Can we have prosperity for all? What stands between us and widely shared prosperity? Henry George begins Progress & Poverty by asking what America's finest men of science at its founding would have imagined America would look like after its first 100 years, if they were told of the broad range of technological advances that would occur in that span. Could they have imagined that after that 100 years, there would be poverty, deep and widespread poverty? George sought — and discovered — the mechanism that creates poverty, and provides — as P&P's sub-title promises — the remedy.

H.G. Brown: Significant Paragraphs from Henry George's Progress & Poverty, Chapter 1: The Problem

Could a Franklin or a Priestley have seen, in a vision of the future, the steamship taking the place of the sailing vessel, the railroad train of the wagon, the reaping machine of the scythe, the threshing machine of the flail;

• could he have heard the throb of the engines that in obedience to human will, and for the satisfaction of human desire, exert a power greater than that of all the men and all the beasts of burden of the earth combined;
• could he have seen the forest tree transformed into finished lumber — into doors, sashes, blinds, boxes or barrels, with hardly the touch of a human hand; the great workshops where boots and shoes are turned out by the case with less labor than the old-fashioned cobbler could have put on a sole; the factories where, under the eye of a girl, cotton becomes cloth faster than hundreds of stalwart weavers could have turned it out with their hand-looms;
• could he have seen steam hammers shaping mammoth shafts and mighty anchors, and delicate machinery making tiny watches; the diamond drill cutting through the heart of the rocks, and coal oil sparing the whale;
• could he have realized the enormous saving of labor resulting from improved facilities of exchange and communication — sheep killed in Australia eaten fresh in England and the order given by the London banker in the afternoon executed in San Francisco in the morning of the same day;
• could he have conceived of the hundred thousand improvements which these only suggest, what would he have inferred as to the social condition of mankind?

It would not have seemed like an inference; further than the vision went it would have seemed as though he saw; and his heart would have leaped and his nerves would have thrilled, as one who from a height beholds just ahead of the thirst-stricken caravan the living gleam of rustling woods and the glint of laughing waters. Plainly, in the sight of the imagination, he would have beheld these new forces elevating society from its very foundations, lifting the very poorest above the possibility of want, exempting the very lowest from anxiety for the material needs of life; he would have seen these slaves of the lamp of knowledge taking on themselves the traditional curse, these muscles of iron and sinews of steel making the poorest laborer's life a holiday, in which every high quality and noble impulse could have scope to grow.

And out of these bounteous material conditions he would have seen arising, as necessary sequences, moral conditions realizing the golden age of which mankind always dreamed.

• Youth no longer stunted and starved;
• age no longer harried by avarice;
• the child at play with the tiger;
• the man with the muck-rake drinking in the glory of the stars!
• Foul things fled, fierce things tame;
• discord turned to harmony!

For how could there be greed where all had enough? How could the vice, the crime, the ignorance, the brutality, that spring from poverty and the fear of poverty, exist where poverty had vanished? Who should crouch where all were freemen; who oppress where all were peers? ... read the whole chapter of Significant Paragraphs

Henry George: The Increasing Importance of Social Questions (Chapter 1 of Social Problems, 1883)

[17] A civilization which tends to concentrate wealth and power in the hands of a fortunate few, and to make of others mere human machines, must inevitably evolve anarchy and bring destruction. But a civilization is possible in which the poorest could have all the comforts and conveniences now enjoyed by the rich; in which prisons and almshouses would be needless, and charitable societies unthought of. Such a civilization waits only for the social intelligence that will adapt means to ends. Powers that might give plenty to all are already in our hands. Though there is poverty and want, there is, yet, seeming embarrassment from the very excess of wealth-producing forces. "Give us but a market," say manufacturers, "and we will supply goods without end!" "Give us but work!" cry idle men.

[18] The evils that begin to appear spring from the fact that the application of intelligence to social affairs has not kept pace with the application of intelligence to individual needs and material ends. Natural science strides forward, but political science lags. With all our progress in the arts which produce wealth, we have made no progress in securing its equitable distribution. Knowledge has vastly increased; industry and commerce have been revolutionized; but whether free trade or protection is best for a nation we are not yet agreed. We have brought machinery to a pitch of perfection that, fifty years ago, could not have been imagined; but, in the presence of political corruption, we seem as helpless as idiots. The East River bridge is a crowning triumph of mechanical skill; but to get it built a leading citizen of Brooklyn had to carry to New York sixty thousand dollars in a carpet bag to bribe New York aldermen. The human soul that thought out the great bridge is prisoned in a crazed and broken body that lies bedfast, and could watch it grow only by peering through a telescope. Nevertheless, the weight of the immense mass is estimated and adjusted for every inch. But the skill of the engineer could not prevent condemned wire being smuggled into the cable.

[19] The progress of civilization requires that more and more intelligence be devoted to social affairs, and this not the intelligence of the few, but that of the many. We cannot safely leave politics to politicians, or political economy to college professors. The people themselves must think, because the people alone can act.

[20] In a "journal of civilization" a professed teacher declares the saving word for society to be that each shall mind his own business. This is the gospel of selfishness, soothing as soft flutes to those who, having fared well themselves, think everybody should be satisfied. But the salvation of society, the hope for the free, full development of humanity, is in the gospel of brotherhood — the gospel of Christ. Social progress makes the well-being of all more and more the business of each; it binds all closer and closer together in bonds from which none can escape. He who observes the law and the proprieties, and cares for his family, yet takes no interest in the general weal, and gives no thought to those who are trodden under foot, save now and then to bestow aims, is not a true Christian. Nor is he a good citizen. The duty of the citizen is more and harder than this.

[21] The intelligence required for the solving of social problems is not a thing of the mere intellect. It must be animated with the religious sentiment and warm with sympathy for human suffering. It must stretch out beyond self-interest, whether it be the self-interest of the few or of the many. It must seek justice. For at the bottom of every social problem we will find a social wrong. ... read the entire essay

Henry George: Political Dangers (Chapter 2 of Social Problems, 1883)

[04] It is difficult for any one to turn from the history of the past to think of the incomparable greatness promised by the rapid growth of the United States without something of awe — something of that feeling which induced Amasis of Egypt to dissolve his alliance with the successful Polycrates, because "the gods do not permit to mortals such prosperity." Of this, at least, we may be certain: the rapidity of our development brings dangers that can be guarded against only by alert intelligence and earnest patriotism. ... read the entire essay

Henry George: The Condition of Labor — An Open Letter to Pope Leo XIII in response to Rerum Novarum (1891)

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.) ...

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! ... read the whole letter

Ted Gwartney:  Estimating Land Values

Studies have been produced that demonstrate that communities prosper and succeed in proportion to the percentage of the land rent that they collect. The first communities that decide to collect all of the ground rent will have an enormous competitive advantage over all other communities. They will be able to reduce or eliminate regressive taxes on labor and capital. They will attract new business and industry and become prosperous.

To determine how much land rent the community should collect let's consider the alternatives. Whatever is not collected will be capitalized into market value by land owners. Buying land at inflated market prices is a block to new industry. Land owners sell the capitalized land rent (known as land value) which is uncollected by the community even though it is unearned income. This causes a disparity between landowners and non-landowners. In the United States 5% of the population, which does not include many homeowners or farmers, own 70% of the total national land and natural resource values.

People will come to a well run community because they will be better off than living by themselves or in an impoverished locale. A city must secure revenue in order to provide good quality services.

This revenue can best be procured when the community recaptures the value of the benefits and services that it provides. This is done by collecting the rental revenue from land that reflects the value of the services and facilities provided in that community. The land rent belongs equally to all people that live in the locale who helped to produce that value. In a well run community. there is sufficient land rent to provide adequate funding for the social purposes requested of, and provided by, the local city government.

Cities which choose to collect land rent as their primary source of revenue have the advantage of not requiring burdensome taxes to be paid by workers, businesspeople, entrepreneurs or citizens. Individuals who work to create wealth should be allowed to keep what they produce. When labor is not taxed, greater production and consumption occurs. Investment capital is formed which is used to produce more wealth. New jobs are created and economic diversity results.

Each person has a right to keep what he or she produces, but no one has the right to waste what belongs to all people, the land which includes the natural environment. Each person should have an opportunity to use the best land for his business or personal needs, as long as they are willing to pay the land rent that other land users are willing to pay.

If the value of land rent exceeds the community's needs for public services a method of dispensing of the surplus revenue can easily be found. To maintain an equitable society, where nobody has special benefits that they do not pay for, it is important to collect all of the land rent. The community should use what is needed for public services and improvements such as schools, hospitals, parks, police, roadways, utilities and defense -- and reserve a fund for emergencies.

An ethical proposal might be to then divide the excess revenue that is not needed for public facilities and services at the end of each year and send each citizen in that community an equal portion of the remaining revenue. This is similar to the method used in Alaska and Alberta. Equality of opportunity to be productive can only be accomplished by recapturing all of the market rent of land and ensuring that all people benefit from its value.

Not only is land rent potentially an important source of public revenue, collecting all of it would ensure that the equal opportunity to be productive would be available to all citizens. People could fund useful buildings, equipment and wages, rather than having to buy land at inflated prices. Many countries, including the United States, were started on the premise of using land rent to fund public services. Many countries suffer economic loss because they no longer collect the market rent of land.

Mason Gaffney: Interview: Is There a Conspiracy in the Teaching of Economics and History within the American Education System?

TPR - Explain exactly what would happen if America began shifting taxes off of everything else and onto land value.

MG - Exactly? The effects are too great, too pervasive to predict exactly.

• It would unleash massive forces of production, exchange, capital formation, and building, forces now trapped and frustrated in the coils of our complex, counterproductive tax mess.
• It would enhance the supply of goods and services while simultaneously lowering taxes on the poor and the workers, thus reconciling the needs of both efficiency and equity, in one stroke.
• It would raise taxes on the richest Americans, and alien landowners, too, without diluting in the least their incentives to work, to create capital, or to hire workers: it would actually fortify those incentives.
• It would spring people loose to renew large parts of our older cities, and rehab what they do not re place.
• It would let local school districts support education at much higher levels than now, without fear of driving away business.
• It would satisfy the demand for housing on land that Nature suited for housing, without invading flood plains, steep slopes, remote deserts, and other places that cost society dearly to serve and rescue.
• It would raise the demand for labor, taking people off welfare and keeping them out of jails.

Alanna Hartzok:Ethical Land Tenure