Created Equal
What are the practical implications of saying that we
are all “created equal?” Is it just a
platitude, like “the airwaves over America belong to the
American people,” without any particular evidence
that it has meaning? Or is it something we intend to
validate by how we govern and tax ourselves, and our
decisions about what we tax and, equally, what we refrain
from taxing, or tax only lightly?
It wasn't all that long ago that our churches' hymnals
included this verse to the hymn All Things
Bright and Beautiful —
The rich man in his castle, the poor man at the
gate,
He made them, high and lowly, and ordered their
estate.
And we haven't re-ordered our system of taxation to
set us all equal. What are we waiting for?
Henry George: Political
Dangers (Chapter 2 of Social Problems, 1883)
[06] Liberty is natural.
Primitive perceptions are of the equal rights of the
citizen, and political organization always starts from
this base. It is as social development goes on
that we find power concentrating, in institutions based
upon the equality of rights passing into institutions
which make the many the slaves of the few. How
this is we may see. In all institutions which involve the
lodgment of governing power there is, with social growth,
a tendency to the exaltation of their function and the
centralization of their power, and in the stronger of
these institutions a tendency to the absorption of the
powers of the rest. Thus the tendency of social growth is
to make government the business of a special class. And
as numbers increase and the power and importance of each
become less and less as compared with that of all, so,
for this reason, does government tend to pass beyond the
scrutiny and control of the masses. The leader of a
handful of warriors, or head man of a little village, can
command or govern only by common consent, and anyone
aggrieved can readily appeal to his fellows. But when a
tribe becomes a nation and the village expands to a
populous country, the powers of the chieftain, without
formal addition, become practically much greater. For
with increase of numbers scrutiny of his acts becomes
more difficult, it is harder and harder successfully to
appeal from them, and the aggregate power which he
directs becomes irresistible as against individuals. And
gradually, as power thus concentrates, primitive ideas
are lost, and the habit of thought grows up which regards
the masses as born but for the service of their rulers.
... read
the entire essay
Henry George: The Condition of Labor
— An Open Letter to Pope Leo XIII in response to
Rerum Novarum (1891)
We hold: That—
This world is the creation of God.
The men brought into it for the brief period of their
earthly lives are the equal creatures of his bounty, the
equal subjects of his provident care.
By his constitution man is beset by physical wants, on
the satisfaction of which depend not only the maintenance
of his physical life but also the development of his
intellectual and spiritual life.
God has made the satisfaction of these wants dependent
on man’s own exertions, giving him the power and
laying on him the injunction to labor — a power
that of itself raises him far above the brute, since we
may reverently say that it enables him to become as it
were a helper in the creative work.
God has not put on man the task of making bricks
without straw. With the need for labor and the power to
labor he has also given to man the material for labor.
This material is land — man physically being a land
animal, who can live only on and from land, and can use
other elements, such as air, sunshine and water, only by
the use of land.
Being the equal creatures of the Creator, equally
entitled under his providence to live their lives and
satisfy their needs, men are equally entitled to the use
of land, and any adjustment that denies this equal use of
land is morally wrong. ...
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. ...
As to the use of land, we hold: That —
While the right of ownership that justly attaches to
things produced by labor cannot attach to land, there may
attach to land a right of possession. As your Holiness
says, “God has not granted the earth to mankind in
general in the sense that all without distinction can
deal with it as they please,” and regulations
necessary for its best use may be fixed by human laws.
But such regulations must conform to the moral law
— must secure to all equal participation in the
advantages of God’s general bounty. The principle
is the same as where a human father leaves property
equally to a number of children. Some of the things thus
left may be incapable of common use or of specific
division. Such things may properly be assigned to some of
the children, but only under condition that the equality
of benefit among them all be preserved.
In the rudest social state, while industry consists in
hunting, fishing, and gathering the spontaneous fruits of
the earth, private possession of land is not necessary.
But as men begin to cultivate the ground and expend their
labor in permanent works, private possession of the land
on which labor is thus expended is needed to secure the
right of property in the products of labor. For who would
sow if not assured of the exclusive possession needed to
enable him to reap? who would attach costly works to the
soil without such exclusive possession of the soil as
would enable him to secure the benefit?
This right of private possession in things created by
God is however very different from the right of private
ownership in things produced by labor. The one is
limited, the other unlimited, save in cases when the
dictate of self-preservation terminates all other rights.
The purpose of the one, the exclusive possession of land,
is merely to secure the other, the exclusive ownership of
the products of labor; and it can never rightfully be
carried so far as to impair or deny this. While any one
may hold exclusive possession of land so far as it does
not interfere with the equal rights of others, he can
rightfully hold it no further.
Thus Cain and Abel, were there only two men on earth,
might by agreement divide the earth between them. Under
this compact each might claim exclusive right to his
share as against the other. But neither could rightfully
continue such claim against the next man born. For since
no one comes into the world without God’s
permission, his presence attests his equal right to the
use of God’s bounty. For them to refuse him any use
of the earth which they had divided between them would
therefore be for them to commit murder. And for them to
refuse him any use of the earth, unless by laboring for
them or by giving them part of the products of his labor
he bought it of them, would be for them to commit theft.
...
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. ...
Your use, in so many passages of your Encyclical, of
the inclusive term “property” or
“private” property, of which in morals
nothing can be either affirmed or denied, makes your
meaning, if we take isolated sentences, in many places
ambiguous. But reading it as a whole, there can be no
doubt of your intention that private property in land
shall be understood when you speak merely of private
property. With this interpretation, I find that the
reasons you urge for private property in land are eight.
Let us consider them in order of presentation. You
urge:
1. That what is bought with rightful property is
rightful property. (RN, paragraph 5) ...
2. That private property in land proceeds from
man’s gift of reason. (RN, paragraphs 6-7.)
...
3. That private property in land deprives no one of the
use of land. (RN, paragraph 8.) ...
4. That Industry expended on land gives ownership in the
land itself. (RN, paragraphs 9-10.) ...
5. That private property in land has the support of the
common opinion of mankind, and has conduced to peace and
tranquillity, and that it is sanctioned by Divine Law.
(RN, paragraph 11.) ...
6. That fathers should provide for their children and
that private property in land is necessary to enable them
to do so. (RN, paragraphs 14-17.) ...
7. That the private ownership of land stimulates
industry, increases wealth, and attaches men to the soil
and to their country. (RN, paragraph 51.) ...
8. That the right to possess private property in land is
from nature, not from man; that the state has no right to
abolish it, and that to take the value of landownership
in taxation would be unjust and cruel to the private
owner. (RN, paragraph 51.) ...
2. That private property in land proceeds from
man’s gift of reason. (6-7.)
In the second place your Holiness argues that man
possessing reason and forethought may not only acquire
ownership of the fruits of the earth, but also of the
earth itself, so that out of its products he may make
provision for the future.
Reason, with its attendant forethought, is indeed the
distinguishing attribute of man; that which raises him
above the brute, and shows, as the Scriptures declare,
that he is created in the likeness of God. And this gift
of reason does, as your Holiness points out, involve the
need and right of private property in whatever is
produced by the exertion of reason and its attendant
forethought, as well as in what is produced by physical
labor. In truth, these elements of man’s production
are inseparable, and labor involves the use of reason. It
is by his reason that man differs from the animals in
being a producer, and in this sense a maker. Of
themselves his physical powers are slight, forming as it
were but the connection by which the mind takes hold of
material things, so as to utilize to its will the matter
and forces of nature. It is mind, the intelligent reason,
that is the prime mover in labor, the essential agent in
production.
The right of private ownership does therefore
indisputably attach to things provided by man’s
reason and forethought. But it cannot attach to things
provided by the reason and forethought of God!
To illustrate: Let us suppose a company traveling
through the desert as the Israelites traveled from Egypt.
Such of them as had the forethought to provide themselves
with vessels of water would acquire a just right of
property in the water so carried, and in the thirst of
the waterless desert those who had neglected to provide
themselves, though they might ask water from the
provident in charity, could not demand it in right. For
while water itself is of the providence of God, the
presence of this water in such vessels, at such place,
results from the providence of the men who carried it.
Thus they have to it an exclusive right.
But suppose others use their forethought in pushing
ahead and appropriating the springs, refusing when their
fellows come up to let them drink of the water save as
they buy it of them. Would such forethought give any
right?
Your Holiness, it is not the forethought of carrying
water where it is needed, but the forethought of seizing
springs, that you seek to defend in defending the private
ownership of land!
Let me show this more fully, since it may be worth
while to meet those who say that if private property in
land be not just, then private property in the products
of labor is not just, as the material of these products
is taken from land. It will be seen on consideration that
all of man’s production is analogous to such
transportation of water as we have supposed. In growing
grain, or smelting metals, or building houses, or weaving
cloth, or doing any of the things that constitute
producing, all that man does is to change in place or
form preexisting matter. As a producer man is merely a
changer, not a creator; God alone creates. And since the
changes in which man’s production consists inhere
in matter so long as they persist, the right of private
ownership attaches the accident to the essence, and gives
the right of ownership in that natural material in which
the labor of production is embodied. Thus water, which in
its original form and place is the common gift of God to
all men, when drawn from its natural reservoir and
brought into the desert, passes rightfully into the
ownership of the individual who by changing its place has
produced it there.
But such right of ownership is in reality a mere right
of temporary possession. For though man may take material
from the storehouse of nature and change it in place or
form to suit his desires, yet from the moment he takes
it, it tends back to that storehouse again. Wood decays,
iron rusts, stone disintegrates and is displaced, while
of more perishable products, some will last for only a
few months, others for only a few days, and some
disappear immediately on use. Though, so far as we can
see, matter is eternal and force forever persists; though
we can neither annihilate nor create the tiniest mote
that floats in a sunbeam or the faintest impulse that
stirs a leaf, yet in the ceaseless flux of nature,
man’s work of moving and combining constantly
passes away. Thus the recognition of the ownership of
what natural material is embodied in the products of man
never constitutes more than temporary possession —
never interferes with the reservoir provided for all. As
taking water from one place and carrying it to another
place by no means lessens the store of water, since
whether it is drunk or spilled or left to evaporate, it
must return again to the natural reservoirs — so is
it with all things on which man in production can lay the
impress of his labor.
Hence, when you say that man’s reason puts it
within his right to have in stable and permanent
possession not only things that perish in the using, but
also those that remain for use in the future, you are
right in so far as you may include such things as
buildings, which with repair will last for generations,
with such things as food or fire-wood, which are
destroyed in the use. But when you infer that man can
have private ownership in those permanent things of
nature that are the reservoirs from which all must draw,
you are clearly wrong. Man may indeed hold in private
ownership the fruits of the earth produced by his labor,
since they lose in time the impress of that labor, and
pass again into the natural reservoirs from which they
were taken, and thus the ownership of them by one works
no injury to others. But he cannot so own the earth
itself, for that is the reservoir from which must
constantly be drawn not only the material with which
alone men can produce, but even their very bodies.
The conclusive reason why man cannot claim ownership
in the earth itself as he can in the fruits that he by
labor brings forth from it, is in the facts stated by you
in the very next paragraph (7), when you truly say:
Man’s needs do not die out, but recur; satisfied
today, they demand new supplies tomorrow. Nature,
therefore, owes to man a storehouse that shall never
fail, the daily supply of his daily wants. And this he
finds only in the inexhaustible fertility of the
earth.
By man you mean all men. Can what nature owes to all
men be made the private property of some men, from which
they may debar all other men?
Let me dwell on the words of your Holiness,
“Nature, therefore, owes to man a storehouse that
shall never fail.” By Nature you mean God. Thus
your thought, that in creating us, God himself has
incurred an obligation to provide us with a storehouse
that shall never fail, is the same as is thus expressed
and carried to its irresistible conclusion by the Bishop
of Meath:
God was perfectly free in the act by which He
created us; but having created us he bound himself by
that act to provide us with the means necessary for our
subsistence. The land is the only source of this kind
now known to us. The land, therefore, of every country
is the common property of the people of that country,
because its real owner, the Creator who made it, has
transferred it as a voluntary gift to them.
“Terram autem dedit filiis
hominum.” Now, as every individual in that
country is a creature and child of God, and as all his
creatures are equal in his sight, any settlement of the
land of a country that would exclude the humblest man
in that country from his share of the common
inheritance would be not only an injustice and a wrong
to that man, but, moreover, be AN IMPIOUS RESISTANCE TO
THE BENEVOLENT INTENTIONS OF HIS CREATOR. ...
6. That fathers should provide for their
children and that private property in land is necessary
to enable them to do so. (14-17.)
With all that your Holiness has to say of the
sacredness of the family relation we are in full accord.
But how the obligation of the father to the child can
justify private property in land we cannot see. You
reason that private property in land is necessary to the
discharge of the duty of the father, and is therefore
requisite and just, because —
It is a most sacred law of nature that a father must
provide food and all necessaries for those whom he has
begotten; and, similarly, nature dictates that a
man’s children, who carry on, as it were, and
continue his own personality, should be provided by him
with all that is needful to enable them honorably to keep
themselves from want and misery in the uncertainties of
this mortal life. Now, in no other way can a father
effect this except by the ownership of profitable
property, which he can transmit to his children by
inheritance. (14.)
Thanks to Him who has bound the generations of men
together by a provision that brings the tenderest love to
greet our entrance into the world and soothes our exit
with filial piety, it is both the duty and the joy of the
father to care for the child till its powers mature, and
afterwards in the natural order it becomes the duty and
privilege of the child to be the stay of the parent. This
is the natural reason for that relation of marriage, the
groundwork of the sweetest, tenderest and purest of human
joys, which the Catholic Church has guarded with such
unremitting vigilance.
We do, for a few years, need the providence of our
fathers after the flesh. But how small, how transient,
how narrow is this need, as compared with our constant
need for the providence of Him in whom we live, move and
have our being — Our Father who art in Heaven! It
is to him, “the giver of every good and perfect
gift,” and not to our fathers after the flesh, that
Christ taught us to pray, “Give us this day our
daily bread.” And how true it is that it is through
him that the generations of men exist! Let the mean
temperature of the earth rise or fall a few degrees, an
amount as nothing compared with differences produced in
our laboratories, and mankind would disappear as ice
disappears under a tropical sun, would fall as the leaves
fall at the touch of frost. Or, let for two or three
seasons the earth refuse her increase, and how many of
our millions would remain alive?
The duty of fathers to transmit to their children
profitable property that will enable them to keep
themselves from want and misery in the uncertainties of
this mortal life! What is not possible cannot be a duty.
And how is it possible for fathers to do that? Your
Holiness has not considered how mankind really lives from
hand to mouth, getting each day its daily bread; how
little one generation does or can leave another. It is
doubtful if the wealth of the civilized world all told
amounts to anything like as much as one year’s
labor, while it is certain that if labor were to stop and
men had to rely on existing accumulation, it would be
only a few days ere in the richest countries pestilence
and famine would stalk.
The profitable property your Holiness refers
to, is private property in land. Now profitable land, as
all economists will agree, is land superior to the land
that the ordinary man can get. It is land that will yield
an income to the owner as owner, and therefore that will
permit the owner to appropriate the products of labor
without doing labor, its profitableness to the individual
involving the robbery of other individuals. It is
therefore possible only for some fathers to leave their
children profitable land. What therefore your Holiness
practically declares is, that it is the duty of all
fathers to struggle to leave their children what only the
few peculiarly strong, lucky or unscrupulous can leave;
and that, a something that involves the robbery of others
— their deprivation of the material gifts of
God.
This anti-Christian doctrine has been long in practice
throughout the Christian world. What are its results?
Are they not the very evils set forth in your
Encyclical? Are they not, so far from enabling men to
keep themselves from want and misery in the uncertainties
of this mortal life, to condemn the great masses of men
to want and misery that the natural conditions of our
mortal life do not entail; to want and misery deeper and
more wide-spread than exist among heathen savages?
Under the régime of private property in land
and in the richest countries not five per cent of fathers
are able at their death to leave anything substantial to
their children, and probably a large majority do not
leave enough to bury them! Some few children are left by
their fathers richer than it is good for them to be, but
the vast majority not only are left nothing by their
fathers, but by the system that makes land private
property are deprived of the bounty of their Heavenly
Father; are compelled to sue others for permission to
live and to work, and to toil all their lives for a
pittance that often does not enable them to escape
starvation and pauperism.
What your Holiness is actually, though of course
inadvertently, urging, is that earthly fathers should
assume the functions of the Heavenly Father. It is not
the business of one generation to provide the succeeding
generation “with all that is needful to enable them
honorably to keep themselves from want and misery.”
That is God’s business. We no more create our
children than we create our fathers. It is God who is the
Creator of each succeeding generation as fully as of the
one that preceded it. And, to recall your own words (7),
“Nature [God], therefore, owes to man a storehouse
that shall never fail, the daily supply of his daily
wants. And this he finds only in the inexhaustible
fertility of the earth.” What you are now assuming
is, that it is the duty of men to provide for the wants
of their children by appropriating this storehouse and
depriving other men’s children of the unfailing
supply that God has provided for all.
The duty of the father to the child — the duty
possible to all fathers! Is it not so to conduct himself,
so to nurture and teach it, that it shall come to manhood
with a sound body, well-developed mind, habits of virtue,
piety and industry, and in a state of society that shall
give it and all others free access to the bounty of God,
the providence of the All-Father?
In doing this the father would be doing more to secure
his children from want and misery than is possible now to
the richest of fathers — as much more as the
providence of God surpasses that of man. For the justice
of God laughs at the efforts of men to circumvent it, and
the subtle law that binds humanity together poisons the
rich in the sufferings of the poor. Even the few who are
able in the general struggle to leave their children
wealth that they fondly think will keep them from want
and misery in the uncertainties of this mortal life
— do they succeed? Does experience show that it is
a benefit to a child to place him above his fellows and
enable him to think God’s law of labor is not for
him? Is not such wealth oftener a curse than a blessing,
and does not its expectation often destroy filial love
and bring dissensions and heartburnings into families?
And how far and how long are even the richest and
strongest able to exempt their children from the common
lot? Nothing is more certain than that the blood of the
masters of the world flows today in lazzaroni and that
the descendants of kings and princes tenant slums and
workhouses.
But in the state of society we strive for, where the
monopoly and waste of God’s bounty would be done
away with and the fruits of labor would go to the
laborer, it would be within the ability of all to make
more than a comfortable living with reasonable labor. And
for those who might be crippled or incapacitated, or
deprived of their natural protectors and breadwinners,
the most ample provision could be made out of that great
and increasing fund with which God in his law of rent has
provided society — not as a matter of niggardly and
degrading alms, but as a matter of right, as the
assurance which in a Christian state society owes to all
its members.
Thus it is that the duty of the father, the obligation
to the child, instead of giving any support to private
property in land, utterly condemns it, urging us by the
most powerful considerations to abolish it in the simple
and efficacious way of the single tax.
This duty of the father, this obligation to children,
is not confined to those who have actually children of
their own, but rests on all of us who have come to the
powers and responsibilities of manhood.
For did not Christ set a little child in the midst of
the disciples, saying to them that the angels of such
little ones always behold the face of his Father; saying
to them that it were better for a man to hang a millstone
about his neck and plunge into the uttermost depths of
the sea than to injure such a little one?
And what today is the result of private property in
land in the richest of so-called Christian countries? Is
it not that young people fear to marry; that married
people fear to have children; that children are driven
out of life from sheer want of proper nourishment and
care, or compelled to toil when they ought to be at
school or at play; that great numbers of those who attain
maturity enter it with under-nourished bodies,
overstrained nerves, undeveloped minds — under
conditions that foredoom them, not merely to suffering,
but to crime; that fit them in advance for the prison and
the brothel?
If your Holiness will consider these things we are
confident that instead of defending private property in
land you will condemn it with anathema! ...
You assume that the labor question is a question
between wage-workers and their employers. But working for
wages is not the primary or exclusive occupation of
labor. Primarily men work for themselves without the
intervention of an employer. And the primary source of
wages is in the earnings of labor, the man who works for
himself and consumes his own products receiving his wages
in the fruits of his labor. Are not fishermen, boatmen,
cab-drivers, peddlers, working farmers — all, in
short, of the many workers who get their wages directly
by the sale of their services or products without the
medium of an employer, as much laborers as those who work
for the specific wages of an employer? In your
consideration of remedies you do not seem even to have
thought of them. Yet in reality the laborers who work for
themselves are the first to be considered, since what men
will be willing to accept from employers depends
manifestly on what they can get by working for
themselves.
You assume that all employers are rich men, who might
raise wages much higher were they not so grasping. But is
it not the fact that the great majority of employers are
in reality as much pressed by competition as their
workmen, many of them constantly on the verge of failure?
Such employers could not possibly raise the wages they
pay, however they might wish to, unless all others were
compelled to do so.
You assume that there are in the natural order two
classes, the rich and the poor, and that laborers
naturally belong to the poor.
It is true as you say that there are differences in
capacity, in diligence, in health and in strength, that
may produce differences in fortune. These, however, are
not the differences that divide men into rich and poor.
The natural differences in powers and aptitudes are
certainly not greater than are natural differences in
stature. But while it is only by selecting giants and
dwarfs that we can find men twice as tall as others, yet
in the difference between rich and poor that exists today
we find some men richer than other men by the
thousandfold and the millionfold.
Nowhere do these differences between wealth and
poverty coincide with differences in individual powers
and aptitudes. The real difference between rich and poor
is the difference between those who hold the tollgates
and those who pay toll; between tribute-receivers and
tribute-yielders. ...
Men who are sure of getting food when they shall need
it eat only what appetite dictates. But with the sparse
tribes who exist on the verge of the habitable globe life
is either a famine or a feast. Enduring hunger for days,
the fear of it prompts them to gorge like anacondas when
successful in their quest of game. And so, what gives
wealth its curse is what drives men to seek it, what
makes it so envied and admired — the fear of want.
As the unduly rich are the corollary of the unduly poor,
so is the soul-destroying quality of riches but the
reflex of the want that embrutes and degrades. The real
evil lies in the injustice from which unnatural
possession and unnatural deprivation both spring.
But this injustice can hardly be charged on
individuals or classes. The existence of private property
in land is a great social wrong from which society at
large suffers, and of which the very rich and the very
poor are alike victims, though at the opposite extremes.
Seeing this, it seems to us like a violation of Christian
charity to speak of the rich as though they individually
were responsible for the sufferings of the poor. Yet,
while you do this, you insist that the cause of monstrous
wealth and degrading poverty shall not be touched. Here
is a man with a disfiguring and dangerous excrescence.
One physician would kindly, gently, but firmly remove it.
Another insists that it shall not be removed, but at the
same time holds up the poor victim to hatred and
ridicule. Which is right?
In seeking to restore all men to their equal
and natural rights we do not seek the benefit of any
class, but of all. For we both know by faith and see by
fact that injustice can profit no one and that justice
must benefit all. ... read the whole
letter
Henry George: The
Common Sense of Taxation (1881 article)
Evidently this regard for the general good is the true
principle of taxation. The more it is examined the more
clearly it will be seen that there is no valid reason why
we should, in any case, attempt to tax all property.
That equality should be the rule and aim of
taxation is true, and this for the reason given in the
Declaration of Independence, that all men are created
equal. But equality does not require that all men should
be taxed alike, or that all things should be taxed alike.
It merely requires that whatever taxes are imposed shall
be equally imposed upon the persons or things in like
conditions or situations; it merely requires that no
citizen shall be given an advantage, or put at a
disadvantage, as compared with other
citizens.
The true purposes of government are well stated in the
preamble to the Constitution of the United States, as
they are in the Declaration of Independence. To insure
the general peace, to promote the general welfare, to
secure to each individual the inalienable rights to life,
liberty, and the pursuit of happiness — these are
the proper ends of government, and are therefore the ends
which in every scheme of taxation should be kept in mind.
...
Now discarding all idea that there rests upon
us any obligation to equally tax all kinds of property,
and assuming for our guidance the true rule, that
taxation should be levied with a view to the promotion of
the general prosperity, the securing of substantial
equality, and the recognition of inalienable rights, let
us consider upon what species of property it may be best
laid.
To consider what is included in the category of
property is to see the absurdity of saying that all
property should be equally taxed. For not to speak of
minor differences that arise from application and use,
there are commonly included under this term things of
essentially different nature. Whatever is recognized by
municipal law as subject to ownership is property. But
between things thus classed together are wide
differences. In the first place, there are certain of
them which have in themselves no value, but are merely
the representatives or doubles of property in itself
valuable. Such are stocks, bonds, mortgages, promissory
notes of all kinds, whether made by individuals or issued
by governments to serve as money, solvent debts,
book-accounts, etc. These things may be to the individual
valuable property, and are correctly included in any
estimate of his wealth. But they are no part of the
wealth of the community. Their increase does not make the
community a whit the richer; and they may be utterly
destroyed without the community becoming a whit the
poorer. If I buy a horse, giving my note for the amount,
the result of the transaction (supposing me to be
solvent) is that the seller gets property to the value of
the horse, while I get the horse. But there has been no
increase in wealth. To the seller, my note may be quite
as good as the horse, and in estimating his wealth it may
be as properly included as the horse; but if the note be
destroyed, the community is nothing the poorer, while if
the horse break his neck, there is a lessening of the
general wealth by one horse. And so, the issuance of
bonds by a government, or the watering of stock by a
corporation, can in no wise increase the general sum of
wealth, nor will any diminution either in the amount or
in the selling price of such bonds or stock reduce it. If
all the governments of the world were to repudiate their
debts tomorrow, an immense amount of property, now
carefully guarded, would become waste paper, and
thousands of people now rich would be made poor, but the
wealth of the human race would not be diminished one
iota.
These are truisms. Yet so widespread and persistent is
the notion that all property should be taxed, that they
are generally ignored. Nothing is clearer than that when
a farmer who wants more capital puts a mortgage on his
farm, no new value is thereby created. Yet, in most of
our States, both the farm and the mortgage are taxed;
though so obvious is the double taxation that in some of
them the clumsy expedient of making an exemption to the
debtor is resorted to.
But it is manifest that property of this kind is not a
fit subject for taxation, and ought not to be considered
in making up the assessment rolls. It has, in itself, no
value. It is merely the representative, or token, of
value — the certificate of ownership, or the
obligation to pay value. It either represents other
property, or property yet to be brought into existence.
And, as nothing real can be drawn from that which is not
real, taxation upon property of this kind must ultimately
fall, either upon the property represented, in which case
there is double taxation, or upon those whose obligations
it expresses, in which case men are taxed, not upon what
they own, but upon what they owe; and all cumbrous
devices to prevent the unjust effects of such taxation,
like other complications of the revenue system, simply
give to the stronger and more unscrupulous opportunities
of throwing the burden upon the weaker and more
conscientious. Property of this kind ought not to be
taxed at all. Property in itself valuable is clearly that
with which any wise scheme of taxation should alone
deal.
To consider the nature of property of this kind is
again to see a clear distinction. That distinction is
not, as the lawyers have it, between movables and
immovables, between personal property and real estate.
The true distinction is between property which
is, and property which is not, the result of human labor;
or, to use the terms of political economy, between land
and wealth. For, in any precise use of the term, land is
not wealth, any more than labor is wealth. Land and labor
are the factors of production. Wealth is such
result of their union as retains the capacity of
ministering to human desire. A lot and the house which
stands upon it are alike property, alike have a tangible
value, and are alike classed as real estate. But there
are between them the most essential differences.
The one is the free gift of Nature, the other the
result of human exertion; the one exists from generation
to generation, while men come and go; the other is
constantly tending to decay, and can only be preserved by
continual exertion. To the one, the right of
exclusive possession, which makes it individual property,
can, like the right of property in slaves, be traced to
nothing but municipal law; to the other, the right of
exclusive property springs clearly from those natural
relations which are among the primary perceptions of the
human mind. Nor are these mere abstract distinctions.
They are distinctions of the first importance in
determining what should and what should not be taxed.
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
Place one hundred men on an island from which there
is no escape, and whether you make one of these men the
absolute owner of the other ninety-nine, or the
absolute owner of the soil of the island, will make no
difference either to him or to them. In the one case,
as the other, the one will be the absolute master of
the ninety-nine — his power extending even to
life and death, for simply to refuse them permission to
live upon the island would be to force them into the
sea.
Upon a larger scale, and through more complex
relations, the same cause must operate in the same way
and to the same end — the ultimate result, the
enslavement of laborers, becoming apparent just as the
pressure increases which compels them to live on and
from land which is treated as the exclusive property of
others.
Yet, it will be said: As every man has a
right to the use and enjoyment of nature, the man who
is using land must be permitted the exclusive right to
its use in order that he may get the full benefit of
his labor. But there is no difficulty in
determining where the individual right ends and the
common right begins. A delicate and exact test is
supplied by value, and with its aid there is no
difficulty, no matter how dense population may become,
in determining and securing the exact rights of
each, the equal rights of all.
The value of land, as we have seen, is the price of
monopoly. It is not the absolute, but the relative,
capability of land that determines its value. No matter
what may be its intrinsic qualities land that is no
better than other land which may be had for the using
can have no value. And the value of land always
measures the difference between it and the best land
that may be had for the using. Thus, the value of land
expresses in exact and tangible form the right of the
community in land held by an individual; and
rent expresses the exact amount which the
individual should pay to the community to satisfy the
equal rights of all other members of the community....
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. ...
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.
...
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.
...
read the whole chapter
Henry George: Salutatory, from the
first issue of The Standard (1887)
I begin the publication of this paper in response to
many urgent requests, and because I believe that there is
a field for a journal that shall serve as a focus for
news and opinions relating to the great movement, now
beginning, for the emancipation of labor by the
restoration of natural rights.
The generation that abolished chattel slavery is
passing away, and the political distinctions that grew
out of that contest are becoming meaningless. The work
now before us is the abolition of industrial slavery.
What God created for the use of all should be utilized
for the benefit of all; what is produced by the
individual belongs rightfully to the individual. The
neglect of these simple principles has brought upon us
the curse of widespread poverty and all the evils that
flow from it. Their recognition will abolish poverty,
will secure to the humblest independence and leisure, and
will lay abroad and strong foundation on which all other
reforms may be based. To secure the full recognition of
these principles is the most important task to which any
man can address himself today. It is in the hope of
aiding in this work that I establish this paper.
I believe that the Declaration of Independence
is not a mere string of glittering generalities. I
believe that all men are really created equal, and that
the securing of those equal natural rights is the true
purpose and test of government. And against whatever law,
custom or device that restrains men in the exercise of
their natural rights to life, liberty, and the pursuit of
happiness I shall raise my voice. ... read the whole
column
Henry George: Thy
Kingdom Come (1889 speech)
... When we consider the achievements
of humanity and then look upon the misery that exists today
in the very centres of wealth; upon the ignorance, the
weakness, the injustice, that characterise our highest
civilisation, we may know of a surety that it is not the
fault of God; it is the fault of humanity. May we not know
that in that very power that God has given to His children
here, in that power of rising higher, there is involved
— and necessarily involved — the power of
falling lower.
“Our Father!” “Our
Father!” Whose? Not my
Father — that is not the prayer. “Our Father” — not the
father of any sect, or any class, but the Father of all
humanity. The All-Father, the equal Father, the loving
Father. He it is we ask to bring the kingdom. Aye, we ask
it with our lips! We call Him “Our Father,” the
All, the Universal Father, when we kneel down to pray to
Him.
But that He is the All-Father —
that He is all people’s Father — we deny by our
institutions. The All-Father who made the world, the
All-Father who created us in His image, and put us upon the
earth to draw subsistence from its bosom; to find in the
earth all the materials that satisfy our wants, waiting
only to be worked up by our labour! If He
is the All-Father, then are not all human beings, all
children of the Creator, equally entitled to the use of His
bounty? And, yet, our laws say that this God’s earth
is not here for the use of all His children, but only for
the use of a privileged few!
There was a little dialogue published
in the United States, in the west, some time ago. Possibly
you may have seen it. It is between a boy and his father
when visiting a brickyard. The boy looks at the men making
bricks, and he asks who those dirty men are, why they are
making up the clay, and what they are doing it for. He
learns, and then he asks about the owner of the brickyard.
“He does not make any bricks; he gets his income from
letting the other men make bricks.”
Then the boy wants to know how the
man who owns the brickyard gets his title to the brickyard
— whether he made it. “No, he did not make
it,” the father replies: “God made it.”
The boy asks, “Did God make it for him?”
Whereat his father tells him that he must not ask questions
such as that, but that anyhow it is all right, and it is
all in accordance with God’s law. The boy, who of
course was a Sunday school boy, and had been to church,
goes off mumbling to himself “that God so loved the
world that He gave His only begotten Son to die for all
men;” but that He so loved the owner of this
brickyard that He gave him the brickyard too.
This has a blasphemous sound. But I
do not refer to it lightly. I do not like to speak lightly
of sacred subjects. Yet it is well sometimes that we should
be fairly shocked into thinking.
Think of what Christianity teaches
us; think of the life and death of Him who came to die for
us! Think of His teachings, that we are all the equal
children of an Almighty Father, who is no respecter of
persons, and then think of this legalised injustice —
this denial of the most important, most fundamental rights
of the children of God, which so many of the very men who
teach Christianity uphold; nay, which they blasphemously
assert is the design and the intent of the Creator Himself.
...
What God gives are the natural
elements that are indispensable to labour. He gives them,
not to one, not to some, not to one generation, but to all.
They are His gifts, His bounty to the whole human race. And
yet in all our civilised countries what do we see? That a
few people have appropriated these bounties, claiming them
as theirs alone, while the great majority have no legal
right to apply their labour to the reservoirs of Nature and
draw from the Creator’s bounty.
Thus it happens that all over the civilised world
that class that is called peculiarly ‘the labouring
class’ is the poor class, and that people who do no
labour, who pride themselves on never having done honest
labour, and on being descended from fathers and
grandfathers who never did a stroke of honest labour in
their lives, revel in a superabundance of the things that
labour brings forth.
Mr Abner Thomas, of New York, a
strict orthodox Presbyterian — and the son of Rev Dr
Thomas, author of a commentary on the bible —wrote a
little while ago an allegory. Dozing off in his chair, he
dreamt that he was ferried over the River of Death, and,
taking the straight and narrow way, came at last within
sight of the Golden City. A fine-looking old gentleman
angel opened the wicket, inquired his name, and let him in;
warning him, at the same time, that it would be better if
he chose his company in heaven, and did not associate with
disreputable angels.
“What!” said the
newcomer, in astonishment: “Is not this
heaven?”
“Yes,” said the warden:
“But there are a lot of tramp angels here now."
...
The story goes on to describe how the
roads of heaven, the streets of the New Jerusalem, were
filled with disconsolate tramp angels, who had pawned their
wings, and were outcasts in Heaven itself.
You laugh, and it is ridiculous. But
there is a moral in it that is worth serious thought. Is it
not ridiculous to imagine the application to God’s
heaven of the same rules of division that we apply to
God’s earth, even while we pray that His will may be
done on earth as it is done in Heaven?
Really, if we could imagine it, it is
impossible to think of heaven treated as we treat this
earth, without seeing that, no matter how salubrious were
its air, no matter how bright the light that filled it, no
matter how magnificent its vegetable growth, there would be
poverty, and suffering, and a division of classes in heaven
itself, if heaven were parcelled out as we have parceled
out the earth. And, conversely, if people were to act
towards each other as we must suppose the inhabitants of
heaven to do, would not this earth be a very
heaven?
“Thy kingdom come.” No
one can think of the kingdom for which the prayer asks
without feeling that it must be a kingdom of justice and
equality — not necessarily of equality in condition,
but of equality in opportunity. And no one can think of it
without seeing that a very kingdom of God might be brought
on this earth if people would but seek to do justice
— if people would but acknowledge the essential
principle of Christianity, that of doing to others as we
would have others do to us, and of recognising that we are
all here equally the children of the one Father, equally
entitled to share His bounty, equally entitled to live our
lives and develop our faculties, and to apply our labour to
the raw material that He has provided. ... Read the whole
speech
Henry George: The Land Question
(1881)
What I want to impress upon those who may read
this book is this:
The land question is nowhere a mere local
question; it is a universal question. It involves the
great problem of the distribution of wealth, which is
everywhere forcing itself upon attention.
It cannot be settled by measures which in their
nature can have but local application. It can be settled
only by measures which in their nature will apply
everywhere.
It cannot be settled by half-way measures. It can
be settled only by the acknowledgment of equal rights to
land. Upon this basis it can be settled easily and
permanently.
If the Irish reformers take this ground, they will
make their fight the common fight of all the peoples;
they will concentrate strength and divide opposition.
They will turn the flank of the system that oppresses
them, and awake the struggle in its very intrenchments.
They will rouse against it a force that is like the force
of rising tides.
What I urge the men of Ireland to do is to
proclaim, without limitation or evasion, that the land,
of natural right, is the common property of the whole
people, and to propose practical measures which will
recognize this right in all countries as well as in
Ireland.
What I urge the Land Leagues of the United States
to do is to announce this great principle as of universal
application; to give their movement a reference to
America as well as to Ireland; to broaden and deepen and
strengthen it by making it a movement for the
regeneration of the world – a movement which shall
concentrate and give shape to aspirations that are
stirring among all nations.
Ask not for Ireland mere charity or sympathy. Let
her call be the call of fraternity: "For
yourselves, O brothers, as well as for us!" Let her
rallying cry awake all who slumber, and rouse to a common
struggle all who are oppressed. Let it breathe not old
hates; let it ring and echo with the new
hope!
In many lands her sons are true to her; under many
skies her daughters burn with the love of her. Lo! the
ages bring their opportunity. Let those who would honor
her bear her banner to the front!
The harp and the shamrock, the golden sunburst on
the field of living green! emblems of a country without
nationality; standard of a people downtrodden and
oppressed! The hour has come when they may lead the van
of the great world-struggle. Types of harmony and of
ever-springing hope, of light and of life! The hour has
come when they may stand for something higher than local
patriotism; something grander than national independence.
The hour has come when they may stand forth to speak the
world's hope, to lead the world's advance!
Torn away by pirates, tending in a strange land a
heathen master's swine, the slave boy, with the spirit of
Christ in his heart, praying in the snow for those who
had enslaved him, and returning to bring to his
oppressors the message of the gospel, returning with good
to give where evil had been received, to kindle in the
darkness a great light–this is Ireland's patron
saint. In his spirit let Ireland's struggle be. Not
merely through Irish vales and hamlets, but into England,
into Scotland, into Wales, wherever our common tongue is
spoken, let the torch be carried and the word be
preached. And beyond! The brotherhood of man stops not
with differences of speech any more than with seas or
mountain-chains. A century ago it was ours to speak the
ringing word. Then it was France's. Now it may be
Ireland's, if her sons be true.
But wherever, or by whom, the word must be spoken,
the standard will be raised. No matter what the Irish
leaders do or do not do, it is too late to settle
permanently the question on any basis short of the
recognition of equal natural right. And, whether the Land
Leagues move forward or slink back, the agitation must
spread to this side of the Atlantic. The Republic, the
true Republic, is not yet here. But her birth-struggle
must soon begin. Already, with the hope of her, men's
thoughts are stirring.
Not a republic of landlords and peasants; not a
republic of millionaires and tramps; not a republic in
which some are masters and some serve. But a republic of
equal citizens, where competition becomes cooperation,
and the interdependence of all gives true independence to
each; where moral progress goes hand in hand with
intellectual progress, and material progress elevates and
enfranchises even the poorest and weakest and
lowliest.
And the gospel of deliverance, let us not forget
it: it is the gospel of love, not of hate. He whom it
emancipates will know neither Jew nor Gentile, nor
Irishman nor Englishman, nor German nor Frenchman, nor
European nor American, nor difference of color or of
race, nor animosities of class or condition. Let us set
our feet on old prejudices, let us bury the old hates.
There have been "Holy Alliances" of kings. Let us strive
for the Holy Alliance of the people.
Liberty, equality, fraternity!
Write them on the banners. Let them be for sign and
countersign. Without equality, liberty cannot be; without
fraternity, neither equality nor liberty can be
achieved.
- Liberty–the full freedom of each bounded
only by the equal freedom of every other!
- Equality–the equal right of each to the
use and enjoyment of all natural opportunities, to all
the essentials of happy, healthful, human
life!
- Fraternity–that sympathy which links
together those who struggle in a noble cause; that would
live and let live; that would help as well as be helped;
that, in seeking the good of all, finds the highest good
of each!
"By this sign shall ye conquer!"
"We hold these truths to be
self-evident–that all men are created equal; that
they are endowed by their Creator with certain
unalienable rights; that among these are life, liberty,
and the pursuit of happiness!"
It is over a century since these words rang out.
It is time to give them their full, true meaning. Let the
standard be lifted that all may see it; let the advance
be sounded that all may hear it. Let those who would fall
back, fall back. Let those who would oppose, oppose.
Everywhere are those who will rally. The stars in their
courses fight against Sisera!... read the whole
article
Rev. A. C. Auchmuty: Gems from George, a themed
collection of excerpts from the writings of Henry
George (with links to sources)
IF we are all here by the equal permission of the
Creator, we are all here with an equal title to the
enjoyment of His bounty — with an equal right to
the use of all that nature so impartially offers. This is
a right which is natural and inalienable; it is a right
which vests in every human being as he enters the world,
and which, during his continuance in the world, can be
limited only by the equal rights of others. There is in
nature no such thing as a fee simple in land. There is on
earth no power which can rightfully make a grant of
exclusive ownership in land. If all existing men were to
unite to grant away their equal rights, they could not
grant away the right of those who follow them. For what
are we but tenants for a day? Have we made the earth that
we should determine the rights of those who after us
shall tenant it in their turn? The Almighty, who created
the earth for man and man for the earth, has entailed it
upon all the generations of the children of men by a
decree written upon the constitution of all things
— a decree which no human action can bar and no
prescription determine, Let the parchments be ever so
many, or possession ever so long, natural justice can
recognize no right in one man to the possession and
enjoyment of land that is not equally the right of all
his fellows. —
Progress & Poverty
— Book VII, Chapter 1, Justice of the Remedy:
Injustice of private property in land
HAS the first comer at a banquet the right to turn
back all the chairs and claim that none of the other
guests shall partake of the food provided, except as they
make terms with him? Does the first man who presents a
ticket at the door of a theater and passes in, acquire by
his priority the right to shut the doors and have the
performance go on for him alone? Does the first passenger
who enters a railroad car obtain the right to scatter his
baggage over all the seats and compel the passengers who
come in after him to stand up?
The cases are perfectly analogous. We arrive and we
depart, guests at a banquet continually spread,
spectators and participants in an entertainment where
there is room for all who come; passengers from station
to station, on an orb that whirls through space —
our rights to take and possess cannot be exclusive; they
must be bounded everywhere by the equal rights of others.
Just as the passenger in a railroad car may spread
himself and his baggage over as many seats as he pleases,
until other passengers come in, so may a settler take and
use as much land as he chooses, until it is needed by
others — a fact which is shown by the land
acquiring a value — when his right must be
curtailed by the equal rights of the others, and no
priority of appropriation can give a right which will bar
these equal rights of others. —
Progress & Poverty
— Book VII, Chapter 1, Justice of the Remedy:
Injustice of private property in land
THE tax upon land values is the most just and equal of
all taxes. It falls only upon those who receive from
society a peculiar and valuable benefit, and upon them in
proportion to the benefit they receive. It is the taking
by the community, for the use of the community, of that
value which is the creation of the community. It is the
application of the common property to common uses. When
all rent is taken by taxation for the needs of the
community, then will the equality ordained by nature be
attained. No citizen will have an advantage over
any other citizen save as is given by his industry,
skill, and intelligence; and each will obtain what he
fairly earns. Then, but not till then, will
labor get its full reward, and capital its natural
return. —
Progress & Poverty
— Book VIII, Chapter 3, Application of the Remedy:
The Proposition Tried by the Canons of Taxation
HERE is a provision made by natural law for the
increasing needs of social growth; here is an adaptation
of nature by virtue of which the natural progress of
society is a progress toward equality not toward
inequality; a centripetal force tending to unity growing
out of and ever balancing a centrifugal force tending to
diversity. Here is a fund belonging to society as a
whole, from which without the degradation of alms,
private or public, provision can be made for the weak,
the helpless, the aged; from which provision can be made
for the common wants of all as a matter of common right
to each. —
Social Problems
— Chapter 19, The First Great Reform
NOT only do all economic considerations point to a tax
on land values as the proper source of public revenues;
but so do all British traditions. A land tax of four
shillings in the pound of rental value is still nominally
enforced in England, but being levied on a valuation made
in the reign of William III, it amounts in reality to not
much over a penny in the pound. With the abolition of
indirect taxation this is the tax to which men would
naturally turn. The resistance of landholders would bring
up the question of title, and thus any movement which
went so far as to propose the substitution of direct for
indirect taxation must inevitably end in a demand for the
restoration to the British people of their birthright.
— Protection or Free Trade— Chapter
27: The Lion in the Way -
econlib
THE feudal system, which is not peculiar to Europe but
seems to be the natural result of the conquest of a
settled country by a race among whom equality and
individuality are yet strong, clearly recognized, in
theory at least, that the land belongs to society at
large, not to the individual. Rude outcome of an age in
which might stood for right as nearly as it ever can (for
the idea of right is ineradicable from the human mind,
and must in some shape show itself even in the
association of pirates and robbers), the feudal system
yet admitted in no one the uncontrolled and exclusive
right to land. A fief was essentially a a trust, and to
enjoyment was annexed obligation. The sovereign,
theoretically the representative of the collective power
and rights of the whole people, was in feudal view the
only absolute owner of land. And though land was granted
to individual possession, yet in its possession were
involved duties, by which the enjoyer of its revenues was
supposed to render back to the commonwealth an equivalent
for the benefits which from the delegation of the common
right he received. —
Progress &Poverty
— Book VII, Chapter 4, Justice of the Remedy:
Private Property in Land Historically Considered
THE abolition of the military tenures in England by
the Long Parliament, ratified after the accession of
Charles II, though simply an appropriation of public
revenues by the feudal landowners, who thus got rid of
the consideration on which they held the common property
of the nation, and saddled it on the people at large in
the taxation of all consumers, has been long
characterized, and is still held up in the law books, as
a triumph of the spirit of freedom. Yet here is the
source of the immense debt and heavy taxation of England.
Had the form of these feudal dues been simply changed
into one better adapted to the changed times, English
wars need never have occasioned the incurring of debt to
the amount of a single pound, and the labor and capital
of England need not have been taxed a single farthing for
the maintenance of a military establishment. All this
would have come from rent, which the landholders since
that time have appropriated to themselves — from
the tax which land ownership levies on the earnings of
labor and capital. The landholders of England got their
land on terms which required them even in the sparse
population of Norman days to put in the field, upon call,
sixty thousand perfectly equipped horsemen, and on the
further condition of various fines and incidents which
amounted to a considerable part of the rent. It would
probably be a low estimate to put the pecuniary value of
these various services and dues at one-half the rental
value of the land. Had the landholders been kept to this
contract and no land been permitted to be inclosed except
upon similar terms, the income accruing to the nation
from English land would today be greater by many millions
than the entire public revenues of the United Kingdom.
England today might have enjoyed absolute free trade.
There need not have been a customs duty, an excise,
license or income tax, yet all the present expenditures
could be met, and a large surplus remain to be devoted to
any purpose which would conduce to the comfort or
well-being of the whole people. —
Progress &Poverty
— Book VII, Chapter 4, Justice of the Remedy:
Private Property in Land Historically Considered
WHAT the people of England are entitled to by natural
right, and what we propose by the single tax to take for
their use, is the value of land as it
is, exclusive of the value or improvements
as they are in or on the land
privately owned. What would thus be left to the
landowners would be their personal or moveable property,
the value of all existing improvements in or on their
land, and their equal share with all other citizens in
the land value resumed. This is perfectly clear, and if
not perfectly fair, is only so because it would leave to
the landowners in their personal property and the value
of their improvements much not due to any exertion of
labor by themselves or their ancestors, but which has
come to them through the unjust appropriation of the
proceeds of others' labor. — A
Perplexed Philosopher
(Justice On The Right To Land) ... go to "Gems from
George"
Louis Post: Outlines
of Louis F. Post's Lectures, with Illustrative Notes and
Charts (1894) — Appendix: FAQ
Q26. Hasn't every man who needs it a right to be
employed by the government?
A. No. But he has a right to have government secure him
in the enjoyment of his equal right to the opportunities
for employment that nature and social growth supply. When
government secures him in that respect, if he cannot get
work it is because (1) he does not offer the kind of
service that people want; or (2) he is incapable. His
remedy, if he does not offer the kind of service that
people want, is either to make people see that they are
mistaken, or go to work at something else; if he is
incapable, his remedy is to improve himself. In no case
has he a right to government interference in his behalf,
either through schemes to make work, or by bounties or
tariffs.
Q53. Is it true that men are equally entitled to
land? Are they not entitled to it in proportion to their
use of it?
A. Yes, they are entitled to it in proportion to their
use of it and it is this title that the single tax would
secure. It would allow every one to possess as much land
as he wished, upon the sole condition that if it has a
value he shall account to the community for that value
and for nothing else; all that he produces from the land
above its value being absolutely his, free even from
taxation. The single tax is the method best adapted to
our circumstances, and to orderly conditions, for
limiting possession of land to its use. By making it
unprofitable to hold land except for use, or to hold more
than can be used to advantage, it constitutes every man
his own judge of the amount and the character of the land
that he can use.
Q58. Should not the poor man be compensated for
the loss of his land value?
A. No. The reasons are numerous. Among them are the
following: The poor man's rights in the community and in
common property are neither more nor less than the rich
man's. The better conditions for the poor man which the
single tax would bring about would more than off-set his
loss in land values. The poor man has no land values
worth speaking of. ... read the book
Charles B. Fillebrown: A Catechism of Natural
Taxation, from Principles of Natural Taxation
(1917)
Q4. What is the ethical basis of the single
tax?
A. The common right of all citizens to profit by site
values of land which are a creation of the community.
Q5. What is meant by equal right to
land?
A. The right of access upon equal terms -- preference to
be secured only upon payment of a premium that will
extinguish the equal rights of all other men. ...
read the whole
article
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. ...
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
James Kiefer: James Huntington and the
ideas of Henry George
Henry George, author of Progress and Poverty, argued
that, while some forms of wealth are produced by human
activity, and are rightly the property of the producers
(or those who have obtained them from the previous owners
by voluntary gift or exchange), land and natural
resources are bestowed by God on the human race, and that
every one of the N inhabitants of the earth has a claim
to 1/Nth of the coal beds, 1/Nth of the oil wells, 1/Nth
of the mines, and 1/Nth of the fertile soil. God wills a
society where everyone may sit in peace under his own
vine and his own fig tree.
The Law of Moses undertook to implement this by making
the ownership of land hereditary, with a man's land
divided among his sons (or, in the absence of sons, his
daughters), and prohibiting the permanent sale of land.
(See Leviticus 25:13-17,23.) The most a man might do with
his land is sell the use of it until the next Jubilee
year, an amnesty declared once every fifty years, when
all debts were cancelled and all land returned to its
hereditary owner.
Henry George's proposed implementation is to tax all
land at about 99.99% of its rental value, leaving the
owner of record enough to cover his bookkeeping expenses.
The resulting revenues would be divided equally among the
natural owners of the land, viz. the people of the
country, with everyone receiving a dividend check
regularly for the use of his share of the earth (here I
am anticipating what I think George would have suggested
if he had written in the 1990's rather than the
1870's).
This procedure would have the effect of making the
sale price of a piece of land, not including the price of
buildings and other improvements on it, practically zero.
The cost of being a landholder would be, not the original
sale price, but the tax, equivalent to rent. A man who
chose to hold his "fair share," or 1/Nth of all the land,
would pay a land tax about equal to his dividend check,
and so would break even. By 1/Nth of the land is meant
land with a value equal to 1/Nth of the value of all the
land in the country.
Naturally, an acre in the business district of a great
city would be worth as much as many square miles in the
open country. Some would prefer to hold more than one
N'th of the land and pay for the privilege. Some would
prefer to hold less land, or no land at all, and get a
small annual check representing the dividend on their
inheritance from their father Adam.
Note that, at least for the able-bodied, this solves
the problem of poverty at a stroke. If the total land and
total labor of the world are enough to feed and clothe
the existing population, then 1/Nth of the land and 1/Nth
of the labor are enough to feed and clothe 1/Nth of the
population. A family of 4 occupying 4/Nths of the land
(which is what their dividend checks will enable them to
pay the tax on) will find that their labor applied to
that land is enough to enable them to feed and clothe
themselves. Of course, they may prefer to apply their
labor elsewhere more profitably, but the situation from
which we start is one in which everyone has his own plot
of ground from which to wrest a living by the strength of
his own back, and any deviation from this is the result
of voluntary exchanges agreed to by the parties directly
involved, who judge themselves to be better off as the
result of the exchanges.
Some readers may think this a very radical proposal.
In fact, it is extremely conservative, in the sense of
being in agreement with historic ideas about land
ownership as opposed to ownership of, say, tools or
vehicles or gold or domestic animals or other movables.
The laws of English-speaking countries uniformly
distinguish between real property (land) and personal
property (everything else). In this context, "real" is
not the opposite of "imaginary." It is a form of the word
"royal," and means that the ultimate owner of the land is
the king, as symbol of the people. Note that
English-derived law does not recognize "landowners." The
term is "landholders." The concept of eminent domain is
that the landholder may be forced to surrender his
landholdings to the government for a public purpose.
Historically, eminent domain does not apply to property
other than land, although complications arise when there
are buildings on the land that is being seized.
I will mention in passing that the proposals of Henry
George have attracted support from persons as diverse as
Felix Morley, Aldous
Huxley, Woodrow Wilson, Helen Keller, Winston Churchill, Leo Tolstoy, William F Buckley Jr, and Sun
Yat-sen. To the Five Nobel Prizes authorized by Alfred
Nobel himself there has been added a sixth, in Economics,
and the Henry George Foundation claims eight of the Economics
Laureates as supporters, in whole or in part, of the
proposals of Henry George (Paul Samuelson, 1970; Milton Friedman, 1976; Herbert A
Simon, 1978; James Tobin, 1981; Franco Modigliani, 1985;
James M Buchanan, 1986; Robert M Solow, 1987; William S Vickrey, 1996).
The immediate concrete proposal favored by most
Georgists today is that cities shall tax land within
their boundaries at a higher rate than they tax buildings
and other improvements on the land. (In case anyone is
about to ask, "How can we possibly distinguish between
the value of the land and the value of the buildings on
it?" let me assure you that real estate assessors do it
all the time. It is standard practice to make the two
assessments separately, and a parcel of land in the
business district of a large city very often has a
different owner from the building on it.) Many cities
have moved to a system of taxing land more heavily than
improvements, and most have been pleased with the
results, finding that landholders are more likely to use
their land productively -- to their own benefit and that
of the public -- if their taxes do not automatically go
up when they improve their land by constructing or
maintaining buildings on it.
An advantage of this proposal in the eyes of many is
that it is a Fabian proposal, "evolution, not
revolution," that it is incremental and reversible. If a
city or other jurisdiction does not like the results of a
two-level tax system, it can repeal the arrangement or
reduce the difference in levels with no great upheaval.
It is not like some other proposals of the form,
"Distribute all wealth justly, and make me absolute
dictator of the world so that I can supervise the
distribution, and if it doesn't work, I promise to
resign." The problem is that absolute dictators seldom
resign. ... read
the whole article
MacDonald's Preface to
Ogilvie’s Essay on The Right of Property in
Land
Do we not find the Birthright of Man stereotyped in the
words “OUR FATHER”? The Faiths of the
world, ancient and modern, whether considered natural
or revealed, have all something in them, in common with
genuine Christianity, which declares “Equality of
Rights” between man and man.
“Whether,” says Locke,* “we consider
natural reason, which tells us that men, being once
born, have a right to their preservation, and
consequently to meat and drink and such other things as
Nature affords for their subsistence, or
‘revelation’, which gives us an account of
those grants God made of the world to Adam, and to Noah
and his sons, it is very clear that God, as King David
says (Psalm cxv., 16), ‘hath given the earth to
the children of men,' given it to mankind in common.
* Essay on Civil
Government.
“As much land as a man tills, plants, improves,
cultivates, and can use the product of, so much is his
property. He, by his labour, does, as it were, enclose
it from the common.
“God gave the world to men in common; but since He
gave it for their benefit and the greatest conveniencies
of life they were capable to draw from it, it cannot be
supposed He meant it should always remain common and
uncultivated. He gave it to the use of the industrious
and rational (and labour was to be his title to it); not
to the fancy or covetousness of the quarrelsome and
contentious.” And adds Professor Ogilvie:
“Nor yet that it should be appropriated in such a
manner as that, when not more than half cultivated, the
farther cultivation and improvement should be stopped
short, and the industry of millions willing to employ
themselves in rendering the earth more fertile should be
excluded from its proper field, and denied any parcel of
the soil, on which it could be exercised, with security
of reaping its full produce and just reward.”
“This title to an equal share of property in
land” is declared by Professor Ogilvie to be a
“BIRTHRIGHT which every citizen still
retains.” We shall see how far he advanced the
question towards the standpoint of Progress and Poverty.
“The reform” - says Mr. Henry George -
“I have proposed . . . is 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 them are life, liberty, and the pursuit of
happiness!’
“These rights are denied when the equal right to
land - on which and by which alone men 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, starvation wages. This
is the truth that we have ignored.”
Such being the disease, what is the cure? ...
read the whole article
Nic Tideman: A Bill
of Economic Rights and Obligations
Our nation was founded on the idea that we are all
created equal, that we are endowed by our Creator with
certain inalienable rights, and that among these are
life, liberty, and the pursuit of happiness.
In living, expressing our liberty, and pursuing
happiness we sometimes conflict with one another, so we
need a shared understanding of the extent of the sphere
of equal rights given to every person, and beyond that
sphere our obligation to respect the rights of others.
This Bill is concerned with the economic aspects of these
rights and obligations. ... read the whole
article
Thomas Flavin, writing in The
Iconoclast, 1897
Now, it is quite true that all taxes of whatever
nature are paid out of the products of labor. But must
they be for that reason a tax on labor products. Let us
see.
I suppose you won't deny that a unit of labor applies
to different kinds of land will give very different
results. Suppose that a unit of labor produces on A's
land 4, on B's 3, on C's 2 and on D's 1. A's land is the
most, and D's is the least, productive land in use in the
community to which they belong. B's and C's represent
intermediate grades. Suppose each occupies the best land
that was open to him when he entered into possession.
Now, B, and C, and D have just as good a right to the use
of the best land as A had.
Manifestly then, if this be the whole story, there
cannot be equality of opportunity where a unit of labor
produces such different results, all other things being
equal except the land.
How is this equality to be secured? There is but one
possible way. Each must surrender for the common use of
all, himself included, whatever advantages accrues to him
from the possession of land superior to that which falls
to the lot of him who occupies the poorest.
In the case stated, what the unit of labor produces
for D, is what it should produce for A, B and C, if these
are not to have an advantage of natural opportunity over
D.
Hence equity is secured when A pays 3, D, 2 and C, 1
into a common fund for the common use of all--to be
expended, say in digging a well, making a road or bridge,
building a school, or other public utility.
Is it not manifest that here the tax which A, B and C
pay into a common fund, and from which D is exempt, is
not a tax on their labor products (though paid out of
them) but a tax on the superior advantage which they
enjoy over D, and to which D has just as good a right as
any of them.
The result of this arrangement is that each takes up
as much of the best land open to him as he can put to
gainful use, and what he cannot so use he leaves open for
the next. Moreover, he is at no disadvantage with the
rest who have come in ahead of him, for they provide for
him, in proportion to their respective advantages, those
public utilities which invariably arise wherever men live
in communities. Of course he will in turn hold to those
who come later the same relation that those who came
earlier held to him.
Suppose now that taxes had been levied on labor
products instead of land; all that any land-holder would
have to do to avoid the tax is to produce little or
nothing. He could just squat on his land, neither using
it himself nor letting others use it, but he would not
stop at this, for he would grab to the last acre all that
he could possibly get hold of. Each of the others would
do the same in turn, with the sure result that by and by,
E, F and G would find no land left for them on which they
might make a living.
So they would have to hire their labor to those who
had already monopolized the land, or else buy or rent a
piece of land from them. Behold now the devil of
landlordism getting his hoof on God's handiwork! Exit
justice, freedom, social peace and plenty. Enter robbery,
slavery, social discontent, consuming grief, riotous but
unearned wealth, degrading pauperism, crime breeding,
want, the beggar's whine, and the tyrant's iron heel.
And how did it all come about? By the simple expedient
of taxing labor products in order that precious
landlordism might laugh and grow fat on the bovine
stupidity of the community that contributes its own land
values toward its own enslavement!
And yet men vacuously ask, "What difference does it
make?"
O tempora! O mores! To be as plain as is necessary, it
makes this four-fold difference.
- First, it robs the community of its land
values;
- second, it robs labor of its wages in the name of
taxation;
- third, it sustains and fosters landlordism, a most
conspicuously damnable difference;
- fourth, it exhibits willing workers in enforced
idleness; beholding their families in want on the one
hand, and unused land that would yield them abundance
on the other.
This last is a difference that cries to heaven for
vengeance, and if it does not always cry in vain, will W.
C. Brann be able to draw his robe close around him and
with a good conscience exclaim, "It's none of my fault; I
am not my brother's keeper."
Martin Luther King, Jr: Where Do We
Go From Here? (1967)
I am now convinced that the simplest approach will
prove to be the most effective -- the solution to poverty
is to abolish it directly by a now widely discussed
measure: the guaranteed income. ...
The problem indicates that our emphasis must be
two-fold. We must create full employment or we must
create incomes. People must be made consumers by one
method or the other. Once they are placed in this
position, we need to be concerned that the potential of
the individual is not wasted. New forms of work that
enhance the social good will have to be devised for those
for whom traditional jobs are not available. ...
Two conditions are indispensable if we are to ensure
that the guaranteed income operates as a consistently
progressive measure.
* First, it must be pegged to the median income of
society, not the lowest levels of income. To guarantee an
income at the floor would simply perpetuate welfare
standards and freeze into the society poverty
conditions.
* Second, the guaranteed income must be dynamic; it must
automatically increase as the total social income grows.
Were it permitted to remain static under growth
conditions, the recipients would suffer a relative
decline. If periodic reviews disclose that the whole
national income has risen, then the guaranteed income
would have to be adjusted upward by the same percentage.
Without these safeguards a creeping retrogression would
occur, nullifying the gains of security and
stability.
This proposal is not a "civil rights" program, in the
sense that that term is currently used. The program would
benefit all the poor, including the two-thirds of them
who are white. I hope that both Negro and white will act
in coalition to effect this change, because their
combined strength will be necessary to overcome the
fierce opposition we must realistically anticipate.
Our nation's adjustment to a new mode of thinking will
be facilitated if we realize that for nearly forty years
two groups in our society have already been enjoying a
guaranteed income. Indeed, it is a symptom of our
confused social values that these two groups turn out to
be the richest and the poorest. The wealthy who own
securities have always had an assured income; and their
polar opposite, the relief client, has been guaranteed an
income, however miniscule, through welfare benefits.
John Kenneth Galbraith has estimated that $20 billion
a year would effect a guaranteed income, which he
describes as "not much more than we will spend the next
fiscal year to rescue freedom and democracy and religious
liberty as these are defined by 'experts' in
Vietnam."
The contemporary tendency in our society is to base
our distribution on scarcity, which has vanished, and to
compress our abundance into the overfed mouths of the
middle and upper classes until they gag with superfluity.
If democracy is to have breadth of meaning, it is
necessary to adjust this inequity. It is not only moral,
but it is also intelligent. We are wasting and degrading
human life by clinging to archaic thinking.
The curse of poverty has no justification in our age.
It is socially as cruel and blind as the practice of
cannibalism at the dawn of civilization, when men ate
each other because they had not yet learned to take food
from the soil or to consume the abundant animal life
around them. The time has come for us to civilize
ourselves by the total, direct and immediate abolition of
poverty. ... read the
book excerpt and whole speech
Charles T. Root — Not a Single Tax! (1925)
Every community, whatever its political name and
extent -- village, city, state or province or nation --
has its own normal, unfailing income, growing with the
growth of the community and always adequate to meet
necessary governmental expenditure.
To explain: Every community has an indefeasible
original right to the land on which it exists, and to all
the natural, unmodified properties and advantages of that
particular area of the earth's surface. To this land in
its natural state, undrained, unfenced, unfertilized,
unplanted and unoccupied, including its waters, its
contents and its location, every individual in the
community (which may consist of any political unit
selected) has an equal right, while all the individuals
together have a joint right to the value for use which
society has conferred upon these natural advantages.
This value for use is known as "Land Value," or by the
not particularly descriptive but generally adopted name
of "Economic Rent."
Briefly defined the land value or economic rent of any
piece of ground is the largest annual amount voluntarily
offered for the exclusive use of that ground, or of an
equivalent parcel, independent of improvements thereon.
Every holder or user of land pays economic rent, but he
now pays most of it to the wrong party. The aggregate
economic rent of the territory occupied by any political
unit is, as has been stated above, always sufficient,
usually more than sufficient, for the legitimate expenses
of the government of that unit. As also stated above, the
economic rent belongs to the community, and not to
individual landowners. ...
Let us roughly restate the proposition: All members of
the community having a joint right to the income which
the social advantages of the land will command, they are
all partners in this income.
Therefore, when one of their number wishes to take for
his private use a parcel of this land, he should buy out
his partners, i.e., the rest of the community, by paying
regularly into the common treasury the economic rent of
that parcel, instead of paying, as at present, the
purchase price, i.e., the right to collect the economic
rent, in a lump, to some other individual who has no more
original right to it than himself. ... read the whole article
Peter Barnes:
Capitalism 3.0 — Chapter 5: Reinventing the Commons
(pages 65-78)
ONE PERSON, ONE
SHARE
Modern democratic government is grounded on the
principle of one person, one vote. In the same way, the
modern commons sector would be grounded on the principle
of one person, one share. In the case of scarce natural
assets, it will be necessary to distinguish between usage
rights and income rights. It’s impossible for
everyone to use a limited commons equally, but everyone
should receive equal shares of the income derived from
selling limited usage rights.
INCLUDE SOME
LIQUIDITY
Currently, private property owners enjoy a near-monopoly
on the privilege of receiving property income. But as the
Alaska Permanent Fund shows, it’s possible for
common property co-owners to receive income too.
Income sharing would end private property’s
monopoly not only on liquidity, but also on attention.
People would notice common property if they got income
from it. They’d care about it, think about it, and
talk about it. Concern for invisible commons would
soar.
Common property liquidity has to be designed
carefully, though. Since common property rights are
birthrights, they shouldn’t be tradeable the way
corporate shares are. This means commons owners
wouldn’t reap capital gains. Instead, they’d
retain their shared income stakes throughout their lives,
and through such stakes, share in rent, royalties,
interest, and dividends. ...
read the whole chapter
Peter Barnes:
Capitalism 3.0 — Chapter 7: Universal Birthrights
(pages 101-116)
The Idea of Birthrights
John Locke’s response to royalty’s claim
of divine right was the idea of everyone’s inherent
right to life, liberty, and
property. Thomas Jefferson, in drafting
America’s Declaration of Independence, changed
Locke’s trinity to life, liberty, and
the pursuit of happiness. These, Jefferson
and his collaborators agreed, are gifts from the creator
that can’t be taken away. Put slightly differently,
they’re universal
birthrights.
The Constitution and its amendments added meat to
these elegant bones. They guaranteed such birthrights as
free speech, due process, habeas corpus, speedy public
trials, and secure homes and property. Wisely, the Ninth
Amendment affirmed that “the enumeration in the
Constitution, of certain rights, shall not be construed
to deny or disparage others retained by the
people.” In that spirit, others have since been
added.
If we were to analyze the expansion of American
birthrights, we’d see a series of waves. The first
wave consisted of rights against the state. The second
included rights against unequal treatment based on race,
nationality, gender, or sexual orientation. The third
wave — which, historically speaking, is just
beginning — consists of rights not against
things, but for things — free public
education, collective bargaining for wages, security in
old age. They can be thought of as rights necessary for
the pursuit of happiness.
What makes this latest wave of birthrights strengthen
community is their universality. If some Americans could
enjoy free public education while others couldn’t,
the resulting inequities would divide rather than unite
us as a nation. The universality of these rights puts
everyone in the same boat. It spreads risk,
responsibility, opportunity, and reward across race,
gender, economic classes, and generations. It makes us a
nation rather than a collection of isolated
individuals.
Universality is also what distinguishes the commons
sector from the corporate sector. The starting condition
for the corporate sector, as we’ve seen, is that
the top 5 percent owns more shares than everyone else.
The starting condition for the commons sector, by
contrast, is one person, one share.
The standard argument against third wave universal
birthrights is that, while they might be nice in theory,
in practice they are too expensive. They impose an
unbearable burden on “the economy” —
that is, on the winners in unfettered markets. Much
better, therefore, to let everyone — including poor
children and the sick — fend for themselves. In
fact, the opposite is often true: universal birthrights,
as we’ll see, can be cheaper and more efficient
than individual acquisition. Moreover, they are always
fairer.
How far we might go down the path of extending
universal birthrights is anyone’s guess, but
we’re now at the point where, economically
speaking, we can afford to go farther. Without great
difficulty, we could add three birthrights to our
economic operating system: one would pay everyone a
regular dividend, the second would give every child a
start-up stake, and the third would reduce and share
medical costs. Whether we add these birthrights or not
isn’t a matter of economic ability, but of attitude
and politics.
Why attitude? Americans suffer from a number of
confusions. We think it’s “wrong” to
give people “something for nothing,” despite
the fact that corporations take common wealth for nothing
all the time. We believe the poor are poor and the rich
are rich because they deserve to be, but don’t
consider that millions of Americans work two or three
jobs and still can’t make ends meet. Plus, we think
tinkering with the “natural” distribution of
income is “socialism,” or “big
government,” or some other manifestation of evil,
despite the fact that our current distribution of income
isn’t “natural” at all, but rigged from
the get-go by maldistributed property.
The late John Rawls, one of America’s leading
philosophers, distinguished between
pre distribution of property
and re distribution of income.
Under income re distribution, money is taken from
“winners” and transferred to
“losers.” Understandably, this isn’t
popular with winners, who tend to control government and
the media. Under property pre
distribution, by contrast, the playing field is leveled
by spreading property ownership before income is
generated. After that, there’s no need for income
redistribution; property itself distributes income to
all. According to Rawls, while income re distribution
creates dependency, property predistribution
empowers.
But how can we spread property ownership without
taking property from some and giving it to others? The
answer lies in the commons — wealth that already
belongs to everyone. By propertizing (without
privatizing) some of that wealth, we can make everyone a
property owner.
What’s interesting is that, for purely
ecological reasons, we need to
propertize (without privatizing) some natural wealth now.
This twenty-first century necessity means we have a
chance to save the planet, and as a bonus, add a
universal birthright. ...
read the whole chapter
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