Millions of Americans work full-time year-round at
jobs that don't provide enough to support themselves much
less a family. Millions of parents of young children are
both employed full-time outside the home at wages that
barely cover the costs of child care. Thousands of
childcare workers aren't paid enough to live decently or
further their own educations.
Is there a way out of this? Henry George saw one. He
describes where all the money is going, and prescribes
the remedy for this. His remedy will create jobs, improve
wages, reduce the concentrations of wealth and income,
and lower the barriers to entry for those who dream of
opening their own businesses.
Henry George:
The Crime of Poverty (1885 speech)
Did you ever think of the utter absurdity and
strangeness of the fact that, all over the civilised
world, the working classes are the poor classes? Go into
any city in the world, and get into a cab and ask the man
to drive you where the working people live. He won't take
you to where the fine houses are. He will take you, on
the contrary, into the squalid quarters, the poorer
quarters. Did you ever think how curious that is? Think
for a moment how it would strike a rational being who had
never been on the earth before, if such an intelligence
could come down, and you were to explain to him how we
live on earth, how houses and food and clothing, and all
the many things we need were all produced by work, would
he not think that the working people would be the people
who lived in the finest houses and had most of everything
that work produces? Yet, whether you took him to London
or Paris or New York, or even to Burlington, he would
find that those called the working people were the people
who live in the poorest houses.
All this is strange — just think of it. We
naturally despise poverty; and it is reasonable that we
should. I do not say — I distinctly repudiate it
— that the people who are poor are poor always from
their own fault, or even in most cases; but it ought to
be so. If any good man or woman could
create a world, it would be a sort of a world in which no
one would be poor unless he was lazy or vicious. But that
is just precisely the kind of a world this is; that is
just precisely the kind of a world the Creator has
made. Nature gives to labour, and to labour alone;
there must be human work before any article of wealth can
be produced; and in the natural state of things the man
who toiled honestly and well would be the rich man, and
he who did not work would be poor. We have so reversed
the order of nature that we are accustomed to think of
the workingman as a poor man. ...
read the whole
speech
Henry George: The
Crime of Poverty (1885 speech)
... Nature gives to labour, and to
labour alone; there must be human work before any article
of wealth can be produced; and in the natural state of
things the man who toiled honestly and well would be the
rich man, and he who did not work would be poor. We have
so reversed the order of nature that we are accustomed to
think of the workingman as a poor man.
And if you trace it out I believe you
will see that the primary cause of this is that we compel
those who work to pay others for permission to do so. You
may buy a coat, a horse, a house; there you are paying the
seller for labour exerted, for something that he has
produced, or that he has got from the man who did produce
it; but when you pay a man for land, what are you paying
him for? You are paying for something that no man has
produced; you pay him for something that was here before
man was, or for a value that was created, not by him
individually, but by the community of which you are a part.
What is the reason that the land here,
where we stand tonight, is worth more than it was
twenty-five years ago? What is the reason that land in the
centre of New York, that once could be bought by the mile
for a jug of whiskey, is now worth so much that, though you
were to cover it with gold, you would not have its value?
Is it not because of the increase of population?
Take away that population, and where would the value of the
land be? Look at it in any way you please.
...
Now, supposing we should abolish all
other taxes direct and indirect, substituting for them a
tax upon land values, what would be the effect?
- In the first place it would be to kill
speculative values. It would be to remove from the newer
parts of the country the bulk of the taxation and put it
on the richer parts. It would be to exempt the pioneer
from taxation and make the larger cities pay more of it.
It would be to relieve energy and enterprise, capital and
labour, from all those burdens that now bear upon them.
What a start that would give to
production!
- In the second place we could, from the value
of the land, not merely pay all the present expenses of
the government, but we could do infinitely more.
In the city of San Francisco James Lick
left a few blocks of ground to be used for public
purposes there, and the rent amounts to
so much, that out of it will be built the largest
telescope in the world, large public baths and other
public buildings, and various costly works. If,
instead of these few blocks, the whole value of the land
upon which the city is built had accrued to San Francisco
what could she not do? ... read the
whole speech
Henry George: Thou
Shalt Not Steal (1887 speech)
Natural religion and revealed religion alike tell
us that God is no respecter of persons; that He did not
make this planet for a few individuals; that He did not
give it to one generation in preference to other
generations, but that He made it for the use during their
lives of all the people that His providence brings into
the world. If this be true, the child that is born
tonight in the humblest tenement in the most squalid
quarter of New York, comes into life seized with as good
a title to the land of this city as any Astor or
Rhinelander.
How do we know that the Almighty is against
poverty? That it is not in accordance with His decree
that poverty exists? We know it because we know this,
that the Almighty has declared: "Thou shalt not steal."
And we know for a truth that the poverty that exists
today in the midst of abounding wealth is the result of a
system that legalizes theft.
The women who by the thousands are bending over
their needles or sewing machines, thirteen, fourteen,
sixteen hours a day; these widows straining and striving
to bring up the little ones deprived of their natural
breadwinner; the children that are growing up in squalor
and wretchedness, underclothed, underfed, undereducated,
even in this city, without any place to play —
growing up under conditions in which only a miracle can
keep them pure — under conditions which condemn
them in advance to the penitentiary or the brothel
— they suffer, they die, because we permit them to
be robbed, robbed of their birthright, robbed by a system
which disinherits the vast majority of the children that
come into the world.
There is enough and to spare for them. Had they
the equal rights in the estate which their Creator has
given them, there would be no young girls forced to
unwomanly toil to eke out a mere existence; no widows
finding it such a bitter, bitter struggle to put bread
into the mouths of their little children; no such misery
and squalor as we may see here in the greatest of
American cities; misery and squalor that are deepest in
the largest and richest centers of our civilization
today.
These things are the results of legalized theft,
the fruit of a denial of that commandment that says:
"Thou shalt not steal." How is this great commandment
interpreted today, even by men who preach the Gospel?
"Thou shalt not steal." Well, according to some of them,
it means: "Thou shalt not get into the penitentiary." Not
much more than that with some. You may steal, provided
you steal enough, and you do not get caught. Do not steal
a few dollars — that may be dangerous, but if you
steal millions and get away with it, you become one of
our first citizens. ... read the whole
speech
Clarence Darrow: How to Abolish Unfair
Taxation (1913)
Everybody nowadays is anxious to help do something for
the poor, especially they who are on the backs of the
poor; they will do anything that is not fundamental.
Nobody ever dreams of giving the poor a chance to help
themselves. The reformers in this state have passed a law
prohibiting women from working more than eight hours in
one day in certain industries — so much do women
love to work that they must be stopped by law. If any
benevolent heathen see fit to come here and do work, we
send them to gaol or send them back where they came
from.
All these prohibitory laws are froth. You can only
cure effects by curing the cause. Every sin and every
wrong that exists in the world is the product of law, and
you cannot cure it without curing the cause. Lawyers, as
a class, are very stupid. What would you think of a
doctor, who, finding a case of malaria, instead of
draining the swamp, would send the patient to gaol, and
leave the swamp where it is? We are seeking to improve
conditions of life by improving symptoms.
Land Basic
No man created the earth, but to a large extent all
take from the earth a portion of it and mould it into
useful things for the use of man. Without land man cannot
live; without access to it man cannot labor. First of
all, he must have the earth, and this he cannot have
access to until the single tax is applied. It has been
proven by the history of the human race that the single
tax does work, and that it will work as its advocates
claim. For instance, man turned from Europe, filled with
a population of the poor, and discovered the great
continent of America. Here, when he could not get
profitable employment, he went on the free land and
worked for himself, and in those early days there were no
problems of poverty, no wonderfully rich and no extremely
poor — because there was cheap land. Men could go
to work for themselves, and thus take the surplus off the
labor market. There were no beggars in the early days. It
was only when the landlord got in his work — when
the earth monopoly was complete — that the great
mass of men had to look to a boss for a job.
All the remedial laws on earth can scarcely help the
poor when the earth is monopolized. Men must live from
the earth, they must till the soil, dig the coal and iron
and cut down the forest. Wise men know it, and cunning
men know it, and so a few have reached out their hands
and grasped the earth; and they say, "These mines of coal
and iron, which it took nature ages and ages to store,
belong to me; and no man can touch them until he sees fit
to pay the tribute I demand." ...
Fundamentally, all law recognizes the right to eminent
domain, to take the portion of any human being for the
welfare of the public — that no man's claim to any
portion of the earth shall stand in the way of the common
good. This is a common law, but in practice it only
applies where a rich railroad wants to get the land of
some poor widow.
Everybody who works is poor; nobody would work if they
were not poor, and nobody can get rich working. I never
tried it, but I have seen others try it. The land boomer
comes along and gets good car service to this poor man's
home, and then charges him ten dollars per month instead
of five. A lot of reformers are trying to get parks laid
out in the slums, which only make the poor move, for they
cannot pay the increased rent. The greater the
population, the less the worker gets. As the land becomes
valuable, more and more goes to rent. The bigger the
city, the deeper the poverty; the bigger the city the
more degradation, there are the almshouses and gaols
filled to overflowing. It is better for the men who own
the earth to have big cities — but for no one else.
Every man, woman, and child adds to the wealth of the
land owner; the others must secure land upon which to
live, and they must bid with each other for the right to
live. ... read the whole
speech
Walter Rybeck: What
Affordable Housing Problem?
Like all creatures -- goldfinches, squirrels,
butterflies, cicadas -- we humans are squatters on this
planet. We all need a part of earth for shelter,
nourishment, a work site and a place to raise the next
generation. Otherwise we perish. ...
In the 1980s, Washington, D.C., was concerned
about its growing army of homeless. At that time I found
there were 8,000 boarded-up dwelling units in our
Nation's Capital -- more than enough to accommodate some
5,000 street people. I also found there were 11,500
privately owned vacant lots in the District of Columbia,
mostly zoned for and suitable for homes or apartments.
Decent housing on these sites held in cold storage would
have provided an alternative for the many low-income
families squatting in places that were overcrowded,
overpriced, overrun with vermin and overloaded with
safety hazards.
These issues spurred my research described in a
1988 report, "Affordable Housing -- A
Missing Link." Evidence from the Census Bureau,
Bureau of Labor Statistics and other sources over a
30-year period revealed the following average cost
increases of items that go into the building and
maintenance of housing:
- Wages of general building construction workers
rose 14 percent a year.
- Wages of special trade construction workers
rose 11 percent a year.
- Construction material costs rose 11.5 percent
a year.
- Combined wage-materials-managerial costs for
residential building rose 12.5 percent a
year.
- Fuel and utility costs for housing rose 13.8
percent a year. All of these costs closely tracked the
Consumer Price Index which, over these same 30 years,
rose by 12 percent a year. According to those figures,
housing prices and housing rents apparently were held in
check
Why do those statistics not seem to jibe with what
you have been told, seen with your own eyes, and felt in
your own pocketbooks?
- How to explain that, during the last decade of
my research period, U.S. households with serious housing
problems increased from 19 to 24 millions?
- What caused the portion of renters paying more
than 35 percent of their income for housing doubled from
21 to 41 percent during the last two decades of the study
period?
- Why were over 2.4 million renters paying 60
percent or more of their income for rent?
The answers would be obvious except that, so far,
I have not mentioned what happened to the price of the
land that housing sits on. Many of those who talk and
write about housing conveniently overlook the fact that
housing does not exist in mid air but is attached to the
land, and that the price of this land has gone through
the stratosphere.
In contrast to those 11- to
14-percent annual increases in housing-related costs,
residential land values nationwide rose almost 80 percent
a year, or almost 2000 percent over those three
decades. ...
A close friend in Bethesda bought a house and lot
there 40 years ago for $20,000. Two months ago he sold
the property for a cool half million. That 2400 percent
increase was entirely land value. The buyer immediately
demolished the house to put up a larger one, so he
clearly paid half a million for the location value -- the
land value -- alone.
Officials, civic leaders and commentators who
bemoan the lack of affordable housing nevertheless
applaud each rise in real estate values as a sign of
prosperity. Seeing their own assets multiply through no
effort of their own apparently makes them forget the
teachers, firemen, police and low-income people who are
boxed out of a place to squat in their cities and
neighborhoods. ...
Many of our Founding Fathers,
George Washington included, had amassed huge estates. But
the property tax induced them to sell off excess lands
they were not using. ...
One of the many virtues of a tax
on land values is that it can be introduced gradually.
Cities that take this incremental approach report that
homeowners-voters-taxpayers hardly notice the
change. What's important in
modernizing your taxation is not the speed of change but
the direction you choose. If you keep the present
tax system with its disincentives for compact and
wholesome growth, you will experience the treadmill
effect that has been so familiar in so-called urban and
housing "solutions." You will have to keep running faster
and faster with patchwork remedies to keep from sliding
backward.
A caution. Revising taxes as
proposed here will not end the need for housing
subsidies, at least not in the short run, but it will do
three things that should greatly reduce
subsidies.
- One, by deflating land costs it will enable
the private market to offer homes and sites at lower
costs.
- Two, this will shrink the number of families
needing subsidies.
- Three, it will stretch subsidy dollars farther
because sites for publicly assisted housing can be
acquired far more cheaply.
In Conclusion, I have tried to show that
America has a housing land problem, not
an affordable housing problem. This problem can be
substantially alleviated by freeing the market of
anti-enterprise taxes and by turning the
property tax right side up -- that is, by dropping tax
rates on housing and by raising them on publicly-created
land values. Read the whole
article
Gems from George, a
themed collection of excerpts from the writings of Henry
George (with links to sources)
FIVE centuries ago the wealth-producing power of
England, man for man, was small indeed compared with what
it is now. Not merely were all the great inventions and
discoveries which since the Introduction of steam have
revolutionized mechanical industry then undreamed of, but
even agriculture was far ruder and less productive.
Artificial grasses had not been discovered. The potato,
the carrot, the turnip, the beet, and many other plants
and vegetables which the farmer now finds most prolific,
had not been introduced. The advantages which ensue from
rotation of crops were unknown. Agricultural implements
consisted of the spade, the sickle, the flail, the rude
plow and the harrow. Cattle had not been bred to more
than one-half the size they average now, and sheep did
not yield half the fleece. Roads, where there were roads,
were extremely bad, wheel vehicles scarce and rude, and
places a hundred miles from each other were, in
difficulties of transportation, practically as far apart
as London and Hong Kong, or San Francisco and New York,
are now.
Yet patient students of those times tell us that the
condition of the English laborer was not only relatively,
but absolutely better in those rude times than it is in
England today, after five centuries of advance in the
productive arts. They tell us that the workingman did not
work so hard as he does now, and lived better; that he
was exempt from the harassing dread of being forced by
loss of employment to want and beggary, or of leaving a
family that must apply to charity to avoid I starvation.
Pauperism as it prevails in the rich England of the
nineteenth century was in the far poorer England of the
fourteenth century absolutely unknown. Medicine was
empirical and superstitious, sanitary regulations and
precautions were all but unknown. There were frequently
plague and occasionally famine, for, owing to the
difficulties of transportation, the scarcity of one
district could not "be relieved by the plenty of another.
But men did not as they do now, starve in the midst of
abundance; and what is perhaps the most significant fact
of all is that not only were women and children not
worked as they are today, but the eight-hour system,
which even the working classes of the United States, with
all the profusion of labor-saving machinery and
appliances have not yet attained, was then the common
system! — Protection or Free Trade —
Chapter 22: The Real Weakness of Free Trade.
THE aggregate produce of the labor of a savage tribe
is small, but each member is capable of an independent
life. He can build his own habitation, hew out or stitch
together his own canoe, make his own clothing,
manufacture his own weapons, snares, tools and ornaments.
He has all the knowledge of nature possessed by his tribe
— knows what vegetable productions are fit for
food, and where they maybe found; knows the habits and
resorts of beasts, birds, fishes and insects; can pilot
himself by the sun or the stars, by the turning of
blossoms or the mosses on the trees; is, in short,
capable of supplying all his wants. He may be cut off
from his fellows and still live; and thus possesses an
independent power which makes him a free contracting
party in his relations to the community of which he is a
member.
Compare with this savage the laborer in the lowest
ranks of civilized society, whose life is spent in
producing but one thing, or oftener but the infinitesimal
part of one thing, out of the multiplicity of things that
constitute the wealth of society and go to supply even
the most primitive wants; who not only cannot make even
the tools required for his work, but often works with
tools that he does not own, and can never hope to own.
Compelled to even closer and more continuous labor than
the savage, and gaining by it no more than the savage
gets — the mere necessaries of life — he
loses the independence of the savage. He is not only
unable to apply his own powers to the direct satisfaction
of his own wants, but, without the concurrence of many
others, he is unable to apply them indirectly to the
satisfaction of his wants. He is a mere link in an
enormous chain of producers and consumers, helpless to
separate himself, and helpless to move, except as they
move. The worse his position in society, the more
dependent is he on society; the more utterly unable does
he become to do anything for himself. The very power of
exerting his labor for the satisfaction of his wants
passes from his own control, and may be taken away or
restored by the actions of others, or by general causes
over which he has no more influence than he has over the
motions of the solar system. The primeval curse comes to
be looked upon as a boon, and men think, and talk, and
clamor, and legislate as though monotonous manual labor
in itself were a good and not an evil, an end and not a
means. Under such circumstances, the man loses the
essential quality of manhood — the godlike power of
modifying and controlling conditions. He becomes a slave,
a machine, a commodity — a thing, in some respects,
lower than the animal.
I am no sentimental admirer of the savage state. I do
not get my ideas of the untutored children of nature from
Rousseau, or Chateaubriand, or Cooper. I am conscious of
its material and mental poverty, and its low and narrow
range. I believe that civilization is not only the
natural destiny of man, but the enfranchisement,
elevation, and refinement of all his powers, and think
that it is only in such moods as may lead him to envy the
cud-chewing cattle, that a man who is free to the
advantages of civilization could look with regret upon
the savage state. But, nevertheless, I think no one who
will open his eyes to the facts, can resist the
conclusion that there are in the heart of our
civilization large classes with whom the veriest savage
could not afford to exchange. It is my deliberate opinion
that if, standing on the threshold of being, one were
given the choice of entering life as a Terra del Fuegan,
a black fellow of Australia, an Esquimaux in the Arctic
Circle, or among the lowest classes in such a highly
civilized country as Great Britain, he would make
infinitely the better choice in selecting the lot of the
savage. For those classes who in the midst of wealth are
condemned to want, suffer all the privations of the
savage, without his sense of personal freedom; they are
condemned to more than his narrowness and littleness,
without opportunity for the growth of his rude virtues;
if their horizon is wider, it is but to reveal blessings
that they cannot enjoy. — Progress & Poverty
— Book V, Chapter 2: The Problem Solved: The
Persistence of Poverty Amid Advancing Wealth
"THE poor ye have always with you." If ever a
scripture has been wrested to the devil's service, this
is that scripture. How often have these words been
distorted from their obvious meaning to soothe conscience
into acquiescence in human misery and degradation —
to bolster that blasphemy, the very negation and denial
of Christ's teachings, that the All Wise and Most
Merciful, the Infinite Father, has decreed that so many
of His creatures must be poor in order that others of His
creatures to whom He wills the good things of life should
enjoy the please and virtue of doling out alms! "The poor
ye have always with you," said Christ; but all His
teachings supply the limitation, "until the coming of the
Kingdom." In that kingdom of God on earth, that kingdom
of justice and love for which He taught His followers to
strive and pray, there will be no poor. — Social
Problems — Chapter 8: That We All Might Be
Rich.
WE naturally despise poverty; and it is reasonable
that we should. I do not say — I distinctly
repudiate it — that the people who are poor are
poor always from their own fault, or even in most cases;
but it ought to be so. If any good man or woman had the
power to create a world, it would be a sort of a world in
which no one would be poor unless he was lazy or vicious.
But that is just precisely the kind of a world that this
is; that is just precisely, the kind of a world that the
Creator has made. Nature gives to labor, and to labor
alone; there must be human work before any article of
wealth can be produced; and, in a natural state of
things, the man who toiled honestly and well would be the
rich man, and he who did not work would be poor. We have
so reversed the order of nature, that we are accustomed
to think of a working-man as a poor man. — The
Crime of Poverty
... go to "Gems from
George"
Kris Feder: Progress
and Poverty Today
As this book was written, the Industrial
Revolution was transforming America and Europe at a
breathless pace. In just a century, an economy that
worked on wind, water, and muscular effort had become
supercharged by steam, coal, and electricity. Canals,
railroads, steamships and the telegraph were linking
regional economies into a national and global network of
exchange. The United States had stretched from coast to
coast; the western frontier was evaporating.
American journalist and editor Henry
George marveled at the stunning advance of technology, yet
was alarmed by ominous trends. Why had not this
unprecedented increase in productivity banished want and
starvation from civilized countries, and lifted the working
classes from poverty to prosperity? Instead, George saw
that the division of labor, the widening of markets, and
rapid urbanization had increased the dependence of the
working poor upon forces beyond their control. The
working poor were always, of course, the most vulnerable in
depressions, and last to recover from them. Unemployment
and pauperism had appeared in America, and indeed, were
more prevalent in the developed East than in the aspiring
West. It was "as though a great wedge were being forced,
not underneath society, but through society. Those who are
above the point of separation are elevated, but those who
are below are crushed down." This, the "great enigma of our
times," was the problem George set out to solve in
Progress and
Poverty. Read the
whole article
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