Should we all have equal access to natural
opportunities, or is it right that some of us should be
able to monopolize natural opportunities? If some are
permitted to monopolize natural opportunities, what do
they owe to the rest of us?
H.G. Brown: Significant Paragraphs
from Henry George's Progress & Poverty, Chapter 4: Land
Speculation Causes Reduced Wages
That mineral land, when reduced to private ownership,
is frequently withheld from use while poorer deposits are
worked, is well known, and in new states it is common to
find individuals who are called "land poor" -- that is,
who remain poor, sometimes almost to deprivation, because
they insist on holding land, which they themselves cannot
use, at prices at which no one else can profitably use
it. ... read
the whole chapter
Poverty deepens as wealth increases, and wages are
forced down while productive power grows, because land,
which is the source of all wealth and the field of all
labor, is monopolized. To extirpate poverty, to make
wages what justice commands they should be, the full
earnings of the laborer, we must therefore substitute
for the individual ownership of land a common
ownership. [footnote omitted]
This right of ownership that springs from labor
excludes the possibility of any other right of
ownership. If a man be rightfully entitled to the
produce of his labor, then no one can be rightfully
entitled to the ownership of anything which is not the
produce of his labor, or the labor of some one else
from whom the right has passed to him. For the right to
the produce of labor cannot be enjoyed without the
right to the free use of the opportunities offered by
nature, and to admit the right of property in these is
to deny the right of property in the produce of labor.
When nonproducers can claim as rent a portion of the
wealth created by producers, the right of the producers
to the fruits of their labor is to that extent denied.
H.G. Brown: Significant Paragraphs
from Henry George's Progress &
Poverty, Chapter 8: Why a Land-Value Tax is
Better than an Equal Tax on All Property (in the
unabridged P&P:
Book VIII: Application of the Remedy — Chapter 3: The
proposition tried by the canons of taxation)
The ground upon which the equal taxation of all
species of property is commonly insisted upon is that it
is equally protected by the state. The basis of this idea
is evidently that the enjoyment of property is made
possible by the state — that there is a value
created and maintained by the community, which is justly
called upon to meet community expenses. Now, of what
values is this true? Only of the value of land. This is a
value that does not arise until a community is formed,
and that, unlike other values, grows with the growth of
the community. It exists only as the community exists.
Scatter again the largest community, and land, now so
valuable, would have no value at all. With every increase
of population the value of land rises; with every
decrease it falls. This is true of nothing else save of
things which, like the ownership of land, are in their
nature monopolies.
The tax upon land values is, therefore, 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. ...
read the
whole chapter
H.G. Brown:
Significant Paragraphs from Henry George's
Progress & Poverty: 14
Liberty, and Equality of Opportunity (in the unabridged
P&P:
Part X: The Law of Human Progress — Chapter 5: The
Central Truth)
The truth to which we were led in the
politico-economic branch of our inquiry is as clearly
apparent in the rise and fall of nations and the growth
and decay of civilizations, and it accords with those
deep-seated recognitions of relation and sequence that we
denominate moral perceptions. Thus are given to our
conclusions the greatest certitude and highest
sanction.
This truth involves both a menace and a promise. It
shows that the evils arising from the unjust and unequal
distribution of wealth, which are becoming more and more
apparent as modern civilization goes on, are not
incidents of progress, but tendencies which must bring
progress to a halt; that they will not cure themselves,
but, on the contrary, must, unless their cause is
removed, grow greater and greater, until they sweep us
back into barbarism by the road every previous
civilization has trod. But it also shows that these evils
are not imposed by natural laws; that they spring solely
from social maladjustments which ignore natural laws, and
that in removing their cause we shall be giving an
enormous impetus to progress.
The poverty which in the midst of abundance
pinches and embrutes men, and all the manifold evils
which flow from it, spring from a denial of justice. In
permitting the monopolization of the opportunities which
nature freely offers to all, we have ignored the
fundamental law of justice — for, so far
as we can see, when we view things upon a large scale,
justice seems to be the supreme law of the universe.
But by sweeping away this injustice and asserting
the rights of all men to natural opportunities, we shall
conform ourselves to the law —
- we shall remove the great cause of unnatural
inequality in the distribution of wealth and
power;
- we shall abolish poverty;
- tame the ruthless passions of greed;
- dry up the springs of vice and misery;
- light in dark places the lamp of knowledge;
- give new vigor to invention and a fresh impulse to
discovery;
- substitute political strength for political
weakness; and
- make tyranny and anarchy impossible.
The reform I have proposed accords with all that is
politically, socially, or morally desirable. It has the
qualities of a true reform, for it will make all other
reforms easier. What is it but the carrying out in letter
and spirit of the truth enunciated in the Declaration of
Independence — the "self-evident" truth that is the
heart and soul of the Declaration —"That all men
are created equal; that they are endowed by their Creator
with certain inalienable rights; that among these are
life, liberty, and the pursuit of happiness!"
These rights are denied when the equal right
to land — on which and by which men alone can live
— is denied. Equality of political rights will not
compensate for the denial of the equal right to the
bounty of nature. Political liberty, when the equal right
to land is denied, becomes, as population increases and
invention goes on, merely the liberty to compete for
employment at starvation wages. This is the
truth that we have ignored. And so
- there come beggars in our streets and tramps on our
roads; and
- poverty enslaves men who we boast are political
sovereigns; and
- want breeds ignorance that our schools cannot
enlighten; and
- citizens vote as their masters dictate; and
- the demagogue usurps the part of the statesman;
and
- gold weighs in the scales of justice; and
- in high places sit those who do not pay to civic
virtue even the compliment of hypocrisy; and
- the pillars of the republic that we thought so
strong already bend under an increasing strain.
We honor Liberty in name and in form. We set up her
statues and sound her praises. But we have not fully
trusted her. And with our growth so grow her demands. She
will have no half service!
Liberty! it is a word to conjure with, not to vex the
ear in empty boastings. For Liberty means Justice, and
Justice is the natural law — the law of health and
symmetry and strength, of fraternity and
co-operation.
They who look upon Liberty as having accomplished her
mission when she has abolished hereditary privileges and
given men the ballot, who think of her as having no
further relations to the everyday affairs of life, have
not seen her real grandeur — to them the poets who
have sung of her must seem rhapsodists, and her martyrs
fools! As the sun is the lord of life, as well as of
light; as his beams not merely pierce the clouds, but
support all growth, supply all motion, and call forth
from what would otherwise be a cold and inert mass all
the infinite diversities of being and beauty, so is
liberty to mankind. It is not for an abstraction that men
have toiled and died; that in every age the witnesses of
Liberty have stood forth, and the martyrs of Liberty have
suffered.
We speak of Liberty as one thing, and of virtue,
wealth, knowledge, invention, national strength, and
national independence as other things. But, of all these,
Liberty is the source, the mother, the necessary
condition. ...
Only in broken gleams and partial light has the sun of
Liberty yet beamed among men, but all progress hath she
called forth. ...
Shall we not trust her?
In our time, as in times before, creep on the
insidious forces that, producing inequality, destroy
Liberty. On the horizon the clouds begin to lower.
Liberty calls to us again. We must follow her further; we
must trust her fully. Either we must wholly accept her or
she will not stay. It is not enough that men
should vote; it is not enough that they should be
theoretically equal before the law. They must have
liberty to avail themselves of the opportunities and
means of life; they must stand on equal terms with
reference to the bounty of nature. Either this, or
Liberty withdraws her light! Either this, or
darkness comes on, and the very forces that progress has
evolved turn to powers that work destruction. This is the
universal law. This is the lesson of the centuries.
Unless its foundations be laid in justice the social
structure cannot stand.
Our primary social adjustment is a denial of
justice. In allowing one man to own the land on which and
from which other men must live, we have made them his
bondsmen in a degree which increases as material progress
goes on. This is the subtile alchemy that in
ways they do not realize is extracting from the masses in
every civilized country the fruits of their weary toil;
that is instituting a harder and more hopeless slavery in
place of that which has been destroyed; that is bringing
political despotism out of political freedom, and must
soon transmute democratic institutions into anarchy.
It is this that turns the blessings of
material progress into a curse. It is this that
crowds human beings into noisome cellars and squalid
tenement houses; that fills prisons and brothels; that
goads men with want and consumes them with greed; that
robs women of the grace and beauty of perfect womanhood;
that takes from little children the joy and innocence of
life's morning.
Civilization so based cannot continue. The
eternal laws of the universe forbid it. Ruins of
dead empires testify, and the witness that is in every
soul answers, that it cannot be. It is something grander
than Benevolence, something more august than Charity
— it is Justice herself that demands of us to right
this wrong. Justice that will not be denied; that cannot
be put off — Justice that with the scales carries
the sword. Shall we ward the stroke with liturgies and
prayers? Shall we avert the decrees of immutable law by
raising churches when hungry infants moan and weary
mothers weep?
Though it may take the language of prayer, it
is blasphemy that attributes to the inscrutable decrees
of Providence the suffering and brutishness that come of
poverty; that turns with folded hands to the All-Father
and lays on Him the responsibility for the want and crime
of our great cities. We degrade the Everlasting.
We slander the Just One. A merciful man would have better
ordered the world; a just man would crush with his foot
such an ulcerous ant-hill! It is not the Almighty, but we
who are responsible for the vice and misery that fester
amid our civilization. The Creator showers upon us his
gifts — more than enough for all. But like swine
scrambling for food, we tread them in the mire —
tread them in the mire, while we tear and rend each
other!
In the very centers of our civilization today
are want and suffering enough to make sick at heart
whoever does not close his eyes and steel his nerves.
Dare we turn to the Creator and ask Him to relieve
it? Supposing the prayer were heard, and at the
behest with which the universe sprang into being there
should glow in the sun a greater power; new virtue fill
the air; fresh vigor the soil; that for every blade of
grass that now grows two should spring up, and the seed
that now increases fiftyfold should increase a
hundredfold! Would poverty be abated or want relieved?
Manifestly no! Whatever benefit would accrue would be but
temporary. The new powers streaming through the material
universe could be utilized only through land.
This is not merely a deduction of political economy;
it is a fact of experience. We know it because we
have seen it. Within our own times, under our
very eyes, that Power which is above all, and in all, and
through all; that Power of which the whole universe is
but the manifestation; that Power which maketh all
things, and without which is not anything made that is
made, has increased the bounty which men may enjoy, as
truly as though the fertility of nature had been
increased.
- Into the mind of one came the thought that
harnessed steam for the service of mankind.
- To the inner ear of another was whispered the
secret that compels the lightning to bear a message
round the globe.
- In every direction have the laws of matter been
revealed;
- in every department of industry have arisen arms of
iron and fingers of steel, whose effect upon the
production of wealth has been precisely the same as an
increase in the fertility of nature.
What has been the result? Simply that
landowners get all the gain.
Can it be that the gifts of the Creator may be
thus misappropriated with impunity? Is it a light thing
that labor should be robbed of its earnings while greed
rolls in wealth — that the many should want while
the few are surfeited? Turn to history, and on
every page may be read the lesson that such wrong never
goes unpunished; that the Nemesis that follows injustice
never falters nor sleeps! Look around today. Can this
state of things continue? May we even say, "After us the
deluge!" Nay; the pillars of the State are trembling even
now, and the very foundations of society begin to quiver
with pent-up forces that glow underneath. The struggle
that must either revivify, or convulse in ruin, is near
at hand, if it be not already begun.
The fiat has gone forth! With steam and electricity,
and the new powers born of progress, forces have entered
the world that will either compel us to a higher plane or
overwhelm us, as nation after nation, as civilization
after civilization, have been overwhelmed before. ...
- We cannot go on permitting men to vote and forcing
them to tramp.
- We cannot go on educating boys and girls in our
public schools and then refusing them the right to earn
an honest living.
- We cannot go on prating of the inalienable rights
of man and then denying the inalienable right to the
bounty of the Creator.
Even now, in old bottles the new wine begins to
ferment, and elemental forces gather for the strife!
But if, while there is yet time, we turn to
Justice and obey her, if we trust Liberty and follow her,
the dangers that now threaten must disappear, the
forces that now menace will turn to agencies of
elevation. Think of the powers now wasted;
of the infinite fields of knowledge yet to be explored;
of the possibilities of which the wondrous inventions of
this century give us but a hint.
- With want destroyed;
- with greed changed to noble passions;
- with the fraternity that is born of equality taking
the place of the jealousy and fear that now array men
against each other;
- with mental power loosed by conditions that give to
the humblest comfort and leisure; and
- who shall measure the heights to which our
civilization may soar?
Words fail the thought! It is the Golden Age
of which poets have sung and high-raised seers have told
in metaphor! It is the glorious vision which has always
haunted man with gleams of fitful splendor. It is what he
saw whose eyes at Patmos were closed in a trance. It is
the culmination of Christianity — the City of God
on earth, with its walls of jasper and its gates of
pearl! It is the reign of the Prince of Peace!
...
read the whole chapter
Henry George: The Condition of Labor
— An Open Letter to Pope Leo XIII in response to
Rerum Novarum (1891)
That the value attaching to land with social growth is
intended for social needs is shown by the final proof.
God is indeed a jealous God in the sense that nothing but
injury and disaster can attend the effort of men to do
things other than in the way he has intended; in the
sense that where the blessings he proffers to men are
refused or misused they turn to evils that scourge us.
And just as for the mother to withhold the provision that
fills her breast with the birth of the child is to
endanger physical health, so for society to refuse to
take for social uses the provision intended for them is
to breed social disease.
For refusal to take for public purposes the increasing
values that attach to land with social growth is to
necessitate the getting of public revenues by taxes that
lessen production, distort distribution and corrupt
society. It is to leave some to take what justly belongs
to all; it is to forego the only means by which it is
possible in an advanced civilization to combine the
security of possession that is necessary to improvement
with the equality of natural opportunity that is
the most important of all natural rights. It is
thus at the basis of all social life to set up an unjust
inequality between man and man, compelling some to pay
others for the privilege of living, for the chance of
working, for the advantages of civilization, for the
gifts of their God. But it is even more than this. The
very robbery that the masses of men thus suffer gives
rise in advancing communities to a new robbery. For the
value that with the increase of population and social
advance attaches to land being suffered to go to
individuals who have secured ownership of the land, it
prompts to a forestalling of and speculation in land
wherever there is any prospect of advancing population or
of coming improvement, thus producing an artificial
scarcity of the natural elements of life and labor, and a
strangulation of production that shows itself in
recurring spasms of industrial depression as disastrous
to the world as destructive wars. It is this that is
driving men from the old countries to the new countries,
only to bring there the same curses. It is this that
causes our material advance not merely to fail to improve
the condition of the mere worker, but to make the
condition of large classes positively worse. It is this
that in our richest Christian countries is giving us a
large population whose lives are harder, more hopeless,
more degraded than those of the veriest savages. It is
this that leads so many men to think that God is a
bungler and is constantly bringing more people into his
world than he has made provision for; or that there is no
God, and that belief in him is a superstition which the
facts of life and the advance of science are dispelling.
...
And it is because that in what we propose
— the securing to all men of equal natural
opportunities for the exercise of their powers and the
removal of all legal restriction on the legitimate
exercise of those powers — we see the conformation
of human law to the moral law, that we hold with
confidence that this is not merely the sufficient remedy
for all the evils you so strikingly portray, but that it
is the only possible remedy.
Nor is there any other. The organization of man is
such, his relations to the world in which he is placed
are such — that is to say, the immutable laws of
God are such, that it is beyond the power of human
ingenuity to devise any way by which the evils born of
the injustice that robs men of their birthright can be
removed otherwise than by doing justice, by opening to
all the bounty that God has provided for all.
...
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.
Nor do we seek any “futile and ridiculous
equality.” We recognize, with you, that there must
always be differences and inequalities. In so far as
these are in conformity with the moral law, in so far as
they do not violate the command, “Thou shalt not
steal,” we are content. We do not seek to better
God’s work; we seek only to do his will. The
equality we would bring about is not the equality of
fortune, but the equality of natural opportunity; the
equality that reason and religion alike proclaim —
the equality in usufruct of all his children to
the bounty of Our Father who art in Heaven.
...
Hence, short of what wages may be earned when all
restrictions on labor are removed and access to natural
opportunities on equal terms secured to all, it is
impossible to fix any rate of wages that will be deemed
just, or any rate of wages that can prevent working-men
striving to get more. So far from it making working-men
more contented to improve their condition a little, it is
certain to make them more discontented.
Nor are you asking justice when you ask employers to
pay their working-men more than they are compelled to pay
— more than they could get others to do the work
for. You are asking charity. For the surplus that the
rich employer thus gives is not in reality wages, it is
essentially alms. ... read the whole
letter
Henry George: In
Liverpool: The Financial Reform Meeting at the Liverpool
Rotunda (1889)
Our little local politics may differ; our greater
politics are one and the same. We have the same evils to
redress, the same truth to propagate, the same end to
seek.
And that end, what is it but liberty? (Hear, hear) He
who listens to the voice of Freedom, she will lead and
lead him on. Before I was born, before our friend there
was born, there was in a southern city of the United
States a young printer bearing the name William Lloyd
Garrison. (Cheers) He saw around him the iniquity of
negro slavery. (Hear, hear) The voice of the oppressed
cried to him and would not let him rest, and he took up
the cross. He became the great apostle of human liberty,
and today in American cities that once hooted and stoned
him there are now statues raised to William Lloyd
Garrison.
He began as a protectionist. As he moved on he saw
that liberty meant something more than simply the
abolition of chattel slavery. He saw that liberty also
meant, not merely the right to freely labor for oneself,
but the right to freely exchange one's production, and,
from a protectionist, William Lloyd Garrison became a
free trader. (Cheers)
And now, when the first is gone, the second comes
forward, to take one further step to realize that
for perfect freedom there must also be freedom in
the use of natural opportunities. (Hear, hear,
and cheers)
We have come . . . to the same point by converging
lines. Why is freedom of trade good? Simply that trade
— exchange — is but a mode of production.
Therefore, to secure full free trade we must also secure
freedom to the natural opportunities of production.
(Hear, hear) Our production—what is it? We produce
from what? From land. All human production consists but
in working up the raw materials that we find in nature
— consists simply in changing in place, or in form,
that matter which we call land. To free production there
must be no monopoly of the natural element. Even in our
methods we agree primarily on this essential point
— that everyone ought to be free to exert his
labor, to retain or to exchange its fruits, unhampered by
restrictions, unvexed by the tax gatherer. (Hear, hear) .
. .
Chattel slavery, thank God, is abolished at last.
Nowhere, where the American flag flies, can one man be
bought, or sold, or held by another. (Cheers) But a great
struggle still lies before us now. Chattel slavery is
gone; industrial slavery remains. The effort, the aim of
the abolitionists of this time is to abolish industrial
slavery. (Cheers) ... read the whole speech
Rev. A. C. Auchmuty: Gems from George, a themed
collection of excerpts from the writings of Henry
George (with links to sources)
DWARFED into mere revenue reform the harmony and
beauty of free trade are hidden; its moral force is lost;
its power to remedy social evils cannot be shown, and the
injustice and meanness of protection cannot be arraigned.
The "international law of God" becomes a mere fiscal
question which appeals only to the intellect and not to
the heart, to the pocket and not to the conscience, and
on which it is impossible to arouse the enthusiasm that
is alone capable of contending with powerful interests.
— Protection or Free Trade — Chapter
29: Practical Politics -
econlib
THEY [the Physiocrats) were — what the so-called
"English free-traders" who have followed Adam Smith never
yet have been — free traders in the full sense of
the term. In their practical proposition, the single tax,
they proposed the only means by which the free trade
principle can ever be carried to its logical conclusion
— the freedom not merely of trade but of all other
forms and modes of production, with full freedom of
access to the natural element which is essential to all
production. They were the authors of the motto that in
the English use of the phrase "Laissez faire!" "Let
things alone," has been so emasculated and perverted, but
which on their lips was "Laissez faire, laissez aller!"
"Clear the ways and let things alone." This is said to
come from the cry that in medieval tournaments gave the
signal for combat, The English motto which I take to come
closest to the spirit of the French phrase is, "A fair
field and no favor!" — The Science of Political
Economy
HERE is a traveler who, beset by robbers, has been left
bound, blindfolded, and gagged. Shall we stand in a knot
about him and discuss whether to put a piece of
court-plaster on his cheek or a new patch on his coat, or
shall we dispute with each other as to what road he ought
to take, and whether a bicycle, a tricycle, a horse and
wagon, or a railway, would best help him on? Should we
not rather postpone such discussion until we have cut the
man's bonds? Then he can see for himself, speak for
himself, and help himself. Though with a scratched cheek
and a torn coat, he may get on his feet, and if he cannot
find a conveyance to suit him, he will at least be free
to walk.
Very much like such a discussion is a good deal of that
now going on over "the social problem" — a
discussion in which all sorts of inadequate and
impossible schemes are advocated to the neglect of the
simple plan of removing restrictions and giving Labor the
use of its powers. — Protection or Free
Trade — Chapter 28: Free Trade and Socialism -
econlib -|- abridged
WE talk about the supply
of labor, and the demand for labor, but, evidently, these
are only relative terms. The supply of labor is
everywhere the same — two hands always come into
the world with one mouth, twenty-one boys to every twenty
girls; and the demand for labor must always exist as long
as men want things which labor alone can procure. We talk
about the "want of work," but, evidently it is not work
that is short while want continues; evidently, the supply
of labor cannot be too great, nor the demand for labor
too small, when people suffer for the lack of things that
labor produces. The real trouble must be that the supply
is somehow prevented from satisfying demand, that
somewhere there is an obstacle which prevents labor from
producing the things that laborers want.
Take the case of anyone of these vast masses of
unemployed men, to whom, though he never heard of
Malthus, it today seems that there are too many people in
the world. In his own wants, in the needs of his anxious
wife, in the demands for his half cared for, perhaps even
hungry and shivering, children, there is demand enough
for labor, Heaven knows! In his own willing hands is the
supply. Put him on a solitary island, and though cut off
from all the enormous advantages which the co-operation,
combination, and machinery of a civilized community give
to the productive powers of man, yet his two hands can
fill the mouths and keep warm the backs that depend upon
them. Yet where productive power is at its
highest development, he cannot. Why? Is it not because in
the one case he has access to the material and forces of
nature, and in the other this access is denied?
—
Progress & Poverty
Book V, Chapter 1, The Problem Solved: The primary cause
of recurring paroxysms of industrial depression
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
AND will not the community gain by thus refusing to
kill the goose that lays the golden eggs; by thus
refraining from muzzling the ox that treadeth out the
corn; by thus leaving to industry, and thrift, and skill,
their natural reward, full and unimpaired? For there is
to the community also a natural reward. The law of
society is, each for all, as well as all for each. No one
can keep to himself the good he may do, any more than he
can keep the bad. Every productive enterprise, besides
its return to those who undertake it, yields collateral
advantages to others. If a man plant a fruit tree, his
gain is that he gathers the fruit in its time and season.
But in addition to his gain, there is a gain to the whole
community. Others than the owner are benefited by the
increased supply of fruit; the birds which it shelters
fly far and wide; the rain which it helps to attract
falls not alone on his field; and, even to the eye which
rests upon it from a distance, it brings a sense of
beauty. And so with everything else. The building of a
house, a factory, a ship, or a railroad, benefits others
besides those who get the direct profits. Nature laughs
at a miser. He is like the squirrel who buries his nuts
and refrains from digging them up again. Lo! they sprout
and grow into trees. In fine linen, steeped in costly
spices, the mummy is laid away. Thousands and thousands
of years thereafter, the Bedouin cooks his food by a fire
of its encasings, it generates the steam by which the
traveler is whirled on his way, or it passes into far-off
lands to gratify the curiosity of another race. The bee
fills the hollow tree with honey, and along comes the
bear or the man. —
Progress & Poverty
— Book IX, Chapter 1, Effects of the Remedy: Of the
Effect upon the Production of Wealth
CONSIDER the effect of such a change upon the labor
market. Competition would no longer be one-sided, as now.
Instead of laborers competing with each other for
employment, and in their competition cutting down wages
to the point of bare subsistence, employers would
everywhere be competing for laborers, and wages would
rise to the fair earnings of labor. For into the labor
market would have entered the greatest of all competitors
for the employment of labor, a competitor whose demand
cannot be satisfied until want is satisfied — the
demand of labor itself. The employers of labor would not
have merely to bid against other employers, all feeling
the stimulus of greater trade and increased profits, but
against the ability of laborers to become their own
employers upon the natural opportunities freely opened to
them by the tax which prevented monopolization. —
Progress & Poverty
— Book IX, Chapter 1, Effects of the Remedy: Of the
Effect upon the Production of Wealth
... 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.
Q30. What effect would the single tax have on
immigration? Would it cause an influx of foreigners from
different nations?
A. If adopted in one country of great natural
opportunities, and not in others, its tendency would not
only be to cause an influx of foreigners, but also to
make their coming highly desirable. Our own experience in
the United States, when we had an abundance of free land
and were begging the populations of the world to come to
us, offers a faint suggestion of what might be
expected.
Q34. Would the single tax benefit the debtor
class? If so, how?
A. It would. By abolishing the monopoly of opportunities
to work, and thus enabling debtors to earn enough, while
decently supporting themselves, to honestly pay their
debts. The debtor class deserves sympathy, not because it
is in debt, but because it is forced by existing
institutions to go into debt in order to work, and is
then so hampered and harried by the same institutions as
to make orderly repayment impossible and bankruptcy
inevitable.
Q52. Is not the right of ownership of a gold ring
the same as the ownership of a gold mine? and if the
latter is wrong is not the former also wrong?
A. If it be wrong for you to own the spring of water
which you and your fellows use, is it therefore wrong for
you to own the water that you lift from the spring to
drink? If so how do you propose to slake your thirst? If
you argue in reply that it is not wrong for you to own
the spring, then how shall your fellows slake their
thirst when you treat them, as you would have a right to,
as trespassers upon your property? To own the source of
labor products is to own the labor of others; to own what
you produce from that source is to own only your own
labor. Nature furnishes gold mines, but men fashion gold
rings. The right of ownership is radically different....
read the book
Charles B. Fillebrown: A Catechism of Natural
Taxation, from Principles of Natural Taxation
(1917)
Q30. How would the single tax increase
wages?
A. By gradually transferring to wages that portion of the
current wealth that now flows to privilege. In other
words, it would widen and deepen the channel of wages by
enlarging opportunities for labor, and by increasing the
purchasing power of nominal wages through reduction of
prices. On the other hand it would narrow the channel of
privilege by making the man who has a privilege pay for
it.
Q31. How can this transfer be effected?
A. By the taxation of privilege.
Q32. How much ultimately may wages be thus
increased?
A. Fifty percent would be a low estimate.
Q33. What are fair prices and fair
wages?
A. Prices unenhanced by privilege, and wages undiminished
by taxation.
Q58. What expected result of the single tax needs
studious emphasis?
A. That it would unlock the land to labor at its present
value for use, instead of locking out labor from the land
by a prohibitive price based upon the future value for
use. ... read
the whole article
Nic Tideman: Applications of
Land Value Taxation to Problems of Environmental
Protection, Congestion, Efficient Resource Use, Population,
and Economic Growth
Much more credible is a statement of the form,
"We will share equally the value of natural
opportunities that might be appropriated." This is
the potential of land value taxation: to provide a
framework in which the value of natural opportunities
will be shared equally, both as an expression of the idea
that all persons have equal rights to natural
opportunities, and as a formula whose potential to remove
the motive for future aggression is greater than that of
enshrining the status quo of any particular year. And in
addition, land value taxation is one way of achieving
allocative efficiency with respect to a wide variety of
public issues. ... Read the entire
article
Nic Tideman: The Constitutional
Conflict Between Protecting Expectations and Moral
Evolution
The Complementary Right of Equal
Access to Natural Opportunities
One of the factors that makes the case for
secession difficult is the problem of regional inequality
in natural resources. When the people who called
themselves Biafrans sought to secede from Nigeria in the
1960s, the morality of their claim was undermined by the
fact that, if they had succeeded, they would have taken
disproportionate oil resources from the rest of
Nigerians. The limited support for the efforts of the
Chechins to separate from Russia is explained in part by
the understanding that, even though the Chechins have
been abused by Russians for centuries and have never
fully acceded to their incorporation into Russia, if
Chechniya were allowed to separate from Russia, that
would create a precedent that would make it difficult to
oppose an effort by the people of the sparsely populated
Yakutsia region of Eastern Siberia, rich in oil and
diamonds, to insist that they too have a right to be a
separate nation.
Perhaps, a general recognition of a
right of secession will need to wait for another component
of moral evolution: a recognition that all persons have
equal claims on the value of natural opportunities. If this
were recognized, then any nation or region with
disproportionately great natural resources would be seen to
have an obligation to share the value from using those
resources with those parts of the world that have less than
average resources per capita. This would eliminate the
desire to appropriate natural resources as a reason for
secession and as a reason for opposing secession. Signs of
a recognition of the equal claims of all persons on the use
of natural opportunities are slim. One can point to John
Locke:
Whether we consider natural Reason, which tells
us, the 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, 'tis very clear, that God, as King
David says, Psal. CXV. xvi. has given the Earth to the
Children of Men, given it to Mankind in
common.2
Locke goes on to say that every
person has a right to himself, and therefore to the things
of value that are created by combining his efforts with
natural opportunities, "at least where there is as much and
as good left in common for others." He then argues that
with so much unclaimed land in America, no one can justly
complain if all of Europe is privately appropriated. Locke
does not address the question of how rights to land should
be handled if there is no unclaimed land.
Thomas Jefferson, writing on the
subject of patents, said, But while it is a moot question
whether the origin of any kind of property is derived from
nature at all, it would be singular to admit a natural and
even an hereditary right to inventors. It is agreed by
those who have seriously considered the subject, that no
individual has, of natural right, a separate property in an
acre of land, for instance.3
Henry George said,
The equal right of all men to the use of land is
as clear as their equal right to breathe the air--it is a
right proclaimed by the fact of their existence. For we
cannot suppose that some men have the right to be in this
world and others no right.
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.4
General recognition of the equal
rights of all to the use of land and other natural
opportunities is hard to find. When the powerful nations of
the world got together to eject Iraq from Kuwait, very
little was heard of the bizarreness of supposing that Emir
of Kuwait and his relatives had a right to all the oil that
lay under Kuwait. Some recognition of equal rights to the
use of natural opportunities can be found in the proposed
Law of the Sea Treaty, which would have had all nations
benefiting from the granting of franchises to extract
minerals from the sea. From an economic perspective, the
treaty was flawed by the fact that it would have created an
artificial scarcity of seabed mining activities in order to
raise revenue, and it was opposed by the U.S. and not
implemented. But it did suggest general recognition of
global equal rights to at least those natural opportunities
that no one has yet begun to use.
One impediment to the recognition of
equal rights to the use of natural opportunities is that
some system of assessment would be needed to identify the
transfers that would compensate for unequal access to
natural opportunities. Another impediment is that a system
of rewards for those who discover new opportunities would
be needed. But if there were a will to address them, these
technical difficulties could be solved adequately, as they
are in jurisdictions such as Alberta, Canada, that claim
all mineral rights for the government. ... Read the whole
article
Nic Tideman: The Case for Taxing Land
I. Taxing Land as Ethics and
Efficiency
II. What is Land?
III. The simple efficiency argument for
taxing land
IV. Taxing Land is Better Than
Neutral
V. Measuring the Economic Gains from
Shifting Taxes to Land
VI. The Ethical Case for Taxing Land
VII. Answer to Arguments against Taxing
Land
There is a case for taxing land based on ethical
principles and a case for taxing land based on efficiency
principles. As a matter of logic, these two cases
are separate. Ethical conclusions follow from
ethical premises and efficiency conclusions from
efficiency principles. However, it is natural for
human minds to conflate the two cases. It is easier
to believe that something is good if one knows that it is
efficient, and it is easier to see that something is
efficient if one believes that it is good.
Therefore it is important for a discussion of land
taxation to address both question of efficiency and
questions of ethics.
This monograph will first address the efficiency case for taxing land, because that
is the less controversial case. The efficiency case
for taxing land has two main parts.
...
To estimate the magnitudes of the impacts that
additional taxes on land would have on an economy, one
must have a model of the economy. I report on
estimates of the magnitudes of impacts on the U.S.
economy of shifting taxes to land, based on a
mathematical model that is outlined in the
Appendix.
The ethical case for
taxing land is based on two ethical
premises:
1) every person has a right to himself or herself,
and
2) all persons have equal rights to the natural
opportunities that are not embodied in
persons.
The first premise leads to the conclusion that
taxing people according to the products of their efforts
or the products of their saving can only be just if
people voluntarily agree, individually, to be subject to
such taxes. Taxing land, on the other hand, does
not involve such an intrusion on individual rights.
In fact, taxing land is a way equalizing the advantages
of access to land, as required by the second
premise.The ethical case for taxing land
ends with a discussion of the reasons why recognition of
the equal rights of all to land may be essential for
world peace.
After developing the efficiency argument and the ethical
argument for taxing land, I consider a variety of
counter-arguments that have been offered against taxing
land. For a given level of other taxes, a rise in
the rate at which land is taxed causes a fall in the
selling price of land. It is sometimes argued that
only modest taxes on land are therefore feasible, because
as the rate of taxation on land increases and the selling
price of land falls, market transactions become
increasingly less reliable as indicators of the value of
land. ...
Another basis on which it is argued that greatly
increased taxes on land are infeasible is that if land
values were to fall precipitously, the financial system
would collapse. ...
Apart from questions of feasibility, it is sometimes
argued that erosion of land values from taxing land would
harm economic efficiency, because it would reduce
opportunities for entrepreneurs to use land as collateral
for loans to finance their ideas.
...
.
Another ethical argument that is made against taxing land
is that the return to unusual ability is
“rent” just as the return to land is
rent. ...
But before developing any of these arguments, I must
discuss what land is. ...
The Ethical Case for
Taxing Land The ethical case for taxing land is
based on two premises. The first is that people have
rights to themselves. This has not been controversial
since the end of slavery, so I will simply assume that this
is agreed. The second premise is that all people have
equal rights to natural opportunities. This is not so
widely agreed.
Natural opportunities include not only land, but also
water, fish in oceans and rivers, the frequency spectrum,
minerals, virgin forests, and geosynchronous orbits.
Some natural opportunities, such as the opportunity to use
the oceans for transport, are most valuable to people when
all are allowed to use them as they wish. (This does
not imply that their value is greatest when all can pollute
as they wish.) Other natural opportunities, such as
most plots of land, are most valuable when one person has
exclusive use of them.
The processes that humans employ to determine who shall
have exclusive use of natural opportunities are
complex. To some extent, opportunities are assigned
to those who first make use of them. However, another
important component of the natural-opportunity-assignment
process is the ability and willingness to use deadly force
to exclude others. Americans from Europe undertook
some negotiations with the native American Indians, but
primarily they threatened to kill the Indians if they did
not agree to move into smaller territories. All over
the world, nations emerged when war-minded leaders imposed
their rule where they could. We have built a
relatively humane world on this violent foundation, but the
origins of the assignment of natural opportunities cannot
be characterized as just.
Nor would have been just (or efficient) to adhere to a rule
of initial assignment based on first use. It would
not be just because a person who arrives later than another
is not inherently less deserving. (It would not be
efficient because a rule of assignment based on first use
promotes inefficient, excessive investment in being
first. Still, to motivate efficient discovery,
it pays to provide some reward for discoverers.)
Justice requires that we acknowledge the equal rights of
all persons to the gifts of nature. At the level of
relations among nations, this requires every nation to
determine whether it is using more than its share of
natural opportunities, and if it is using more than its
share, to compensate other nations that therefore have less
than their shares.
An additional ethical reason for
recognizing equal rights to natural opportunities is that
it may be necessary to secure world peace. Nations
have arisen through violence. While the world
condemns violence among nations, it has persistently
acquiesced to regimes established by violence. The
greater the natural resources of a nation, the greater is
the attraction to potential tyrants of the possibility of
taking over the nation. If the world is able to
establish an understanding, backed up by the threat of
economic boycotts, that nations have an obligation to share
the value of natural opportunities in proportion to
population, and that people are free to leave nations that
they find unacceptable, then the return to violent
appropriation of power will be removed. As long as we
accept the continued exercise of disproportionate power
over natural opportunities by those who acquired that power
through violence, we will have difficulty persuading
potential usurpers of power that we will not accept their
conquests. ... Read the whole
article
Nic Tideman: Peace, Justice and Economic
Reform
These components of the classical liberal
conception of justice are held by two groups that hold
conflicting views on a companion issue of great
importance: how are claims of exclusive access to natural
opportunities to be established?
John Locke qualified his statement
that we own what we produce with his famous "proviso" that
there be "as much and as good left in common for others." A
few pages later, writing in the last decade of the
seventeenth century, he said that private appropriations of
land are actually not restricted, because anyone who is
dissatisfied with the land available to him in Europe can
always go to America, where there is plenty of unclaimed
land.[12] Locke does not
address the issue of rights to land when land is
scarce.
One tradition in classical liberalism
concerning claims to land is that of the "homesteading libertarians," as exemplified by
Murray Rothbard, who say that there is really no need to be
concerned with Locke's proviso. Natural opportunities
belong to whoever first appropriates them, regardless of
whether opportunities of equal value are available to
others.[13]
The other tradition is that of the
"geoists," as inspired if not
exemplified by Henry George, who say that, whenever natural
opportunities are scarce, each person has an obligation to
ensure that the per capita value of the natural
opportunities that he leaves for others is as great as the
value of the natural opportunities that he claims for
himself.[14] Any excess in
one's claim generates an obligation to compensate those who
thereby have less. George actually proposed the nearly
equivalent idea, that all or nearly all of the rental value
of land should be collected in taxes, and all other taxes
should be abolished. The geoist position as I have
expressed it emphasizes the idea that, at least when value
generated by public services is not an issue, rights to
land are fundamentally rights of individuals, not rights of
governments.
There are two fundamental problems
with the position of homesteading libertarians on claims to
land. The first problem is the incongruity with historical
reality. Humans have emerged from an environment of
violence. Those who now have titles to land can trace those
titles back only so far, before they come to events where
fiat backed by violence determined title. And the persons
who were displaced at that time themselves had titles that
originated in violence. If there ever were humans who
acquired the use of land without forcibly displacing other
humans, we have no way of knowing who they were or who
their current descendants might be. There is, in practice,
no way of assigning land to the legitimate successors of
the persons who first claimed land. And to assign titles
based on any fraction of history is to reward the last land
seizures that are not rectified.
The second fundamental problem with
the position of the homesteading libertarians is that, even
if there were previously unsettled land to be allocated,
say a new continent emerging from the ocean, first grabbing
would make no sense as a criterion for allocating
land.
It would be inefficient, for one
thing, as people stampeded to do whatever was necessary to
establish their claims. But that is not decisive because,
if we are concerned with justice, it might be necessary for
us to tolerate inefficiency. But the homesteading
libertarian view makes no sense in terms of justice. "I get
it all because I got here first," isn't
justice.
Justice -- the balancing of the
scales -- is the geoist position,
"I get exclusive access to this natural opportunity because
I have left natural opportunities of equal value for you."
(How one compares, in practice, the value of different
natural opportunities is a bit complex. If you really want
to know, you can invite me back for another
lecture.)
Justice is thus a regime in which persons have the
greatest possible individual liberty, and all acknowledge
an obligation to share equally the value of natural
opportunities. Justice is economic reform--the abolition
of all taxes on labor and capital, the acceptance of
individual responsibility, the creation of institutions
that will provide equal sharing the value of natural
opportunities. ...
Read the entire
article
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.
...
Article 3: All persons, in all generations,
have equal rights to natural opportunities, such as the
use of land, natural resources, and the frequency
spectrum. Therefore Congress shall place levies on states
to equalize among states the per capita annual value of
access to natural opportunities, and to compensate for
the harmful effects of activities in states on other
states and on future generations. State legislatures
shall place corresponding levies on their subdivisions.
... Read the entire
article
Lindy Davies: Socialism, Capitalism
and Geoism
But the term "socialism" does
mean something, and it is often identified with the quest
for economic justice. The basic assumption underlying it
is that the market place, under conditions of pure
laissez-faire competition, is incapable of securing to
society an equitable distribution of wealth.
Socialists assert that if the market is left alone to
decide who is to get how much of the world's goods, the
result is a division of society into classes and the
emergence of a struggle between the exploiting class and
the enslaved working class. Competition becomes
“cutthroat competition,” fostering trusts,
cartels and monopolies. Instead of making earnings
proportional to service rendered, the market place gives
the highest rewards to the most unscrupulous
exploiters.
However, many are proud to rally
behind the banner of “capitalism.”They
contend that free competition makes the fullest possible
use of the gifts of nature and human ingenuity. When the
admirable equilibrium of the market is upset by
do-gooders trying to secure their idea of fairness, the
result is unemployment, stagnation and
corruption.
Capitalists and socialists may
appear to disagree about everything -- but on one crucial
point of political economy their views are uncannily
similar. Both tend to lump land
and capital under the single heading of
“capital,” and many even include money as
capital. This confusion prevents socialists from
seeing the possibility of a beneficial free market
without the element of monopoly. And it prevents
capitalists from seeing the fundamental role of the
public sector in a just and prosperous market
economy.
It may seem odd that both "capitalists" and
"socialists" speak of the justice of their system and the
vile in-justice of their opponents'. (Of course, the
emotion behind such discussions is often heightened by a
kind of home-team fervor.) Is there any
universal standard of justice upon which economic policy
can be based?
The answer lies in clarifying the
question of the rightful basis (if there is one) of
public vs. private ownership. For the thorough-going
free-market capitalist, "public ownership" of anything is
anathema: the community's interests are best served by
the unhindered interactions of self-interested producers
and traders. But the poverty,
suffering and environmental destruction that come under
such a "private property" regime cannot be denied.
Because of this, the great bulk of social-policy debate
revolves around how much of the efficiency of free
enterprise must be traded for public interference,
imposed in the name of equity. The question of the
rightful balance between public and private control
becomes one of expediency and political fashion, lacking
any guiding principle. Indeed, modern "neoclassical
economics" denies that any such principle
exists.
For Henry George, however, the
principle was clear. The value of natural opportunities
belongs entirely to the community, and the production of
wealth by labor, using capital, should be entirely
unhindered by the penalty of taxation. For George, the most important question was not
the amount of wealth that should be taken by the community,
but the kind of wealth that should rightfully go to the
community, because it is a value that the community has
created.
In recent years, this understanding of the
distinctive character of natural opportunity (land) as a
factor of production has led to the coining of a new
term: Geoism, indicating a philosophy based on the
rightful understanding of the place of the Earth (Geo-)
in economic life ....
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
Nic Tideman:
The Structure of an Inquiry into the Attractiveness of A
Social Order Inspired by the Ideas of Henry George
Ethical Principles
A. People own themselves and therefore own what they
produce.
B. People have obligations to share equally the
opportunities that are provided by nature.
C. People are free to interact with other competent
adults on whatever terms are mutually agreed.
D. People have obligations to pay the costs that their
intrusive behaviors impose on others. ...
read the whole article
Alanna Hartzok: Ethical Land
Tenure
I want to tell you the story of Charles Avilla. A
while back I came across a book called Ownership, Early Christian Teachings. Avilla
was a divinity student in the Phillipines. One of his
professors had a great concern about poverty conditions
in the Phillipines, and was taking students out to
prisons where the cooks were the land rights
revolutionaries in the Phillipines. Because they kept
pushing for land reform for the people, they had ended up
in jail. So they were political prisoners who were
reading the Bible and were asking the question,
who did God give this earth to? Who does
it belong to? It isn't in the
Bible that so few should have so much and so many have so
little. In the theological world in this upscale
seminary he was trying to put this together about poverty
and what the biblical teachings were. He had a thesis to
write and he was thinking he would do something about
economic justice. One of his professors thought there
would be a wealth of information from the church's early
history, the first 300 years after Jesus. So he actually
went back to read the Latin and Greek about land
ownership and found a wealth of information about the
prophetic railings of the people in that early time on
the rights of the land. ...
In the Judaic tradition, and the Talmudic
tradition, how much of the Jubilee justice was actually
implemented is a subject of discussion. Some say it was a
good idea but not put in place. Others say it was
substantially put into place.
The Talmudic rabinical discussion is of interest
to Georgists because they tried to allocate the land
according to the richness of the soil for agriculture.
For better soil, richer for agriculture, maybe an acre of
that would be allocated. On the poorer soil, these tribes
could get five acres.
The other thing was some lands were closer to the
market. Some land was closer to Jerusalem. That is an
advantage over those who would have to travel a longer
distance to get to the market. How do you have an equal
rights distribution of land allocation with reference to
the market problem? For those more advantageously
situated, the adjustment was to be made by money. Those
holding land nearer the city should pay in to the common
treasury the estimated excess of value attaining to it by
reason of superior situation. While those holding land of
less value by reason of distance from the city would
receive from the treasury a money compensation. On the
more valuable holdings would be imposed a tax or a lease
fee, the measure of which was the excess of their
respective values over a given standard, and the fund
thus created was to be paid out in due proportion to
those whose holdings were in less favorable
locations.
In this, then, we see affirmed
the doctrine that natural advantages are common property
and may not be diverted to private gain.
Throughout the ages when wisdom is applied to land
problems, we see this emerge ...
Read
the whole article
Nic Tideman:
Improving Efficiency and Preventing Exploitation in Taxing
and Spending Decisions
The principle of maximum individual
liberty does not address the question of how the rights
to natural opportunities (land, water, ocean fish,
minerals, the frequency spectrum, etc.) should be
assigned. There are at least three approaches
within the classical liberal tradition as to how these
returns should be divided.
George Reisman advocates what might be called
"conservative classical
liberalism." This position is that certainty in
property rights is so valuable that one should never ask
whether unjustifiable violence was used in establishing
the existing pattern of control over natural
opportunities.
Every natural opportunity belongs to whoever most
recently succeeded in establishing control over it.
Murray Rothbard, by contrast, took what might be
called the "homesteading
libertarian" position. This is the position that
when we can know who first used a natural opportunity, it
belongs to that person, or to his or her successor in
title through gift and exchange. All thefts from victims
with identifiable successors should be undone. When we
cannot identify the proper successor of the first user,
the a thing belongs to whoever is using it now, unless
that person stole it, in which case it properly belongs
to whoever brings the thief to justice.
The third position, which might be called
"geoliberalism" emerges from the
work of Henry George. This is the position that all
persons have equal rights to natural opportunities, which
rights should be secured by having the public treasury
collect the rental value of exclusive access to land and
other natural opportunities, with the revenue used for
public purposes and guaranteed incomes.
Of these three approaches, I find geoliberalism most
attractive. It fits my sense of justice that all persons
should have equal rights to natural opportunities. In
addition, by providing funding for guaranteed incomes,
geoliberalism offers a greater prospect for removing more
of the distorting taxes that finance the welfare state.
...
read the whole article
I want to say to you as I move to my conclusion, as we
talk about "Where do we go from here," that we honestly
face the fact that the Movement must address itself to
the question of restructuring the whole of American
society. There are forty million poor people here. And
one day we must ask the question, "Why are there forty
million poor people in America?" And when you begin to
ask that question, you are raising questions about the
economic system, about a broader distribution of wealth.
When you ask that question, you begin to question the
capitalistic economy. And I'm simply saying that more and
more, we've got to begin to ask questions about the whole
society. We are called upon to help the discouraged
beggars in life's market place. But one day we must come
to see that an edifice which produces beggars needs
restructuring. It means that questions must be raised.
You see, my friends, when you deal with this,
* you begin to ask the question, "Who owns the
oil?"
* You begin to ask the question, "Who owns the iron
ore?"
* You begin to ask the question, "Why is it that people
have to pay water bills in a world that is two thirds
water?"
These are questions that must be asked. ... read the
book excerpt and whole speech
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