Uncertain Future of the Metropolis
[Reprinted from The Henry George News, March 1980]
I learned about this conference on the "Future of the Metropolis" just
after returning from the ruins of ancient Greece. I could not help but
visualize future people, two or three centuries from now, wandering
through the ruins of our cities. Would they be puzzling over the
eclipse of a great civilization, as I was at the haunting temples of
Delphi and the cyclopean walls at Mycenae?
These unsettling thoughts are not mere metaphor. Pessimism intrudes
insistently on anyone who tries to project the future from current
trends. Most signs of our times add up to a grim forecast of what
The single element that makes me
apprehensive about the future of our cities is our land system. Tentacles of our misguided land
policies are choking almost every vital aspect of metropolitan life.
This is doubly worrisome, because the full dimensions of the land
problem have barely surfaced in the public consciousness. To put it in the vernacular, most of us
don't know what's eating us.
We have scarcely begun to identify the causes of today's city land
problems. This is not to denigrate the legions of good folk --
officials and citizens alike -- who are trying desperately to cope with
the daily disasters. But without a better notion of what is producing
these disasters, we are unlikely to stem the flood.
A major problem, certainly, is our
distorted land system that operates around the clock and around the
calendar, and under the full sanction of the law. It rips off the poor,
saps small business, and deprives municipalities of their rightful
The people as a whole create land
values, not only by their presence, but also through participation in
government, as taxpayers. Schools, firehouses, streets, police,
water lines -- the whole gamut of public works and services that
enhance a neighborhood are converted into higher land values. The
taxpayers of the entire country, through federal aid for our
multi-billion-dollar Metrorail project, have been boosting Washington,
D.C. land values mightily.
Not all land values are manmade.
Inherent qualities also give land special advantages: fertile
soils in farming districts, scenic views in residential areas,
subsurface riches of coal, oil, and minerals. None of us, as landlords,
tenants, or governments, can lay claim to having created these values.
The people who have been drawing up an international law of the Seas
have characterized these natural
endowments as "the common heritage of mankind", where no people,
individually or collectively, produce these land values, it is difficult to argue with the
conclusion that they belong to all people equally.
If the institution of private property
has a sound foundation, and I believe it does, then it rests on the
principle that people have a right to reap what they sow, to retain for
themselves what they themselves produce or earn. Land values, produced
by all of society, and by nature, do not conform to this prescription.
In the case of Washington, B.C., most
landowners are petty holders. The biggest portion of their
property value is in their homes or small shops, only 15 or 20% in
land. Only five percent of the city's properties, land and buildings
together, are valued over $100,000. Because the high peaks of land
values are concentrated mainly in the central business district, those
who walk away with the lion's share of the community's land values are
a mere handful of owners.
Decade after decade, billions of
dollars in urban land values are being siphoned off by a narrowing
class that has no ethical or economic claim to them. To be outraged
when a few ghetto dwellers, in an occasional frenzy of despair, engage
in looting on a relatively miniscule scale, but to remain indifferent
to this massive, wholesale looting, is worse than hypocritical. It is
to ignore a catastrophic social maladjustment, more severe, I believe,
than anything the U.S. has experienced since slavery.
Henry Reuss, Chairman of the House Committee on Banking, Finances and
Urban Affairs, recently pointed out, that over the past thirty years,
the Consumer Price Index rose 300%, the price of the average new home
went up 500%, and the price of the land under that average new house
went up 1,275%. "Ways must be
found" he said, "to curb the tendency to invest more and more in land,
a passive activity that adds not a single acre to the nation's wealth.
Instead we must encourage investments in job-creating plant and
One optimistic note amidst the pervading pessimism is the work being
done toward the creation of land price index. H.U.D. and the Urban Land
Institute contracted with fifteen people to construct land price
indexes in selected metropolitan areas. Next month, this group will
review what has been uncovered about the availability, reliability, and
compatibility of various land price data, and they will spell out
national needs and uses for a land price index. This index might serve
as an alarm that goads us into examining phenomena, that have been
largely shielded from public scrutiny. This process could begin to
inform a whole set of policies, starting people to think in new
The land problem is far from the only important perspective from which
to view cities. It looms in importance to me, not so much because of
the dead civilizations I recently visited, but because the evils of
landlordism were well-engraved in my consciousness during a year in
South America. Compared to Ecuador, of course, the U.S. is almost
Utopia, in many respects. But I sense
that we are drifting rapidly towards a landlord-dominated society.
Economic trends point toward bigger and bigger recessions. I do not
expect we will ever have another 1930's-type depression. I doubt
whether people will accept or tolerate such unemployment or misery.
Instead, I believe they will demand the use of extraordinary
governmental powers to tell us where to work, what wages to accept,
what goods to produce -- in short, a degree of regimentation that will
threaten many cherished freedoms.
Before that happens, the opportunity
awaits to see whether a reasonably free economy can still be made to
work. Unless we tackle the land question, and the looting of America,
that game may be forfeited.
The future of the metropolis is uncertain. The choice is ours. We can
intervene in the way society is now headed, to preserve the American
dream. Or, we can continue along the present path and await the