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The Economics and Philosophy of Henry George 1839-1897:
Being Memorable Passages from his Writings and Addresses
FIFTH EDITION

Originally published in 1912 by A. C. Fifield, London, under the title Gems from Henry George.
Republished in 1930 by the Henry George Foundation of Great Britain; reprinted 1931.
New edition and title, Henry George on Economic Justice, produced by offset litho and published by Land & Liberty Press Ltd, 1949.
This edition, The Economics and Philosophy of Henry George, published 1980 by Land & Liberty Press Ltd.

Selected and Arranged by Arthur C. Auchmuty, with a Foreword by Fred Harrison.

LAND & LIBERTY PRESS LTD
177 VAUXHALL BRIDGE ROAD
WESTMINSTER, LONDON, S.W.1 1980

Fred Harrison's FOREWORD (1980)
 
THIS book contains the distilled wisdom of Henry George. The selection of extracts from George's books was compiled and arranged by the Rev. Arthur Compton Auchmuty, who until his death in 1917 was one of a small group of British country clergymen preaching the cause of radical land reform.

Why, a century after George's main writings were published — and, to judge by the wide sales, popularly received — should we still be interested in them? Why, when the popularity acquired by many philosophers is eclipsed by new fashions, are the works of this writer still published and carefully scrutinized?* The short answer is that the philosophy Henry George sought to promote is close to the hearts of most people: a philosophy which has at its heart the ideas of freedom, justice and truth.

*The American Economic Association, the professional and scientific organization of North American economists, devoted a session of its annual meeting at Atlanta, Georgia, on Dec. 30, 1979, to celebrate the centenary of the publication of Progress and Poverty, Henry George's most influential book.

These concepts, of course, are used to defend a wide range of ideologies, and the passages in this book will introduce the reader to the merits of Henry George's philosophy and his practical proposals for social and economic change.

Henry George did not enjoy a formal education above the rudimentary level. But he acquired multi-disciplinary skills, which he deployed ruthlessly to expose the deficiencies of industrial society. The single crucial structural defect, he discovered, was the monopolization of nature by a minority of citizens. He argued that social conflicts and economic instability were nurtured by this crippling defect that was present in a system which was technically capable of providing everybody with a rising standard of living.

Combining the skills of the economist, the politician and the journalist he documented the problems and defined the elements necessary for a program of corrective reforms.  No area of knowledge was neglected.  Using history and anthropology, he compared the lot of working men in modern society with the generally happier condition of people in pre-industrial societies.

  • The "primitive" Amerindian and the European peasant, he noted, worked shorter hours, were physically stronger and were of a happier demeanor: why?
  • Men were not genetically predisposed to crime, yet many of them were deviant and pursued anti-social behavior: why?
  • Men were rational beings, yet the majority were persuaded to adopt opinions and institutions contrary to their individual and collective interests: why?
  • While a few men acquired riches without themselves adding one iota to the wealth of nations, a growing number were condemned to eke out a bare subsistence in the meanest of conditions: why?

His answers were based largely on theoretical reasoning.  The vast accumulation of empirical knowledge on which today's social scientists can draw was not available to Henry George, yet he singlemindedly explored those contradictions which did not disturb most of the complacent thinkers of his time.  Thus, his perceptions are rich with analogies, sharpened by satire and meticulously recorded by paying due respect to the meaning of words (a method of advancing knowledge which is today associated with the Oxford school of linguistic philosophy).

For the student, the books of Henry George provide a wide range of hypotheses with which to grapple. Few of these insights into the working of society and its economy would fail to stand up to empirical testing. But this is not to say that his views are uncontroversial: one mark of a successful commentator and reformer is that he is able to challenge conventional wisdom. An example, which illuminates the contemporary relevance of George's writings, concerns the population question.

Henry George adopted an optimistic and anti-Malthusian position. If he were alive today he would seriously question the orthodox view that a principal way to cure poverty in the Third World was to increase the distribution of intrauterine devices and the pill. In his view, people were hungry not for procreative reasons (he saw each pair of hands as an exciting opportunity, not something to be feared for the burden allegedly placed on the carrying capacity of earth). The real problem, he argued, was that people were actively prevented from gaining access to the natural resources with which to provide themselves with their daily bread. Today, he would contend that, if we paid greater attention to appropriate land reforms, the characteristics which are identified as part of a demographic problem, such as malnutrition, would be solved.

History is on George's side. Apart from those periods of famine caused by drought, men in the past were able to order their cultural patterns to conform neatly with their ecological environment. Today, however, with all the developments of technology and science, poverty and hunger not only remain, but are frequently aggravated by these very developments.

The problems of contemporary society are multiplying in number and magnifying in scale to an extent which seems almost incomprehensible to the human mind. Yet solutions have to be found if we are to avoid ecological chaos and survive territorial conflicts. That is why the critique offered by Henry George is crucial. The power of his logic and his prose penetrate our complacency, compel us to confront uncomfortable facts.

  • If we want to be free, we cannot justify sectional privileges which circumscribe the rights of others.
  • If we want the economy to function smoothly, we cannot expect barriers to be put up in order to protect our limited interests.
  • If we want society to live in harmony with the ecological environment, we cannot claim the right to abuse nature for our private, short-term interests.

But how do we re-synthesize culture to produce the results which we all, in our rare moments of altruism, concede as desirable? How do we protect natural rights, such as individual liberty and free speech, while establishing a well-functioning political order? How do we achieve a distribution of income which reflects both equal opportunity and the individual contributions of men and women of varying talents and industry?

This volume provokes these questions. The book's primary purpose is to encourage readers to turn to the full texts. There, they will find the answers with which we must, sooner or later, come to terms if we are to begin the process of reconstructing society into a state which might be accorded the status of "civilization."

Editor, FRED HARRISON
Land & Liberty March 1980

SYNOPSIS OF CONTENTS

Progress and PovertyThe Savage and the Modern Workman Poverty UnnaturalNature Inexhaustible More Men, More Yield
Social Study "Wise" and "Babes"Economic Terms: Land, Labor, Capital, Value, Wealth, Wages, Rent How Society creates its Rent
Laws of Social Life The "Greater Leviathan" Civilization Production Distribution Cooperation Competition
Society an Organism "Socialism" • Functions of Government "Protection" • True Free Trade
Unemployed The Natural Right to Self-Employment The Earth for All What is Property? Ownership of Land, Ownership of Men
Robbery of Labor, and how to stop it Collect the Rent-Taxation "The Single Tax" "Rich" and "Poor" Compensation
Beneficent Effects of Single Tax Liberation of Higher Qualities The Law of Progressthe Moral Law The Office of Religion The Call of Liberty The Liberators The Glow of Dawn

These quotes are excerpted from the following sources:

Progress and Poverty (1879)
The (Irish) Land Question (1881)
Social Problems (1883)
The Reduction to Iniquity (a reply to the Duke of Argyll), The Nineteenth Century, July, 1884
Protection or Free Trade (1885)
The Condition of Labor, an Open Letter to Pope Leo XIII  (1891)
A Perplexed Philosopher (1892)
The Science of Political Economy, edited by Henry George, Jr. (1898), after Henry George's death
Speeches and Addresses, at various dates

SELECTIONS

COULD a man of a century ago* — 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?
* Written in 1877.

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 have 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? — Progress & Poverty — Introductory: The Problem

THIS fact — the great fact that poverty and all its concomitants show themselves in communities just as they develop into the conditions toward which material progress tends — proves that the social difficulties existing wherever a certain stage of progress has been reached, do not arise from local circumstances, but are, in some way or another, engendered by progress itself.

And, unpleasant as it may be to admit it, it is at last becoming evident that the enormous increase in productive power which has marked the present century1, and is still going on with accelerating ratio, has no tendency to extirpate poverty or to lighten the burdens of those compelled to toil. It simply widens the gulf between Dives and Lazarus, and makes the struggle for existence more intense. The march of invention has clothed mankind with powers of which a century ago the boldest imagination could not have dreamed. But in factories where labor-saving machinery has reached its most wonderful development, little children, are at work; wherever the new forces are anything like fully utilized, large classes are maintained by charity or live on the verge of recourse to it; amid the greatest accumulations of wealth, men die of starvation, and puny infants suckle dry breasts; while everywhere the greed of gain, the worship of wealth, shows the force of the fear of want. The promised land lies before us like the mirage. The fruits of the tree of knowledge turn as we grasp them to apples of Sodom that crumble at the touch.
1. Written in 1877.

It is true that wealth has been greatly increased, and that the average of comfort, leisure, and refinement has. been raised; but these gains are not general. In them the lowest class do not share. I do not mean that the condition of the lowest class has nowhere nor in anything been improved; but that there is nowhere any improvement which can be credited to increased productive power. I mean that the tendency of what we call material progress is in nowise to improve the condition of the lowest class in the essentials of healthy, happy human life. Nay, more, that it is to still further depress the condition of the lowest class. The new forces, elevating in their nature though they be, do not act upon the social fabric from underneath, as was for a long time hoped and believed, but strike it at a point intermediate between top and bottom. It is as though an immense 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. — Progress & Poverty — Introductory: The Problem

THREE thousand years of advance, and still the moan goes up, "They have made our lives bitter with hard bondage, in mortar and in brick, and in all manner of service!" Three thousand years of advance! and the piteous voices of little children are in the moan. We progress and we progress; we girdle continents with iron roads and knit cities together with the mesh of telegraph wires; each day brings some new invention; each year marks a fresh advance — the power of production increased, and the avenues of exchange cleared and broadened. Yet the complaint of "hard times" is louder and louder; everywhere are men harassed by care, and haunted by the fear of want. With swift, steady strides and prodigious leaps, the power of human hands to satisfy human wants advances and advances, is multiplied and multiplied. Yet the struggle for mere existence is more and more intense, and human labor is becoming the cheapest of commodities. Beside glutted warehouses human beings grow faint with hunger and shiver with cold; under the shadow of churches festers the vice that is born of wants. — Speech: Moses

IF it were possible to express in figures the direct pecuniary loss which society suffers from the social mal-adjustments which condemn large classes to poverty and vice, the estimate would be appalling. England maintains over a million paupers on official charity; the city of New York alone spends over seven million dollars a year in a similar way. But what is spent from public funds, what is spent by charitable societies, and what is spent in individual charity, would, if aggregated, be but the first and smallest item in the account. The potential earnings of the labor thus going to waste, the cost of the reckless, improvident and idle habits thus generated, the pecuniary loss (to consider nothing more) suggested by the appalling statistics of mortality, and especially infant mortality, among the poorer classes; the waste indicated by the gin palaces or low groggeries which increase as poverty deepens; the damage done by the vermin of society that are bred of poverty and destitution — the thieves, prostitutes, beggars, and tramps; the cost of guarding society against them, are all items in the sum which the present unjust and unequal distribution of wealth takes from the aggregate which, with present means of production, society might enjoy. — Progress & Poverty — Book IX, Chapter 2: Effects of the Remedy, upon distribution and thence on production

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. abridgedeconlib


The Savage and the Modern Workman

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


Poverty Unnatural

OR let him go to Edinburgh, the "modern Athens," of which Scotsmen speak with pride, and in  buildings from whose roofs a bowman might strike the spires of twenty churches he will find human beings living as he would not keep his meanest dog. Let him toil up the stairs of one of those monstrous buildings, let him enter one of those "dark houses," let him close the door, and in the blackness think what life must be in such a place. Then let him try the reduction to iniquity. And if he go to that good charity (but, alas! how futile is Charity without Justice!) where little children are kept while their mothers are at work, and children are fed who would otherwise go hungry, he may see infants whose limbs are shrunken from want of nourishment. Perhaps they may tell him, as they told me, of that little girl, barefooted, ragged, and hungry, who, when they gave her bread, raised her eyes and clasped her hands, and thanked our Father in Heaven for His bounty to her. They who told me that never dreamed, I think, of its terrible meaning. But I ask the Duke of Argyll, did that little child, thankful for that poor dole, get what our Father provided for her? Is He so niggard? If not, what is it, who is it, that stands, between such children and our Father's bounty? If it be an institution, is it not our duty to God and to our neighbor to rest not till we destroy it? If it be a man, were it not better for him that a millstone were hanged about his neck and he were cast into the depths of the sea? — The Reduction to Iniquity (a reply to the Duke of Argyll), The Nineteenth Century, July, 1884

WE are so accustomed to poverty that even in the most advanced countries we regard it as the natural lot of the great masses of the people; that we take it as a matter of course that even in our highest civilization large classes should want the necessaries of healthful life, and the vast majority should only get a poor and pinched living by the hardest toil.  There are professors of political economy who teach that this condition of things is the result of social laws of which it is idle to complain!  There are ministers of religion who preach that this is the condition which an all-wise, all-powerful Creator intended for His children! If an architect were to build a theater so that not more than one-tenth of the audience could see and hear, we should call him a bungler and a botcher. If a man were to give a feast and provide so little food that nine-tenths of his guests must go away hungry, we should call him a fool, or worse. Yet so accustomed are we to poverty, that even the preachers of what passes for Christianity tell us that the great Architect of the Universe, to whose infinite skill all nature testifies, has made such a botch job of this world that the vast majority of the human creatures whom He has called into it are condemned by the conditions he has imposed to want, suffering, and brutalizing toil that gives no opportunity for the development of mental powers — must pass their lives in a hard struggle to merely live! — Social Problems — Chapter 8: That We All Might Be Rich

Nature Inexhaustible
 
THAT man cannot exhaust or lessen the powers of nature follows from the indestructibility of matter and the persistence of force. Production and consumption are only relative terms. Speaking absolutely, man neither produces nor consumes. The whole human race, were they to labor to infinity, could not make this rolling sphere one atom heavier or one atom lighter, could not add to or diminish by one iota the sum of the forces whose everlasting circling produces all motion and sustains all life. As the water that we take from the ocean must again return to the ocean, so the food we take from the reservoirs of nature is, from the moment we take it, on its way back to those reservoirs. What we draw from a limited extent of land may temporarily reduce the productiveness of that land, because the return may be to other land, or may be divided between that land and other land, or perhaps, all land; but this possibility lessens with increasing area, and ceases when the whole globe is considered. — Progress & Poverty — Book II, Chapter 3: Population and Subsistence: Inferences from Analogy

LIFE does not use up the forces that maintain life. We come into the material universe bringing nothing; we take nothing away when we depart. The human being, physically considered, is but a transient form of matter, a changing mode of motion. The matter remains and the force persists. Nothing is lessened, nothing is weakened. And from this it follows that the limit to the population of the globe can only be the limit of space. — Progress & Poverty — Book II, Chapter 3: Population and Subsistence: Inferences from Analogy

More Men, More Yield 

DOES not the fact that all of the things which furnish man's subsistence have the power to multiply many fold — some of them many thousand fold, and some of them many million or even billion fold — while he is only doubling his numbers, show that, let human beings increase to the full extent of their reproductive power, the increase of population can never exceed subsistence? This is clear when it is remembered that though in the vegetable and animal kingdoms each species, by virtue of its reproductive power, naturally and necessarily presses against the conditions which limit its further increase, yet these conditions are nowhere fixed and final. No species reaches the ultimate limit of soil, water, air, and sunshine; but the actual limit of each is in the existence of other species, its rivals, its enemies, or its food. Thus the conditions which limit the existence of such of these species as afford him subsistence man can extend (in some cases his mere appearance will extend them), and thus the reproductive forces of the species which supply his wants, instead of wasting themselves against their former limit, start forward in his service at a pace which his powers of increase cannot rival. If he but shoot hawks, food-birds will increase: if he but trap foxes the wild rabbits will multiply; the bumble bee moves with the pioneer, and on the organic matter with which man's presence fills the rivers, fishes feed. — Progress & Poverty — Book II, Chapter 3: Population and Subsistence: Inferences from Analogy

IF bears instead of men had been shipped from Europe to the North American continent, there would now be no more bears than in the time of Columbus, and possibly fewer, for bear food would not have been increased nor the conditions of bear life extended, by the bear immigration, but probably the reverse. But within the limits of the United States alone, there are now forty-five millions of men where then there were only a few hundred thousand, and yet there is now within that territory much more food per capita for the forty-five millions than there was then for the few hundred thousand. It is not the increase of food that has caused this increase of men; but the increase of men that has brought about the increase of food. There is more food, simply because there are more Man. — Progress & Poverty — Book II, Chapter 3: Population and Subsistence: Inferences from Analogy

TWENTY men working together will, where nature is niggardly, produce more than twenty times the wealth that one man can produce where nature is most bountiful. The denser the population the more minute becomes the subdivision of labor, the greater the economies of production and distribution, and, hence, the very reverse of the Malthusian doctrine is true; and, within the limits in which we have any reason to suppose increase would still go on, in any given state of civilization a greater number of people can produce a larger proportionate amount of wealth and more fully supply their wants, than can a smaller number. — Progress & Poverty — Book II, Chapter 4: Population and Subsistence: Disproof of the Malthusian Theory

Social Study

I BELIEVE that in a really Christian community, in a society that honored, not with the lips but with the act, the doctrines of Jesus, no one would have occasion to worry about physical needs any more than do the lilies of the field. There is enough and to spare. The trouble is that, in this mad struggle, we trample in the mire what has been provided in sufficiency for us all; trample it in the mire while we tear and rend each other. — The Crime of Poverty

WHOSE fault is it that social conditions are such that men have to make that terrible choice between what conscience tells them is right, and the necessity of earning a living? I hold that it is the fault of society; that it is the fault of us all. Pestilence is a curse. The man who would bring cholera to this country, or the man who, having the power to prevent its coming here, would make no effort to do so, would be guilty of a crime. Poverty is worse than cholera; poverty kills more people than pestilence, even in the best of times. Look at the death statistics of our cities; see where the deaths come quickest; see where it is that the little children die like flies — it is in the poorer quarters. And the man who looks with careless eyes upon the ravages of this pestilence; the man who does not set himself to stay and eradicate it, he, I say, is guilty of a crime. — The Crime of Poverty

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 underfoot, save now and then to bestow alms, is not a true Christian. Nor is he a good citizen. — Social Problems — Chapter 1, the Increasing Importance of Social Questions

WE cannot safely leave politics to politicians, or political economy to college professors. The people themselves must think, because the people alone can act. — Social Problems — Chapter 1, the Increasing Importance of Social Questions

"Wise" and "Babes"

IT is as bad for a man to think that he can know nothing as to think he knows all. There are things which it is given to all possessing reason to know, if they will but use that reason. And some things it may be there are, that — as was said by one whom the learning of the time sneered at, and the high priests persecuted, and polite society, speaking through the voice of those who knew not what they did, crucified — are hidden from the wise and prudent and revealed unto babes. — A Perplexed Philosopher (Conclusion)

THAT thought on social questions is so confused and perplexed, that the aspirations of great bodies of men, deeply though vaguely conscious of injustice, are in all civilized countries being diverted to futile and dangerous remedies, is largely due to the fact that those who assume and are credited with superior knowledge of social and economic laws have devoted their powers, not to showing where the injustice lies but to hiding it; not to clearing common thought but to confusing it. — A Perplexed Philosopher (Conclusion)

POLITICAL economy is the simplest of the sciences. It is but the intellectual recognition, as related to social life, of laws which in their moral aspect men instinctively recognize, and which are embodied in the simple teachings of him whom the common people heard gladly. But, like Christianity, political economy has been warped by institutions which, denying the equality and brotherhood of man, have enlisted authority, silenced objection, and ingrained themselves in custom and habit of thought. — Protection or Free Trade, Chapter 1 econlib

Power of Thought

THE power of a special interest, though inimical to the general interest, so to influence common thought as to make fallacies pass as truths, is a great fact, without which neither the political history of our own time and people, nor that of other times and peoples, can be understood. A comparatively small number of individuals brought into virtual though not necessarily formal agreement of thought and action by something that makes them individually wealthy without adding to the general wealth, may exert an influence out of all proportion to their numbers. A special interest of this kind is, to the general interests of society, as a standing army is to an unorganized mob. It gains intensity and energy in its specialization, and in the wealth it takes from the general stock finds power to mold opinion. Leisure and culture and the circumstances and conditions that command respect accompany wealth, and intellectual ability is attracted by it. On the other hand, those who suffer from the injustice that takes from the many to enrich the few, are in that very thing deprived of the leisure to think, and the opportunities, education, and graces necessary to give their thought acceptable expression. They are necessarily the "unlettered," the "ignorant," the "vulgar," prone in their consciousness of weakness to look up for leadership and guidance to those who have the advantages that the possession of wealth can give. — The Science of Political Economy — Book II, Chapter 2, The Nature of Wealth: Causes of Confusion as to the Meaning of Wealth unabridgedabridged

WE may be wise to distrust our knowledge; and, unless we have tested them, to distrust what we may call our reasonings; but never to distrust reason itself. . . . That the powers with which the human reason must work are limited and are subject to faults and failures, our reason itself teaches us as soon as it begins to examine what we find around us and to endeavor to look in upon our own consciousness. But human reason is the only reason that men can have, and to assume that in so far as it can see clearly it does not see truly, is in the man who does it not only to assume the possession of a superior to human reason, but it is to deny the validity of all thought and to reduce the mental world to chaos. — The Science of Political Economy — Book III, Chapter 5, The Production of Wealth: Of Space and Time (unabridged)

SOCIAL reform is not to be secured by noise and shouting; by complaints and denunciation; by the formation of parties, or the making of revolutions; but by the awakening of thought and the progress of ideas. Until there be correct thought, there cannot be right action; and when there is correct thought, right action will follow. Power is always in the hands of the masses of men. What oppresses the masses is their own ignorance, their own short-sighted selfishness. — Social Problems — Chapter 22: Conclusion

LET no one imagine that he has no influence. Whoever he may be, and wherever he may be placed, the man who thinks becomes a light and a power. — Social Problems — Chapter 22: Conclusion


— of Women as of Men

I AM convinced that we make a great mistake in depriving one sex of voice in public matters, and that we could in no way so increase the attention, the intelligence and the devotion which may be brought to the solution of social problems as by enfranchising our women. Even if in a ruder state of society the intelligence of one sex suffices for the management of common interests, the vastly more intricate, more delicate and more important questions which the progress of civilization makes of public moment, require the intelligence of women as of men, and that we never can obtain until we interest them in public affairs. And I have come to believe that very much of the inattention, the flippancy, the want of conscience, which we see manifested in regard to public matters of the greatest moment, arises from the fact that we debar our women from taking their proper part in these matters. Nothing will fully interest men unless it also interests women. There are those who say that women are less intelligent than men; but who will say that they are less influential? — Social Problems — Chapter 22: Conclusion

THE power to reason correctly on general subjects is not to be learned in schools, nor does it come with special knowledge. It results from care in separating, from caution in combining, from the habit of asking ourselves the meaning of the words we use and making sure of one step before building another on it — and above all, from loyalty to truth. — A Perplexed Philosopher (Introduction: The Reason for this Examination)

Economic Terms: Land

THE term Land in political economy means the natural or passive element in production, and includes the whole external world accessible to man, with all its powers, qualities, and products, except perhaps those portions of it which are for the time included in man's body or in his products, and which therefore temporarily belong to the categories, man and wealth, passing again in their reabsorption by nature into the category, land. — The Science of Political Economy — unabridged: Book III, Chapter 14: The Production of Wealth, Order of the Three Factors of Production abridged: Part III, Chapter 10: Order of the Three Factors of Production

THAT land is only a passive factor in production must be carefully kept in mind. . . . Land cannot act, it can only be acted upon. . . . Nor is this principle changed or avoided when we use the word land as expressive of the people who own land. . . .

That the persons whom we call landowners may contribute their labor or their capital to production is of course true, but that they should contribute to production as landowners, and by virtue of that ownership, is as ridiculously impossible as that the belief of a lunatic in his ownership of the moon should be the cause of her brilliancy. — The Science of Political Economy unabridged: Book III, Chapter 15, The Production of Wealth: The First Factor of Production — Landabridged: Part III, Chapter 10: Order of the Three Factors of Production

I AM writing these pages on the shore of Long Island, where the Bay of New York contracts to what is called the Narrows, nearly opposite the point where our legalized robbers, the Custom-House officers, board incoming steamers to ask strangers to take their first American swear, and where, if false oaths really colored the atmosphere the air would be bluer than is the sky on this gracious day. I turn from my writing-machine to the window, and drink in, with a pleasure that never seems to pall, the glorious panorama.

"What do you see?"  If in ordinary talk I were asked this, I should of course say, "I see land and water and sky, ships and houses, and light clouds, and the sun drawing to its setting over the low green hills of Staten Island and illuminating all."

But if the question refer to the terms of political economy, I should say, "I see land and wealth." Land, which is the natural factor of production; and wealth, which is the natural factor so changed by the exertion of the human factor, labor, as to fit it for the satisfaction of human desires. For water and clouds, sky and sun, and the stars that will appear when the sun is sunk, are, in the terminology of political economy, as much land as is the dry surface of the earth to which we narrow the meaning of the word in ordinary talk. And the window through which I look; the flowers in the garden; the planted trees of the orchard; the cow that is browsing beneath them; the Shore Road under the window; the vessels that lie at anchor near the bank, and the little pier that juts out from it; the trans-Atlantic liner steaming through the channel; the crowded pleasure-steamers passing by; the puffing tug with its line of mud-scows; the fort and dwellings on the opposite side of the Narrows; the lighthouse that will soon begin to cast its far-gleaming eye from Sandy Hook; the big wooden elephant of Coney Island; and the graceful sweep of the Brooklyn Bridge, that may be discovered from a little higher up; all alike fall into the economic term wealth — land modified by labor so as to afford satisfaction to human desires. All in this panorama that was before man came here, and would remain were he to go, belongs to the economic category land; while all that has been produced by labor belongs to the economic category wealth, so long as it retains its quality of ministering to human desire.

But on the hither shore, in view from the window, is a little rectangular piece of dry surface, evidently reclaimed from the line of water by filling in with rocks and earth. What is that? In ordinary speech it is land, as distinguished from water, and I should intelligibly indicate its origin by speaking of it as "made land." But in the categories of political economy there is no place for such a term as "made land." For the term land refers only and exclusively to productive powers derived wholly from nature and not at all from industry, and whatever is, and in so far as it is, derived from land by the exertion of  labor, is wealth. This bit of dry surface raised above the level of the water by filling in stones and soil, is, in the economic category, not land but wealth. It has land below it and around it, and the material of which it is composed has been drawn from land; but in itself it is, in the proper speech of political economy, wealth; just as truly as the ships I behold are not land but wealth, though they too have land below them and around them and are composed of material drawn from land. — The Science of Political Economy unabridged: Book IV, Chapter 6, The Distribution of Wealth: Cause of Confusion as to Propertyabridged

Labor

THE term Labor includes all human exertion in the production of wealth, whatever its mode. In common parlance we often speak of brain labor and hand labor as though they were entirely distinct kinds of exertion, and labor is often spoken of as though it involved only muscular exertion. But in reality any form of labor, that is to say, any form of human exertion in the production of wealth above that which cattle may be applied to doing, requires the human brain as truly as the human hand, and would be impossible without the exercise of mental faculties on the part of the laborer. Labor in fact is only physical in external form. In its origin it is mental or on strict analysis spiritual. — The Science of Political Economy unabridged: Book III, Chapter 16: The Production of Wealth, The Second Factor of Production — Labor abridged: Part III, Chapter 10: Order of the Three Factors of Production

IT seems to us that your Holiness misses its real significance in intimating that Christ in becoming the son of a carpenter and Himself working as a carpenter showed merely that "there is nothing to be ashamed of in seeking one's bread by labor." To say that is almost like saying that by not robbing people He showed that there is nothing to be ashamed of in honesty. If you will consider how true in any large view is the classification of all men into working-men, beggar-men and thieves, you will see that it was morally impossible that Christ during His stay on earth should have been anything else than a working-man, since He who came to fulfill the law must by deed as well as word obey God's law of labor.
 
See how fully and how beautifully Christ's life on earth illustrated this law. Entering our earthly life in the weakness of infancy, as it is appointed that all should enter it, He lovingly took what in the natural order is lovingly rendered, the sustenance, secured by labor, that one generation owes to its immediate successors. Arrived at maturity, He earned His own subsistence by that common labor in which the majority of men must and do earn it. Then passing to a higher — to the very highest-sphere of labor. He earned His subsistence by the teaching of moral and spiritual truths, receiving its material wages in the love offerings of grateful hearers, and not refusing the costly spikenard with which Mary anointed his feet. So, when He chose His disciples, He did not go to land-owners or other monopolists who live on the labor of others but to common laboring men. And when He called them to a higher sphere of labor and sent them out to teach moral and spiritual truths He told them to take, without condescension on the one hand, or sense of degradation on the other, the loving return for such labor, saying to them that the "laborer is worthy of his hire," thus showing, what we hold, that all labor does not consist in what is called manual labor, but that whoever helps to add to the material, intellectual, moral, or spiritual fulness of life is also a laborer. - The Condition of Labor

NOR should it be forgotten that the investigator, the philosopher, the teacher, the artist, the poet, the priest, though not engaged in the production of wealth, are not only engaged in the production of utilities and satisfactions to which the production of wealth is only a means, but by acquiring and diffusing knowledge, stimulating mental powers and elevating the moral sense, may greatly increase the ability to produce wealth. For man does not live by bread alone. He is not an engine, in which so much fuel gives so much power. On a capstan bar or a topsail halyard a good song tells like muscle, and a "Marseillaise" or a "Battle Hymn of the Republic" counts for bayonets. A hearty laugh, a noble thought, a perception of harmony, may add to the power of dealing even with material things.

He who by any exertion of mind or body adds to the aggregate of enjoyable wealth, increases the sum of human knowledge or gives to human life higher elevation or greater fulness — he is, in the large meaning of the words, a "producer," a "working-man," a "laborer," and is honestly earning honest wages. But he who without doing aught to make mankind richer, wiser, better, happier, lives on the toil of others — he, no matter by what name of honor he may be I called, or how lustily the priests of Mammon may swing their censers before him, is in the last analysis but a beggarman or a thief. — Protection or Free Trade, Chapter 7 econlib

"Capital"


CAPITAL, which is not in itself a distinguishable element, but which it must always be kept in mind consists of wealth applied to the aid of labor in further production, is not a primary factor. There can be production without it, and there must have been production without it, or it could not in the first place have appeared. It is a secondary and compound factor, coming after and resulting from the union of labor and land in the production of wealth. It is in essence labor raised by a second union with land to a third or higher power. But it is to civilized life so necessary and important as to be rightfully accorded in political economy the place of a third factor in production. — The Science of Political Economy unabridged: Book III, Chapter 17, The Production of Wealth: The Third Factor of Production — Capital abridged: Part III, Chapter 10: Order of the Three Factors of Production

IT is to be observed that capital of itself can do nothing. It is always a subsidiary, never an initiatory, factor. The initiatory factor is always labor. That is to say, in the production of wealth labor always uses capital, is never used by capital. This is not merely literally true, when by the term capital we mean the thing capital. It is also true when we personify the term and mean by it not the thing capital, but the men who are possessed of capital. The capitalist pure and simple, the man who merely controls capital, has in his hands the power of assisting labor to produce. But purely as capitalist he cannot exercise that power. It can be exercised only by labor. To utilize it he must himself exercise at least some of the functions of labor, or he must put his capital, on some terms, at the use of those who do. — The Science of Political Economy unabridged: Book III, Chapter 17, The Production of Wealth: The Third Factor of Production — Capital abridged: Part III, Chapter 10: Order of the Three Factors of Production

THUS we must exclude from the category of capital everything that may be included either as land or labor. Doing so, there remain only things which are neither land nor labor, but which have resulted from the union of these two original factors of production. Nothing can be properly capital that does not consist of these — that is to say, nothing can be capital that is not wealth. — Progress & Poverty — Book I, Chapter 2: Wages and Capital: The Meaning of the Terms

THUS, a government bond is not capital, nor yet is it the representative of capital. The capital that was once received for it by the government has been consumed unproductively — blown away from the mouths of cannon, used up in war ships, expended in keeping men marching and drilling, killing and destroying. The bond cannot represent capital that has been destroyed. It does not represent capital at all. It is simply a solemn declaration that the government will, some time or other, take by taxation from the then existing stock of the people, so much wealth, which it will turn over to the holder of the bond; and that, in the meanwhile, it will, from time to time, take, in the same way, enough to make up to the holder the increase which so much capital as it some day promises to give him would yield him were it actually in his possession. The immense sums which are thus taken from the produce of every modern country to pay interest on public debts are not the earnings or increase of capital — are not really interest in the strict sense of the term, but are taxes levied on the produce of labor and capital, leaving so much less for wages and so much less for real interest. — Progress & Poverty — Book III, Chapter 4: The Laws of Distribution: Of Spurious Capital and of Profits Often Mistaken For Interest

CAPITAL, as we have seen, consists of wealth used for the procurement of more wealth, as distinguished from wealth used for the direct satisfaction of desire; or, as I think it may be defined, of wealth in the course of exchange.

Capital, therefore, increases the power of labor to produce wealth: (1) By enabling labor to apply itself in more effective ways, as by digging up clams with a spade instead of the hand, or moving a vessel by shoveling coal into a furnace, instead of tugging at an oar. (2) By enabling labor to avail itself of the reproductive forces of nature, as to obtain corn by sowing it, or animals by breeding them. (3) By permitting the division of labor, and thus, on the one hand, increasing the efficiency of the human factor of wealth, by the utilization of special capabilities, the acquisition of skill, and the reduction of waste; and, on the other, calling in the powers of the natural factor at their highest, by taking advantage of the diversities of soil, climate and situation, so as to obtain each particular species of wealth where nature is most favorable to its production.

Capital does not supply the materials which labor works up into wealth, as is erroneously taught; the materials of wealth are supplied by nature. But such materials partially worked up and in the course of exchange are capital. — Progress & Poverty — Book I, Chapter 5: Wages and Capital: The Real Functions of Capital

"Value"

THE phenomena of value are at bottom illustrations of one principle. The value of everything produced by labor, from a pound of chalk or a paper of pins to the elaborate structure and appurtenances of a first-class ocean steamer, is resolvable on analysis into an equivalent of the labor required to reproduce such a thing in form and place; while the value of things not produced by labor, but nevertheless susceptible of ownership, is, in the same way, resolvable into an equivalent of the labor which the ownership of such a thing enables the owner to obtain or save. — A Perplexed Philosopher (Mr. Spencer's Confusion As To Value)

"Wealth"

WHEN we speak of a community increasing in wealth we do not mean to say that there is more land, or that the natural powers of the land are greater, or that there are more people (for when we wish to express that idea we speak of increase of population) or that the debts or dues owing by some of these people to others of their number have increased; but we mean that there is an increase of certain tangible things, having an actual and not merely a relative value — such as buildings, cattle, tools, machinery, agricultural and mineral products, manufactured goods, ships, wagons, furniture and the like. . . . The common character of these things is that they consist of natural substances or products which have been adapted by human labor to human use or gratification, their value depending on the amount of labor which upon the average would be required to produce things of like kind.— Progress & Poverty — Book I, Chapter 2: Wages and Capital: The Meaning of the Terms

WEALTH is not the sole object of labor, for labor is also expended in ministering directly to desire; but it is the object and result of what we call productive labor — that is, labor which gives value to material things. Nothing which nature supplies to man without his labor is wealth, nor yet does the expenditure of labor result in wealth unless there is a tangible product which has and retains the power of ministering to desire. — Progress & Poverty — Book I, Chapter 2: Wages and Capital: The Meaning of the Terms

IT will be well for a moment to consider this idea of accumulated wealth. The truth is, that wealth can be accumulated but to a slight degree, and that communities really live, as the vast majority of individuals live, from hand to mouth. Wealth will not bear much accumulation; except in a few unimportant forms it will not keep. The matter of the universe, which, when worked up by labor into desirable forms, constitutes wealth, is constantly tending back to its original state. Some forms of wealth will last for a few hours, some for a few days, some for a few months, some for a few years; and there are very few forms of wealth that can be passed from one generation to another. Take wealth in some of its most useful and permanent forms — ships, houses, railways, machinery. Unless labor is constantly exerted in preserving and renewing them, they will almost immediately become useless. Stop labor in any community, and wealth would vanish almost as the jet of a fountain vanishes when the flow of water is shut off. Let labor again exert itself, and wealth will almost as immediately reappear. Accumulated wealth seems to play just about such a part in relation to the social organism as accumulated nutriment does to the physical organism. Some accumulated wealth is necessary, and to a certain extent it may be drawn upon in exigencies; but the wealth produced by past generations can no more account for the consumption of the present than the dinners he ate last year can supply a man with present strength. — Progress & Poverty — Book II, Chapter 4: Population and Subsistence: Disproof of the Malthusian Theory

"Wages"

THE term labor includes all human exertion in the production of wealth, and wages, being that part of the produce which goes to labor, includes all reward for such exertion. There is, therefore, in the politico-economic sense of the term wages no distinction as to the kind of labor, or as to whether its reward is received through an employer or not, but wages means the return received for the exertion of labor, as distinguished from the return received for the use of capital, and the return received by the landholder for the use of land. — Progress & Poverty — Book I, Chapter 2: Wages and Capital: The Meaning of the Terms

I AM aware that the theorem that wages are drawn from capital is one of the most fundamental and apparently best settled of current political economy, and that it has been accepted as axiomatic by all the great thinkers who have devoted their powers to the elucidation of the science. Nevertheless, I think it can be demonstrated to be a fundamental error — the fruitful parent of a long series of errors, which vitiate most important practical conclusions. — Progress & Poverty — Book I, Chapter 3: Wages and Capital: Wages not drawn from capital, but produced by the labor

THE fundamental truth, that in all economic reasoning must be firmly grasped and never let go, is that society in its most highly developed form is but an elaboration of society in its rudest beginnings, and that principles obvious in the simpler relations of men are merely disguised and not abrogated or reversed by the more intricate relations that result from the division of labor and the use of complex tools and methods. . . . And so, if we reduce to their lowest terms all the complex operations of modern production, we see that each individual who takes part in this infinitely subdivided and intricate network of production and exchange is really doing what the primeval man did when he climbed the trees for fruit or followed the receding tide for shellfish — endeavoring to obtain from nature by the exertion of his powers the satisfaction of his desires. If we keep this firmly in mind, if we look upon production as a whole — as the co-operation of all embraced in any of its great groups to satisfy the various desires of each, we plainly see that the reward each obtains for his exertions comes as truly and as directly from nature as the result of that exertion, as did that of the first man.

To illustrate: In the simplest state of which we can conceive, each man digs his own bait and catches his own fish. The advantage of the division of labor soon becomes apparent, and one digs bait while the others fish. Yet evidently the one who digs bait is in reality doing as much toward the catching of fish as any of those who actually take the fish. So when the advantages of canoes are discovered, and instead of all going a-fishing, one stays behind and makes and repairs canoes, the canoe-maker is in reality devoting his labor to the taking of fish as much as the actual fishermen, and the fish which he eats at night when the fishermen come home, are as truly the product of his labor as of theirs. And thus when the division of labor is fairly inaugurated, and instead of each attempting to satisfy all of his wants by direct resort to nature, one fishes, another hunts, a third picks berries, a fourth gathers fruit, a fifth makes tools, a sixth builds huts, and a seventh prepares clothing — each one is, to the extent he exchanges the direct product of his own labor for the direct product of the labor of others, really applying his own labor to the production of the things he uses — is in effect satisfying his particular desires by the exertion of his particular powers; that is to say, what he receives he in reality produces. — Progress & Poverty — Book I, Chapter 1: Wages and Capital: The Current Doctrine of Wages — Its Insufficiency

How the Worker Creates His Wages

THE laborer who receives his wages in money (coined or printed, it may be, before his labor commenced) really receives in return for the addition his labor has made to the general stock of wealth, a draft upon that general stock, which he may utilize in any particular form of wealth that will best satisfy his desires; and neither the money, which is but the draft, nor the particular form of wealth which he uses it to call for, represents advances of capital for his maintenance, but on the contrary represents the wealth, or a portion of the wealth, his labor has already added to the general stock. — Progress & Poverty — Book I, Chapter 1: Wages and Capital: The Current Doctrine of Wages — Its Insufficiency

THE miner who, two thousand feet underground in the heart of the Comstock, is digging out silver ore, is in effect; by virtue of a thousand exchanges, harvesting crops in valleys five thousand feet nearer the earth's center; chasing the whale through Arctic icefields; plucking tobacco leaves in Virginia; picking coffee berries in Honduras; cutting sugar cane on the Hawaiian Islands; gathering cotton in Georgia or weaving it in Manchester or Lowell; making quaint wooden toys for his children in the Hartz Mountains; or plucking amid the green and gold of Los Angeles orchards the oranges which, when his shift is relieved, he will take home to his sick wife. The wages which he receives on Saturday night at the mouth of the shaft, what are they but the certificate to all the world that he has done these things — the primary exchange in the long series which transmutes his labor into the things he has really been laboring for? — Progress & Poverty — Book I, Chapter 1: Wages and Capital: The Current Doctrine of Wages — Its Insufficiency

LABOR always precedes wages. This is as universally true of wages received by the laborer from an employer as it is of wages taken directly by the laborer who is his own employee. In the one class of cases as in the other, reward is conditioned upon exertion. Paid sometimes by the day, oftener by the week or month, occasionally by the year, and in many branches of production by the piece, the payment of wages by an employer to an employee always implies the previous rendering of labor by the employee for the benefit of the employer, for the few cases in which advance payments are made for personal services are evidently referable either to charity or to guarantee and purchase. — Progress & Poverty — Book I, Chapter 3: Wages and Capital: Wages not drawn from capital, but produced by the labor
 
THE payment of wages always implies the previous rendering of labor. Now, what does the rendering of labor in production imply? Evidently the production of wealth, which, if it is to be exchanged or used in production, is capital. Therefore, the payment of capital in wages pre-supposes a production of capital by the labor for which the wages are paid. And as the employer generally makes a profit, the payment of wages is, so far as he is concerned, but the return to the laborer of a portion of the capital he has received from the labor. So far as the employee is concerned, it is but the receipt of a portion of the capital his labor has previously produced. As the value paid in the wages is thus exchanged for a value brought into being by the labor, how can it be said that wages are drawn from capital or advanced by capital? As in the exchange of labor for wages the employer always gets the capital created by the labor before he pays out capital in the wages, at what point is his capital lessened even temporarily? — Progress & Poverty — Book I, Chapter 3: Wages and Capital: Wages not drawn from capital, but produced by the labor

To recapitulate: The man who works for himself gets his wages in the things he produces, as he produces them, and exchanges this value into another form whenever he sells the produce. The man who works for another for stipulated wages in money, works under a contract of exchange. He also creates his wages as he renders his labor, but he does not get them except at stated times, in stated amounts and in a different form. In performing the labor he is advancing in exchange; when he gets his wages the exchange is completed. During the time he is earning the wages he is advancing capital to his employer, but at no time, unless wages are paid before work is done, is the employer advancing capital to him. Whether the employer who receives this produce in exchange for the wages, immediately re-exchanges it, or keeps it for awhile, no more alters the character of the transaction than does the final disposition of the product made by the ultimate receiver, who may, perhaps, be in another quarter of the globe and at the end of a series of exchanges numbering hundreds. — Progress & Poverty — Book I, Chapter 3: Wages and Capital: Wages not drawn from capital, but produced by the labor

Rate of Wages — How Determined

THE fundamental principle of human action — the law that is to political economy what the law of gravitation is to physics — is that men seek to gratify their desires with the least exertion. . . . Now, under this principle, what, in conditions of freedom, will be the terms at which one man can hire others to work for him? Evidently, they will be fixed by what the men could make if laboring for themselves. The principle which will prevent him from having to give anything above this except what is necessary to induce the change, will also prevent them from taking less. Did they demand more, the competition of others would prevent them from getting employment. Did he offer less, none would accept the terms, as they could obtain greater results by working for themselves. Thus, although the employer wishes to pay as little as possible, and the employee to receive as much as possible, wages will be fixed by the value or produce of such labor to the laborers themselves. If wages are temporarily carried either above or below this line, a tendency to carry them back at once arises. — Progress & Poverty Book III, Chapter 6 — The Laws of Distribution: Wages and the Law of Wages

THE effect of all the circumstances which give rise to the differences between wages in different occupations may be included as supply and demand, and it is perfectly correct to say that the wages in different occupations will vary relatively according to differences in the supply and demand of labor — meaning by demand the call which the community as a whole makes for services of the particular kind, and by supply the relative amount of labor which, under the existing conditions, can be determined to the performance of those particular services. But though this is true as to the relative differences of wages, when it is said, as is commonly said, that the general rate of wages is determined by supply and demand, the words are meaningless. For supply and demand are but relative terms. The supply of labor can only mean labor offered in exchange for labor, or the produce of labor, and the demand for labor can only mean labor or the produce of labor offered in exchange for labor. Supply is thus demand, and demand supply, and in the whole community, one must be coextensive with the other. — Progress & Poverty Book III, Chapter 6 — The Laws of Distribution: Wages and the Law of Wages

THUS, although they may from time to time alter in relation to each other, as the circumstances which determine relative levels change, yet it is evident that wages in all strata must ultimately depend upon wages in the lowest and widest stratum — the general rate of wages rising or falling as these rise or fall.

Now, the primary and fundamental occupations, upon which, so to speak, all others are built up, are evidently those which procure wealth directly from nature; hence the law of wages in them must be the general law of wages. And, as wages in such occupations clearly depend upon what labor can produce at the lowest point of natural productiveness to which it is habitually applied; therefore, wages generally depend upon the margin of cultivation, or, to put it more exactly, upon the highest point of natural productiveness to which labor is free to apply itself without the payment of rent. — Progress & Poverty Book III, Chapter 6 — The Laws of Distribution: Wages and the Law of Wages


"Rent"

WHEREVER land has an exchange value there is rent in the economic meaning of the term. Wherever land having a value is used, either by owner or hirer, there is rent actual; wherever it is not used, but still has a value, there is rent potential. It is this capacity of yielding rent which gives value to land. . . . No matter what are its capabilities, land can yield no rent and have no value until some one is willing to give labor or the results of labor for the privilege of using it; and what anyone will thus give, depends not upon the capacity of the land, but upon its capacity as compared with that of land that can be had for nothing. — Progress & Poverty Book III, Chapter 2 — The Laws of Distribution: Rent and the Law of Rent

STATED reversely, the law of rent is necessarily the law of wages and interest taken together, for it is the assertion, that no matter what be the production which results from the application of labor and capital, these two factors will only receive in wages and interest such part of the produce as they could have produced on land free to them without the payment of rent — that is the least productive land or point in use. — Progress & Poverty Book III, Chapter 2 — The Laws of Distribution: Rent and the Law of Rent


Origin of Rent    ...    How Society Creates Its Rent

HERE, let us imagine, is an unbounded savannah, stretching off in unbroken sameness of grass and flower, tree and rill, till the traveler tires of the monotony. Along comes the wagon of the first immigrant. Where to settle he cannot tell — every acre seems as good as every other acre. As to wood, as to water, as to fertility, as to situation, there is absolutely no choice, and he is perplexed by the embarrassment of richness. Tired out with the search for one place that is better than another, he stops — somewhere, anywhere — and starts to make himself a home. The soil is virgin and rich, game is abundant, the streams flash with the finest trout. Nature is at her very best. He has what, were he in a populous district, would make him rich; but he is very poor. To say nothing of the mental craving, which would lead him to welcome the sorriest stranger, he labors under all the material disadvantages of solitude. He can get no temporary assistance for any work that requires a greater union of strength than that afforded by his own family, or by such help as he can permanently keep. Though he has cattle, he cannot often have fresh meat, for to get a beefsteak he must kill a bullock. He must be his own blacksmith, wagonmaker, carpenter, and cobbler — in short a "jack of all trades and master of none." He cannot have his children schooled, for, to do so, he must himself pay and maintain a teacher. Such things as he cannot produce himself, he must buy in quantities and keep on hand, or else go without, for he cannot be constantly leaving his work and making a long journey to the verge of civilization; and when forced to do so, the getting of a vial of medicine or the replacement of a broken auger may cost him the labor of himself and horses for days. Under such circumstances, though nature is prolific, the man is poor. It is an easy matter for him to get enough to eat; but beyond this, his labor will only suffice to satisfy the simplest wants in the rudest way.

Soon there comes another immigrant. Although every quarter section of the boundless plain is as good as every other quarter section, he is not beset by any embarrassment as to where to settle. Though the land is the same, there is one place that is clearly better for him than any other place, and that is where there is already a settler and he may have a neighbor. He settles by the side of the first comer, whose condition is at once greatly improved, and to whom many things are now possible that were before impossible, for two men may help each other to do things that one man could never do.

Another immigrant comes, and, guided by the same attraction, settles where there are already two. Another and another, until around our first comer there are a score of neighbors. Labor has now an effectiveness which, in the solitary state, it could not approach. If heavy work is to be done, the settlers have a log-rolling, and together accomplish in a day what singly would require years. When one kills a bullock the others take part of it, returning when they kill, and thus they have fresh meat all the time. Together they hire a schoolmaster, and the children of each are taught for a fractional part of what similar teaching would have cost the first settler. It becomes a comparatively easy matter to send to the nearest town, for some one is always going. But there is less need for such journeys. A blacksmith and a wheelwright soon set up shops, and our settler can have his tools repaired for a small part of the labor they formerly cost him. A store is opened and he can get what he wants as he wants it; a post-office, soon added, gives him regular communication with the rest of the world. Then comes a cobbler, a carpenter, a harnessmaker, a doctor; and a little church soon arises. Satisfactions become possible that in the solitary state were impossible. There are gratifications for the social and the intellectual nature — for that part of the man that rises above the animal. The power of sympathy, the sense of companionship, the emulation of comparison and contrast, open a wider and fuller and more varied life. In rejoicing, there are others to rejoice; in sorrow, the mourners do not mourn alone. There are husking bees, and apple parings, and quilting parties. Though the ballroom be unplastered and the orchestra but a fiddle, the notes of the magician are yet in the strain, and Cupid dances with the dancers. At the wedding, there are others to admire and enjoy; in the house of death, there are watchers; by the open grave, stands human sympathy to sustain the mourners. Occasionally, comes a straggling lecturer to open up glimpses of the world of science, of literature, or of art; in election times, come stump speakers, and the citizen rises to a sense of dignity and power, as the cause of empires is tried before him in the struggle of John Doe and Richard Roe for his support and vote. And, by and by, comes the circus, talked of months before, and opening to children, whose horizon has been the prairie, all the realms of the imagination — princes and princesses of fairy tale, mail-clad crusaders and turbaned Moors, Cinderella's fairy coach, and the giants of nursery lore; lions such as crouched before Daniel, or in circling Roman amphitheater tore the saints of God; ostriches who recall the sandy deserts; camels such as stood around when the wicked brethren raised Joseph from the well and sold him into bondage; elephants such as crossed the Alps with Hannibal, or felt the sword of the Maccabees; and glorious music that thrills and builds in the chambers of the mind as rose the sunny dome of Kubla Khan.
 
Go to our settler now, and say to him: "You have so many fruit trees which you planted; so much fencing, such a well, a barn, a house — in short, you have by your labor added so much value to this farm. Your land itself is not quite so good. You have been cropping it, and by and by it will need manure. I will give you the full value of all your improvements if you will give it to me, and go again with your family beyond the verge of settlement." He would laugh at you. His land yields no more wheat or potatoes than before, but it does yield far more of all the necessaries and comforts of life. His labor upon it will bring no heavier crops, and, we will suppose, no more valuable crops, but it will bring far more of all the other things for which men work. The presence of other settlers — the increase of population — has added to the productiveness, in these things, of labor bestowed upon it, and this added productiveness gives it a superiority over land of equal natural quality where there are yet no settlers. If no land remains to be taken up, except such as is as far removed from population as was our settler's land when he first went upon it, the value or rent of this land will be measured by the whole of this added capability. If, however, as we have supposed, there is a continuous stretch of equal land, over which population is now spreading, it will not be necessary for the new settler to go into the wilderness, as did the first. He will settle just beyond the other settlers, and will get the advantage of proximity to them. The value or rent of our settler's land will thus depend on the advantage which it has, from being at the center of population, over that on the verge. In the one case, the margin of production will remain as before; in the other, the margin of production will be raised.

Population still continues to increase, and as it increases so do the economies which its increase permits, and which in effect add to the productiveness of the land. Our first settler's land, being the center of population, the store, the blacksmith's forge, the wheelwright's shop, are set up on it, or on its margin, where soon arises a village, which rapidly grows into a town, the center of exchanges for the people of the whole district. With no greater agricultural productiveness than it had at first, this land now begins to develop a productiveness of a higher kind. To labor expended in raising corn, or wheat, or potatoes, it. will yield no more of those things than at first; but to labor expended in the subdivided branches of production which require proximity to other producers, and, especially, to labor expended in that final part of production, which consists in distribution, it will yield much larger returns. The wheat-grower may go further on, and find land on which his labor will produce as much wheat, and nearly as much wealth; but the artisan, the manufacturer, the storekeeper, the professional man, find that their labor expended here, at the center of exchanges, will yield them much more than if expended even at a little distance away from it; and this excess of productiveness for such purposes the landowner can claim, just as he could an excess in its wheat-producing power. And so our settler is able to sell in building lots a few of his acres for prices which it would not bring for wheat growing if its fertility had been multiplied many times. With the proceeds he builds himself a fine house, and furnishes it handsomely. That is to say, to reduce the transaction to its lowest terms, the people who wish to use the land, build and furnish the house for him, on condition that he will let them avail themselves of the superior productiveness which the increase of population has given the land.

Population still keeps on increasing, giving greater and greater utility to the land, and more and more wealth to its owner. The town has grown into a city — a St. Louis, a Chicago, or a San Francisco — and still it grows. Production is here carried on upon a great scale, with the best machinery and the most favorable facilities; the division of labor becomes extremely minute, wonderfully multiplying efficiency; exchanges are of such volume and rapidity that they are made with the minimum of friction and loss. Here is the heart, the brain, of the vast social organism that has grown up from the germ of the first settlement; here has developed one of the great ganglions of the human world. Hither run all roads, hither set all currents, through all the vast regions round about. Here, if you have anything to sell, is the market; here, if you have anything to buy, is the largest and the choicest stock. Here intellectual activity is gathered into a focus, and here springs that stimulus which is born of the collision of mind with mind. Here are the great libraries, the storehouses and granaries of knowledge, the learned professors, the famous specialists. Here are museums and art galleries, collections of philosophical apparatus, and all things rare and valuable, the best of their kind. Here come great actors, and orators, and singers, from all over the world. Here, in short, is a center of human life, in all its varied manifestations.

So enormous are the advantages which this land now offers for the application of labor, that, instead of one man with a span of horses scratching over acres, you may count in places thousands of workers to the acre, working tier on tier, on floors raised one above the other, five, six, seven, and eight stories from the ground, while underneath the surface of the earth engines are throbbing with pulsations that exert the force of thousands of horses. All these advantages adhere to the land; it is on this land, and no other, that they can be utilized, for here is the center of population — the focus of exchanges, the market-place and workshop of the highest forms of industry. The productive powers which density of population has attached to this land are equivalent to the multiplication of its original fertility by the hundredfold and the thousandfold. And rent, which measures the difference between this added productiveness and that of the least productive land in use, has increased accordingly. Our settler, or whoever has succeeded to his right to the land, is now a millionaire. Like another Rip Van Winkle, he may have lain down and slept; still he is rich — not from anything he has done, but from the increase of population. There are lots from which for every foot of frontage the owner may draw more than an average mechanic can earn; there are lots that will sell for more than would suffice to pave them with gold coin. In the principal streets are towering buildings, of granite, marble, iron, and plate-glass, finished in the most expensive style, replete with every convenience. Yet they are not worth as much as the land upon which they rest — the same land, in nothing changed, which, when our first settler came upon it, had no value at all. That this is the way in which the increase of population powerfully acts in increasing rent, whoever, in a progressive country, will look around him, may see for himself. The process is going on under his eyes. The increasing difference in the productiveness of the land in use, which causes an increasing rise in rent, results not so much from the necessities of increased population compelling the resort to inferior land, as from the increased productiveness which increased population gives to the lands already in use. The most valuable lands on the globe, the lands which yield the highest rent, are not lands of surpassing natural fertility, but lands to which a surpassing utility has been given by the increase of population. — Progress & Poverty — Book IV, Chapter 2: Effect of Material Progress on the Distribution of Wealth: The Effect of Increase of Population upon the Distribution of Wealth

"Sic Nos non Nobis" ["Thus we labour, but not for ourselves" or "thus do we, but not for ourselves"]

"Interest"

WITH profits this inquiry has manifestly nothing to do. We want to find what it is that determines the division of their joint produce between land, labor, and capital, and profits is not a term that refers exclusively to anyone of these three divisions. Of the three parts into which profits are divided by political economists — namely, compensation for risk, wages of superintendence, and return for the use of capital — the latter falls under the term interest, which includes all the returns for the use of capital, and excludes everything else; wages of superintendence falls under the term wages, which includes all returns for human exertion, and excludes everything else; and compensation for risk has no place whatever, as risk is eliminated when all the transactions of a community are taken together.  — Progress & Poverty — Book III, Chapter 1: The Laws of Distribution: The Inquiry Narrowed to the Laws of Distribution — The Necessary Relation of these Laws

INTEREST, as an abstract term in the distribution of wealth, differs in meaning from the word as commonly used, in this: That it includes all returns for the use of capital, and not merely those that pass from borrower to lender; and that it excludes compensation for risk, which forms so great a part of what is commonly called interest. Compensation for risk is evidently only an equalization of return between different employments of capital. — Progress & Poverty — Book III, Chapter 3: The Laws of Distribution: Of Interest and the Cause of Interest


The Laws of Social Life

TAKE now some hard-headed businessman, who has no theories, but knows how to make money. Say to him: "Here is a little village; in ten years it will be a great city — in ten years the railroad will have taken the place of the stagecoach, the electric light of the candle; it will abound with all the machinery and improvements that so enormously multiply the effective power of labor. Will, in ten years, interest be any higher?"

He will tell you, "No!"

"Will the wages of common labor be any higher; will it be easier for a man who has nothing but his labor to make an independent living?"

He will tell you, "No; the wages of common labor will not be any higher; on the contrary, all the chances are that they will be lower; it will not be easier for the mere laborer to make an independent living; the chances are that it will be harder."

"What, then, will be higher?" " Rent; the value of land. Go; get yourself a piece of ground, and hold possession."

And if, under such circumstances, you take his advice, you need do nothing more. You may sit down and smoke your pipe; you may lie around like the lazzaroni of Naples or the leperos of Mexico: you may go up in a balloon, or down a hole in the ground; and without doing one stroke of work, without adding one iota to the wealth of the community, in ten years you will be rich! In the new city you may have a luxurious mansion; but among its public buildings will be an almshouse. — Progress & Poverty — Book V, Chapter 2: The Problem Solved: The Persistence of Poverty amid Advancing Wealth

THERE may be disputes as to whether there is yet a science of political economy, that is to say, whether our knowledge of the natural economic laws is as yet so large and well digested as to merit the title of science. But among those who recognize that the world we live in is in all its spheres governed by law, there can be no dispute as to the possibility of such a science. — The Science of Political Economyunabridged: Book I, Chapter 14, The Meaning of Political Economy: Political Economy as Science and as Artabridged: Part 1, Chapter 12: Political Economy as Science and Art

THE domain of law is not confined to physical nature. It just as certainly embraces the mental and moral universe, and social growth and social life have their laws as fixed as those of matter and of motion. Would we make social life healthy and happy, we must discover those laws, and seek our ends in accordance with them. — Social Problems — Chapter 22: Conclusion


The Fundamental Law
 
POLITICAL economy is not a set of dogmas. It is the explanation of a certain set of facts. It is the science which, in the sequence of certain phenomena, seeks to trace mutual relations and to identify cause and effect, just as the physical sciences seek to do in other sets of phenomena. It lays its foundations upon firm ground. The premises from which it makes its deductions are truths which have the highest sanction; axioms which we all recognize; upon which we safely base the reasoning and actions of every-day life, and which may be reduced to the metaphysical expression of the physical law that motion seeks the line of least resistance — viz. that men seek to gratify their desires with the least exertion. Proceeding from a basis thus assured, its processes, which consist simply in identification, and separation, have the same certainty. In this sense it is as exact a science as geometry, which, from similar truths relative to space, obtains its conclusions by similar means, and its conclusions when valid should be as self-apparent. — Progress & Poverty — Book I, Chapter 1, Wages and Capital: The Current Doctrine of Wages — Its Insufficiency

WHETHER it proceed from experience of the irksomeness of labor and the desire to avoid it, or, further back than that, have its source in some innate principle of the human constitution, this disposition of men to seek the satisfaction of their desires with the minimum of exertion is so universal and unfailing, that it constitutes one of those invariable sequences that we denominate laws of nature, and from which we may safely reason. It is this law of nature that is the fundamental law of political economy — the central law from which its deductions and explanations may with certainty be drawn, and, indeed, by which alone they become possible. It holds the same place in the sphere of political economy that the law of gravitation does in physics. Without it there could be no recognition of order, and all would be chaos. . . . It is no more affected by the selfishness or unselfishness of our desires than is the law of gravitation. It is simply a fact. — The Science of Political Economy unabridged: Book I, Chapter 12, The Meaning of Political Economy: Fundamental Low of Political Economyabridged: Chapter 10: The Fundamental Law of Political Economy

The "Greater Leviathan"

THE famous treatise in which the English philosopher Hobbes, during the revolt against the tyranny of the Stuarts in the seventeenth century, sought to give the sanction of reason to the doctrine of the absolute authority of kings, is entitled Leviathan. It thus begins: "Nature, the art whereby God hath made and governs the world, is by the art of man, as in many other things, so in this also imitated, that it can make an artificial animal. . . For by art is created that great Leviathan called a commonwealth or state, in Latin civitas, which is but an artificial man; though of greater stature and strength than the natural, for whose protection and defense it was intended. . ."

Without stopping now to comment further on Hobbes's suggestive analogy, there is, it seems to me, in the system or arrangement into which men are brought in social life by the effort to satisfy their material desires — an integration which goes on as civilization advances — something which even more strongly and more clearly suggests the idea of a gigantic man, formed by the union of individual men, than any merely political integration. This Greater Leviathan is to the political structure or conscious commonwealth what the unconscious functions of the body are to the conscious activities. It is not made by pact or covenant, it grows; as the tree grows, as the man himself grows, by virtue of natural laws inherent in human nature and in the constitution of things. . . . It is this natural system or arrangement, this adjustment of means to ends, of the parts to the whole and the whole to the parts, in the satisfaction of the material desires of men living in society, which, in the same sense as that in which we speak of the economy of the solar system, is the economy of human society, or what in English we call political economy. It is as human units, individuals or families, take their place as integers of this higher man, this Greater Leviathan, that what we call civilization begins and advances. . . . The appearance and development of the body politic, the organized state, the Leviathan of Hobbes, is the mark of civilization already in existence. — The Science of Political Economy unabridged: Book I, Chapter 3, The Meaning of Political Economy: How Man's Powers Are Extendedabridged: Chapter 2: The Greater Leviathan

Civilization, through Trade

LET us try to trace the genesis of civilization. Gifted alone with the power of relating cause and effect, man is among all animals the only producer in the true sense of the term. . . . But the same quality of reason which makes him the producer, also, wherever exchange becomes possible, makes him the exchanger. And it is along this line of exchanging that the body economic is evolved and develops, and that all the advances of civilization are primarily made. . . . With the beginning of exchange or trade among men this body economic begins to form, and in its beginning civilization begins. . . . To find an utterly uncivilized people, we must find a people among whom there is no exchange or trade. Such a people does not exist, and, as far as our knowledge goes, never did. To find a fully civilized people, we must find a people among whom exchange or trade is absolutely free, and has reached the fullest development to which human desires can carry it. There is, as yet, unfortunately, no such people. — The Science of Political Economyunabridged: Book I, Chapter 5, The Meaning of Political Economy: The Origin and Genesis of Civilizationabridged: Chapter 4, The Origin and Genesis of Civilization


WHEN we, come to analyze production, we find it to fall into three modes, viz::
ADAPTING, or changing natural products either in form or in place so as to fit them for the satisfaction of human desire.
GROWING, or utilizing the vital forces of nature, as by raising vegetables or animals.
EXCHANGING, or utilizing, so as to add to the general sum of wealth, the higher powers of those natural forces which vary with locality, or of those human forces which vary with situation, occupation, or character. — Progress & Poverty — Book III, Chapter 3, The Laws of Distribution: of Interest and the Cause of Interest

THESE modes seem to appear and to assume importance, in the development of human society, much in the order here given. They originate from the increase of the desires of men with the increase of the means of satisfying them, under pressure of the fundamental law of political economy, that men seek to satisfy their desires with the least exertion. In the primitive stage of human life the readiest way of satisfying desires is by adapting to human use what is found in existence. In a later and more settled stage it is discovered that certain desires can be more easily and more fully satisfied by utilizing the principle of growth and reproduction, as by cultivating vegetables and breeding animals. And in a still later period of development, it becomes obvious that certain desires can be better and more easily satisfied by exchange, which brings out the principle of co-operation more fully and powerfully than could obtain among unexchanging economic units. — The Science of Political Economy unabridged: Book III, Chapter 2, The Production of Wealth: The Three Modes of Production abridged: Part III, Chapter 2, The Production of Wealth: The Three Modes of Production

"Production" and "Distribution"

IN the economic meaning of the term production, the transporter or exchanger, or anyone engaged in any subdivision of those functions, is as truly engaged in production as is the primary extractor or maker. A newspaper-carrier or the keeper of a news-stand would, for instance, in common speech be styled a distributor. But in economic terminology he is not a distributor of wealth, but a producer of wealth. Although his part in the process of producing the newspaper to the final receiver comes last, not first, he is as much a producer as the paper-maker or type-founder, the editor, or compositor, or press-man. For the object of production is the satisfaction of human desires, that is to say, it is consumption; and this object is not made capable of attainment, that is to say, production is not really complete, until wealth is brought to the place where it is to be consumed and put at the disposal of him whose desire it is to satisfy.  — The Science of Political Economy unabridged: Book III, Chapter 1, The Production of Wealth: The Meaning of Productionabridged: Part III, Chapter 1, The Production of Wealth: The Meaning of Production

PRODUCTION and distribution are not separate things, but two mentally distinguishable parts of one thing — the exertion of human labor in the satisfaction of human desire. Though materially distinguishable, they are as closely related as the two arms of the syphon. And as it is the outflow of water at the longer end of the syphon that is the cause of the inflow of water at the shorter end, so it is that distribution is really the cause of production, not production the cause of distribution. In the ordinary course, things are not distributed because they have been produced, but are produced in order that they may be distributed. Thus interference with the distribution of wealth is interference with the production of wealth, and shows its effect in lessened production. — The Science of Political Economyunabridged Book IV, Chapter 2, The Distribution of Wealth: The Nature of Distributionabridged Part IV, Chapter 2, The Distribution of Wealth: The Nature of Distribution

OUR inquiry into the laws of the distribution of wealth is not an inquiry into the municipal laws or human enactments which either here and now, or in any other time and place, prescribe or have prescribed how wealth shall be divided among men. With them we have no concern, unless it may be for purposes of illustration. What we have to seek are those laws of the distribution of wealth which belong to the natural order — laws which are a part of that system or arrangement which constitutes the social organism or body economic, as distinguished from the body politic or state, the Greater Leviathan which makes its appearance with civilization and develops with its advance. These natural laws are in all times and places the same, and though they may be crossed by human enactment, can never be annulled or swerved by it. It is more needful to call this to mind, because, in what have passed for systematic treatises on political economy, the fact that it is with natural laws, not human laws, that the science of political economy is concerned, has, in treating of the distribution of wealth, been utterly ignored, and even flatly denied. — The Science of Political Economyunabridged: Part IV, Chapter 1, The Distribution of Wealth: The Meaning of Distributionabridged: Part IV, Chapter 1, The Distribution of Wealth: The Meaning of Distribution

THE distinction between the laws of production and the laws of distribution is not, as is erroneously taught in the scholastic political economy, that the one set of laws are natural laws and the other human laws. Both sets of laws are laws of nature. The real distinction is that the natural laws of production are physical laws and the natural laws of distribution are moral laws. . . . The moment we turn from a consideration of the laws of the production of wealth to a consideration of the laws of the distribution of wealth, the idea of ought or duty becomes primary. All consideration of distribution involves the ethical principle, is necessarily a consideration of ought or duty — a consideration in which the idea of right or justice is from the very first involved. — The Science of Political Economyunabridged: Book IV, Chapter 4, The Distribution of Wealth: The Real Difference Between Laws of Production and of Distributionabridged: Part IV, Chapter 3: The Distribution of Wealth: Physical and Moral Laws

Co-operation — its Two Modes

ALL increase in the productive power of man over that with which nature endows the individual comes from the co-operation of individuals. But there are two ways in which this co-operation may take place. 1. By the combination of effort. In this way individuals may accomplish what exceeds the full power of the individual. 2. By the separation of effort. In this way the individual may accomplish for more than one what does not require the full power of the individual. . . . To illustrate: The first way of co-operation, the combination of labor, enables a number of men to remove a rock or to raise a log that would be too heavy for them separately. In this way men conjoin themselves, as it were, into one stronger man. Or, to take an example so common in the early days of American settlement that "log-rolling" has become a term for legislative combination: Tom, Dick, Harry and Jim are building near each other their rude houses in the clearings. Each hews his own trees, but the logs are too heavy for one man to get into place. So the four unite their efforts, first rolling one man's logs into place and then another's, until, the logs of all four having been placed, the result is the same as if each had been enabled to concentrate into one time the force he could exert in four different times. . . . But, while great advantages result from the ability of individuals, by the combination of labor to concentrate themselves, as it were, into one larger man, there are other times and other things in which an individual could accomplish more if he could divide himself, as it were, into a number of smaller men. . . . What the division of labor does, is to permit men, as it were, so to divide themselves, thus enormously increasing their total effectiveness. To illustrate from the example used before: While at times Tom, Dick, Harry and Jim might each wish to move logs, at other times they might each need to get something from a village distant two days' journey. To satisfy this need individually would thus require two days' effort on the part of each. But if Tom alone goes, performing the errands for all, and the others each do half a days' work for him, the result is that all get at the expense of half a day's effort on the part of each what otherwise would have required two days' effort. — The Science of Political Economy — unabridged: Book III, Chapter 9, The Production of Wealth: Cooperation — Its Two Waysabridged: Part III, Chapter 7, The Production of Wealth: Co-operation: Its Two Ways

Co-operation — its Two Kinds

WE have seen that there are two ways or modes in which co-operation increases productive power. If we ask how co-operation is itself brought about, we see that there is in this also a distinction, and that co-operation is of two essentially different kinds. . .. There is one kind of co-operation, proceeding, as it were, from without, which results from the conscious direction of a controlling will to a definite end. This we may call directed or conscious co-operation. There is another kind of co-operation, proceeding, as it were, from within, which results from a correlation in the actions of independent wills, each seeking but its own immediate purpose, and careless, if not indeed ignorant, of the general result. This we may call spontaneous or unconscious co-operation. The movement of a great army is a good type of co-operation of the one kind. Here the actions of many individuals are subordinated to, and directed by, one conscious will, they becoming, as it were, its body and executing its thought. The providing of a great city with all the manifold things which are constantly needed by its inhabitants is a good type of co-operation of the other kind. This kind of co-operation is far wider, far finer, far more strongly and delicately organized, than the kind of co-operation involved in the movements of an army, yet it is brought about not by subordination to the direction of one conscious will, which knows the general result at which it aims, but by the correlation of actions originating in many independent wills, each aiming at its own small purpose without care for, or thought of; the general result. The one kind of co-operation seems to have its analogue in those related movements of our body which we are able consciously to direct. The other kind of co-operation seems to have its analogue in the correlation of the innumerable movement, of which we are unconscious, that maintain the bodily frame — motions which in their complexity, delicacy and precision far transcend our powers of conscious direction, yet by whose perfect adjustment to each other and to the purpose of the whole, that co-operation of part and function, that makes up the human body and keeps it in life and vigor, is brought about and supported. — The Science of Political Economy — unabridged: Book III, Chapter 10, The Production of Wealth: Cooperation — Its Two Kindsabridged: Part III, Chapter 8, Cooperation: Its Two Kinds

To attempt to apply that kind of co-operation which requires direction from without to the work proper for that kind of co-operation which requires direction from within, is like asking the carpenter who can build a chicken-house to build a chicken also. — The Science of Political Economyunabridged: Book III, Chapter 10, The Production of Wealth: Cooperation — Its Two Kindsabridged: Part III, Chapter 8, Cooperation: Its Two Kinds

Co-operation and Commerce

ALL living things that we know of co-operate in some kind and to some degree. So far as we can see, nothing that lives can live in and for itself alone. But man is the only one who co-operates by exchanging, and he may be distinguished from all the numberless tribes that with him tenant the earth as the exchanging animal. . . . Exchange is the great agency by which what I have called the spontaneous or unconscious co-operation of men in the production of wealth is brought about, and economic units are welded into that social organism which is the Greater Leviathan. To this economic body, this Greater Leviathan, into which it builds the economic units, it is what the nerves or perhaps the ganglions are to the individual body. Or, to make use of another illustration, it is to our material desires and powers of satisfying them what the switchboard of a telegraph or telephone, or other electric system, is to that system, a means by which exertion of one kind in one place may be transmitted into satisfaction of another kind in another place, and thus the efforts of individual units be conjoined and correlated so as to yield satisfactions in most useful place and form, and to an amount enormously exceeding what otherwise would be possible. — The Science of Political Economyunabridged: Book III, Chapter 11, The Production of Wealth: The Office of Exchange in Productionunabridged Chapter 9, The Office of Exchange in Production

Co-operation and Competition

MANY if not most of the writers on political economy have treated exchange as a part of distribution. On the contrary, it belongs to production. It is by exchange, and through exchange, that man obtains, and is able to exert, the power of co-operation which, with the advance of civilization, so enormously increases his ability to produce wealth. — The Science of Political Economyunabridged: Book III, Chapter 11, The Production of Wealth: The Office of Exchange in Productionunabridged Chapter 9, The Office of Exchange in Production

THEY who, seeing how men are forced by competition to the extreme of human wretchedness, jump to the conclusion that competition should be abolished, are like those who, seeing a house burn down, would prohibit the use of fire.

The air we breathe exerts upon every square inch of our bodies a pressure of fifteen pounds. Were this pressure exerted only on one side, it would pin us to the ground and crush us to a jelly. But being exerted on all sides, we move under it with perfect freedom. It not only does not inconvenience us, but it serves such indispensable purposes that, relieved of its pressure, we should die.

So it is with competition. Where there exists a class denied all right to the element necessary to life arid labor, competition is one-sided, and as population increases must press the lowest class into virtual slavery, and even starvation. But where the natural rights of all are secured, then competition, acting on every hand — between employers as between employed, between buyers as between sellers — can injure no one.

On the contrary it becomes the most simple, most extensive, most elastic, and most refined system of co-operation that, in the present stage of social development, and in the domain where it will freely act, we can rely on for the co-ordination of industry and the economizing of social forces.

In short, competition plays just such a part in the social organism as those vital impulses which are beneath consciousness do in the bodily organism. With it, as with them, it is only necessary that it should be free. The line at which the state should come in is that where free competition becomes impossible — a line analogous to that which in the individual organism separates the conscious from the unconscious functions. There is such a line, though extreme socialists and extreme individualists both ignore it. The extreme individualist is like the man who would have his hunger provide him food; the extreme socialist is like the man who would have his conscious will direct his stomach how to digest it. — Protection or Free Trade, chapter 28 econlib

 Society, an Organism

IMAGINE an aggregation of men which it was attempted to secure by the external direction involved in socialistic theories that division of labor which grows, up naturally in society where men are left free. For the intelligent direction thus required an individual man or individual men must be selected, for even if there be angels and archangels in the world that is invisible to us, they are not at our command. Taking no note of the difficulties which universal experience shows always to attend the choice of the depositories of power, and ignoring the inevitable tendency to tyranny and oppression, of command over the actions of others, simply consider, even if the very wisest and best of men were selected for such purposes, the task that would be put upon them in the ordering of the when, where, how and by whom, that would be involved in the intelligent direction and supervision of the almost infinitely complex and constantly changing relations and adjustments involved in such division of labor as goes on in a civilized community. It is evidently as much beyond the ability of conscious direction as the correlation of the processes that maintain the human body in health and vigor is beyond it. — The Science of Political Economy unabridged: Book III, Chapter 10, The Production of Wealth: Cooperation — Its Two Kindsabridged: Part III, Chapter 8, Cooperation: Its Two Kinds

THE ideal of socialism is grand and noble; and it is, I am convinced, possible of realization, but such a state of society cannot be manufactured — it must grow. Society is an organism, not a machine. It can only live by the individual life of its parts. And in the free and natural development of all the parts will be secured the harmony of the whole. — Progress & Poverty — Book VI, Chapter 1, The Remedy: The Insufficiency of Remedies Currently Advocated; V.—From Governmental Direction and Interference

SOCIALISM in all its phases looks on the evils of our civilization as springing from the inadequacy or in harmony of natural relations, which must be artificially organized or improved. In its idea there devolves on the State the necessity of intelligently organizing the industrial relations of men, the construction as it were of a great machine, whose complicated parts shall properly work together under the direction of human intelligence. — The Condition of Labor, an Open Letter to Pope Leo XIII 

Not a Machine

ON the other hand, we, who call ourselves single-tax men (a name which expresses merely our practical propositions), see in the social and industrial relations of men not a machine which requires construction, but an organism which needs only to be suffered to grow. We see in the natural, social and industrial laws such harmony as we see in the adjustments of the human body, and that as far transcends the power of man's intelligence to order and direct as it is beyond man's intelligence to order and direct the vital movements of his frame. We see in these social and industrial laws so close a relation to the moral law as must spring from the same Authorship, and that proves the moral law to be the sure guide of man where his intelligence would wander and go astray. . . . Looking on the bodily organism as the analogue of the social organism, and on the proper functions of the State as akin to those which in the human organism are discharged by the conscious intelligence while the play of individual impulse and interest performs functions akin to those discharged in the bodily organisms by the unconscious instincts and involuntary motions, the Anarchists seem to us like men who would try to get along without heads, and the Socialists like men who would try to rule the wonderfully complex and delicate internal relations of their frames by conscious will. — The Condition of Labor, an Open Letter to Pope Leo XIII 

"Socialism" Not Radical Enough

BUT it seems to us the vice of Socialism in all its degrees is its want of radicalism, of going to the root. . .. It assumes that the tendency of wages to a minimum is the natural law, and seeks to abolish wages; it assumes that the natural result of competition is to grind down workers, and seeks to abolish competition by restrictions, prohibitions, and extensions of governing power. Thus mistaking effects for causes, and childishly blaming the stone for hitting it, it wastes strength in striving for remedies that when not worse are futile. Associated though it is in many places with democratic aspiration, yet its essence is the same delusion to which the Children of Israel yielded when, against the protest of their prophet, they insisted on a king; the delusion that has everywhere corrupted democracies and enthroned monarchs — that power over the people can be used for the benefit of the people; that there may be devised machinery that through human agencies will secure for the management of individual affairs more wisdom and more virtue than the people themselves possess.  — The Condition of Labor, an Open Letter to Pope Leo XIII 

JUMPING to conclusions without effort to discover causes, it fails to see that oppression does not come from the nature of capital, but from the wrong that robs labor of capital by divorcing it from land, and that creates a fictitious capital that is really capitalized monopoly. It fails to see that it would be impossible for capital to oppress labor were labor free to the natural material of production; that the wage system in itself springs from mutual convenience, being a form of co-operation in which one of the parties prefers a certain to a contingent result; and that what it calls the "iron law of wages," is not the natural law of wages, but only the law of wages in that unnatural condition in which men are made helpless by being deprived of the materials for life and work. It fails to see that what it mistakes for the evils of competition are really the evils of restricted competition — are due to a one-sided competition to which men are forced when deprived of land. While its methods, the organization of men into industrial armies, the direction and control of all production and exchange by governmental or semi-governmental bureaus, would, if carried to full expression, mean Egyptian despotism. —The Condition of Labor, an Open Letter to Pope Leo XIII

IN socialism as distinguished from individualism there is an unquestionable truth — and that a truth to which (especially by those most identified with free-trade principles) too little attention has been paid. Man is primarily an individual — a separate entity, differing from his fellows in desires and powers, and requiring for the exercise of those powers and the gratification of those desires individual play and freedom. But he is also a social being, having desires that harmonize with those of his fellows, and powers that can only be brought out in concerted action. There is thus a domain of individual action and a domain of social action — some things which can best be done when each acts for himself, and some things which can best be done when society acts for all its members. And the natural tendency of advancing civilization is to make social conditions relatively more important, and more and more to enlarge the domain of social action. This has not been sufficiently regarded, and at the present time, evil unquestionably results from leaving to individual action functions that by reason of the growth of society and the developments of the arts have passed into the domain of social action; just as, on the other hand, evil unquestionably results from social interference with what properly belongs to the individual. Society ought not to leave the telegraph and the railway to the management and control of individuals; nor yet ought society to step in and collect individual debts or attempt to direct individual industry. — Protection or Free Trade, Chapter 28 econlib

Functions of Government

THE primary purpose and end of government being to secure the natural rights and equal liberty of each, all businesses that involve monopoly are within the necessary province of governmental regulation, and businesses that are in their nature complete monopolies become properly functions of the State. As society develops, the State must assume these functions, in their nature co-operative, in order to secure the equal rights and liberty of all. That is to say, as, in the process of integration, the individual becomes more and more dependent upon and subordinate to the all, it becomes necessary for government, which is properly that social organ by which alone the whole body of individuals can act, to take upon itself, in the interest of all, certain functions which cannot safely be left to individuals. — Social Problems — Chapter 17, The Functions of Government

IT is not the business of government to make men virtuous or religious, or to preserve the fool from the consequences of his own folly. Government should be repressive no further than is necessary to secure liberty by protecting the equal rights of each from aggression on the part of others, and the moment governmental prohibitions extend beyond this line they are in danger of defeating the very ends they are intended to serve.— Social Problems — Chapter 17, The Functions of Government

ALL schemes for securing equality in the conditions of men by placing the distribution of wealth in the hands of government have the fatal defect of beginning at the wrong end. They pre-suppose pure government; but it is not government that makes society; it is society that makes government; and until there is something like substantial equality in the distribution of wealth, we cannot expect pure government. — Protection or Free Trade, Chapter 28 econlib

"Protection"


WE should keep our own market for our own producers, seems by many to be regarded as the same kind of a proposition as, We should keep our own pasture for our own cows; whereas, in truth, it is such a proposition as, We should keep our own appetites for our own cookery, or, We should keep our own transportation for our own legs.— Protection or Free Trade, Chapter 11: The Home Market and Home Trade - econlib

THE protection of the masses has in all times been the pretense of tyranny — the plea of monarchy, of aristocracy, of special privilege of every kind. The slave owners justified slavery as protecting the slaves. British misrule in Ireland is upheld on the ground that it is for the protection of the Irish. But, whether under a monarchy or under a republic, is there an instance in the history of the world in which the "protection" of the laboring masses has not meant their oppression? The protection that those who have got the law-making power into their hands have given labor, has at best always been the protection that man gives to cattle — he protects them that he may use and eat them. — Protection or Free Trade — Chapter 2, Clearing Ground   econlib

IT is never intimated that the land-owner or the capitalist needs protection. They, it is always assumed, can take care of themselves. It is only the poor workingman who must be protected. What is labor that it should so need protection? Is not labor the creator of capital, the producer of all wealth? Is it not the men who labor that feed and clothe all others? Is it not true, as has been said, that the three great orders of society are "workingmen, beggarmen, and thieves?" How, then, does it come that workingmen alone need protection? — Protection or Free Trade — Chapter 2, Clearing Ground   econlib -|- abridged

WHAT should we think of human laws framed for the government of a country which should compel each family to keep constantly on their guard against every other family, to expend a large part of their time and labor in preventing exchanges with their neighbors, and to seek their own prosperity by opposing the natural efforts of other families to become prosperous? Yet the protective theory implies that laws such as these have been imposed by the Creator upon the families of men who tenant this earth. It implies that by virtue of social laws, as immutable as the physical laws, each nation must stand jealously on guard against every other nation and erect artificial obstacles to national intercourse.— Protection or Free Trade, Chapter 4: Protection as a Universal Need  econlib

TO attempt to make a nation prosperous by preventing it from buying from other nations is as absurd as it would be to attempt to make a man prosperous by preventing him from buying from other men. How this operates in the case of the individual we can see from that practice which, since its application in the Irish land agitation, has come to be called "boycotting." Captain Boycott, upon whom has been thrust the unenviable fame of having his name turned into a verb, was in fact "protected." He had a protective tariff of the most efficient kind built around him by a neighborhood decree more effective than act of Parliament. No one would sell him labor, no one would sell him milk or bread or meat or any service or commodity whatever. But instead of growing prosperous, this much-protected man had to fly from a place where his own market was thus reserved for his own productions. What protectionists ask us to do to ourselves in reserving our home market for home producers, is in kind what the Land Leaguers did to Captain Boycott. They ask us to boycott ourselves. — Protection or Free Trade, Chapter 11: The Home Market and Home Trade - econlib

WHEN not caused by artificial obstacles, any tendency in trade to take a certain course is proof that it ought to take that course, and restrictions are harmful because they restrict, and in proportion as they restrict. To assert that the way for men to become healthy and strong is for them to force into their stomachs what nature tries to reject, to regulate the play of their lungs by bandages, or to control the circulation of their blood by ligatures, would be not a whit more absurd than to assert that the way for nations to become rich is for them to restrict the natural tendency to trade. — Protection or Free Trade, Chapter 6: Trade - econlib

Trade Natural to Man

MEN of different nations trade with each other for the same reason that men of the same nation do — because they find it profitable; because they thus obtain what they want with less labor than they otherwise could. — Protection or Free Trade, Chapter 6: Trade - econlib -|- abridged

TRADE is not invasion. It does not involve aggression on one side and resistance on the other, but mutual consent and gratification. There cannot be a trade unless the parties to it agree, any more than there can be a quarrel unless the parties to it differ. England, we say, forced trade with the outside world upon China and the United States upon Japan. But, in both cases, what was done was not to force the people to trade, but to force their governments to let them. If the people had not wanted to trade, the opening of the ports would have been useless. — Protection or Free Trade, Chapter 6: Trade - econlib
 
TRADE does not require force. Free trade consists simply in letting people buy and sell as they want to buy and sell.. It is protection that requires force, for it consists in preventing people from doing what they want to do. — Protection or Free Trade, Chapter 6: Trade - econlib -|- abridged

IF all the material things needed by man could be produced equally well at all points on the earth's surface, it might seem more convenient for man the animal, but how would he have risen above the animal level? As we see in the history of social development, commerce has been and is the great civilizer and educator. The seemingly infinite diversities in the capacity of different parts of the earth's surface lead to that exchange of productions which is the most powerful agent in preventing isolation, in breaking down prejudice, in increasing knowledge and widening thought. These diversities of nature, which seemingly increase with our knowledge of nature's powers, like the diversities in the aptitudes of individuals and communities, which similarly increase with social development, call forth powers and give rise to pleasures which could never arise had man been placed like an ox in a boundless field of clover. The "international law of God" which we fight with our tariffs — so shortsighted are the selfish prejudices of men — is the law which stimulates mental and moral progress; the law to which civilization is due. — Social Problems — Chapter 19: The First Great Reform.

Trade not yet Free
 
"COME with me," said Richard Cobden, as John Bright turned heart-stricken from a new-made grave. "There are in England women and children dying with hunger — with hunger made by the laws. Come with me, and we will not rest until we repeal those laws."

In this spirit the free trade movement waxed and grew, arousing an enthusiasm that no mere fiscal reform could have aroused. And intrenched though it was by restricted suffrage and rotten boroughs and aristocratic privilege, protection was overthrown in Great Britain.

And — there is hunger in Great Britain still, and women and children yet die of it.

But this is not the failure of free trade. When protection had been abolished and a revenue tariff substituted for a protective tariff, free trade had only won an outpost. That women and children still die of hunger in Great Britain arises from the failure of the reformers to go on. Free trade has not yet been tried in Great Britain. Free trade in its fulness and entirety would indeed abolish hunger. — Protection or Free Trade — Chapter 26: True Free Trade - econlib -|- abridged 

True Free Trade

THE mere abolition of protection — the mere substitution of a revenue tariff for a protective tariff — is such a lame and timorous application of the free-trade principle that it is a misnomer to speak of it as free trade. A revenue tariff is only a somewhat milder restriction on trade than a protective tariff.
 
Free trade, in its true meaning, requires not merely the abolition of protection but the sweeping away of all tariffs — the abolition of all restrictions (save those imposed in the interests of public health or morals) on the bringing of things into a country or the carrying of things out of a country.

But free trade cannot logically stop with the abolition of custom-houses. It applies as well to domestic as to foreign trade, and in its true sense requires the abolition of all internal taxes that fall on buying, selling, transporting or exchanging, on the making of any transaction or the carrying on of any business, save of course where the motive of the tax is public safety, health or morals. Thus the adoption of true free trade involves the abolition of all indirect taxation of whatever kind, and the resort to direct taxation for all public revenues.

But this is not all. Trade, as we have seen, is a mode of production, and the freeing of trade is beneficial because it is a freeing of production. For the same reason, therefore, that we ought not to tax anyone for adding to the wealth of a country by bringing valuable things into it, we ought not to tax anyone for adding to the wealth of a country by producing within that country valuable things. Thus the principle of free trade requires that we should not merely abolish all indirect taxes, but that we should abolish as well all direct taxes on things that are the produce of labor; that we should, in short, give full play to the natural stimulus to production — the possession and enjoyment of the things produced — by imposing no tax whatever upon the production, accumulation or possession of wealth (the things produced by labor), leaving everyone free to make exchange, give, spend or bequeath. — Protection or Free Trade — Chapter 26: True Free Trade - econlib -|- abridged 

 "Laissez faire, laissez aller!"

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 

Unemployed

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


The Natural Right to Self-Employment
 
NOW, why is it that men, have to work for such low wages? Because, if they were to demand higher wages, there are plenty of unemployed men ready to step into their places. It is this mass of unemployed men who compel that fierce competition that drives wages down to the point of bare subsistence. Why is it that there are men who cannot get employment? Did you ever think what a strange thing it is that men cannot find employment?  If men cannot find an employer, why can they not employ themselves? Simply because they are shut out from the element on which human labor can alone be exerted; men are compelled to compete with each other for the wages of an employer, because they have been robbed of the natural opportunities of employing themselves; because they cannot find a piece of God's world on which to work without paying some other human creature for the privilege. — The Crime of Poverty

WE laud as public benefactors those who, as we say, "furnish employment." We are constantly talking as though this "furnishing of employment," this "giving of work" were the greatest boon that could be conferred upon society. To listen to much that is talked and much that is written, one would think that the cause of poverty is that there is not work enough for so many people, and that if the Creator had made the rock harder, the soil less fertile, iron as scarce as gold, and gold as diamonds; or if ships would sink and cities burn down oftener, there would be less poverty, because there would be more work to do. — Social Problems, Chapter 8 — That We All Might Be Rich

YOU assert the right of laborers to employment and their right to receive from their employers a certain indefinite wage. No such rights exist. No one has a right to demand employment of another, or to demand higher wages than the other is willing to give, or in any way to put pressure on another to make him raise such wages against his will. There can be no better moral justification for such demands on employers by working-men than there would be for employers demanding that working-men shall be compelled to work for them when they do not want to, and to accept wages lower than they are willing to take. — The Condition of Labor, an Open Letter to Pope Leo XIII 

THE natural right which each man has, is not that of demanding employment or wages from another man, but that of employing himself — that of applying by his own labor to the inexhaustible storehouse which the Creator has in the land provided for all men. Were that storehouse open, as by the single tax we would open it, the natural demand for labor would keep pace with the supply, the man who sold labor and the man who bought it would become free exchangers for mutual advantage, and all cause for dispute between workman and employer would be gone. For then, all being free to employ themselves, the mere opportunity to labor would cease to seem a boon; and since no one would work for another for less, all things considered, than he could earn by working for himself, wages would necessarily rise to their full value, and the relations of workman and employer be regulated by mutual interest and convenience. — The Condition of Labor, an Open Letter to Pope Leo XIII 

The Earth for All

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
 
What is Property?

WHAT constitutes the rightful basis of property? What is it that enables a man to justly say of a thing, "It is mine"? From what springs the sentiment which acknowledges his exclusive right as against all the world? Is it not, primarily, the right of a man to himself, to the use of his own powers, to the enjoyment of the fruits of his own exertions? . . . As a man belongs to himself, so his labor when put in concrete form belongs to him. — Progress & Poverty — Book VII, Chapter 1, Justice of the Remedy: Injustice of private property in land

THERE can be to the ownership of anything no rightful title which is not derived from the title of the producer and does not rest upon the natural right of the man to himself. There can be no other rightful title, because (1st) there is no other natural right from which any other title can be derived, and (2nd) because the recognition of any other title is inconsistent with and destructive of this. — Progress & Poverty — Book VII, Chapter 1, Justice of the Remedy: Injustice of private property in land

HERE are two simple principles, both of which are self-evident:
I.- That all men have equal rights to the use and enjoyment of the elements provided by nature.
II.- That each man has an exclusive right to the use and enjoyment of what is produced by his own labor.
There is no conflict between these principles. On the contrary they are correlative. To fully secure the individual right of property in the produce of labor we must treat the elements of nature as common property. — Protection or Free Trade — Chapter 26: True Free Trade - econlib -|- abridged 

Moral, and Immoral, Private Property

NATURE acknowledges no ownership or control in man save as the result of exertion. In no other way can her treasures be drawn forth, her powers directed, or her forces utilized or controlled. She makes no discriminations among men, but is to all absolutely impartial. She knows no distinction between master and slave, king and subject, saint and sinner. All men to her stand upon an equal footing and have equal rights. She recognizes no claim but that of labor, and recognizes that without respect to the claimant. If a pirate spread his sails, the wind will fill them as well as it will fill those of a peaceful merchantman or missionary bark; if a king and a common man be thrown overboard, neither can keep his head above the water except by swimming; birds will not come to be shot by the proprietor of the soil any quicker than they will come to be shot by the poacher; fish will bite or will not bite at a hook in utter disregard as to whether it is offered them by a good little boy who goes to Sunday school, or a bad little boy who plays truant; grain will grow only as the ground is prepared and the seed is sown; it is only at the call of labor that ore can be raised from the mine; the sun shines and the rain falls alike upon just and unjust. The laws of nature are the decrees of the Creator. There is written in them no recognition of any right save that of labor; and in them is written broadly and clearly the equal right of all men to the use and enjoyment of nature; to apply to her by their exertions, and to receive and possess her reward. Hence, as nature gives only to labor, the exertion of labor in production is the only title to exclusive possession. — Progress & Poverty — Book VII, Chapter 1, Justice of the Remedy: Injustice of private property in land

PRIVATE property is not of one species, and moral sanction can no more be asserted universally of it than of marriage. That proper marriage conforms to the law of God does not justify the polygamic or polyandric or incestuous marriages that are in some countries permitted by the civil law. And as there may be immoral marriage, so may there be immoral private property. — The Condition of Labor, an Open Letter to Pope Leo XIII 

THAT any species of property is permitted by the State, does not of itself give it moral sanction. The State has often made things property that are not justly property but involve violence and robbery. — The Condition of Labor, an Open Letter to Pope Leo XIII

TO attach to things created by God the same right of private ownership that justly attaches to things produced by labor, is to impair and deny the true rights of property. For a man, who out of the proceeds of his labor is obliged to pay another man for the use of ocean or air or sunshine or soil, all of which are to men involved in the single term land, is in this deprived of his rightful property, and thus robbed. — The Condition of Labor, an Open Letter to Pope Leo XIII 

HOW then is it that we are called deniers of the right of property? It is for the same reason that caused nine-tenths of the good people in the United States, north as well as south, to regard abolitionists as deniers of the right of property; the same reason that made even John Wesley look on a smuggler as a kind of robber, and on a custom-house seizer of other men's goods as a defender of law and order.  Where violations of the right of property have been long  sanctioned by custom and law, it is inevitable that those who really assert the right of property will at first be thought to deny it.  For under such circumstances the idea of property becomes confused, and that is thought to be property which is in reality a violation of property. — A Perplexed Philosopher (The Right Of Property And The Right Of Taxation)

LANDLORDS must elect to try their case either by human law or by moral law.  If they say that land is rightly property because made so by human law, they cannot charge those who would change that law with advocating robbery.  But if they charge that such change in human law would be robbery, then they must show that land is rightfully property irrespective of human law. — The Reduction to Iniquity (a reply to the Duke of Argyll), The Nineteenth Century, July, 1884

Private Property in Land, Immoral

PRIVATE property in land, no less than private property in slaves, is the violation of the true rights of property. They are different forms of the same robbery — twin devices, by which the perverted ingenuity of man has sought to enable the strong and the cunning to escape God's requirement of labor by forcing it on others. — The Condition of Labor, an Open Letter to Pope Leo XIII 

ROBINSON CRUSOE, as we all know, took Friday as his slave. Suppose, however, that instead of taking Friday as his slave, Robinson Crusoe had welcomed him as a man and a brother; had read him a Declaration of Independence, an Emancipation Proclamation and a Fifteenth Amendment, and informed him that he was a free and independent citizen, entitled to vote and hold office; but had at the same time also informed him that that particular island was his (Robinson Crusoe's) private and exclusive property. What would have been the difference? Since Friday could not fly up into the air nor swim off through the sea, since if he lived at all he must live on the island, he would have been in one case as much a slave as in the other. Crusoe's ownership of the island would be equivalent of his ownership of Friday. — Social Problems — Chapter 15, Slavery and Slavery

THEY no longer have to drive their slaves to work; want and the fear of want do that more effectually than the lash. They no longer have the trouble of looking out for their employment or hiring out their labor, or the expense of keeping them when they cannot work. That is thrown upon the slaves. The tribute that they still wring from labor seems like voluntary payment. In fact, they take it as their honest share of the rewards of production — since they furnish the land! And they find so-called political economists, to say nothing of so-called preachers of Christianity, to tell them so. — Social Problems — Chapter 15, Slavery and Slavery

IF the two young Englishmen I have spoken of had come over here and bought so many American citizens, they could not have got from them so much of the produce of labor as they now get by having bought land which American citizens are glad to be allowed to till for half the crop. And so, even if our laws permitted, it would be foolish for an English duke or marquis to come over here and contract for ten thousand American babies, born or to be born, in the expectation that when able to work he could get out of them a large return. For by purchasing or fencing in a million acres of land that cannot run away and do not need to be fed, clothed or educated, he can, in twenty or thirty years, have ten thousand full-grown Americans, ready to give him half of all that their labor can produce on his land for the privilege of supporting themselves and their families out of the other half. This gives him more of the produce of labor than he could exact from so many chattel slaves. — Protection or Free Trade — Chapter 25: The Robber That Takes All That Is Left - econlib 

OF the two systems of slavery, I think there can be no doubt that upon the same moral level, that which makes property of persons is more humane than that which results from making private property of land. The cruelties which are perpetrated under the system of chattel slavery are more striking and arouse more indignation because they are the conscious acts of individuals. But for the suffering of the poor under the more refined system no one in particular seems responsible. . . . But this very fact permits cruelties that would not be tolerated under the one system to pass almost unnoticed under the other. Human beings are overworked, are starved, are robbed of all the light and sweetness of life, are condemned to ignorance and brutishness, and to the infection of physical and moral disease; are driven to crime and suicide, not by other individuals, but by iron necessities for which it seems that no one in particular is responsible.

To match from the annals of chattel slavery the horrors that day after day transpire unnoticed in the heart of Christian civilization, it would be necessary to go back to ancient slavery, to the chronicles of Spanish conquest in the New World, or to stories of the Middle passage. — Social Problems — Chapter 15, Slavery and Slavery

Ownership of Land — Ownership of Men

THE general subjection of the many to the few, which we meet with wherever society has reached a certain development, has resulted from the appropriation of land as individual property. It is the ownership of the soil that everywhere gives the ownership of the men that live upon it. It is slavery of this kind to which the enduring pyramids and the colossal monuments of Egypt yet bear witness, and of the institution of which we have, perhaps, a vague tradition in the biblical story of the famine during which the Pharaoh purchased up the lands of the people. It was slavery of this kind to which, in the twilight of history, the conquerors of Greece reduced the original inhabitants of that peninsula, transforming them into helots by making them pay rent for their lands. It was the growth of the latifundia, or great landed estates, which transmuted the population of ancient Italy from a race of hardy husbandmen, whose robust virtues conquered the world, into a race of cringing bondsmen; it was the appropriation of the land as the absolute property of their chieftains which gradually turned the descendants of free and equal Gallic, Teutonic and Hunnish warriors into colonii and villains, and which changed the independent burghers of Sclavonic village communities into the boors of Russia and the serfs of Poland; which instituted the feudalism of China and Japan, as well as that of Europe, and which made the High Chiefs of Polynesia the all but absolute masters of their fellows. How it came to pass that the Aryan shepherds and warriors who, as comparative philology tells us, descended from the common birth-place of the Indo-Germanic race into the lowlands of India, were turned into the suppliant and cringing Hindoo, the Sanscrit verse which I have before quoted gives us a hint. The white parasols and the elephants mad with pride of the Indian Rajah are the flowers of grants of land. — Progress & Poverty — Book VII, Chapter 1, Justice of the Remedy: Injustice of private property in land

TRACE to their root the causes that are thus producing want in the midst of plenty, ignorance in the midst of intelligence, aristocracy in democracy, weakness in strength — that are giving to our civilization a one-sided and unstable development, and you will find it something which this Hebrew statesman three thousand years ago perceived and guarded against. Moses saw that the real cause of the enslavement of the masses of Egypt was, what has everywhere produced enslavement, the possession by a class of the land upon which, and from which, the whole people must live. He saw that to permit in land the same unqualified private ownership that by natural right attaches to the things produced by labor, would be inevitably to separate the people into the very rich and the very poor, inevitably to enslave labor — to make the few the masters of. the many, no matter what the political forms, to bring vice and degradation, no matter what the religion.
 
And with the foresight of the philosophic statesman who legislates not for the need of a day, but for all the future, he sought, in ways suited to his times and conditions, to guard against this error. — Moses

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 bread-winner; the children that are growing up in squalor and wretchedness, under-clothed, under-fed, under-educated, 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 in 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. — Thou Shalt Not Steal

Land-Ownership the Cause of Poverty and Degradation

THE poverty to which in advancing civilization great masses of men are condemned, is not the freedom from distraction and temptation which sages have sought and philosophers have praised: it is a degrading and embruting slavery, that cramps the higher nature, dulls the finer feelings, and drives men by its pain to acts which the brutes would refuse. It is into this helpless, hopeless poverty, that crushes manhood and destroys womanhood, that robs even childhood of its innocence and joy, that the working classes are being driven by a force which acts upon them like a resistless and unpitying machine. The Boston collar manufacturer who pays his girls two cents an hour may commiserate their condition, but he, as they, is governed by the law of competition, and cannot pay more and carry on his business, for exchange is not governed by sentiment. And so, through all intermediate gradations, up to those who receive the earnings of labor without return, in the rent of land, it is the inexorable laws of supply and demand, a power with which the individual can no more quarrel or dispute than with the winds and the tides, that seem to press down the lower classes into the slavery of want.

But, in reality, the cause is that which always has, and always must result in slavery — the monopolization by some of what nature has designed for all. . . . Private ownership of land is the nether millstone. Material progress is the upper millstone. Between them; with an increasing pressure, the working classes are being ground. — Progress & Poverty — Book VII, Chapter 2, Justice of the Remedy: Enslavement of laborers the ultimate result of private property in land

IT is not in the relations of capital and labor; it is not in the pressure of population against subsistence that an explanation of the unequal development of our civilization is to be found. The great cause of inequality in the distribution of wealth is inequality in the ownership of land. The ownership of land is the great fundamental fact which ultimately determines the social, the political and, consequently, the intellectual and moral condition of a people. And it must be so. For land is the habitation of man, the storehouse upon which he must draw for all his needs, the material to which his labor must be applied for the supply of all his desires; for even the products of the sea cannot be taken, the light of the sun enjoyed, or any of the forces of nature utilized, without the use of land or its products. On the land we are born, from it we live, to it we return again — children of the soil as truly as is the blade of grass or the flower of the field. — Progress & Poverty — Book V, Chapter 2: The Problem Solved: The persistence of poverty amid advancing wealth

THERE is nothing strange or inexplicable in the phenomena that are now perplexing the world. It is not that material progress is not in itself a good, it is not that nature has called into being children for whom she has failed to provide; it is not that the Creator has left on natural laws a taint of injustice at which even the human mind revolts, that material progress brings such bitter fruits. That amid our highest civilization men faint and die with want is not due to the niggardliness of nature, but to the injustice of man. Vice and misery, poverty and pauperism, are not the legitimate results of increase of population and industrial development; they only follow increase of population and industrial development because land is treated as private property — they are the direct and necessary results of the violation of the supreme law of justice, involved in giving to some men the exclusive possession of that which nature provides for all men. — Progress & Poverty — Book VII, Chapter 1, Justice of the Remedy: Injustice of private property in land

The Robbery of Labor

IN the Old Testament we are told that, when the Israelites journeyed through the desert, they were hungered, and that God sent down out of the heavens — manna. There was enough for all of them, and they all took it and were relieved. But, supposing that desert had been held as private property, as the soil of Great Britain is held; as the soil even of our new states is being held. Supposing that one of the Israelites had a square mile, and another one had twenty square miles, and another one had a hundred square miles, and the great majority of the Israelites did not have enough to set the soles of their feet upon, which they could call their own — what would become of the manna? What good would it have done to the majority? Not a whit. Though God had sent down manna enough for all, that manna would have been the property of the landholders; they would have employed some of the others, perhaps, to gather it up in heaps for them, and would have sold it to the hungry brethren. Consider it: this purchase and sale of manna might have gone on until the majority of the Israelites had given up all they had, even to the clothes off their backs. What then? Well, then they would not have had anything left with which to buy manna, and the consequence would have been that while they went hungry the manna would be lying in great heaps, and the landowners would be complaining about the over-production of manna. There would have been a great harvest of manna and hungry people, just precisely the Phenomenon that we see today. — The Crime of Poverty

PROPERTY in land, like property in slaves, is essentially different from property in things that are the result of labor. Rob a man or a people of money, or goods, or cattle, and the robbery is finished there and then. The lapse of time does not, indeed, change wrong into right, but it obliterates the effects of the deed. That is done; it is over; and, unless it be very soon righted, it glides away into the past, with the men who were parties to it, so swiftly that nothing save omniscience can trace its effects; and in attempting to right it we would be in danger of doing fresh wrong. The past is forever beyond us. We can neither punish nor recompense the dead. But rob a people of the land on which they must live, and the robbery is continuous. It is a fresh robbery of every succeeding generation — a new robbery every year and every day; it is like the robbery which condemns to slavery the children of the slave.  To apply to it the statute of limitations, to acknowledge for it the title of prescription, is not to condone the past; it is to legalese robbery in the present, to justify it in the future. — The (Irish) Land Question

How to Stop it

LABOR may be likened to a man who as he carries home his earnings is waylaid by a series of robbers. One demands this much, and another that much, but last of all stands one who demands all that is left, save just enough to enable the victim to maintain life and come forth next day to work. So long as this last robber remains, what will it benefit such a man to drive off any or all of the other robbers?

Such is the situation of labor today throughout the civilized world. And the robber that takes all that is left, is private property in land. Improvement, no matter how great, and reform, no matter how beneficial in itself, cannot help that class who, deprived of all right to the use of the material elements, have only the power to labor — a power as useless in itself as a sail without wind, a pump without water, or a saddle without a horse. — Protection or Free Trade — Chapter 25: The Robber That Takes All That Is Left - econlib  | abridged

THERE is but one way to remove an evil — and that is, to remove its cause. 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. Nothing else will go to the cause of the evil — in nothing else is there the slightest hope. — Progress & Poverty — Book VI, Chapter 2, The Remedy: The True Remedy

Collect the Rent

IF two men find a diamond they do not march to a lapidary to have it cut in two. If three sons inherit a ship they do not proceed to saw her into three pieces; nor do they agree that if this cannot be done equal division is impossible. Nor yet is there no other way to secure the rights of the owners of a railway than by breaking up rail, engines, rolling stock and stations into as many separate bits as there are shareholders. And so it is not necessary in order to secure equal rights to land to make an equal division of land. All that it is necessary to do is to collect rent for the common benefit. — Social Problems — Chapter 19, The First Great Reform

WE would simply take for the community what belongs to the community, the value that attaches to land by the growth of the community; leave sacredly to the individual all that belongs to the individual; and, treating necessary monopolies as functions of the State, abolish all restrictions and prohibitions save those required for public health, safety, morals and convenience. — The Condition of Labor, an Open Letter to Pope Leo XIII 

MAN is driven by his instincts and needs to form society. Society, thus formed, has certain needs and functions for which revenue is required. These needs and functions increase with social development, requiring a larger and larger revenue. Now, experience and analogy, if not the instinctive perceptions of the human mind, teach us that there is a natural way of satisfying every natural want. And if human society is included in nature, as it surely is, this must apply to social wants as well as to the wants of the individual, and there must be a natural or right method of taxation, as there is a natural or right method of walking. —Social Problems — Chapter 19, The First Great Reform

Taxation of Private Property

THE mode of taxation is quite as important as the amount. As a small burden badly placed may distress a horse that could carry with ease a much larger one properly adjusted, so a people may be impoverished and their power of producing wealth destroyed by taxation, which, if levied in another way, could be borne with ease. — Progress & Poverty — Book VIII, Chapter 3, Application of the Remedy: The Proposition Tried by the Canons of Taxation

IF we impose a tax upon buildings, the users of buildings must finally pay it, for the erection of buildings will cease until building rents become high enough to pay the regular profit and the tax besides. If we impose a tax upon manufactures or imported goods, the manufacturer or importer will charge it in a higher price to the jobber, the jobber to the retailer, and the retailer to the consumer. Now, the consumer, on whom the tax thus ultimately falls, must not only pay the amount of the tax, but also a profit on this amount to everyone who has thus advanced it — for profit on the capital he has advanced in paying taxes is as much required by each dealer as profit on the capital he has advanced in paying for goods. — Progress & Poverty — Book VIII, Chapter 3, Application of the Remedy: The Proposition Tried by the Canons of Taxation

THE way taxes raise prices is by increasing the cost of production, and checking supply. But land is not a thing of human production, and taxes upon rent cannot check supply. Therefore though a tax on rent compels the landowners to pay more, it gives them no power to obtain more for the use of their land, as it in no way tends to reduce the supply of land. On the contrary, by compelling those who hold land on speculation to sell or let for what they can get, a tax on land values tends to increase the competition between owners, and thus to reduce the price of land. — Progress & Poverty — Book VIII, Chapter 3, Application of the Remedy: The Proposition Tried by the Canons of Taxation

"Taxation" — of Rent, the Common Property

THE tax upon land values is the most just and equal of all taxes. It falls only upon those who receive from society a peculiar and valuable benefit, and upon them in proportion to the benefit they receive. It is the taking by the community, for the use of the community, of that value which is the creation of the community. It is the application of the common property to common uses. When all rent is taken by taxation for the needs of the community, then will the equality ordained by nature be attained. No citizen will have an advantage over any other citizen save as is given by his industry, skill, and intelligence; and each will obtain what he fairly earns. Then, but not till then, will labor get its full reward, and capital its natural return. — Progress & Poverty — Book VIII, Chapter 3, Application of the Remedy: The Proposition Tried by the Canons of Taxation

HERE is a provision made by natural law for the increasing needs of social growth; here is an adaptation of nature by virtue of which the natural progress of society is a progress toward equality not toward inequality; a centripetal force tending to unity growing out of and ever balancing a centrifugal force tending to diversity. Here is a fund belonging to society as a whole, from which without the degradation of alms, private or public, provision can be made for the weak, the helpless, the aged; from which provision can be made for the common wants of all as a matter of common right to each. — Social Problems — Chapter 19, The First Great Reform

NOT only do all economic considerations point to a tax on land values as the proper source of public revenues; but so do all British traditions. A land tax of four shillings in the pound of rental value is still nominally enforced in England, but being levied on a valuation made in the reign of William III, it amounts in reality to not much over a penny in the pound. With the abolition of indirect taxation this is the tax to which men would naturally turn. The resistance of landholders would bring up the question of title, and thus any movement which went so far as to propose the substitution of direct for indirect taxation must inevitably end in a demand for the restoration to the British people of their birthright. — Protection or Free Trade— Chapter 27: The Lion in the Way - econlib 

THE feudal system, which is not peculiar to Europe but seems to be the natural result of the conquest of a settled country by a race among whom equality and individuality are yet strong, clearly recognized, in theory at least, that the land belongs to society at large, not to the individual. Rude outcome of an age in which might stood for right as nearly as it ever can (for the idea of right is ineradicable from the human mind, and must in some shape show itself even in the association of pirates and robbers), the feudal system yet admitted in no one the uncontrolled and exclusive right to land. A fief was essentially a a trust, and to enjoyment was annexed obligation. The sovereign, theoretically the representative of the collective power and rights of the whole people, was in feudal view the only absolute owner of land. And though land was granted to individual possession, yet in its possession were involved duties, by which the enjoyer of its revenues was supposed to render back to the commonwealth an equivalent for the benefits which from the delegation of the common right he received. — Progress &Poverty — Book VII, Chapter 4, Justice of the Remedy: Private Property in Land Historically Considered

THE abolition of the military tenures in England by the Long Parliament, ratified after the accession of Charles II, though simply an appropriation of public revenues by the feudal landowners, who thus got rid of the consideration on which they held the common property of the nation, and saddled it on the people at large in the taxation of all consumers, has been long characterized, and is still held up in the law books, as a triumph of the spirit of freedom. Yet here is the source of the immense debt and heavy taxation of England. Had the form of these feudal dues been simply changed into one better adapted to the changed times, English wars need never have occasioned the incurring of debt to the amount of a single pound, and the labor and capital of England need not have been taxed a single farthing for the maintenance of a military establishment. All this would have come from rent, which the landholders since that time have appropriated to themselves — from the tax which land ownership levies on the earnings of labor and capital. The landholders of England got their land on terms which required them even in the sparse population of Norman days to put in the field, upon call, sixty thousand perfectly equipped horsemen, and on the further condition of various fines and incidents which amounted to a considerable part of the rent. It would probably be a low estimate to put the pecuniary value of these various services and dues at one-half the rental value of the land. Had the landholders been kept to this contract and no land been permitted to be inclosed except upon similar terms, the income accruing to the nation from English land would today be greater by many millions than the entire public revenues of the United Kingdom. England today might have enjoyed absolute free trade. There need not have been a customs duty, an excise, license or income tax, yet all the present expenditures could be met, and a large surplus remain to be devoted to any purpose which would conduce to the comfort or well-being of the whole people. — Progress &Poverty — Book VII, Chapter 4, Justice of the Remedy: Private Property in Land Historically Considered

"The Single Tax"

WHAT the people of England are entitled to by natural right, and what we propose by the single tax to take for their use, is the value of land as it is, exclusive of the value or improvements as they are in or on the land privately owned. What would thus be left to the landowners would be their personal or moveable property, the value of all existing improvements in or on their land, and their equal share with all other citizens in the land value resumed. This is perfectly clear, and if not perfectly fair, is only so because it would leave to the landowners in their personal property and the value of their improvements much not due to any exertion of labor by themselves or their ancestors, but which has come to them through the unjust appropriation of the proceeds of others' labor. — A Perplexed Philosopher (Justice On The Right To Land)

Loss and Gain

AND while in the nature of things any change from wrong-doing to right-doing must entail loss upon those who profit by the wrong-doing, and this can no more be prevented than can parallel lines be made to meet; yet it must also be remembered that in the nature of things the loss is merely relative, the gain absolute. Whoever will examine the subject will see that in the abandonment of the present unnatural and unjust method of raising public revenues and the adoption of the natural and just method even those who relatively lose will be enormous gainers. — A Perplexed Philosopher (Compensation)

MANY landholders are laborers of one sort or another. And it would be hard to find a landowner not a laborer, who is not also a capitalist — while the general rule is, that the larger the landowner the greater the capitalist. So true is this that in common thought the characters are confounded. Thus, to put all taxes on the value of land, while it would be to largely reduce all great fortunes, would in no case leave the rich man penniless. The Duke of Westminster, who owns a considerable part of the site of London, is probably the richest landowner in the world. To take all his ground rents by taxation would largely reduce his enormous income, but would still leave him his buildings and all the income from them, and doubtless much personal property in various other shapes. He would still have all he could by any possibility enjoy, and a much better state of society in which to enjoy it. — Progress & Poverty — Book IX, Chapter 3, Effects of the Remedy: Of the Effect Upon Individuals and 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- ? — The Condition of Labor, an Open Letter to Pope Leo XIII 

Rich and Poor Alike Gainers

THE evil is not in wealth in itself — in its command over material things; it is in the possession of wealth while others are steeped in poverty; in being raised above touch with the life of humanity, from its work and its struggles, its hopes and its fears, and above all, from the love that sweetens life, and the kindly sympathies and generous acts that strengthen faith in man and trust in God. Consider how the rich see the meaner side of human nature; how they are surrounded by flatterers and sycophants; how they find ready instruments not only to gratify vicious impulses, but to prompt and stimulate them; how they must constantly be on guard lest they be swindled; how often they must suspect an ulterior motive behind kindly deed or friendly word; how, if they try to be generous, they are beset by shameless beggars and scheming impostors; how often the family affections are chilled for them, and their deaths anticipated with the ill-concealed joy of expectant possession. The worst evil of poverty is not in the want of material things, but in the stunting and distortion of the higher qualities. So, though in another way, the possession of unearned wealth likewise stunts and distorts what is noblest in man.

God's commands cannot be evaded with impunity. If it be God's command that men shall earn their bread by labor, the idle rich must suffer. And they do. — The Condition of Labor, an Open Letter to Pope Leo XIII 

IT seems to me that in a condition of society in which no one need fear poverty, no one would desire great wealth — at least no one would take the trouble to strive and to strain for it as men do now. For, certainly, the spectacle of men who have only a few years to live, slaving away their time for the sake of dying rich, is in itself so unnatural and absurd, that in a state of society where the abolition of the fear of want had dissipated the envious admiration with which the masses of men now regard the possession of great riches, whoever would toil to acquire more than he cared to use would be looked upon as we would now look on a man who would thatch his head with half a dozen hats, or walk around in the hot sun with an overcoat on. When everyone is sure of being able to get enough, no one will care to make a packhorse of himself. — Progress & Poverty — Book IX, Chapter 2: Effects of the Remedy, upon distribution and thence on production

MEN instinctively admire virtue and truth, but the sting of want and the fear of want make them even more strongly admire the rich and sympathize with the fortunate. It is well to be honest and just, and men will commend it; but he who by fraud and injustice gets him a million dollars will have more respect and admiration and influence, more eye service and lip service, if not heart service, than he who refuses it. The one may have his reward in the future; he may know that his name is writ in the Book of Life, and that for him is the white robe and the palm branch of the victor against temptation; but the other has his reward in the present. His name is writ in the list of "our substantial citizens;" he has the courtship of men and the flattery of women; the best pew in the church and the personal regard of the eloquent clergyman, who in the name of Christ preaches the Gospel of Dives, and tones down into a meaningless flower of. eastern speech the stern metaphor of the camel and the needle's eye. He may be a patron of arts, a Maecenas to men of letters; may profit by the converse of the intelligent, and be polished by the attrition of the refined. His alms may feed the poor, and help the struggling, and bring sunshine into desolate places; and noble public institutions commemorate, after he is gone, his name and his fame. It is not in the guise of a hideous monster, with horns and tail, that Satan tempts the children of men, but as an angel of light. His promises are not alone of the kingdoms of the world, but of mental and moral principalities and powers. He appeals not only to the animal appetites, but to the cravings that stir in man because he is more than an animal. — Progress & Poverty — Book IX, Chapter 4, Effects of the Remedy: Of the Changes that would be Wrought in Social Organization and Social Life

The Poor and the Kingdom

"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

"Rich" and "Poor" Defined

BUT is there not some line the recognition of which will enable us to say with something like scientific precision that this man is rich and that man is poor; some line of possession which will enable us truly to distinguish between rich and poor in all places and conditions of society; a line of the natural mean or normal possession, below which in varying degrees is poverty, and above which in varying degrees is wealthiness? It seems to me that there must be. And if we stop to think of it, we may see that there is. If we set aside for the moment the narrower economic meaning of service, by which direct service is conveniently distinguished from the indirect service embodied in wealth, we may resolve all the things which directly or indirectly satisfy human desire into one term service, just as we resolve fractions into a common denominator. Now is there not a natural or normal line of the possession or enjoyment of service? Clearly there is. It is that of equality between giving and receiving. This is the equilibrium which Confucius expressed in the golden word of his teaching that in English we translate into "reciprocity."  Naturally the services which a member of a human society is entitled to receive from other members are the equivalents of those he renders to others. Here is the normal line from which what we call wealthiness and what we call poverty take their start. He who can command more service than he need render, is rich. He is poor, who can command less service than he does render or is willing to render: for in our civilization of today we must take note of the monstrous fact that men willing to work cannot always find opportunity to work. The one has more than he ought to have; the other has less. Rich and poor are thus correlatives of each other; the existence of a class of rich involves the existence of a class of poor, and the reverse; and abnormal luxury on the one side and abnormal want on the other have a relation of necessary sequence. To put this relation into terms of morals, the rich are the robbers, since they are at least sharers in the proceeds of robbery; and the poor are the robbed. This is the reason, I take it, why Christ, Who was not really a man of such reckless speech as some Christians deem Him to have been, always expressed sympathy with the poor and repugnance of the rich. In His philosophy it was better even to be robbed than to rob. In the kingdom of right doing which He preached, rich and poor would be impossible, because rich and poor in the true sense are the results of wrong-doing. And when He said, "It is easier for a camel to pass through the eye of a needle than for a rich man to enter the kingdom of heaven," He simply put in the emphatic form of Eastern metaphor a statement of fact as coldly true as the statement that two parallel lines can never meet. Injustice cannot live where justice rules, and even if the man himself might get through, his riches — his power of compelling service without rendering service — must of necessity be left behind. If there can be no poor in the kingdom of heaven, clearly there can be no rich. And so it is utterly impossible in this, or in any other conceivable world, to abolish unjust poverty, without at the same time abolishing unjust possessions. This is a hard word to the softly amiable philanthropists, who, to speak metaphorically, would like to get on the good side of God without angering the devil. But it is a true word nevertheless. — The Science of Political Economy unabridged: Book II, Chapter 19, The Nature of Wealth: Moral Confusions as to Wealthabridged: Part II, Chapter 15, The Nature of Wealth: Moral Confusions as to Wealth

John Stuart Mill

GREAT as John Stuart Mill was and pure as he was — warm heart and noble mind — he yet never saw the true harmony of economic laws, nor realized how from this one great fundamental wrong flow want and misery, and vice and shame. Else he could never have written this sentence: "The land of Ireland, the land of every country, belongs to the people of that country. The individuals called landowners have no right in morality and justice to anything but the rent, or compensation for its salable value."

In the name of the Prophet — figs! If the land of any country belong to the people of that country, what right, in morality and justice, have the individuals called landowners to the rent? If the land belong to the people, why in the name of morality and justice should the people pay its salable value for their own?

Herbert Spencer says: "Had we to deal with the parties who originally robbed the human race of its heritage, we might make short work of the matter?" Why not make short work of the matter anyhow? For this robbery is not like the robbery of a horse or a sum of money, that ceases with the act. It is a fresh and continuous robbery, that goes on every day and every hour. It is not from the produce of the past that rent is drawn; it is from the produce of the present. It is a toll levied upon labor constantly and continuously. Every blow of the hammer, every stroke of the pick, every thrust of the shuttle, every throb of the steam engine pay it tribute. It levies upon the earnings of the men who, deep underground, risk their lives, and of those who over white surges hang to reeling masts; it claims the just reward of the capitalist and the fruits of the inventor's patient effort; it takes little children from play and from school, and compels them to work before their bones are hard or their muscles are firm; it robs the shivering of warmth; the hungry, of food; the sick, of medicine; the anxious, of peace. It debases, and embrutes, and embitters. — Progress & Poverty — Book VII, Chapter 3, Justice of the Remedy: Claim of Landowners to Compensation

Compensation

THE common law we are told is the perfection of reason, and certainly the landowners cannot complain of its decision, for it has been built up by and for landowners. Now what does the law allow to the innocent possessor when the land for which he paid his money is adjudged to rightfully belong to another? Nothing at all. That he purchased in good faith gives him no right or claim whatever. The law does not concern itself with the "intricate question of compensation" to the innocent purchaser. The law does not say, as John Stuart Mill says: "The land belongs to A, therefore B who has thought himself the owner has no right to anything but the rent, or compensation for its salable value." For that would be indeed like a famous fugitive slave case decision in which the Court was said to have given the law to the North and the nigger to the South. The law simply says: "The land belongs to A, let the Sheriff put him in possession! " — Progress & Poverty — Book VII, Chapter 3, Justice of the Remedy: Claim of Landowners to Compensation

COMPENSATED for what? For giving up what has been unjustly taken? The demand of land-owners for compensation is not that. We do not seek to spoil the Egyptians. We do not ask that what has been unjustly taken from laborers shall be restored. We are willing that bygones should be bygones, and to leave dead wrongs to bury their dead. We propose to let those who, by the past appropriation of land-value, have taken the fruits of labor, retain what they have thus got. We merely propose that for the future such robbery of labor shall cease. — NOW, is the State called on to compensate men for the failure of their expectations as to its action, even where no moral element is involved? If it make peace, must it compensate those who have invested on the expectation of war. If it open a shorter highway, is it morally bound to compensate those who may lose by the diversion of travel from the old one? If it promote the discovery of a cheap means of producing electricity directly from heat, is it morally bound to compensate the owners of all the steam engines thereby thrown out of use and all who are engaged in making them? If it develop the air-ship, must it compensate those whose business would be injured? Such a contention would be absurd. — The Condition of Labor

Yet the contention we are considering is worse. It is that the State must compensate for disappointing the expectations of those who have counted on its continuing to do wrong. — A Perplexed Philosopher (Compensation)

COMPENSATION implies equivalence. To compensate for the discontinuance of a wrong is to give those who profit by the wrong the pecuniary equivalent of its continuance. Now the State has nothing that does not belong to the individuals who compose it. What it gives to some it must take from others. Abolition with compensation is therefore not really abolition, but continuance under a different form — on one side of unjust deprivation, and on the other side of unjust appropriation. — A Perplexed Philosopher (Compensation)

The Innocent Purchaser

INNOCENT purchasers of what involves wrong to others! Is not the phrase absurd? If, in our legal tribunals, "ignorance of the law excuseth no man," how much less can it do so in the tribunal of morals — and it is this to which compensationists appeal.

And innocence can only shield from the punishment due to conscious wrong; it cannot give right. If you innocently stand on my toes, you may fairly ask me not to be angry; but you gain no right to continue to stand on them. — A Perplexed Philosopher (Compensation)

WHEN a man exchanges property of one kind for property of another kind he gives up the one with all its incidents and takes in its stead the other with its incidents. He cannot sell bricks and buy hay, and then complain because the hay burned when the bricks would not. The greater liability of the hay to burn is one of the incidents he accepted in buying it. Nor can he exchange property having moral sanction for property having only legal sanction, and claim that the moral sanction of the thing he sold attaches now to the thing he bought. That has gone with the thing to the other party in the exchange. Exchange transfers, it cannot create. Each party gives up what right he had and takes what right the other party had. The last holder obtains no moral right that the first holder did not have. — A Perplexed Philosopher (Compensation)

Compensation

"CAVEAT emptor" is the maxim of the law — "Let the buyer beware!" If a man buys a structure in which the law of gravity is disregarded or mechanical laws ignored, he takes the risk of those laws asserting their sway. And so he takes the risk in buying property which contravenes the moral law. When he ignores the moral sense, when he gambles on the continuance of a wrong, and when at last the general conscience rises to the point of refusing to continue that wrong, can he then claim that those who have refrained from taking part in it, those who have suffered from it, those who have borne the burden and heat and contumely of first moving against it, shall share in his losses on the ground that as members of the same state they are equally responsible for it? And must not the acceptance of this impudent plea tend to prevent that gradual weakening and dying out of the wrong, which would otherwise occur as the rise of the moral sense against it lessened the prospect of its continuance; and by promise of insurance to investors tend to maintain it in strength and energy till the last minute? — A Perplexed Philosopher (Compensation)

ALL pleas for compensation on the abolition of unequal rights to land are excuses for avoiding right and continuing wrong; they all, as fully as the original wrong, deny that equalness which is the essential of justice. Where they have seemed plausible to any honestly-minded man, he will, if he really examines his thought, see that this has been so because he has, though perhaps unconsciously, entertained a sympathy for those who seem to profit by injustice which he has refused to those who have been injured by it. He has been thinking of the few whose incomes would be cut off by the restoration of equal right. He has forgotten the many, who are being impoverished, degraded, and driven out of life by its denial. If he once breaks through the tyranny of accustomed ideas and truly realizes that all men are equally entitled to the use of the natural opportunities for the living of their lives and the development of their powers, he will see the injustice, the wickedness, of demanding compensation for the abolition of the monopoly of land. He will see that if anyone is to be compensated on the abolition of a wrong, it is those who have suffered by the wrong, not those who have profited by it. — A Perplexed Philosopher (Compensation)

Justice
 
JUSTICE in men's mouths is cringingly humble when she first begins a protest against a time-honored wrong, and we of the English-speaking nations still wear the collar of the Saxon thrall, and have been educated to look upon the "vested rights" of landowners with all the superstitious reverence that ancient Egyptians looked upon the crocodile. But when the times are ripe for them, ideas grow, even though insignificant in their first appearance. One day, the Third Estate covered their heads when the king put on his hat. A little while thereafter, and the head of a son of St. Louis rolled from the scaffold. The anti-slavery movement in the United States commenced with talk of compensating owners, but when four millions of slaves were emancipated, the owners got no compensation, nor did they clamor for any. And by the time the people of any such country as England or the United States are sufficiently aroused to the injustice and disadvantages of individual ownership of land to induce them to attempt its nationalization, they will be sufficiently aroused to nationalize it in a much more direct and easy way than by purchase. They will not trouble themselves about compensating the proprietors of land. — Progress & Poverty — Book VII, Chapter 3, Justice of the Remedy: Claim of Landowners to Compensation

IT requires reflection to see that manifold effects result from a single cause, and that the remedy for a multitude of evils may lie in one simple reform. As in the infancy of medicine, men were disposed to think each distinct symptom called for a distinct remedy, so when thought begins to turn to social subjects there is a disposition to seek a special cure for every ill, or else (another form of the same short-sightedness) to imagine the only adequate remedy to be something which presupposes the absence of those ills; as, for instance, that all men should be good, as the cure for vice and crime; or that all men should be provided for by the State, as the cure for poverty. — Protection or Free Trade — Chapter 28: Free Trade and Socialism - econlib

The Single Tax

TO abolish the taxation which, acting and reacting, now hampers every wheel of exchange and presses upon every form of industry, would be like removing an immense weight from a powerful spring. Imbued with fresh energy, production would start into new life, and trade would receive a stimulus which would be felt to the remotest arteries. The present method of taxation operates upon exchange like artificial deserts and mountains; it costs more to get goods through a custom house than it does to carry them around the world. It operates upon energy, and industry, and skill, and thrift, like a fine upon those qualities. If I have worked harder and built myself a good house while you have been contented to live in a hovel, the tax-gatherer now comes annually to make me pay a penalty for my energy and industry, by taxing me more than you. If I have saved while you wasted, I am mulct, while you are exempt. If a man build a ship we make him pay for his temerity, as though he had done an injury to the state; if a railroad be opened, down comes the tax collector upon it, as though it were a public nuisance; if a manufactory be erected, we levy upon it an annual sum which would go far towards making a handsome profit. We say we want capital, but if anyone accumulate it, or bring it among us, we charge him for it as though we were giving him a privilege. We punish with a tax the man who covers barren fields with ripening grain; we fine him who puts up machinery, and him who drains a swamp. — Progress & Poverty — Book IX, Chapter 1, Effects of the Remedy: Of the Effect upon the Production of Wealth


Its Beneficent Effects

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
 
Effect of Release from Fear of Want

THAT the masses now festering in the tenement houses of our cities, under conditions which breed disease and death, and vice and crime, should each family have its healthful home, set in its garden; that the working farmer should be able to make a living with a daily average of two or three hours' work, which more resembled healthy recreation than toil; that his home should be replete with all the conveniences yet esteemed luxuries; that it should be supplied with light and heat, and power if needed, and connected with those of his neighbors by the telephone; that his family should be free to libraries, and lectures, and scientific apparatus and instruction; that they should be able to visit the theater, or concert, or opera, as often as they cared to do so, and occasionally to make trips to other parts of the country or to Europe; that, in short, not merely the successful man, the one in a thousand, but the man of ordinary parts and ordinary foresight and prudence, should enjoy all that advancing civilization can bring to elevate and expand human life, seems, in the light of existing facts, as wild a dream as ever entered the brain of hasheesh eater. Yet the powers already within the grasp of man make it easily possible.  — Social Problems — Chapter 21: City and Country.

GIVE labor a free field and its full earnings; take for the benefit of the whole community that fund which the growth of the community creates, and want and the fear of want would be gone. The springs of production would be set free, and the enormous increase of wealth would give the poorest ample comfort. Men would no more worry about finding employment than they worry about finding air to breathe; they need have no more care about physical necessities than do the lilies of the field. The progress of science, the march of invention, the diffusion of knowledge, would bring their benefits to all.
 
With this abolition of want and the fear of want, the admiration of riches would decay, and men would seek the respect and approbation of their fellows in other modes than by the acquisition and display of wealth. In this way there would be brought to the management of public affairs and the administration of common funds the skill, the attention, the fidelity and integrity, that can now only be secured for private interests, and a railroad or gas works might be operated on public account, not only more economically and efficiently than, as at present, under joint stock management, but as economically and efficiently as would be possible under a single ownership. The prize of the Olympian games, that called forth the most strenuous exertions of all Greece, was but a wreath of wild olive; for a bit of ribbon men have over and over again performed services no money could have bought. — Progress & Poverty — Book IX, Chapter 4— Effects of the Remedy: Of the Changes that Would be Wrought in Social Organization and Social Life

Liberation of Higher Qualities

SHORT-SIGHTED is the philosophy which counts on selfishness as the master motive of human action. It is blind to facts of which the world is full. It sees not the present, and reads not the past aright. If you would move men to action, to what shall you appeal? Not to their pockets, but to their patriotism; not to selfishness but to sympathy. Self-interest is, as it were, a mechanical force — potent, it is true; capable of large and wide results. But there is in human nature what may be likened to a chemical force; which melts and fuses and overwhelms; to which nothing seems impossible. "All that a man hath will he give for his life" — that is self-interest. But in loyalty to higher impulses men will give even life.

It is not selfishness that enriches the annals of every people with heroes and saints. It is not selfishness that on every page of the world's history; bursts out in sudden splendor of noble deeds or sheds the soft radiance of benignant lives. It was not selfishness that turned Gautama's back to his royal home or bade the Maid of Orleans lift the sword from the altar; that held the Three Hundred in the Pass of Thermopylae, or gathered into Winkelried's bosom the sheaf of spears; that chained Vincent de Paul to the bench of the galley, or brought little starving children during the Indian famine tottering to the relief stations with yet weaker starvelings in their arms! Call it religion, patriotism, sympathy, the enthusiasm for humanity, or the love of God — give it what name you will; there is yet a force which overcomes and drives out selfishness; a force which is the electricity of the moral universe; a force beside which all others are weak. Everywhere that men have lived it has shown its power, and today, as ever, the world is full of it. To be pitied is the man who has never seen and never felt it. Look around! among common men and women, amid the care and the struggle of daily life in the jar of the noisy street and amid the squalor where want hides — everywhere, and there is the darkness lighted with the tremulous play of its lambent flames. He who has not seen it has walked with shut eyes. He who looks may see, as says Plutarch, that "the soul has a principle of kindness in itself, and is born to love, as well as to perceive, think, or remember."

And this force of forces — that now goes to waste or assumes perverted forms — we may use for the strengthening and building up and ennobling of society, if we but will, just as we now use physical forces that once seemed but powers of destruction. All we have to do is but to give it freedom and scope. — Progress & Poverty — Book IX, Chapter 4— Effects of the Remedy: Of the Changes that Would be Wrought in Social Organization and Social Life

THE efficiency of labor always increases with the habitual wages of labor — for high wages mean increased self-respect, intelligence, hope and energy. Man is not a machine, that will do so much and no more; he is not an animal, whose powers may reach thus far and no further. It is mind, not muscle, which is the great agent of production. The physical power evolved in the human frame is one of the weakest of forces, but for the human intelligence the resistless currents of nature flow, and matter becomes plastic to the human will. To increase the comforts, and leisure, and independence of the masses is to increase their intelligence; it is to bring the brain to the aid of the hand; it is to engage in the common work of life the faculty which measures the animalcule and traces the orbits of the stars!  — Progress & Poverty — Book IX, Chapter 2: Effects of the Remedy, upon distribution and thence on production

OUT upon nature, in upon him himself, back through the mists that shroud the past, forward into the darkness that overhangs the future, turns the restless desire that arises when the animal wants slumber in satisfaction. Beneath things he seeks the law; he would know how the globe was forged, and the stars were hung, and trace to their sources the springs of life. And then, as the man develops his nobler nature, there arises the desire higher yet — the passion of passions, the hope of hopes — the desire that he, even he, may somehow aid in making life better and brighter, in destroying want and sin, sorrow and shame. He masters and curbs the animal; he turns his back upon the feast and renounces the place of power; he leaves it to others to accumulate wealth, to gratify pleasant tastes, to bask themselves in the warm sunshine of the brief day. He works for those he never saw and never can see; for a fame, or it may be but for a scant justice, that can only come long after the clods have rattled upon his coffin lid. He toils in the advance, where it is cold, and there is little cheer from men, and the stones are sharp and the brambles thick.

Amid the scoffs of the present and the sneers that stab like knives, he builds for the future; he cuts the trail that progressive humanity may hereafter broaden into a highroad. Into higher, grander spheres desire mounts and beckons, and a star that rises in the east leads him on. Lo! the pulses of the man throb with the yearnings of the god — he would aid in the process of the suns! — Progress & Poverty — Book II, Chapter 3, Population and Subsistence: Inferences from Analogy

The Law of Progress

MENTAL power is the motor of progress, and men tend to advance in proportion to the mental power expended in progression — the mental power which is devoted to the extension of knowledge, the improvement of methods, and the betterment of social conditions. — Progress & Poverty — Book X, Chapter 3, The Law of Human Progress

To compare society to a boat.  Her progress through the water will not depend upon the exertion of her crew, but upon the exertion devoted to propelling her. This will be lessened by any expenditure of force required for baling, or any expenditure of force in fighting among themselves or in pulling in different directions.

Now, as in a separated state the whole powers of man are required to maintain existence, and mental power is only set free for higher uses by the association of men in communities, which permits the division of labor and all the economies which come with the co-operation of increased numbers, association is the first essential of progress. Improvement becomes possible as men come together in peaceful association, and the wider and closer the association, the greater the possibilities of improvement. And as the wasteful expenditure of mental power in conflict becomes greater or less as the moral law which accords to each an equality of rights is ignored or is recognized, equality (or justice) is the second essential of progress.

Thus association in equality is the law of progress. Association frees mental power for expenditure in improvement, and equality (or justice, or freedom — for the terms here signify the same thing, the recognition of the moral law) prevents the dissipation of this power in fruitless struggles. — Progress & Poverty — Book X, Chapter 3, The Law of Human Progress

The Moral Law


THE law of human progress, what is it but the moral law? Just as social adjustments promote justice, just as they acknowledge the equality of right between man and man, just as they insure to each the perfect liberty which is bounded only by the equal liberty of every other, must civilization advance. Just as they fail in this, must advancing civilization come to a halt and recede. Political economy and social science cannot teach any lessons that are not embraced in the simple truths that were taught to poor fishermen and Jewish peasants by One who eighteen hundred years ago was crucified — the simple truths which, beneath the warpings of selfishness and the distortions of superstition, seem to underlie every religion that has ever striven to formulate the spiritual yearnings of man. — Progress & Poverty — Book X, Chapter 3, The Law of Human 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.  — Progress & Poverty — Book X, Chapter 5, The Law of Human Progress: The Central Truth

Justice, the Foundation

THAT justice is the highest quality in the moral hierarchy I do not say; but that it is the first. That which is above justice must be based on justice, and include justice, and be reached through justice. It is not by accident that, in the Hebraic religious development which through Christianity we have inherited, the declaration, "The Lord thy God is a just God," precedes the sweeter revelation of a God of Love. Until the eternal justice is perceived, the eternal love must be hidden. As the individual must be just before he can be truly generous, so must human society be based upon justice before it can be based on benevolence. — Social Problems — Chapter 9, First Principles

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. — Progress & Poverty — Book X, Chapter 5, The Law of Human Progress: The Central Truth

WE see that God in His dealings with men has not been a bungler or a niggard; that He has not brought too many men into the world; that He has not neglected abundantly to supply them; that He has not intended that bitter competition of the masses for a mere animal existence, and that monstrous aggregation of wealth which characterizes our civilization; but that these evils, which lead so many to say there is no God, or yet more impiously to say that they are of God's ordering, are due to our denial of His moral law. We see that the law of justice, the law of the Golden Rule, is not a mere counsel of perfection, but indeed the law of social life. We see that, if we were only to observe it, there would be work for all, leisure for all, abundance for all; and that civilization would tend to give to the poorest not only necessaries, but all comforts and reasonable luxuries as well. We see that Christ was not a mere dreamer when He told men that, if they would seek the kingdom of God and its right doing, they might no more worry about material things than do the lilies of the field about their raiment; but that He was only declaring what political economy, in the light of modern discovery, shows to be a sober truth. — The Condition of Labor, an Open Letter to Pope Leo XIII 

"The Man of the People"


NEAR nineteen hundred years ago, when another civilization was developing monstrous inequalities, when the masses everywhere were being ground into hopeless slavery, there arose in a Jewish village an unlearned carpenter, who, scorning the orthodoxies and ritualisms of the time, preached to laborers and fishermen the gospel of the Fatherhood of God, of the equality and brotherhood of men, who taught His disciples to pray for the coming of the kingdom of heaven on earth. The college professors sneered at Him, the orthodox preachers denounced Him. He was reviled as a dreamer, as a disturber, as a "communist," and, finally, organized society took the alarm, and He was crucified between two thieves. But the word went forth, and, spread by fugitives and slaves, made its way against power and against persecution till it revolutionized the world, and out of the rotting old civilization brought the germ of the new. Then the privileged classes rallied again, carved the effigy of the man of the people in the courts and on the tombs of kings, in His name consecrated inequality, and wrested His gospel to the defense of social injustice. But again the same great ideas of a common fatherhood, of a common brotherhood, of a social state in which none shall be overworked and none shall want, begin to quicken in common thought. — Social Problems — Chapter 4, Two Opposing Tendencies

The Office of Religion

WHAT is the office of religion if not to point out the principles that ought to govern the conduct of men towards each other; to furnish a clear, decisive rule of right which shall guide men in all the relations of life — in the workshop, in the mart, in the forum and in the senate, as well as in the church; to supply, as it were, a compass by which, amid the blasts of passion, the aberrations of greed and the delusions of a short-sighted expediency men may safely steer? What is the use of a religion that stands palsied and paltering in the face of the most momentous problems? What is the use of a religion that whatever it may promise for the next world can do nothing to prevent injustice in this? Early Christianity was not such a religion, else it would never have encountered the Roman persecutions; else it would never have swept the Roman world. The skeptical masters of Rome, tolerant of all gods, careless of what they deemed vulgar superstitions, were keenly sensitive to a doctrine based on equal rights; they feared instinctively a religion that inspired slave and proletarian with a new hope; that took for its central figure a crucified carpenter; that taught the equal fatherhood of God and the equal brotherhood of men; that looked for the speedy reign of justice, and that prayed, "Thy Kingdom come on Earth! " — The Condition of Labor, an Open Letter to Pope Leo XIII 
 
The Call of Liberty"Shall we not Trust her?"

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. Only in broken gleems and partial light has the sun of Liberty yet beamed among men, but all progress hath she called forth. Liberty came to a race of slaves crouching under Egyptian whips, and led them forth from the House of Bondage. She hardened them in the desert and made of them a race of conquerors. The free spirit of the Mosaic law took their thinkers up to heights where they beheld the unity of God, and inspired their poets with strains that yet phrase the highest exaltations of thought. Liberty dawned on the Phoenician coast, and ships passed the Pillars of Hercules to plough the unknown sea. She shed a partial light on Greece, and marble grew to shapes of ideal beauty, words became the instruments of subtlest thought, and against the scanty militia of free cities the countless hosts of the Great King broke like surges against a rock. She cast her beams on the four-acre farms of Italian husbandmen, and born of her strength a power came forth that conquered the world. They glinted from shields of German warriors, and Augustus wept for his legions. Out of the night that followed her eclipse, her slanting rays fell again on free cities, and a lost learning revived, modem civilization began, a new world was unveiled; and as Liberty grew, so grew art, wealth, power, knowledge, and refinement. In the history of every nation we may read the same truth. It was the strength born of Magna Charta that won Crecy and Agincourt. It was the revival of Liberty from the despotism of the Tudors that glorified the Elizabethan age. It was the spirit that brought a crowned tyrant to the block that planted here the seed of a mighty tree. It was the energy of ancient freedom that, the moment it had gained unity, made Spain the mightiest power of the world, only to fall to the lowest depth of weakness when tyranny succeeded liberty. See, in France, all intellectual vigor dying under the tyranny of the Seventeenth Century to revive in splendor as Liberty awoke in the Eighteenth, and on the enfranchisement of French peasants in the Great Revolution basing the wonderful strength that has in our time defied defeat.

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. — Progress & Poverty — Book X, Chapter 5, The Law of Human Progress: The Central Truth

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! — Progress & Poverty — Book X, Chapter 5, The Law of Human Progress: The Central Truth

"Words Fail the Thought"
 
TO begin and maintain great popular movements, it is the moral sense rather than the Intellect that must be appealed to, sympathy rather than self-interest. For however it may be with any individual, the sense of justice is with the masses of men keener and truer than intellectual perception, and unless a question can assume the form of right and wrong it cannot provoke general discussion and excite the many to action. And while material gain or loss impresses us less vividly the greater the number of those we share it with, the power of sympathy increases as it spreads from man to man — becomes cumulative and contagious. — Protection or Free Trade, Chapter 29: Practical Politics  econlib
 
The Liberators

I DO not wish to call upon those my voice may reach to demand their own rights, so much as to call upon them to secure the rights of others more helpless. I believe that the idea of duty is more potent for social improvement than the idea of interest; that in sympathy is a stronger social force than in selfishness. I believe that any great social improvement must spring from, and be animated by, that spirit which seeks to make life better, nobler, happier for others, rather than by that spirit which only seeks more enjoyment for itself. For the Mammon of Injustice can always buy the selfish whenever it may think it worth while to pay enough; but unselfishness it cannot buy. — Social Problems — Chapter 9: First Principles

IN the idea of the Incarnation — of the God voluntarily descending to the help of men, which is embodied not merely in Christianity, but in other great religions — lies, I sometimes think, a deeper truth than perhaps even the Churches teach. This is certain, that the deliverers, the liberators, the advancers of humanity, have always been those who were moved by the sight of injustice and misery rather than those spurred by their own suffering. As it was a Moses, learned in all the lore of the Egyptians, and free to the Court of Pharaoh, and not a tasked slave, forced to make bricks without straw, who led the Children of Israel from the House of Bondage: as it was the Gracchi, of patrician blood and fortune, who struggled to the death against the land-grabbing system which finally destroyed Rome, so has it always been that the oppressed, the degraded, the down-trodden have been freed and elevated rather by the efforts and the sacrifices of those to whom fortune had been more kind than by their own strength. For the more fully men have been deprived of their natural rights, the less their power to regain them. The more men need help, the less can they help themselves. — Social Problems — Chapter 9: First Principles

BUT it is in example as in deed that such lives are helpful. It is thus that they dignify human nature and glorify human effort, and bring to those who struggle hope and trust. The life of Moses, like the institutions of Moses, is a protest against that blasphemous doctrine, current now as it was three thousand years ago; that blasphemous doctrine preached ofttimes even from Christian pulpits; that the want and suffering of the masses of mankind flow from a mysterious dispensation of providence, which we may lament, but can neither quarrel with nor alter. Let him who hugs that doctrine to himself, him to whom it seems that the squalor and brutishness with which the very centers of our civilization abound are not his affair, turn to the example of that life. For to him who will look, yet burns the bush; and to him who will hear, again comes the voice, "The people suffer: who will lead them forth?" — Moses

The Clarions of Battle

 
TODAY a wider, deeper, more beneficent revolution is brooding, not over one country, but over the world. God's truth impels it, and forces mightier than He has ever before given to man urge it on. It is no more in the power of vested wrongs to stay it than it is in man's power to stay the sun. The stars in. their courses fight against Sisera, and in the ferment of today, to him who hath ears to hear, the doom of industrial slavery is sealed.

Where shall the dignitaries of the Church be in the struggle that is coming, nay, that is already here? On the side of justice and liberty, or on the side of wrong and slavery? with the delivered when the timbrels shall sound again, or with the chariots and the horsemen that again shall be engulfed in the sea? — The Condition of Labor

The Muster Roll

LOOK around today. Lo! here, now, in our civilized society, the old allegories yet have a meaning, the old myths are still true. Into the Valley of the Shadow of Death yet often leads the path of duty, through the streets of Vanity Fair walk Christian and Faithful, and on Greatheart's armor ring the clanging blows. Ormuzd still fights with Ahriman — the Prince of Light with the Powers of Darkness. He who will hear, to him the clarions of battle call. How they call, and call, and call till the heart swells that hears them! Strong soul and high endeavor, the world needs them now. Beauty still lies imprisoned, and iron wheels go over the good and true and beautiful that might spring from human lives. And they who fight with Ormuzd, though they may not know each other — somewhere, sometime, will the muster roll be called. — Progress & Poverty, Conclusion: The Problem of Individual Life

IT is the noblest cause in which any human being can possibly engage. What, after all, is there in life as compared with a struggle like this? One thing, and only one thing, is absolutely certain for every man and woman in this hall, as it is to all else of human kind — that is death. What will it profit us in a few years how much we have left? Is not the noblest and the best use we can make of life to do something to make better and happier the condition of those who come after us — by warning against injustice, by the enlightenment of public opinion, by the doing all that we possibly can do to break up the accursed system that degrades and embitters the lot of so many?

We have a long fight and a hard fight before us. Possibly, probably, for many of us, we may never see it come to success. But what of that? It is a privilege to be engaged in such a struggle. This we may know, that it is but a part of that great, world-wide, long-continued struggle in which the just and the good of every age have been engaged; and that we, in taking part in it, are doing something in our humble way to bring on earth the kingdom of God, to make the conditions of life for those who come afterward, those which we trust will prevail in heaven. — Thou Shalt Not Steal

WHAT, when our time comes, does it matter whether we have fared daintily or not, whether we have worn soft raiment or not, whether we leave a great fortune or nothing at all, whether we shall have reaped honors or been despised, have been counted learned or ignorant — as compared with how we may have used that talent which has been entrusted to us for the Master's service? What shall it matter; when eyeballs glaze and ears grow dull, if out of the darkness may stretch a hand, and into the silence may come a voice: —

"Well done, thou good and faithful servant: thou has been faithful over a few things, I will make thee ruler over many things; enter thou into the joy of thy Lord"Social Problems — Chapter 9: First Principles

The Glow of Dawn

ONLY a little while ago nations were bought and sold, traded off by treaty and bequeathed by will. Where now is the right divine of kings? Only a little while ago, and human flesh and blood were legal property. Where are now the vested rights of chattel slavery? And shall this wrong, that involves monarchy, and involves slavery — this injustice from which both spring — long continue? Shall the ploughers for ever plough the backs of a class condemned to toil? Shall the millstones of greed for ever grind the faces of the poor? Ladies and gentlemen, it is not in the order of the universe!  As one who for years has watched and waited, I tell you the glow of dawn is in the sky. Whether it come with the carol of larks or the roll of the war-drums, it is coming — it will come. The standard that I have tried to raise tonight may be tom by prejudice and blackened by calumny; it may now move forward, and again be forced back. But once loosed, it can never again be furled! To beat down and cover up the truth that I have tried tonight to make clear to you, selfishness will call on ignorance. But it has in it the germinative force of truth, and the times are ripe for it. If the flint oppose it, the flint must split or crumble! Paul planteth, and Apollos watereth, but God giveth the increase. The ground is ploughed; the seed is set; the good tree will grow.

So little now, only the eye of faith can see it. So little now; so tender and so weak. But sometime, the birds of heaven shall sing in its branches; sometime, the weary shall find rest beneath its shade! — Speech: Why Work is Scarce, Wages Low and Labour Restless (1877, San Francisco)


HENRY GEORGE

Henry George, American economist (1839-1897) was born in Philadelphia on the eastern seaboard of the United States of America amid a built-up economy. His family had been American for several generations but was of English, Scottish and Welsh descent.

When a youth, Henry George made a voyage as a deckhand during which the ship circumnavigated the earth, visiting Melbourne and Calcutta. At the age of 19, he voyaged from the eastern seaboard to the western seaboard of the American continent, via the Strait of Magellan, and undoubtedly it was the change from an established to a growing economy which gave him the insight into political economy not shown by other economists of the nineteenth century.

In California, he became a printer, editor and journalist, and after writing Progress and Poverty, Henry George took an editorship in New York and by this time he was world-renowned as an author and orator. He lectured in England, Scotland and Ireland, Paris and South and Western Australia during his later life.

Henry George divided government into two parts (a) political and (b) social. Political government would today consist of the defense of the realm and the sea and airways; maintenance of a civil police force and the courts of justice, and suchlike matters, and would be kept at the minimum necessary to maintain the common right of the public and the right of the individual to the enjoyment of the Sovereign's peace under the law of the land.

Social government would concern itself with doing on a collective basis only the things which it is not practicable for the individual to do, such as irrigation, drainage, trunk roads, etc.

Henry George recognized that the ability of an economic unit such as the United Kingdom to raise taxation is not something dependent only upon national economic growth but upon its exchanges with the rest of the world. Thus traders in London by their exchanges are increasing taxation potential (the wealth producing capacities of land) in New Zealand and traders in New Zealand are increasing taxation potential in the United Kingdom.


Back Cover:
As, when we find that a machine will not work, we infer that in its construction some law of physics has been ignored or defied, so, when we find social disease and political evils, may we infer that in the organization of society moral law has been defied and the natural rights of men have been ignored.

THAT we should do unto others as we would have them do to us — that we should respect the rights of others as scrupulously as we would have our own rights respected, is not a mere counsel of perfection to individuals, but it is the law to which we must conform social institutions and national policy if we would secure the blessings of abundance and peace. — Social Problems, Chapter 10

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themes:

technological progress

Joseph Priestley

social progress

poverty

working poor

hunter-gatherer

division of labor

labor

industrial slavery

wages tending to a minimum

Duke of Argyll

poverty's causes

millstones

poverty and God

intelligent design

God's bounty

can time make a wrong a right?

well-provisioned ship

ecosystem

more men, more yield

population growth

man different from animals

population density

Malthus

fear of poverty

Christian ethics

political economy

injustice

poverty's causes

fences and bandages

warping of economics

special interests

corruption

reason

women

civilization

land

land defined

landholders

tariffs

wealth

land includes

made land

political economy

working men, beggarmen and thieves

Jesus Christ

theft

labor

he who produces

our daily bread

monopoly

capital

wealth

civilization

land different from capital

labor and capital

entrepreneur

small business

war

government bonds

public debt

A, B and C

value

wealth

labor

depreciation

wealth and labor

wages

factors

wages not drawn from capital

self-employment

productive activity

he who produces

man seeks to gratify

natural opportunities

margin of production

rent

law of rent

law of wages

marginal land

free land

first

frontier

founding fathers and first families

location, location, location

proximity

community

civilization

land progression

the labor of others

infrastructure

wealth from land appreciation

interest

profits

speculation

speculator

political economy

laws of economics

division of labor

trade

free trade

production includes

distribution

wealth

distribution of wealth

political economy

man seeks...

the Greater Leviathan

cooperation

commerce

trade

civilization

competition

population density

population growth

is this socialism

social organism

command and control

single tax

radicalism

corruption

monopoly

government's role

privatization

franchises

liberty

protection of government

protection

tyranny

privilege

Cobden

hunger

tariff

sales taxes

sales taxes wrong

perverse incentives

direct taxation

indirect taxation

laissez faire

physiocrats

single tax

libertarian

privilege

natural opportunities

labor

unemployment

right to employment?

created equal

birthright

private property in land

first

tollgates and tollpayers

well-provisioned ship

enough and as good

property rights

title

ownership

possession

usufruct

landlords

justice changing

Robinson Crusoe

slavery

private property in men

rent

absentee ownership

latifundia

founding fathers

sharecropping

poverty's causes

privatization

theft

wealth from land

manna

overproduction

abolishing poverty

land as common property

sharing an inheritance

natural method of taxation

necessity

canons of taxation

middlemen

prices

speculation

cost of living

land value taxation

rent for community

created equal

he who produces

equality

charity

direct taxes

indirect taxes

feudalism

sovereign

enclosure

landed gentry

three hats

a society with no victims

the Duke of Westminster

human desires

idle rich

heaven

Jesus

abolishing poverty

John Stuart Mill

rent for community

land belongs to whom?

robbery

Herbert Spencer

compensation

injustice

justice changing

innocent purchaser

but I'm not ...

rights and wrongs

justice

slavery

the remedy

untaxing

artificial deserts and mountainst

single tax

perverse incentives

goose

necessity of taxing land

wages

jobs chasing workers

trade

self-employment

natural opportunities

purpose of living

untaxing

peace

association in equality

law of human progress

golden rule

kingdom of God

religion

warping of Christianity

heaven

slavery

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