealth — that the many should want while
the few are surfeited? Turn to history, and on
every page may be read the lesson that such wrong never
goes unpunished; that the Nemesis that follows injustice
never falters nor sleeps! Look around today. Can this
state of things continue? May we even say, "After us the
deluge!" Nay; the pillars of the State are trembling even
now, and the very foundations of society begin to quiver
with pent-up forces that glow underneath. The struggle
that must either revivify, or convulse in ruin, is near
at hand, if it be not already begun.
The fiat has gone forth! With steam and electricity,
and the new powers born of progress, forces have entered
the world that will either compel us to a higher plane or
overwhelm us, as nation after nation, as civilization
after civilization, have been overwhelmed before. ...
- We cannot go on permitting men to vote and forcing
them to tramp.
- We cannot go on educating boys and girls in our
public schools and then refusing them the right to earn
an honest living.
- We cannot go on prating of the inalienable rights
of man and then denying the inalienable right to the
bounty of the Creator.
Even now, in old bottles the new wine begins to
ferment, and elemental forces gather for the strife!
But if, while there is yet time, we turn to
Justice and obey her, if we trust Liberty and follow her,
the dangers that now threaten must disappear, the
forces that now menace will turn to agencies of
elevation. Think of the powers now wasted;
of the infinite fields of knowledge yet to be explored;
of the possibilities of which the wondrous inventions of
this century give us but a hint.
- With want destroyed;
- with greed changed to noble passions;
- with the fraternity that is born of equality taking
the place of the jealousy and fear that now array men
against each other;
- with mental power loosed by conditions that give to
the humblest comfort and leisure; and
- who shall measure the heights to which our
civilization may soar?
Words fail the thought! It is the Golden Age
of which poets have sung and high-raised seers have told
in metaphor! It is the glorious vision which has always
haunted man with gleams of fitful splendor. It is what he
saw whose eyes at Patmos were closed in a trance. It is
the culmination of Christianity — the City of God
on earth, with its walls of jasper and its gates of
pearl! It is the reign of the Prince of Peace!
...
read the whole chapter
Henry George: Thy
Kingdom Come (1889 speech)
One cannot look, it seems to me,
through nature — whether one looks at the stars
through a telescope, or have the microscope reveal to one
those worlds that we find in drops of water. Whether one
considers the human frame, the adjustments of the animal
kingdom, or any department of physical nature, one must see
that there has been a contriver and adjuster, that there
has been an intent. So strong is that feeling, so natural
is it to our minds, that even people who deny the Creative
Intelligence are forced, in spite of themselves, to talk of
intent; the claws on one animal were intended, we say, to
climb with, the fins of another to propel it through the
water.
Yet, while in looking through the
laws of physical nature, we find
intelligence we do not so clearly find beneficence.
But in the great social fact that as
population increases, and improvements are made, and men
progress in civilisation, the one thing that rises
everywhere in value is land, and in this we may see a proof
of the beneficence of the Creator.
Why, consider what it means!
It means that the social laws are adapted
to progressive humanity! In a rude state of society
where there is no need for common expenditure, there is no
value attaching to land. The only value which attaches
there is to things produced by labour. But as civilisation
goes on, as a division of labour takes place, as people
come into centres, so do the common wants increase, and so
does the necessity for public revenue arise. And so in that
value which attaches to land, not by reason of anything the
individual does, but by reason of the growth of the
community, is a provision intended — we may safely
say intended — to meet that social want.
Just as society grows, so do the
common needs grow, and so grows this value attaching to
land — the provided fund from which they can be
supplied. Here is a value that may be taken, without
impairing the right of property, without taking anything
from the producer, without lessening the natural rewards of
industry and thrift. Nay, here is a value
that must be taken if we would prevent the most monstrous
of all monopolies. What does all this mean? It means that
in the creative plan, the natural advance in civilisation
is an advance to a greater and greater equality instead of
to a more and more monstrous inequality. ...
Read the whole
speech Henry George: Ode to Liberty (1877
speech)
Our primary social adjustment is a denial
of justice. In allowing one man to own the land on which
and from which other men must live, we have made them his
bondsmen in a degree which increases as material progress
goes on. This is the subtle alchemy that in ways they do
not realize is extracting from the masses in every
civilized country the fruits of their weary toil; that is
instituting a harder and more hopeless slavery in place
of that which has been destroyed; that is bringing
political despotism out of political freedom, and must
soon transmute democratic institutions into
anarchy.
It is this that turns the blessings of material
progress into a curse. It is this that crowds human
beings into noisome cellars and squalid tenement houses;
that fills prisons and brothels; that goads men with want
and consumes them with greed; that robs women of the
grace and beauty of perfect womanhood; that takes from
little children the joy and innocence of life’s
morning.
Civilization so based cannot continue. The eternal
laws of the universe forbid it. Ruins of dead empires
testify, and the witness that is in every soul answers,
that it cannot be. It is something grander than
Benevolence, something more august than Charity —
it is Justice herself that demands of us to right this
wrong. Justice that will not be denied; that cannot be
put off — Justice that with the scales carries the
sword. Shall we ward the stroke with liturgies and
prayers? Shall we avert the decrees of immutable law by
raising churches when hungry infants moan and weary
mothers weep? ... read the
whole speech
Henry George:
The Land Question (1881)
This thing is absolutely certain: Private property in land blocks the way of advancing
civilization.
The two cannot long coexist. Either private
property in land must be abolished, or, as has happened
again and again in the history of mankind, civilization
must again turn back in anarchy and bloodshed. Let the
remaining years of the nineteenth century bear me
witness. Even now, I believe, the inevitable struggle has
begun. It is not conservatism which would ignore such a
tremendous fact. It is the blindness that invites
destruction. He that is truly conservative let him look
the facts in the face; let him speak frankly and
dispassionately. This is the duty of the hour. For, when
a great social question presses for settlement, it is
only for a little while that the voice of Reason can be
heard. The masses of men hardly think at any time. It is
difficult even in sober moments to get them to reason
calmly. But when passion is roused, then they are like a
herd of stampeded bulls. I do not fear that present
social adjustments can continue. That is impossible. What
I fear is that the dams may hold till the flood rises to
fury. What I fear is that dogged resistance on the one
side may kindle a passionate sense of wrong on the other.
What I fear are the demagogues and the accidents.
... read
the whole article
Henry George: The Condition of Labor
— An Open Letter to Pope Leo XIII in response to
Rerum Novarum (1891)
God’s laws do not change. Though their
applications may alter with altering conditions, the same
principles of right and wrong that hold when men are few
and industry is rude also hold amid teeming populations
and complex industries. In our cities of millions and our
states of scores of millions, in a civilization where the
division of labor has gone so far that large numbers are
hardly conscious that they are land-users, it still
remains true that we are all land animals and can live
only on land, and that land is God’s bounty to all,
of which no one can be deprived without being murdered,
and for which no one can be compelled to pay another
without being robbed. But even in a state of society
where the elaboration of industry and the increase of
permanent improvements have made the need for private
possession of land wide-spread, there is no difficulty in
conforming individual possession with the equal right to
land. For as soon as any piece of land will yield to the
possessor a larger return than is had by similar labor on
other land a value attaches to it which is shown when it
is sold or rented. Thus, the value of the land itself,
irrespective of the value of any improvements in or on
it, always indicates the precise value of the benefit to
which all are entitled in its use, as distinguished from
the value which, as producer or successor of a producer,
belongs to the possessor in individual right.
To combine the advantages of private possession with
the justice of common ownership it is only necessary
therefore to take for common uses what value attaches to
land irrespective of any exertion of labor on it. The
principle is the same as in the case referred to, where a
human father leaves equally to his children things not
susceptible of specific division or common use. In that
case such things would be sold or rented and the value
equally applied.
It is on this common-sense principle that we, who term
ourselves single-tax men, would have the community
act.
We do not propose to assert equal rights to land by
keeping land common, letting any one use any part of it
at any time. We do not propose the task, impossible in
the present state of society, of dividing land in equal
shares; still less the yet more impossible task of
keeping it so divided.
We propose — leaving land in the private
possession of individuals, with full liberty on their
part to give, sell or bequeath it — simply to levy
on it for public uses a tax that shall equal the annual
value of the land itself, irrespective of the use made of
it or the improvements on it. And since this would
provide amply for the need of public revenues, we would
accompany this tax on land values with the repeal of all
taxes now levied on the products and processes of
industry — which taxes, since they take from the
earnings of labor, we hold to be infringements of the
right of property.
This we propose, not as a cunning device of human
ingenuity, but as a conforming of human regulations to
the will of God.
God cannot contradict himself nor impose on his
creatures laws that clash.
If it be God’s command to men that they should
not steal — that is to say, that they should
respect the right of property which each one has in the
fruits of his labor;
And if he be also the Father of all men, who in his
common bounty has intended all to have equal
opportunities for sharing;
Then, in any possible stage of civilization, however
elaborate, there must be some way in which the exclusive
right to the products of industry may be reconciled with
the equal right to land.
If the Almighty be consistent with himself, it cannot
be, as say those socialists referred to by you, that in
order to secure the equal participation of men in the
opportunities of life and labor we must ignore the right
of private property. Nor yet can it be, as you yourself
in the Encyclical seem to argue, that to secure the right
of private property we must ignore the equality of right
in the opportunities of life and labor. To say the one
thing or the other is equally to deny the harmony of
God’s laws.
But, the private possession of land, subject to the
payment to the community of the value of any special
advantage thus given to the individual, satisfies both
laws, securing to all equal participation in the bounty
of the Creator and to each the full ownership of the
products of his labor. ....
Nor do we hesitate to say that this way of securing
the equal right to the bounty of the Creator and the
exclusive right to the products of labor is the way
intended by God for raising public revenues. For we are
not atheists, who deny God; nor semi-atheists, who deny
that he has any concern in politics and legislation.
It is true as you say — a salutary truth too
often forgotten — that “man is older than the
state, and he holds the right of providing for the life
of his body prior to the formation of any state.”
Yet, as you too perceive, it is also true that the state
is in the divinely appointed order. For He who foresaw
all things and provided for all things, foresaw and
provided that with the increase of population and the
development of industry the organization of human society
into states or governments would become both expedient
and necessary.
No sooner does the state arise than, as we all know,
it needs revenues. This need for revenues is small at
first, while population is sparse, industry rude and the
functions of the state few and simple. But with growth of
population and advance of civilization the functions of
the state increase and larger and larger revenues are
needed.
Now, He that made the world and placed man in it, He
that pre-ordained civilization as the means whereby man
might rise to higher powers and become more and more
conscious of the works of his Creator, must have foreseen
this increasing need for state revenues and have made
provision for it. That is to say: The increasing need for
public revenues with social advance, being a natural,
God-ordained need, there must be a right way of raising
them — some way that we can truly say is the way
intended by God. It is clear that this right way of
raising public revenues must accord with the moral
law.
Hence:
It must not take from individuals what rightfully
belongs to individuals.
It must not give some an advantage over others, as by
increasing the prices of what some have to sell and
others must buy.
It must not lead men into temptation, by requiring
trivial oaths, by making it profitable to lie, to swear
falsely, to bribe or to take bribes.
It must not confuse the distinctions of right and
wrong, and weaken the sanctions of religion and the state
by creating crimes that are not sins, and punishing men
for doing what in itself they have an undoubted right to
do.
It must not repress industry. It must not check
commerce. It must not punish thrift. It must offer no
impediment to the largest production and the fairest
division of wealth.
Let me ask your Holiness to consider the taxes on the
processes and products of industry by which through the
civilized world public revenues are collected — the
octroi duties that surround Italian cities with barriers;
the monstrous customs duties that hamper intercourse
between so-called Christian states; the taxes on
occupations, on earnings, on investments, on the building
of houses, on the cultivation of fields, on industry and
thrift in all forms. Can these be the ways God has
intended that governments should raise the means they
need? Have any of them the characteristics indispensable
in any plan we can deem a right one?
All these taxes violate the moral law. They take by
force what belongs to the individual alone; they give to
the unscrupulous an advantage over the scrupulous; they
have the effect, nay are largely intended, to increase
the price of what some have to sell and others must buy;
they corrupt government; they make oaths a mockery; they
shackle commerce; they fine industry and thrift; they
lessen the wealth that men might enjoy, and enrich some
by impoverishing others.
Yet what most strikingly shows how opposed to
Christianity is this system of raising public revenues is
its influence on thought.
Christianity teaches us that all men are brethren;
that their true interests are harmonious, not
antagonistic. It gives us, as the golden rule of life,
that we should do to others as we would have others do to
us. But out of the system of taxing the products and
processes of labor, and out of its effects in increasing
the price of what some have to sell and others must buy,
has grown the theory of “protection,” which
denies this gospel, which holds Christ ignorant of
political economy and proclaims laws of national
well-being utterly at variance with his teaching. This
theory sanctifies national hatreds; it inculcates a
universal war of hostile tariffs; it teaches peoples that
their prosperity lies in imposing on the productions of
other peoples restrictions they do not wish imposed on
their own; and instead of the Christian doctrine of
man’s brotherhood it makes injury of foreigners a
civic virtue.
“By their fruits ye shall know them.” Can
anything more clearly show that to tax the products and
processes of industry is not the way God intended public
revenues to be raised?
But to consider what we propose — the raising of
public revenues by a single tax on the value of land
irrespective of improvements — is to see that in
all respects this does conform to the moral law.
Let me ask your Holiness to keep in mind that the
value we propose to tax, the value of land irrespective
of improvements, does not come from any exertion of labor
or investment of capital on or in it — the values
produced in this way being values of improvement which we
would exempt. The value of land irrespective of
improvement is the value that attaches to land by reason
of increasing population and social progress. This is a
value that always goes to the owner as owner, and never
does and never can go to the user; for if the user be a
different person from the owner he must always pay the
owner for it in rent or in purchase-money; while if the
user be also the owner, it is as owner, not as user, that
he receives it, and by selling or renting the land he
can, as owner, continue to receive it after he ceases to
be a user.
Thus, taxes on land irrespective of improvement cannot
lessen the rewards of industry, nor add to prices,* nor
in any way take from the individual what belongs to the
individual. They can take only the value that attaches to
land by the growth of the community, and which therefore
belongs to the community as a whole.
* As to this point it may be well to add
that all economists are agreed that taxes on land
values irrespective of improvement or use — or
what in the terminology of political economy is styled
rent, a term distinguished from the ordinary use of the
word rent by being applied solely to payments for the
use of land itself — must be paid by the owner
and cannot be shifted by him on the user. To explain in
another way the reason given in the text: Price is not
determined by the will of the seller or the will of the
buyer, but by the equation of demand and supply, and
therefore as to things constantly demanded and
constantly produced rests at a point determined by the
cost of production — whatever tends to increase
the cost of bringing fresh quantities of such articles
to the consumer increasing price by checking supply,
and whatever tends to reduce such cost decreasing price
by increasing supply. Thus taxes on wheat or tobacco or
cloth add to the price that the consumer must pay, and
thus the cheapening in the cost of producing steel
which improved processes have made in recent years has
greatly reduced the price of steel. But land has no
cost of production, since it is created by God, not
produced by man. Its price therefore is fixed
—
1 (monopoly rent), where land is held
in close monopoly, by what the owners can extract
from the users under penalty of deprivation and
consequently of starvation, and amounts to all that
common labor can earn on it beyond what is necessary
to life;
2 (economic rent proper), where there is no special
monopoly, by what the particular land will yield to
common labor over and above what may be had by like
expenditure and exertion on land having no special
advantage and for which no rent is paid; and,
3 (speculative rent, which is a species of monopoly
rent, telling particularly in selling price), by the
expectation of future increase of value from social
growth and improvement, which expectation causing
landowners to withhold land at present prices has the
same effect as combination.
Taxes on land values or economic rent
can therefore never be shifted by the landowner to the
land-user, since they in no wise increase the demand
for land or enable landowners to check supply by
withholding land from use. Where rent depends on mere
monopolization, a case I mention because rent may in
this way be demanded for the use of land even before
economic or natural rent arises, the taking by taxation
of what the landowners were able to extort from labor
could not enable them to extort any more, since
laborers, if not left enough to live on, will die. So,
in the case of economic rent proper, to take from the
landowners the premiums they receive, would in no way
increase the superiority of their land and the demand
for it. While, so far as price is affected by
speculative rent, to compel the landowners to pay taxes
on the value of land whether they were getting any
income from it or not, would make it more difficult for
them to withhold land from use; and to tax the full
value would not merely destroy the power but the desire
to do so.
To take land values for the state, abolishing all
taxes on the products of labor, would therefore leave to
the laborer the full produce of labor; to the individual
all that rightfully belongs to the individual. It would
impose no burden on industry, no check on commerce, no
punishment on thrift; it would secure the largest
production and the fairest distribution of wealth, by
leaving men free to produce and to exchange as they
please, without any artificial enhancement of prices; and
by taking for public purposes a value that cannot be
carried off, that cannot be hidden, that of all values is
most easily ascertained and most certainly and cheaply
collected, it would enormously lessen the number of
officials, dispense with oaths, do away with temptations
to bribery and evasion, and abolish man-made crimes in
themselves innocent.
But, further: That God has intended the state to
obtain the revenues it needs by the taxation of land
values is shown by the same order and degree of evidence
that shows that God has intended the milk of the mother
for the nourishment of the babe.
See how close is the analogy. In that primitive
condition ere the need for the state arises there are no
land values. The products of labor have value, but in the
sparsity of population no value as yet attaches to land
itself. But as increasing density of population and
increasing elaboration of industry necessitate the
organization of the state, with its need for revenues,
value begins to attach to land. As population still
increases and industry grows more elaborate, so the needs
for public revenues increase. And at the same time and
from the same causes land values increase. The connection
is invariable. The value of things produced by labor
tends to decline with social development, since the
larger scale of production and the improvement of
processes tend steadily to reduce their cost. But the
value of land on which population centers goes up and up.
Take Rome or Paris or London or New York or Melbourne.
Consider the enormous value of land in such cities as
compared with the value of land in sparsely settled parts
of the same countries. To what is this due? Is it not due
to the density and activity of the populations of those
cities — to the very causes that require great
public expenditure for streets, drains, public buildings,
and all the many things needed for the health,
convenience and safety of such great cities? See how with
the growth of such cities the one thing that steadily
increases in value is land; how the opening of roads, the
building of railways, the making of any public
improvement, adds to the value of land. Is it not clear
that here is a natural law — that is to say a
tendency willed by the Creator? Can it mean anything else
than that He who ordained the state with its needs has in
the values which attach to land provided the means to
meet those needs?
That it does mean this and nothing else is confirmed
if we look deeper still, and inquire not merely as to the
intent, but as to the purpose of the intent. If we do so
we may see in this natural law by which land values
increase with the growth of society not only such a
perfectly adapted provision for the needs of society as
gratifies our intellectual perceptions by showing us the
wisdom of the Creator, but a purpose with regard to the
individual that gratifies our moral perceptions by
opening to us a glimpse of his beneficence.
Consider: Here is a natural law by which as society
advances the one thing that increases in value is land
— a natural law by virtue of which all growth of
population, all advance of the arts, all general
improvements of whatever kind, add to a fund that both
the commands of justice and the dictates of expediency
prompt us to take for the common uses of society. Now,
since increase in the fund available for the common uses
of society is increase in the gain that goes equally to
each member of society, is it not clear that the law by
which land values increase with social advance while the
value of the products of labor does not increase, tends
with the advance of civilization to make the share that
goes equally to each member of society more and more
important as compared with what goes to him from his
individual earnings, and thus to make the advance of
civilization lessen relatively the differences that in a
ruder social state must exist between the strong and the
weak, the fortunate and the unfortunate? Does it not show
the purpose of the Creator to be that the advance of man
in civilization should be an advance not merely to larger
powers but to a greater and greater equality, instead of
what we, by our ignoring of his intent, are making it, an
advance toward a more and more monstrous inequality?
...
That the value attaching to land with social growth is
intended for social needs is shown by the final proof.
God is indeed a jealous God in the sense that nothing but
injury and disaster can attend the effort of men to do
things other than in the way he has intended; in the
sense that where the blessings he proffers to men are
refused or misused they turn to evils that scourge us.
And just as for the mother to withhold the provision that
fills her breast with the birth of the child is to
endanger physical health, so for society to refuse to
take for social uses the provision intended for them is
to breed social disease.
For refusal to take for public purposes the increasing
values that attach to land with social growth is to
necessitate the getting of public revenues by taxes that
lessen production, distort distribution and corrupt
society. It is to leave some to take what justly
belongs to all; it is to forego the only means by which
it is possible in an advanced civilization to combine the
security of possession that is necessary to improvement
with the equality of natural opportunity that is the most
important of all natural rights. It is thus at
the basis of all social life to set up an unjust
inequality between man and man, compelling some to pay
others for the privilege of living, for the chance of
working, for the advantages of civilization, for the
gifts of their God. But it is even more than this. The
very robbery that the masses of men thus suffer gives
rise in advancing communities to a new robbery. For the
value that with the increase of population and social
advance attaches to land being suffered to go to
individuals who have secured ownership of the land, it
prompts to a forestalling of and speculation in land
wherever there is any prospect of advancing population or
of coming improvement, thus producing an artificial
scarcity of the natural elements of life and labor, and a
strangulation of production that shows itself in
recurring spasms of industrial depression as disastrous
to the world as destructive wars. It is this that is
driving men from the old countries to the new countries,
only to bring there the same curses. It is this that
causes our material advance not merely to fail to improve
the condition of the mere worker, but to make the
condition of large classes positively worse. It is this
that in our richest Christian countries is giving us a
large population whose lives are harder, more hopeless,
more degraded than those of the veriest savages. It is
this that leads so many men to think that God is a
bungler and is constantly bringing more people into his
world than he has made provision for; or that there is no
God, and that belief in him is a superstition which the
facts of life and the advance of science are
dispelling.
The darkness in light, the weakness in strength, the
poverty amid wealth, the seething discontent foreboding
civil strife, that characterize our civilization of
today, are the natural, the inevitable results of our
rejection of God’s beneficence, of our ignoring of
his intent. Were we on the other hand to follow his
clear, simple rule of right, leaving scrupulously to the
individual all that individual labor produces, and taking
for the community the value that attaches to land by the
growth of the community itself, not merely could evil
modes of raising public revenues be dispensed with, but
all men would be placed on an equal level of opportunity
with regard to the bounty of their Creator, on an equal
level of opportunity to exert their labor and to enjoy
its fruits. And then, without drastic or restrictive
measures the forestalling of land would cease. For then
the possession of land would mean only security for the
permanence of its use, and there would be no object for
any one to get land or to keep land except for use; nor
would his possession of better land than others had
confer any unjust advantage on him, or unjust deprivation
on them, since the equivalent of the advantage would be
taken by the state for the benefit of all.
The Right Reverend Dr. Thomas Nulty, Bishop of Meath,
who sees all this as clearly as we do, in pointing out to
the clergy and laity of his diocese* the design of Divine
Providence that the rent of land should be taken for the
community, says:
I think, therefore, that I may fairly
infer, on the strength of authority as well as of
reason, that the people are and always must be the real
owners of the land of their country. This great social
fact appears to me to be of incalculable importance,
and it is fortunate, indeed, that on the strictest
principles of justice it is not clouded even by a
shadow of uncertainty or doubt. There is, moreover, a
charm and a peculiar beauty in the clearness with which
it reveals the wisdom and the benevolence of the
designs of Providence in the admirable provision he has
made for the wants and the necessities of that state of
social existence of which he is author, and in which
the very instincts of nature tell us we are to spend
our lives. A vast public property, a great national
fund, has been placed under the dominion and at the
disposal of the nation to supply itself abundantly with
resources necessary to liquidate the expenses of its
government, the administration of its laws and the
education of its youth, and to enable it to provide for
the suitable sustentation and support of its criminal
and pauper population. One of the most interesting
peculiarities of this property is that its value is
never stationary; it is constantly progressive and
increasing in a direct ratio to the growth of the
population, and the very causes thatincrease and
multiply the demands made on it increase
proportionately its ability to meet them.
* Letter addressed to
the Clergy and Laity of the Diocese of Meath,
Ireland, April 2, 1881.
There is, indeed, as Bishop Nulty says, a peculiar
beauty in the clearness with which the wisdom and
benevolence of Providence are revealed in this great
social fact, the provision made for the common needs of
society in what economists call the law of rent. Of all
the evidence that natural religion gives, it is this that
most clearly shows the existence of a beneficent God, and
most conclusively silences the doubts that in our days
lead so many to materialism.
For in this beautiful provision made by
natural law for the social needs of civilization we see
that God has intended civilization; that all our
discoveries and inventions do not and cannot outrun his
forethought, and that steam, electricity and labor-saving
appliances only make the great moral laws clearer and
more important. In the growth of this great fund,
increasing with social advance — a fund that
accrues from the growth of the community and belongs
therefore to the community — we see not only that
there is no need for the taxes that lessen wealth, that
engender corruption, that promote inequality and teach
men to deny the gospel; but that to take this
fund for the purpose for which it was evidently intended
would in the highest civilization secure to all the equal
enjoyment of God’s bounty, the abundant opportunity
to satisfy their wants, and would provide amply for every
legitimate need of the state. We see that God in
his dealings with men has not been a bungler or a
niggard; that he has not brought too many men into the
world; that he has not neglected abundantly to supply
them; that he has not intended that bitter
competition of the masses for a mere animal existence and
that monstrous aggregation of wealth which characterize
our civilization; but that these evils which
lead so many to say there is no God, or yet more
impiously to say that they are of God’s ordering,
are due to our denial of his moral law. We see that the
law of justice, the law of the Golden Rule, is not a mere
counsel of perfection, but indeed the law of social life.
We see that if we were only to observe it there
would be work for all, leisure for all, abundance for
all; and that civilization would tend to give to the
poorest not only necessities, but all comforts and
reasonable luxuries as well. We see that Christ
was not a mere dreamer when he told men that if they
would seek the kingdom of God and its right-doing they
might no more worry about material things than do the
lilies of the field about their raiment; but that he was
only declaring what political economy in the light of
modern discovery shows to be a sober truth. ...
See how fully adequate is the cause I have pointed
out. The most important of all the material relations of
man is his relation to the planet he inhabits, and hence,
the “impious resistance to the benevolent
intentions of his Creator,” which, as Bishop Nulty
says, is involved in private property in land, must
produce evils wherever it exists. But by virtue of the
law, “unto whom much is given, from him much is
required,” the very progress of civilization makes
the evils produced by private property in land more
wide-spread and intense.
What is producing throughout the civilized world that
condition of things you rightly describe as intolerable
is not this and that local error or minor mistake.
It is nothing less than the progress of
civilization itself; nothing less than the intellectual
advance and the material growth in which our century has
been so preeminent, acting in a state of society based on
private property in land; nothing less than the new gifts
that in our time God has been showering on man, but which
are being turned into scourges by man’s
“impious resistance to the benevolent intentions of
his Creator.”
The discoveries of science, the gains of invention,
have given to us in this wonderful century more than has
been given to men in any time before; and, in a degree so
rapidly accelerating as to suggest geometrical
progression, are placing in our hands new material
powers. But with the benefit comes the obligation. In a
civilization beginning to pulse with steam and
electricity, where the sun paints pictures and the
phonograph stores speech, it will not do to be merely as
just as were our fathers. Intellectual advance and
material advance require corresponding moral advance.
Knowledge and power are neither good nor evil. They are
not ends but means — evolving forces that if not
controlled in orderly relations must take disorderly and
destructive forms. The deepening pain, the increasing
perplexity, the growing discontent for which, as you
truly say, some remedy must be found and quickly found,
mean nothing less than that forces of destruction swifter
and more terrible than those that have shattered every
preceding civilization are already menacing ours —
that if it does not quickly rise to a higher moral level;
if it does not become in deed as in word a Christian
civilization, on the wall of its splendor must flame the
doom of Babylon: “Thou art weighed in the balance
and found wanting!” ... read the whole
letter
Rev. A. C. Auchmuty: Gems from George, a themed
collection of excerpts from the writings of Henry
George (with links to sources)
I AM convinced that we make a great mistake in
depriving one sex of voice in public matters, and that we
could in no way so increase the attention, the
intelligence and the devotion which may be brought to the
solution of social problems as by enfranchising our
women. Even if in a ruder state of society the
intelligence of one sex suffices for the management of
common interests, the vastly more intricate, more
delicate and more important questions which the progress
of civilization makes of public moment, require the
intelligence of women as of men, and that we never can
obtain until we interest them in public affairs. And I
have come to believe that very much of the inattention,
the flippancy, the want of conscience, which we see
manifested in regard to public matters of the greatest
moment, arises from the fact that we debar our women from
taking their proper part in these matters. Nothing will
fully interest men unless it also interests women. There
are those who say that women are less intelligent than
men; but who will say that they are less influential?
—
Social Problems
— Chapter 22: Conclusion ...
CAPITAL, which is not in itself a distinguishable
element, but which it must always be kept in mind
consists of wealth applied to the aid of labor in further
production, is not a primary factor. There can be
production without it, and there must have been
production without it, or it could not in the first place
have appeared. It is a secondary and compound factor,
coming after and resulting from the union of labor and
land in the production of wealth. It is in essence labor
raised by a second union with land to a third or higher
power. But it is to civilized life so necessary and
important as to be rightfully accorded in political
economy the place of a third factor in production.
— The Science of Political Economy
unabridged: Book III, Chapter 17, The Production of
Wealth: The Third Factor of Production —
Capital • abridged:
Part III, Chapter 10: Order of the Three Factors of
Production
IT is to be observed that capital of itself can do
nothing. It is always a subsidiary, never an initiatory,
factor. The initiatory factor is always labor. That is to
say, in the production of wealth labor always uses
capital, is never used by capital. This is not merely
literally true, when by the term capital we mean the
thing capital. It is also true when we personify the term
and mean by it not the thing capital, but the men who are
possessed of capital. The capitalist pure and simple, the
man who merely controls capital, has in his hands the
power of assisting labor to produce. But purely as
capitalist he cannot exercise that power. It can be
exercised only by labor. To utilize it he must himself
exercise at least some of the functions of labor, or he
must put his capital, on some terms, at the use of those
who do. — The Science of Political Economy
unabridged: Book III, Chapter 17, The Production of
Wealth: The Third Factor of Production —
Capital • abridged:
Part III, Chapter 10: Order of the Three Factors of
Production
THUS we must exclude from the category of capital
everything that may be included either as land or labor.
Doing so, there remain only things which are neither land
nor labor, but which have resulted from the union of
these two original factors of production. Nothing can be
properly capital that does not consist of these —
that is to say, nothing can be capital that is not
wealth. —
Progress & Poverty
— Book I, Chapter 2: Wages and Capital: The Meaning
of the Terms
THUS, a government bond is not capital, nor yet is it the
representative of capital. The capital that was once
received for it by the government has been consumed
unproductively — blown away from the mouths of
cannon, used up in war ships, expended in keeping men
marching and drilling, killing and destroying. The bond
cannot represent capital that has been destroyed. It does
not represent capital at all. It is simply a solemn
declaration that the government will, some time or other,
take by taxation from the then existing stock of the
people, so much wealth, which it will turn over to the
holder of the bond; and that, in the meanwhile, it will,
from time to time, take, in the same way, enough to make
up to the holder the increase which so much capital as it
some day promises to give him would yield him were it
actually in his possession. The immense sums which are
thus taken from the produce of every modern country to
pay interest on public debts are not the earnings or
increase of capital — are not really interest in
the strict sense of the term, but are taxes levied on the
produce of labor and capital, leaving so much less for
wages and so much less for real interest. —
Progress & Poverty
— Book III, Chapter 4: The Laws of Distribution: Of
Spurious Capital and of Profits Often Mistaken For
Interest
CAPITAL, as we have seen, consists of wealth used for
the procurement of more wealth, as distinguished from
wealth used for the direct satisfaction of desire; or, as
I think it may be defined, of wealth in the course of
exchange.
Capital, therefore, increases the power of labor to
produce wealth: (1) By enabling labor to apply itself in
more effective ways, as by digging up clams with a spade
instead of the hand, or moving a vessel by shoveling coal
into a furnace, instead of tugging at an oar. (2) By
enabling labor to avail itself of the reproductive forces
of nature, as to obtain corn by sowing it, or animals by
breeding them. (3) By permitting the division of labor,
and thus, on the one hand, increasing the efficiency of
the human factor of wealth, by the utilization of special
capabilities, the acquisition of skill, and the reduction
of waste; and, on the other, calling in the powers of the
natural factor at their highest, by taking advantage of
the diversities of soil, climate and situation, so as to
obtain each particular species of wealth where nature is
most favorable to its production.
Capital does not supply the materials which labor works
up into wealth, as is erroneously taught; the materials
of wealth are supplied by nature. But such materials
partially worked up and in the course of exchange are
capital. —
Progress & Poverty
— Book I, Chapter 5: Wages and Capital: The Real
Functions of Capital ...
The "Greater Leviathan"
THE famous treatise in which the English philosopher
Hobbes, during the revolt against the tyranny of the
Stuarts in the seventeenth century, sought to give the
sanction of reason to the doctrine of the absolute
authority of kings, is entitled Leviathan. It
thus begins: "Nature, the art whereby God hath made and
governs the world, is by the art of man, as in many other
things, so in this also imitated, that it can make an
artificial animal. . . For by art is created that great
Leviathan called a commonwealth or state, in Latin
civitas, which is but an
artificial man; though of greater stature and strength
than the natural, for whose protection and defense it was
intended. . ."
Without stopping now to comment further on Hobbes's
suggestive analogy, there is, it seems to me, in the
system or arrangement into which men are brought in
social life by the effort to satisfy their material
desires — an integration which goes on as
civilization advances — something which even more
strongly and more clearly suggests the idea of a gigantic
man, formed by the union of individual men, than any
merely political integration. This Greater Leviathan is
to the political structure or conscious commonwealth what
the unconscious functions of the body are to the
conscious activities. It is not made by pact or covenant,
it grows; as the tree grows, as the man himself grows, by
virtue of natural laws inherent in human nature and in
the constitution of things. . . . It is this natural
system or arrangement, this adjustment of means to ends,
of the parts to the whole and the whole to the parts, in
the satisfaction of the material desires of men living in
society, which, in the same sense as that in which we
speak of the economy of the solar system, is the economy
of human society, or what in English we call political
economy. It is as human units, individuals or families,
take their place as integers of this higher man, this
Greater Leviathan, that what we call civilization begins
and advances. . . . The appearance and development of the
body politic, the organized state, the Leviathan of
Hobbes, is the mark of civilization already in existence.
— The Science of Political Economy —
unabridged: Book I, Chapter 3, The Meaning of Political
Economy: How Man's Powers Are Extended •
abridged:
Chapter 2: The Greater Leviathan
LET us try to trace the genesis of civilization.
Gifted alone with the power of relating cause and effect,
man is among all animals the only producer in the true
sense of the term. . . . But the same quality of reason
which makes him the producer, also, wherever exchange
becomes possible, makes him the exchanger. And it is
along this line of exchanging that the body economic is
evolved and develops, and that all the advances of
civilization are primarily made. . . . With the beginning
of exchange or trade among men this body economic begins
to form, and in its beginning civilization begins. . . .
To find an utterly uncivilized people, we must find a
people among whom there is no exchange or trade. Such a
people does not exist, and, as far as our knowledge goes,
never did. To find a fully civilized people, we must find
a people among whom exchange or trade is absolutely free,
and has reached the fullest development to which human
desires can carry it. There is, as yet, unfortunately, no
such people. — The Science of Political
Economy —
unabridged: Book I, Chapter 5, The Meaning of Political
Economy: The Origin and Genesis of Civilization
• abridged:
Chapter 4, The Origin and Genesis of
Civilization
WHEN we, come to analyze production, we find it to fall
into three modes, viz::
ADAPTING, or changing natural products either in form or
in place so as to fit them for the satisfaction of human
desire.
GROWING, or utilizing the vital forces of nature, as by
raising vegetables or animals.
EXCHANGING, or utilizing, so as to add to the general sum
of wealth, the higher powers of those natural forces
which vary with locality, or of those human forces which
vary with situation, occupation, or character. —
Progress & Poverty
— Book III, Chapter 3, The Laws of Distribution: of
Interest and the Cause of Interest
THESE modes seem to appear and to assume importance, in
the development of human society, much in the order here
given. They originate from the increase of the desires of
men with the increase of the means of satisfying them,
under pressure of the fundamental law of political
economy, that men seek to satisfy their desires with the
least exertion. In the primitive stage of human life the
readiest way of satisfying desires is by adapting to
human use what is found in existence. In a later and more
settled stage it is discovered that certain desires can
be more easily and more fully satisfied by utilizing the
principle of growth and reproduction, as by cultivating
vegetables and breeding animals. And in a still later
period of development, it becomes obvious that certain
desires can be better and more easily satisfied by
exchange, which brings out the principle of co-operation
more fully and powerfully than could obtain among
unexchanging economic units. — The Science of
Political Economy
unabridged: Book III, Chapter 2, The Production of
Wealth: The Three Modes of Production •
abridged: Part III, Chapter 2, The Production of Wealth:
The Three Modes of Production
Co-operation and
Competition
MANY if not most of the writers on political economy have
treated exchange as a part of distribution. On the
contrary, it belongs to production. It is by exchange,
and through exchange, that man obtains, and is able to
exert, the power of co-operation which, with the advance
of civilization, so enormously increases his ability to
produce wealth. — The Science of Political
Economy —
unabridged: Book III, Chapter 11, The Production of
Wealth: The Office of Exchange in Production •
unabridged
Chapter 9, The Office of Exchange in Production
THEY who, seeing how men are forced by competition to the
extreme of human wretchedness, jump to the conclusion
that competition should be abolished, are like those who,
seeing a house burn down, would prohibit the use of
fire.
The air we breathe exerts upon every square inch of our
bodies a pressure of fifteen pounds. Were this pressure
exerted only on one side, it would pin us to the ground
and crush us to a jelly. But being exerted on all sides,
we move under it with perfect freedom. It not only does
not inconvenience us, but it serves such indispensable
purposes that, relieved of its pressure, we should
die.
So it is with competition. Where there exists a class
denied all right to the element necessary to life arid
labor, competition is one-sided, and as population
increases must press the lowest class into virtual
slavery, and even starvation. But where the natural
rights of all are secured, then competition, acting on
every hand — between employers as between employed,
between buyers as between sellers — can injure no
one.
On the contrary it becomes the most simple, most
extensive, most elastic, and most refined system of
co-operation that, in the present stage of social
development, and in the domain where it will freely act,
we can rely on for the co-ordination of industry and the
economizing of social forces.
In short, competition plays just such a part in the
social organism as those vital impulses which are beneath
consciousness do in the bodily organism. With it, as with
them, it is only necessary that it should be free. The
line at which the state should come in is that where free
competition becomes impossible — a line analogous
to that which in the individual organism separates the
conscious from the unconscious functions. There is such a
line, though extreme socialists and extreme
individualists both ignore it. The extreme individualist
is like the man who would have his hunger provide him
food; the extreme socialist is like the man who would
have his conscious will direct his stomach how to digest
it. — Protection or Free Trade, chapter 28
econlib
IN socialism as distinguished from individualism there
is an unquestionable truth — and that a truth to
which (especially by those most identified with
free-trade principles) too little attention has been
paid. Man is primarily an individual — a separate
entity, differing from his fellows in desires and powers,
and requiring for the exercise of those powers and the
gratification of those desires individual play and
freedom. But he is also a social being, having desires
that harmonize with those of his fellows, and powers that
can only be brought out in concerted action. There is
thus a domain of individual action and a domain of social
action — some things which can best be done when
each acts for himself, and some things which can best be
done when society acts for all its members. And the
natural tendency of advancing civilization is to make
social conditions relatively more important, and more and
more to enlarge the domain of social action. This has not
been sufficiently regarded, and at the present time, evil
unquestionably results from leaving to individual action
functions that by reason of the growth of society and the
developments of the arts have passed into the domain of
social action; just as, on the other hand, evil
unquestionably results from social interference with what
properly belongs to the individual. Society ought not to
leave the telegraph and the railway to the management and
control of individuals; nor yet ought society to step in
and collect individual debts or attempt to direct
individual industry. — Protection or Free
Trade, Chapter 28
econlib
MEN of different nations trade with each other for the
same reason that men of the same nation do —
because they find it profitable; because they thus obtain
what they want with less labor than they otherwise could.
— Protection or Free Trade, Chapter 6:
Trade -
econlib -|- abridged
TRADE is not invasion. It does not involve aggression on
one side and resistance on the other, but mutual consent
and gratification. There cannot be a trade unless the
parties to it agree, any more than there can be a quarrel
unless the parties to it differ. England, we say, forced
trade with the outside world upon China and the United
States upon Japan. But, in both cases, what was done was
not to force the people to trade, but to force their
governments to let them. If the people had not wanted to
trade, the opening of the ports would have been useless.
— Protection or Free Trade, Chapter 6:
Trade -
econlib
TRADE does not require force. Free trade consists simply
in letting people buy and sell as they want to buy and
sell.. It is protection that requires force, for it
consists in preventing people from doing what they want
to do. — Protection or Free Trade, Chapter
6: Trade -
econlib -|- abridged
IF all the material things needed by man could be
produced equally well at all points on the earth's
surface, it might seem more convenient for man the
animal, but how would he have risen above the animal
level? As we see in the history of social development,
commerce has been and is the great civilizer and
educator. The seemingly infinite diversities in the
capacity of different parts of the earth's surface lead
to that exchange of productions which is the most
powerful agent in preventing isolation, in breaking down
prejudice, in increasing knowledge and widening thought.
These diversities of nature, which seemingly increase
with our knowledge of nature's powers, like the
diversities in the aptitudes of individuals and
communities, which similarly increase with social
development, call forth powers and give rise to pleasures
which could never arise had man been placed like an ox in
a boundless field of clover. The "international law of
God" which we fight with our tariffs — so
shortsighted are the selfish prejudices of men — is
the law which stimulates mental and moral progress; the
law to which civilization is due. —
Social Problems — Chapter 19: The First Great
Reform.
THAT the masses now festering in the tenement houses
of our cities, under conditions which breed disease and
death, and vice and crime, should each family have its
healthful home, set in its garden; that the working
farmer should be able to make a living with a daily
average of two or three hours' work, which more resembled
healthy recreation than toil; that his home should be
replete with all the conveniences yet esteemed luxuries;
that it should be supplied with light and heat, and power
if needed, and connected with those of his neighbors by
the telephone; that his family should be free to
libraries, and lectures, and scientific apparatus and
instruction; that they should be able to visit the
theater, or concert, or opera, as often as they cared to
do so, and occasionally to make trips to other parts of
the country or to Europe; that, in short, not merely the
successful man, the one in a thousand, but the man of
ordinary parts and ordinary foresight and prudence,
should enjoy all that advancing civilization can bring to
elevate and expand human life, seems, in the light of
existing facts, as wild a dream as ever entered the brain
of hasheesh eater. Yet the powers already within the
grasp of man make it easily possible. —
Social Problems — Chapter 21: City and
Country.
GIVE labor a free field and its full earnings; take for
the benefit of the whole community that fund which the
growth of the community creates, and want and the fear of
want would be gone. The springs of production would be
set free, and the enormous increase of wealth would give
the poorest ample comfort. Men would no more worry about
finding employment than they worry about finding air to
breathe; they need have no more care about physical
necessities than do the lilies of the field. The progress
of science, the march of invention, the diffusion of
knowledge, would bring their benefits to all.
With this abolition of want and the fear of want, the
admiration of riches would decay, and men would seek the
respect and approbation of their fellows in other modes
than by the acquisition and display of wealth. In this
way there would be brought to the management of public
affairs and the administration of common funds the skill,
the attention, the fidelity and integrity, that can now
only be secured for private interests, and a railroad or
gas works might be operated on public account, not only
more economically and efficiently than, as at present,
under joint stock management, but as economically and
efficiently as would be possible under a single
ownership. The prize of the Olympian games, that called
forth the most strenuous exertions of all Greece, was but
a wreath of wild olive; for a bit of ribbon men have over
and over again performed services no money could have
bought. —
Progress & Poverty
— Book IX, Chapter 4— Effects of the Remedy:
Of the Changes that Would be Wrought in Social
Organization and Social Life
SHORT-SIGHTED is the philosophy which counts on
selfishness as the master motive of human action. It is
blind to facts of which the world is full. It sees not
the present, and reads not the past aright. If you would
move men to action, to what shall you appeal? Not to
their pockets, but to their patriotism; not to
selfishness but to sympathy. Self-interest is, as it
were, a mechanical force — potent, it is true;
capable of large and wide results. But there is in human
nature what may be likened to a chemical force; which
melts and fuses and overwhelms; to which nothing seems
impossible. "All that a man hath will he give for his
life" — that is self-interest. But in loyalty to
higher impulses men will give even life.
It is not selfishness that enriches the annals of every
people with heroes and saints. It is not selfishness that
on every page of the world's history; bursts out in
sudden splendor of noble deeds or sheds the soft radiance
of benignant lives. It was not selfishness that turned
Gautama's back to his royal home or bade the Maid of
Orleans lift the sword from the altar; that held the
Three Hundred in the Pass of Thermopylae, or gathered
into Winkelried's bosom the sheaf of spears; that chained
Vincent de Paul to the bench of the galley, or brought
little starving children during the Indian famine
tottering to the relief stations with yet weaker
starvelings in their arms! Call it religion, patriotism,
sympathy, the enthusiasm for humanity, or the love of God
— give it what name you will; there is yet a force
which overcomes and drives out selfishness; a force which
is the electricity of the moral universe; a force beside
which all others are weak. Everywhere that men have lived
it has shown its power, and today, as ever, the world is
full of it. To be pitied is the man who has never seen
and never felt it. Look around! among common men and
women, amid the care and the struggle of daily life in
the jar of the noisy street and amid the squalor where
want hides — everywhere, and there is the darkness
lighted with the tremulous play of its lambent flames. He
who has not seen it has walked with shut eyes. He who
looks may see, as says Plutarch, that "the soul has a
principle of kindness in itself, and is born to love, as
well as to perceive, think, or remember."
And this force of forces — that now goes to waste
or assumes perverted forms — we may use for the
strengthening and building up and ennobling of society,
if we but will, just as we now use physical forces that
once seemed but powers of destruction. All we have to do
is but to give it freedom and scope. —
Progress & Poverty
— Book IX, Chapter 4— Effects of the Remedy:
Of the Changes that Would be Wrought in Social
Organization and Social Life
THE efficiency of labor always increases with the
habitual wages of labor — for high wages mean
increased self-respect, intelligence, hope and energy.
Man is not a machine, that will do so much and no more;
he is not an animal, whose powers may reach thus far and
no further. It is mind, not muscle, which is the great
agent of production. The physical power evolved in the
human frame is one of the weakest of forces, but for the
human intelligence the resistless currents of nature
flow, and matter becomes plastic to the human will. To
increase the comforts, and leisure, and independence of
the masses is to increase their intelligence; it is to
bring the brain to the aid of the hand; it is to engage
in the common work of life the faculty which measures the
animalcule and traces the orbits of the stars!
—
Progress & Poverty
— Book IX, Chapter 2: Effects of the Remedy, upon
distribution and thence on production
OUT upon nature, in upon him himself, back through the
mists that shroud the past, forward into the darkness
that overhangs the future, turns the restless desire that
arises when the animal wants slumber in satisfaction.
Beneath things he seeks the law; he would know how the
globe was forged, and the stars were hung, and trace to
their sources the springs of life. And then, as the man
develops his nobler nature, there arises the desire
higher yet — the passion of passions, the hope of
hopes — the desire that he, even he, may somehow
aid in making life better and brighter, in destroying
want and sin, sorrow and shame. He masters and curbs the
animal; he turns his back upon the feast and renounces
the place of power; he leaves it to others to accumulate
wealth, to gratify pleasant tastes, to bask themselves in
the warm sunshine of the brief day. He works for those he
never saw and never can see; for a fame, or it may be but
for a scant justice, that can only come long after the
clods have rattled upon his coffin lid. He toils in the
advance, where it is cold, and there is little cheer from
men, and the stones are sharp and the brambles
thick.
Amid the scoffs of the present and the sneers that stab
like knives, he builds for the future; he cuts the trail
that progressive humanity may hereafter broaden into a
highroad. Into higher, grander spheres desire mounts and
beckons, and a star that rises in the east leads him on.
Lo! the pulses of the man throb with the yearnings of the
god — he would aid in the process of the suns!
—
Progress & Poverty
— Book II, Chapter 3, Population and Subsistence:
Inferences from Analogy
ONLY a little while ago nations were bought and sold,
traded off by treaty and bequeathed by will. Where now is
the right divine of kings? Only a little while ago, and
human flesh and blood were legal property. Where are now
the vested rights of chattel slavery? And shall this
wrong, that involves monarchy, and involves slavery
— this injustice from which both spring —
long continue? Shall the ploughers for ever plough the
backs of a class condemned to toil? Shall the millstones
of greed for ever grind the faces of the poor? Ladies and
gentlemen, it is not in the order of the universe!
As one who for years has watched and waited, I tell you
the glow of dawn is in the sky. Whether it come with the
carol of larks or the roll of the war-drums, it is coming
— it will come. The standard that I have tried to
raise tonight may be tom by prejudice and blackened by
calumny; it may now move forward, and again be forced
back. But once loosed, it can never again be furled! To
beat down and cover up the truth that I have tried
tonight to make clear to you, selfishness will call on
ignorance. But it has in it the germinative force of
truth, and the times are ripe for it. If the flint oppose
it, the flint must split or crumble! Paul planteth, and
Apollos watereth, but God giveth the increase. The ground
is ploughed; the seed is set; the good tree will
grow.
So little now, only the eye of faith can see it. So
little now; so tender and so weak. But sometime, the
birds of heaven shall sing in its branches; sometime, the
weary shall find rest beneath its shade! — Speech:
Why Work is Scarce, Wages Low and Labour
Restless (1877, San Francisco) ... go to "Gems from
George"
Louis Post: Outlines
of Louis F. Post's Lectures, with Illustrative Notes and
Charts (1894)
c. Significance of the Upward Tendency of
Rent
Now, what is the meaning of this tendency of Rent to
rise with social progress, while Wages tend to fall? Is
it not a plain promise that if Rent be treated as common
property, advances in productive power shall be steps in
the direction of realizing through orderly and natural
growth those grand conceptions of both the socialist and
the individualist, which in the present condition of
society are justly ranked as Utopian? Is it not likewise
a plain warning that if Rent be treated as private
property, advances in productive power will be steps in
the direction of making slaves of the many laborers, and
masters of a few land-owners? Does it not mean that
common ownership of Rent is in harmony with natural law,
and that its private appropriation is disorderly and
degrading? When the cause of Rent and the tendency
illustrated in the preceding chart are considered in
connection with the self-evident truth that God made the
earth for common use and not for private monopoly, how
can a contrary inference hold? Caused and increased by
social growth, 97 the benefits of which should be common,
and attaching to land, the just right to which is equal,
Rent must be the natural fund for public expenses. 98
97. Here, far away from
civilization, is a solitary settler. Getting no
benefits from government, he needs no public revenues,
and none of the land about him has any value. Another
settler comes, and another, until a village appears.
Some public revenue is then required. Not much, but
some. And the land has a little value, only a little;
perhaps just enough to equal the need for public
revenue. The village becomes a town. More revenues are
needed, and land values are higher. It becomes a city.
The public revenues required are enormous, and so are
the land values.
98. Society, and society alone, causes
Rent. Rising with the rise, advancing with the growth,
and receding with the decline of society, it measures
the earning power of society as a whole as
distinguished from that of the individuals. Wages, on
the other hand, measure the earning power of the
individuals as distinguished from that of society as a
whole. We have distinguished the parts into which
Wealth is distributed as Wages and Rent; but it would
be correct, indeed it is the same thing, to regard all
wealth as earnings, and to distinguish the two kinds as
Communal Earnings and Individual Earnings. How, then,
can there be any question as to the fund from which
society should be supported? How can it be justly
supported in any other way than out of its own
earnings?
If there be at all such a thing as design in the
universe — and who can doubt it? — then has
it been designed that Rent, the earnings of the
community, shall be retained for the support of the
community, and that Wages, the earnings of the
individual, shall be left to the individual in proportion
to the value of his service. This is the divine law,
whether we trace it through complex moral and economic
relations, or find it in the eighth commandment.
... read the
book
Joseph Fels: True
Christianity and My Own Religious Beliefs
Do you question the relationship between taxation
and righteousness? Let us see. If government is a natural
growth, then surely God's natural law provides food and
sustenance for government as that food is needed; for
where in Nature do we find a creature coming into the
world without timely provision of natural food for it? It
is in our system of taxation that we find the most
emphatic denial of the Fatherhood of God and the
Brotherhood of Man, because, first, in order to meet our
common needs, we take from individuals what does not
belong to us in common; second, we permit individuals to
take for themselves what does belong to us in common;
thus, third, under the pretext of taxation for public
purposes, we have established a system that permits some
men to tax other men for private profit.
Does not that violate the natural, the divine law?
Does it not surely beget wolfish greed on the one hand,
and gaunt poverty on the other? Does it not surely breed
millionaires on one end of the social scale and tramps on
the other end? Has it not brought into civilization a
hell, of which the savage can have no conception? Could
any better system be devised for convincing men that God
is the father of a few and the stepfather of the many? Is
not that destructive of the sentiment of brotherhood?
With such a condition, how is it possible for men in
masses to obey the new commandment, "that ye love one
another"? What could more surely thrust men apart? What
could more surely divide them into warring
classes?
You say that you need money to train young men and
fit them "to carry the Word to the heathen of foreign
lands, and thus be instrumental in dispelling the
darkness that reigns among millions of our brethren in
other lands." That is a noble purpose. But what message
would your school give to these young men to take to the
benighted brethren that would stand a fire of questions
from an intelligent heathen? Suppose, for example, your
school sends to some pagan country an intelligent young
man, who delivers his message; and suppose an intelligent
man in the audience asks these questions:
You come from America, when your religion has been
taught for about 400 years, where every small village has
one of your churches, and the great cities have scores
upon scores. Do all the people attend these churches? Do
your countrymen generally practice what you preach to us?
Does even a considerable minority practice it? Are your
laws consistent with or contrary to the religion you
preach to us? Are your cities clean morally in proportion
to the number of churches they contain? Do your courts
administer Justice impartially between man and man,
between rich and poor? Is it as easy for a poor man as
for a rich one to get his rights in your courts?
You have great and powerful millionaires. How did they
get their money? Have they more influence than the poor
in your churches and in your congress, your legislatures
and courts? Do they, in dealing with their employees,
observe the moral law that "the laborer is worthy of his
hire"? Do they treat their hired laborers as brothers? Do
they put children to work who ought to be at play or at
school?
Do your churches protect when the militia is called out
during a strike, or do they forget at such times what
Jesus said about the use of the sword?
After four centuries of teaching and preaching of your
religion in your country, has crime disappeared or
diminished? Have you less use for jails? Are fewer and
fewer of your people driven into madhouses, and have
suicides decreased? Is there a larger proportion of crime
amongst Jews and infidels than among those who profess
the Christian Religion?
What answers would your missionary return to these
questions? How would you answer them?
I do not attack Christianity. The foregoing
questions are not intended as criticism of the great
moral code underlying Christianity, but as criticism of
the men who preach, but do not practice that code. My
contention is that the code of morals taught to the
fishermen of Galilee by the Carpenter of Nazareth is
all-embracing and all-sufficient for our social
life.
I shall be glad to contribute to your theological
school or to any other that gets down to the bedrock of
that social and moral code, accepts it in its fulness,
and trains its students to teach and preach it regardless
of the raiment, the bank accounts, the social standing or
political position of the persons in the
pews. ... read the whole
letter
Upton Sinclair: The
Consequences of Land Speculation are Tenantry and Debt on
the Farms, and Slums and Luxury in the Cities
I know of a woman — I have never had the
pleasure of making her acquaintance, because she lives in
a lunatic asylum, which does not happen to be on my
visiting list. This woman has been mentally incompetent
from birth. She is well taken care of, because her father
left her when he died the income of a large farm on the
outskirts of a city. The city has since grown and the
land is now worth, at conservative estimate, about twenty
million dollars. It is covered with office buildings, and
the greater part of the income, which cannot be spent by
the woman, is piling up at compound interest. The woman
enjoys good health, so she may be worth a hundred million
dollars before she dies.
I choose this case because it is one about which there
can be no disputing; this woman has never been able to do
anything to earn that twenty million dollars. And if a
visitor from Mars should come down to study the
situation, which would he think was most insane, the
unfortunate woman, or the society which compels thousands
of people to wear themselves to death in order to pay her
the income of twenty million dollars?
The fact that this woman is insane makes it easy to
see that she is not entitled to the "unearned increment"
of the land she owns. But how about all the other people
who have bought up and are holding for speculation the
most desirable land? The value of this land increases,
not because of anything these owners do — not
because of any useful service they render to the
community — but purely because the community as a
whole is crowding into that neighborhood and must have
use of the land.
The speculator who bought this land thinks that he
deserves the increase, because he guessed the fact that
the city was going to grow that way. But it seems clear
enough that his skill in guessing which way the community
was going to grow, however useful that skill may be to
himself, is not in any way useful to the community. The
man may have planted trees, or built roads, and put in
sidewalks and sewers; all that is useful work, and for
that he should be paid. But should he be paid for
guessing what the rest of us were going to need?
Before you answer, consider the consequences of this
guessing game. The consequences of land speculation are
tenantry and debt on the farms, and slums and luxury in
the cities. A great part of the necessary land is held
out of use, and so the value of all land continually
increases, until the poor man can no longer own a home.
The value of farm land also increases; so year by year
more independent farmers are dispossessed, because they
cannot pay interest on their mortgages. So the land
becomes a place of serfdom, that land described by the
poet, "where wealth accumulates and men decay." The great
cities fill up with festering slums, and a small class of
idle parasites are provided with enormous fortunes, which
they do not have to earn, and which they cannot
intelligently spend.
This condition wrecked every empire in the
history of mankind, and it is wrecking modern
civilization. One of the first to perceive this
was Henry George, and he worked out the program known as
the Single Tax. Let society as a whole take the full
rental value of land, so that no one would any longer be
able to hold land out of use. So the value of land would
decrease, and everyone could have land, and the community
would have a great income to be spent for social ends.
...
...I have before me a little book entitled "Enclaves
of Economic Rent," by C. W. Huntington....This book is
published by Mr. Fiske Warren, a millionaire paper
manufacturer who lives at Harvard, Massachusetts, and
believes in the Single Tax by way of enclaves....I sought
to persuade Mr. Warren that a great crisis was impending;
that the inequality of wealth in our society a thing
continually growing worse, was bound to bring a smash-up
long before mankind had been persuaded to live in
enclaves. To this Mr. Warren answered, in substance: "You
may be right; but if this civilization collapses,
something else will have to be put in its place, and it
may be useful to men to have a model of a better
community."
...How are these enclaves run? The principle is very
simple. The community owns the land, and fixes the site
value year by year, and those who occupy the land pay the
full rental value of the land they occupy. Improvements
of any kind are not taxed; you pay only for the use of
what nature and the community have created. The community
takes all this wealth and uses it, first to pay all the
taxes on the land [and buildings -ds] the remaining money
being expended for community purposes, by the democratic
vote of all. ...
In Philadelphia, as in all our great cities, are
enormously wealthy families, living on hereditary incomes
derived from crowded slums. Here and there among these
rich men is one who realizes that he has not earned what
he is consuming, and that it has not brought him
happiness, and is bringing still less to his children.
Such men are casting about for ways to invest their money
without breeding idleness and parasitism. Some of them
might be grateful to learn about this enclave plan, and
to visit the lovely village of Arden, and see what its
people are doing to make possible a peaceful and joyous
life, even in this land of bootleggers and jazz
orchestras. ... read
the whole article
John Dewey: Steps to
Economic Recovery
No wonder people are asking what sort of a crazy
economic system we have when at a time when millions are
short of adequate food, when babies are going without the
milk necessary for their growth, the best remedy that
experts can think of and that the Federal Government can
recommend is to pay a premium to farmers to grow less
grain with which to make flour to feed the hungry, and
pay a premium to dairymen to send less milk to
market.
Henry George called attention to this situation over
fifty years ago. The contradiction between increasing
plenty, increase of potential security--and actual want
and insecurity is stated in the title of his chief work,
Progress and Poverty. That is what his book is about. It
is a record of the fact that as the means and appliances
of civilization increase, poverty and insecurity also
increase. It is an exploration of why millionaires and
tramps multiply together. It is a prediction of why this
state of affairs will continue; it is a prediction of the
plight in which the nation finds itself to-day. At the
same time it is the explanation of why this condition is
artificial, man-made, unnecessary, and how it can be
remedied. So I suggest that as a beginning of the first
steps to permanent recovery there be a nationwide revival
of interest in the writings and teachings of Henry George
and that there be such an enlightenment of public opinion
that our representatives in legislatures and public
places be compelled to adopt the changes he urged. ...
read the whole
speech
Weld Carter: An
Introduction to Henry George
What is the law of human
progress?
George saw ours alone among the civilizations of
the world as still progressing; all others had either
petrified or had vanished. And in our civilization he had
already detected alarming evidences of corruption and
decay. So he sought out the forces that create
civilization and the forces that destroy it.
He found the incentives to progress
to be the desires inherent in human nature, and the motor
of progress to be what he called mental power. But the
mental power that is available for progress is only what
remains after nonprogressive demands have been met. These
demands George listed as maintenance and
conflict.
In his isolated state, primitive
man's powers are required simply to maintain existence;
only as he begins to associate in communities and to enjoy
the resultant economies is mental power set free for higher
uses. Hence, association is the first essential of
progress:
And as the wasteful expenditure of
mental power in conflict becomes greater or less as the
moral law which accords to each an equality of rights is
ignored or is recognized, equality (or justice) is the
second essential of progress.
Thus association in equality is the
law of progress. Association frees mental power for
expenditure in improvement, and equality, or justice, or
freedom -- for the terms here signify the same thing, the
recognition of the moral law -- prevents the dissipation of
this power in fruitless struggles.
He concluded this phase of his
analysis of civilization in these words: "The law of human
progress, what is it but the moral law? Just as social
adjustments promote justice, just as they acknowledge the
equality of right between man and man, just as they insure
to each the perfect liberty which is bounded only by the
equal liberty of every other, must civilization advance.
Just as they fail in this, must advancing civilization come
to a halt and recede..."
However, as the primary relation of
man is to the earth, so must the primary social adjustment
concern the relation of man to the earth. Only that social
adjustment which affords all mankind equal access to nature
and which insures labor its full earnings will promote
justice, acknowledge equality of right between man and man,
and insure perfect liberty to each.
This, according to George, was what
the single tax would do. It was why he saw the single tax
as not merely a fiscal reform but as the basic reform
without which no other reform could, in the long run,
avail. This is why he said, "What is inexplicable, if we
lose sight of man's absolute and constant dependence upon
land, is clear when we recognize it."
... read the
whole article
Nic Tideman:
The Constitutional Conflict Between Protecting Expectations
and Moral Evolution
Three hundred years ago virtually no one questioned
the propriety of slavery. Even John Locke, that most
articulate advocate of human freedom, invested in slaves.
But over the course of the eighteenth and nineteenth
centuries, amid extreme controversy in some times and
places, slavery was nearly eliminated from the world.
With a bit of a lag, a consensus gradually evolved among
humanity that slavery was wrong, indeed that no
distinctions in civil rights based on race could be
justified.
Two hundred years ago almost no one thought that women
should be allowed to vote. Amid extreme controversy in
some times and places, they were granted voting rights.
Now virtually no one argues that women should be denied
any rights that men have. We have not yet arrived at a
consensus about what equality of the sexes means, but we
are near a consensus that we should strive for it.
The next point to be made is that it would not be
reasonable to expect constitutional changes that reflect
new moral understandings to be made as approximate Pareto
improvements. It would have been possible to end slavery
in a way that made almost no one noticeably worse off as
compared to their expected utilities under slavery. It
would merely have been necessary to declare the slaves
free, provided that they made reasonable progress on
paying debts to their former masters equal to their
market value as slaves, and that they used their first
earnings to buy insurance policies that would compensate
their former masters in the event that they died or
became incapacitated before they finished paying the
debts. But such an end to slavery would never have
satisfied the impulse that pushed for its abolition.
Ending slavery was not an issue of economic efficiency
or voter preferences. Slavery needed to be ended because
so many people could not in good conscience participate
in a legal system that enforced slavery. If slavery was
wrong, there was no basis for requiring persons subjected
to slavery to purchase their freedom. They had to be
recognized as unconditionally free. Others would need to
bear the loss from the fact that those formerly
recognized as the owners of slaves would no longer be
allowed to appropriate the product of slave labor. Who
should bear the loss? ...
read the whole article
Nic Tideman:
The Political Economy of Moral Evolution
This paper argues that a liberal theory of the
resolution of disagreements about the requirements of
justice must include the possibility of secession. When
such a possibility is allowed, it can be predicted that
there will be changes not only in the character of
disputes about the requirements of justice, but also in
the patterns of taxes and public expenditures. There will
be a greater propensity for seeing the other side's point
of view in disputes about the requirements of justice,
and a greater tendency to support public activities by
efficient taxes on the beneficiaries of public
expenditures.
The paper begins with a discussion of the nature of
moral truth, its relation to scientific truth, and the
way in which moral knowledge grows. Next discussed is the
difficulty of translating moral knowledge into social
institutions, arising from the inevitability and
impropriety of judging one's own cause. Ackerman's
"neutral dialogue" is endorsed as the most acceptable way
of dealing with this difficulty. But I suggest that in
dialogues regarding the requirements of justice there
should be an understanding that one possible outcome of
the dialogue is failure to agree on mutually acceptable
conditions for being part of the same society, leading to
a parting of the ways. The conditions under which such a
parting would occur constitute the most fundamental
question of justice. I suggest that Ackerman's proposed
condition of equal sharing of the providence of nature
(Ackerman's initial manna) among all generations
constitutes an appropriate basis for parting if agreement
should be impossible. ...
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Judge Samuel Seabury: An Address delivered upon the
100th anniversary of the birth of Henry George
WE are met to celebrate the 100th anniversary of the
birth of Henry George. We meet, therefore, in a spirit of
joy and thanksgiving for the great life which he devoted
to the service of humanity. To very few of the children
of men is it given to act the part of a great teacher who
makes an outstanding contribution toward revealing the
basic principles to which human society must adhere if it
is to walk in the way which leads to freedom. This Henry
George did, and in so doing he expressed himself with a
clarity of thought and diction which has rarely been
surpassed. ...
We must not delude ourselves with the belief that the
great battle now going on between the dictatorships and
the so-called democracies is merely a matter of the
nominal form of government. It is not. The difference is
much more fundamental. Opposing and diametrically
opposite philosophies confront one another. The contest
is between the philosophy of dictatorship and the
philosophy of freedom. Irrespective of the name we give
our form of government, or the method by which we choose
its administrators, the philosophy of freedom cannot be
realized unless the world recognizes the common rights of
men in the resources of nature, unless it recognizes the
right of every people to trade with other peoples, unless
it safeguards the individual rights of life, liberty and
property and unless it insures tolerance of opinion.
These principles are the essential life-giving attributes
of freedom: without them there can be no civilization in
the sense in which that term is used by a free
people.
...Indeed, if we try to envision, in view of our
present location this afternoon, "The World of Tomorrow,"
I have no hesitation in saying that if the world of
tomorrow is to be a civilized world, and not a world
which has relapsed into barbarism, it can be so only by
applying the principles of freedom which Henry George
taught. The principles to which I refer are:
First, that men have equal rights in natural
resources, and that these rights may find recognition in
a system which gives effect to the distinction between
what is justly private property because it has relation
to individual initiative and is the creation of labor and
capital, and what is public property because it is either
a part of the natural resources of the country, whose
value is created by the presence of the community, or is
founded upon some governmental privilege or
franchise.
Henry George believed in an order of society in which
monopoly should be abolished as a means of private
profit. The substitution of state monopoly for private
monopoly will not better the situation. It ignores the
fact that even where a utility is a natural monopoly
which must be operated in the public interests, it should
be operated as a result of cooperation between the
representatives of labor, capital. and consumers, and not
by the politiciaps w'ho control the political state.
We should never lose sight of the fact that all
monopolies are created and perpetuated by state laws. If
the states wish seriously to abolish monopoly, they can
do so by withdrawing their privileges; but they cannot
grant the privileges which make monopoly inevitable and
avoid the consequences by invoking anti-trust laws
against them.
It is strange that the state, which has assumed all
sorts of functions which it cannot with advantage
perform, still persists in neglecting a vital function
which it should and can perform — the function of
collecting public revenues, as far as possible, from
those who reap the benefits of natural resources. In view
of public and social needs, it is remarkable that no
effort has been made by governments to reduce the tax
burdens on labor and capital, which are engaged in
increasing production, by transferring them to those who
restrict production by making monopoly privileges special
to themselves.
These monopolistic privileges are of course disguised
under many different forms, but the task of ascertaining
what they are, and their true value, is a task within the
competency of government if it really desires to
accomplish it.
The second principle to which I wish to refer is Henry
George's advocacy of freedom of trade among the nations
— not free trade introduced overnight, but freedom
of trade as an end toward which the nations should move.
When he wrote his great work on "Protection or Free
Trade," he demolished the protectionist argument and in
chapter after chapter he showed the absurdities to which
the protectionist principle led if carried to its logical
conclusion. But even he, penetrating as his vision was,
could not foresee that mankind was heading for a world
order of economic nationalism and isolation, based upon
the principle of protection carried to its utmost
extreme. And yet that it is precisely the doctrine which
is now currently accepted. If it becomes general, it can
serve only to sow the seeds of destruction of that
measure of civilization which we now have and force a
lowering of the standard of living throughout the
world.
There are two ways by which the people of one nation
can acquire the property or goods of the people of
another nation. These are by war and by trade. There are
no other methods. The present tendency among civilized
people to outlaw trade must drive the states which
prescribe such outlawry to acquire the property and goods
of other peoples by war. Early in man's struggle for
existence the resort to war was the common method
adopted. With the advancement of civilization men
resorted to trade as a practical substitute for war. The
masses of men wish to trade with one another. The action
of the states alone prevents them from so doing. In
prohibiting trade, the state gives an importance to
territorial boundaries which would not exist if freedom
of trade existed. In accentuating the importance of mere
boundary disputes, rather than assuring the right of
peoples to trade with one another, the nations put the
emphasis upon the precise issue which is, itself, one of
the most prolific causes of war.
All the great modern states are turning away from
freedom of trade, and indeed, from trade itself, and
forbidding their people the right to earn their own
livelihood and to associate freely with one another in
industry. In order to accomplish this end they are
compelled to regiment the lives of their people under
state bureaucracies and this can be accomplished only by
a despotic state. If the powers of the modern states are
to be augmented by conferring upon them the right to run
all industry, despotism is inevitable. A dictator may, by
reducing the standard of living and regimenting the
people, run all industry within the state over which he
rules, but a democracy, which, if it is to be true to
itself, must preserve individual initiative, can not do
so without transforming itself into a dictatorship. ...
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