Our primary social adjustment is a denial of justice. In allowing
one man to own the land on which and from which other men must live,
we have made them his bondsmen in a degree which increases as material
progress goes
on. This is the subtle alchemy that in ways they do
not realize is extracting from the masses in every civilized country
the fruits of their
weary toil; that is instituting a harder and more hopeless slavery in
place of that which has been destroyed; that is bringing political despotism
out
of political freedom, and must soon transmute democratic institutions
into anarchy. — Henry George, Progress & Poverty (below)
Edmund Vance Cooke: Uncivilized
An ancient ape, once on a time,
Disliked exceedingly to climb,
And so he picked him out a tree
And said, "Now this belongs to me.
I have a hunch that monks are mutts
And I can make them gather nuts
And bring the bulk of them to me,
By claiming title to this tree." ...
To gather nuts, he made his claim:
"All monkeys climbing on this tree
Must bring their gathered nuts to me,
Cracking the same on equal shares;
The meats are mine, the shells are theirs." ....
Read the whole poem
Henry George: The Common Sense of Taxation (1881
article)
As to amount of taxation, there is no principle which imposes any arbitrary
limit. Heavy taxation is better for any community than light taxation, if
the increased revenue be used in doing by public agencies things which could
not be done, or could not be as well and economically done, by private agencies.
Taxes could be lightened in the city of New York by dispensing with street-lamps
and disbanding the police force. But would a reduction in taxation gained
in this way be for the benefit of the people of New York and make New York
a more desirable place to live in? Or if it should be found that heat and
light could be conducted through the streets at public expense and supplied
to each house at but a small fraction of the cost of supplying them by individual
effort, or that the city railroads could be run at public expense so as to
give every one transportation at very much less than it now costs the average
resident, the increased taxation necessary for these purposes would not be
increased burden, and in spite of the larger taxation required, New York
would become a more desirable place to live in. It is a mistake to condemn
taxation as bad merely because it is high; it is a mistake to impose by constitutional
provision, as in many of our States has been advocated, and in some of our
States has been done, any restriction upon the amount of taxation. A restriction
upon the incurring of public indebtedness is another matter. In nothing is
the far-reaching statesmanship of Jefferson more clearly shown than in his
proposition that all public obligations should be deemed void after a certain
brief term — a proposition which he grounds upon the self-evident truth
that the earth belongs in usufruct to the living, and that the dead have
no control over it, and can give no title to any part of it. But restriction
upon public debts is a very different thing from restriction upon the power
of taxation, and reasons which urge the one do not apply to the other. Nor
is increased taxation necessarily proof of governmental extravagance. Increase
in taxation is in the order of social development, for the reason that social
development tends to the doing of things collectively that in a ruder state
are done individually, to the giving to government of new functions and the
imposing of new duties. Our public schools and libraries and parks, our signal
service and fish commissions and agricultural bureaus and grasshopper investigations,
are evidences of this.
But while no limit can be properly fixed for the amount of taxation, the
method of taxation is of supreme importance. A horse may be anchored by fastening
to his bridle a weight which he will not feel when carried in a buggy behind
him. The best ship may be made utterly unseaworthy by the bad stowage of
a cargo which properly placed would make her the stiffer and more weatherly.
So enterprise may be palsied, industry crushed, accumulation prevented, and
a prosperous country turned into a desert, by taxation which rightly levied
would hardly be felt. ...
For, keeping in mind the fact that all wealth is the result of human exertion,
it is clearly seen that, having in view the promotion of the general prosperity,
it is the height of absurdity to tax wealth for purposes of revenue while
there remains, unexhausted by taxation, any value attaching to land. We may
tax land values as much as we please, without in the slightest degree lessening
the amount of land, or the capabilities of land, or the inducement to use
land. But we cannot tax wealth without lessening the inducement to the production
of wealth, and decreasing the amount of wealth. We might take the whole value
of land in taxation, so as to make the ownership of land worth nothing, and
the land would still remain, and be as useful as before. The effect would
be to throw land open to users free of price, and thus to increase its capabilities,
which are brought out by increased population. But impose anything like such
taxation upon wealth, and the inducement to the production of wealth would
be gone. Movable wealth would be hidden or carried off, immovable wealth
would be suffered to go to decay, and where was prosperity would soon be
the silence of desolation.
And the reason of this difference is clear. The possession of wealth is
the inducement to the exertion necessary to the production and maintenance
of wealth. Men do not work for the pleasure of working, but to get the things
their work will give them. And to tax the things that are produced by exertion
is to lessen the inducement to exertion. But over and above the benefit to
the possessor, which is the stimulating motive to the production of wealth,
there is a benefit to the community, for no matter how selfish he may be,
it is utterly impossible for any one to entirely keep to himself the benefit
of any desirable thing he may possess. These diffused benefits when localized
give value to land, and this may be taxed without in any wise diminishing
the incentive to production.
To illustrate: A man builds a fine house or large factory in a poorly improved
neighborhood. To tax this building and its adjuncts is to make him pay for
his enterprise and expenditure — to take from him part of his natural
reward. But the improvement thus made has given new beauty or life to the
neighborhood, making it a more desirable place than before for the erection
of other houses or factories, and additional value is given to land all about.
Now to tax improvements is not only to deprive of his proper reward the man
who has made the improvement, but it is to deter others from making similar
improvements. But, instead of taxing improvements, to tax these land values
is to leave the natural inducement to further improvement in full force,
and at the same time to keep down an obstacle to further improvement, which,
under the present system, improvement itself tends to raise. For the advance
of land values which follows improvement, and even the expectation of improvement,
makes further improvement more costly.
See how unjust and short-sighted is this system. Here is a man who, gathering
what little capital he can, and taking his family, starts West to find a
place where he can make himself a home. He must travel long distances; for,
though he will pass plenty of land nobody is using, it is held at prices
too high for him. Finally he will go no further, and selects a place where,
since the creation of the world, the soil, so far as we know, has never felt
a plowshare. But here, too, in nine cases out of ten, he will find the speculator
has been ahead of him, for the speculator moves quicker, and has superior
means of information to the emigrant. Before he can put this land to the
use for which nature intended it, and to which it is for the general good
that it should be put, he must make terms with some man who in all probability
never saw the land, and never dreamed of using it, and who, it may be, resides
in some city, thousands of miles away. In order to get permission to use
this land, he must give up a large part of the little capital which is seed-wheat
to him, and perhaps in addition mortgage his future labor for years. Still
he goes to work: he works himself, and his wife works, and his children work — work
like horses, and live in the hardest and dreariest manner. Such a man deserves
encouragement, not discouragement; but on him taxation falls with peculiar
severity. Almost everything that he has to buy — groceries, clothing,
tools — is largely raised in price by a system of tariff taxation which
cannot add to the price of the grain or hogs or cattle that he has to sell.
And when the assessor comes around he is taxed on the improvements he has
made, although these improvements have added not only to the value of surrounding
land, but even to the value of land in distant commercial centers. Not merely
this, but, as a general rule, his land, irrespective of the improvements,
will be assessed at a higher rate than unimproved land around it, on the
ground that "productive property" ought to pay more than "unproductive
property" — a principle just the reverse of the correct one, for
the man who makes land productive adds to the general prosperity, while the
man who keeps land unproductive stands in the way of the general prosperity,
is but a dog-in-the-manger, who prevents others from using what he will not
use himself.
Or, take the case of the railroads. That railroads are a public benefit
no one will dispute. We want more railroads, and want them to reduce their
fares and freight. Why then should we tax them? for taxes upon railroads
deter from railroad building, and compel higher charges. Instead of taxing
the railroads, is it not clear that we should rather tax the increased value
which they give to land? To tax railroads is to check railroad building,
to reduce profits, and compel higher rates; to tax the value they give to
land is to increase railroad business and permit lower rates. The elevated
railroads, for instance, have opened to the overcrowded population of New
York the wide, vacant spaces of the upper part of the island. But this great
public benefit is neutralized by the rise in land values. Because these vacant
lots can be reached more cheaply and quickly, their owners demand more for
them, and so the public gain in one way is offset in another, while the roads
lose the business they would get were not building checked by the high prices
demanded for lots. The increase of land values, which the elevated roads
have caused, is not merely no advantage to them — it is an injury;
and it is clearly a public injury. The elevated railroads ought not to be
taxed. The more profit they make, with the better conscience can they be
asked to still further reduce fares. It is the increased land values which
they have created that ought to be taxed, for taxing them will give the public
the full benefit of cheap fares.
So with railroads everywhere. And so not alone with railroads, but with
all industrial enterprises. So long as we consider that community most prosperous
which increases most rapidly in wealth, so long is it the height of absurdity
for us to tax wealth in any of its beneficial forms. We should tax what we
want to repress, not what we want to encourage. We should tax that which
results from the general prosperity, not that which conduces to it. It is
the increase of population, the extension of cultivation, the manufacture
of goods, the building of houses and ships and railroads, the accumulation
of capital, and the growth of commerce that add to the value of land — not
the increase in the value of land that induces the increase of population
and increase of wealth. It is not that the land of Manhattan Island is now
worth hundreds of millions where, in the time of the early Dutch settlers,
it was only worth dollars, that there are on it now so many more people,
and so much more wealth. It is because of the increase of population and
the increase of wealth that the value of the land has so much increased.
Increase of land values tends of itself to repel population and prevent improvement.
And thus the taxation of land values, unlike taxation of other property,
does not tend to prevent the increase of wealth, but rather to stimulate
it. It is the taking of the golden egg, not the choking of the goose that
lays it.
Every consideration of policy and ethics squares with this conclusion.
The tax upon land values is the most economically perfect of all taxes. It
does not raise prices; it maybe collected at least cost, and with the utmost
ease and certainty; it leaves in full strength all the springs of production;
and, above all, it consorts with the truest equality and the highest justice.
For, to take for the common purposes of the community that value which results
from the growth of the community, and to free industry and enterprise and
thrift from burden and restraint, is to leave to each that which he fairly
earns, and to assert the first and most comprehensive of equal rights — the
equal right of all to the land on which, and from which, all must live.
Thus it is that the scheme of taxation which conduces to the greatest production
is also that which conduces to the fairest distribution, and that in the
proper adjustment of taxation lies not merely the possibility of enormously
increasing the general wealth, but the solution of these pressing social
and political problems which spring from unnatural inequality in the distribution
of wealth.
"There is," says M. de Laveleye, in concluding that work in which
he shows that the first perceptions of mankind have everywhere recognized
a most vital distinction between property in land and property which results
from labor, — "there is in human affairs one system which is the
best; it is not that system which always exists, otherwise why should we
desire to change it; but it is that system which should exist for the greatest
good of humanity. God knows it, and wills it; man's duty it is to discover
and establish it." read the
whole article
Henry George: The
Increasing Importance of Social Questions (Chapter 1 of Social Problems,
1883)
[01] THERE come moments in our lives that summon all our powers — when
we feel that, casting away illusions, we must decide and act with our utmost
intelligence and energy. So in the lives of peoples come periods specially
calling for earnestness and intelligence.
[02] We seem to have entered one of these periods. Over and again have nations
and civilizations been confronted with problems which, like the riddle of
the Sphinx, not to answer was to be destroyed; but never before have problems
so vast and intricate been presented. This is not strange. That the closing
years of this century must bring up momentous social questions follows from
the material and intellectual progress that has marked its course. ...
[06] But with man the ascending line stops. Animal life assumes no higher
form; nor can we affirm that, in all his generations, man, as an animal,
has a whit improved. But progression in another line begins. Where the development
of species ends, social development commences, and that advance of society
that we call civilization so increases human powers, that between savage
and civilized man there is a gulf so vast as to suggest the gulf between
the highly organized animal and the oyster glued to the rocks. And with every
advance upon this line new vistas open. When we try to think what knowledge
and power progressive civilization may give to the men of the future, imagination
fails.
[07] In this progression which begins with man, as in that which leads up
to him, the same law holds. Each advance makes a demand for higher and higher
intelligence. With the beginnings of society arises the need for social intelligence — for
that consensus of individual intelligence which forms a public opinion, a
public conscience, a public will, and is manifested in law, institutions
and administration. As society develops, a higher and higher degree of this
social intelligence is required, for the relation of individuals to each
other becomes more intimate and important, and the increasing complexity
of the social organization brings liability to new dangers.
[08] In the rude beginning, each family produces its own food, makes its
own clothes, builds its own house, and, when it moves, furnishes its own
transportation. Compare with this independence the intricate interdependence
of the denizens of a modern city. They may supply themselves with greater
certainty, and in much greater variety and abundance, than the savage; but
it is by the cooperation of thousands. Even the water they drink, and the
artificial light they use, are brought to them by elaborate machinery, requiring
the constant labor and watchfulness of many men. They may travel at a speed
incredible to the savage; but in doing so resign life and limb to the care
of others. A broken rail, a drunken engineer, a careless switchman, may hurl
them to eternity. And the power of applying labor to the satisfaction of
desire passes, in the same way, beyond the direct control of the individual.
The laborer becomes but part of a great machine, which may at any time be
paralyzed by causes beyond his power, or even his foresight. Thus does the
well-being of each become more and more dependent upon the well-being of
all — the individual more and more subordinate to society.
[09] And so come new dangers. The rude society resembles the creatures that
though cut into pieces will live; the highly civilized society is like a
highly organized animal: a stab in a vital part, the suppression of a single
function, is death. A savage village may be burned and its people driven
off — but, used to direct recourse to nature, they can maintain themselves.
Highly civilized man, however, accustomed to capital, to machinery, to the
minute division of labor, becomes helpless when suddenly deprived of these
and thrown upon nature. Under the factory system, some sixty persons, with
the aid of much costly machinery, cooperate to the making of a pair of shoes.
But, of the sixty, not one could make a whole shoe. This is the tendency
in all branches of production, even in agriculture. How many farmers of the
new generation can use the flail? How many farmers' wives can now make a
coat from the wool? Many of our farmers do not even make their own butter
or raise their own vegetables! There is an enormous gain in productive power
from this division of labor, which assigns to the individual the production
of but a few of the things, or even but a small part of one of the things,
he needs, and makes each dependent upon others with whom he never comes in
contact; but the social organization becomes more sensitive. A primitive
village community may pursue the even tenor of its life without feeling disasters
which overtake other villages but a few miles off; but in the closely knit
civilization to which we have attained, a war, a scarcity, a commercial crisis,
in one hemisphere produces powerful effects in the other, while shocks and
jars from which a primitive community easily recovers would to a highly civilized
community mean wreck.
[10] It is startling to think how destructive in a civilization like ours
would be such fierce conflicts as fill the history of the past. The wars
of highly civilized countries, since the opening of the era of steam and
machinery, have been duels of armies rather than conflicts of peoples or
classes. Our only glimpse of what might happen, wore passion fully aroused,
was in the struggle of the Paris Commune. And, since 1870, to the knowledge
of petroleum has been added that of even more destructive agents. The explosion
of a little nitro-glycerin under a few water-mains would make a great city
uninhabitable; the blowing up of a few railroad bridges and tunnels would
bring famine quicker than the wall of circumvallation that Titus drew around
Jerusalem; the pumping of atmospheric air into the gas-mains, and the application
of a match, would tear up every street and level every house. The Thirty
Years' War set back civilization in Germany; so fierce a war now would all
but destroy it. Not merely have destructive powers vastly increased, but
the whole social organization has become vastly more delicate.
[12] Nor should we forget that in civilized man still lurks the savage.
The men who, in past times, oppressed or revolted, who fought to the death
in petty quarrels and drunk fury with blood, who burned cities and rent empires,
were men essentially such as those we daily meet. Social progress has accumulated
knowledge, softened manners, refined tastes and extended sympathies, but
man is yet capable of as blind a rage as when, clothed in skins, he fought
wild beasts with a flint. And present tendencies, in some respects at least,
threaten to kindle passions that have so often before flamed in destructive
fury.
[13] There is in all the past nothing to compare with the rapid changes
now going on in the civilized world. It seems as though in the European race,
and in the nineteenth century, man was just beginning to live — just
grasping his tools and becoming conscious of his powers. The snail's pace
of crawling ages has suddenly become the headlong rush of the locomotive,
speeding faster and faster. This rapid progress is primarily in industrial
methods and material powers. But industrial changes imply social changes
and necessitate political changes. Progressive societies outgrow institutions
as children outgrow clothes. Social progress always requires greater intelligence
in the management of public affairs; but this the more as progress is rapid
and change quicker.
[14] And that the rapid changes now going on are bringing up problems that
demand most earnest attention may be seen on every hand. Symptoms of danger,
premonitions of violence, are appearing all over the civilized world. Creeds
are dying, beliefs are changing; the old forces of conservatism are melting
away. Political institutions are failing, as clearly in democratic America
as in monarchical Europe. There is growing unrest and bitterness among the
masses, whatever be the form of government, a blind groping for escape from
conditions becoming intolerable. To attribute all this to the teachings of
demagogues is like attributing the fever to the quickened pulse. It is the
new wine beginning to ferment in old bottles. To put into a sailing-ship
the powerful engines of a first-class ocean steamer would be to tear her
to pieces with their play. So the new powers rapidly changing all the relations
of society must shatter social and political organizations not adapted to
meet their strain.
[15] To adjust our institutions to growing needs and changing conditions
is the task which devolves upon us. Prudence, patriotism, human sympathy,
and religious sentiment, alike call upon us to undertake it. There is danger
in reckless change; but greater danger in blind conservatism. The problems
beginning to confront us are grave — so grave that there is fear they
may not be solved in time to prevent great catastrophes. But their gravity
comes from indisposition to recognize frankly and grapple boldly with them.
[16] These dangers, which menace not one country alone, but modern civilization
itself, do but show that a higher civilization is struggling to be born — that
the needs and the aspirations of men have outgrown conditions and institutions
that before sufficed.
[17] A civilization which tends to concentrate wealth and power in the hands
of a fortunate few, and to make of others mere human machines, must inevitably
evolve anarchy and bring destruction. But a civilization is possible in which
the poorest could have all the comforts and conveniences now enjoyed by the
rich; in which prisons and almshouses would be needless, and charitable societies
unthought of. Such a civilization waits only for the social intelligence
that will adapt means to ends. Powers that might give plenty to all are already
in our hands. Though there is poverty and want, there is, yet, seeming embarrassment
from the very excess of wealth-producing forces. "Give us but a market," say
manufacturers, "and we will supply goods without end!" "Give
us but work!" cry idle men.
[18] The evils that begin to appear spring from the fact that the application
of intelligence to social affairs has not kept pace with the application
of intelligence to individual needs and material ends. Natural science strides
forward, but political science lags. With all our progress in the arts which
produce wealth, we have made no progress in securing its equitable distribution.
Knowledge has vastly increased; industry and commerce have been revolutionized;
but whether free trade or protection is best for a nation we are not yet
agreed. We have brought machinery to a pitch of perfection that, fifty years
ago, could not have been imagined; but, in the presence of political corruption,
we seem as helpless as idiots. The East River bridge is a crowning triumph
of mechanical skill; but to get it built a leading citizen of Brooklyn had
to carry to New York sixty thousand dollars in a carpet bag to bribe New
York aldermen. The human soul that thought out the great bridge is prisoned
in a crazed and broken body that lies bedfast, and could watch it grow only
by peering through a telescope. Nevertheless, the weight of the immense mass
is estimated and adjusted for every inch. But the skill of the engineer could
not prevent condemned wire being smuggled into the cable.
[19] The progress of civilization requires that more and more intelligence
be devoted to social affairs, and this not the intelligence of the few, but
that of the many. We cannot safely leave politics to politicians, or political
economy to college professors. The people themselves must think, because
the people alone can act.
[20] In a "journal of civilization" a professed teacher declares
the saving word for society to be that each shall mind his own business.
This is the gospel of selfishness, soothing as soft flutes to those who,
having fared well themselves, think everybody should be satisfied. But the
salvation of society, the hope for the free, full development of humanity,
is in the gospel of brotherhood — the gospel of Christ. Social progress
makes the well-being of all more and more the business of each; it binds
all closer and closer together in bonds from which none can escape. He who
observes the law and the proprieties, and cares for his family, yet takes
no interest in the general weal, and gives no thought to those who are trodden
under foot, save now and then to bestow aims, is not a true Christian. Nor
is he a good citizen. The duty of the citizen is more and harder than this.
[21] The intelligence required for the solving of social problems is not
a thing of the mere intellect. It must be animated with the religious sentiment
and warm with sympathy for human suffering. It must stretch out beyond self-interest,
whether it be the self-interest of the few or of the many. It must seek justice.
For at the bottom of every social problem we will find a social wrong. ...
read the entire essay
Henry George: Political Dangers (Chapter 2 of Social Problems, 1883)
[03] But the increase of power is more rapid than the increase of population, and goes on in accelerating progression. Discovery and invention stimulate discovery and invention; and it is only when we consider that the industrial progress of the last fifty years bids fair to pale before the achievements of the next that we can vaguely imagine the future that seems opening before the American people. The center of wealth, of art, of luxury and learning, must pass to this side of the Atlantic even before the center of population. It seems as if this continent had been reserved — shrouded for ages from the rest of the world — as the field upon which European civilization might freely bloom. And for the very reason that our growth is so rapid and our progress so swift; for the very reason that all the tendencies of modern civilization assert themselves here more quickly and strongly than anywhere else, the problems which modern civilization must meet, will here first fully present themselves, and will most imperiously demand to be thought out or fought out. ...
read the entire essay
H.G. Brown: Significant
Paragraphs from Henry George's Progress & Poverty:
11 Effect of Remedy Upon the Sharing of Wealth (in the unabridged P&P: Part
IX Effects of the Remedy — Chapter 2: Of the Effect Upon Distribution
and Thence Upon Production
But great as they thus appear, the advantages of a transference of all public
burdens to a tax upon the value of land cannot be fully appreciated until we
consider the effect upon the distribution of wealth.
Tracing out the cause of the unequal distribution of wealth which appears
in all civilized countries, with a constant tendency to greater and greater
inequality as material progress goes on, we have found it in the fact that,
as civilization advances, the ownership of land, now in private hands, gives
a greater and greater power of appropriating the wealth produced by labor and
capital.
Thus, to relieve labor and capital from all taxation, direct and indirect,
and to throw the burden upon rent, would be, as far as it went, to counteract
this tendency to inequality, and, if it went so far as to take in taxation
the whole of rent, the cause of inequality would be totally destroyed. Rent,
instead of causing inequality, as now, would then promote equality. Labor and
capital would then receive the whole produce, minus that portion taken by the
state in the taxation of land values, which, being applied to public purposes,
would be equally distributed in public benefits.
That is to say, the wealth produced in every community would be divided into
two portions.
- One part would be distributed in wages and interest between individual
producers, according to the part each had taken in the work of production;
- the other part would go to the community as a whole, to be distributed
in public benefits to all its members.
In this all would share equally — the weak with the strong, young children
and decrepit old men, the maimed, the halt, and the blind, as well as the vigorous.
And justly so — for while one part represents the result of individual
effort in production, the other represents the increased power with which
the community as a whole aids the individual.
Thus, as material progress tends to increase rent, were rent taken by the
community for common purposes the very cause which now tends to produce inequality
as material progress goes on would then tend to produce greater and greater
equality.
Who can say to what infinite powers the wealth-producing capacity of labor
may not be raised by social adjustments which will give to the producers of
wealth their fair proportion of its advantages and enjoyments! With present
processes the gain would be simply incalculable, but just as wages are high,
so do the invention and utilization of improved processes and machinery go
on with greater rapidity and ease.
But I shall not deny, and do not wish to lose sight of the fact, that while
thus preventing waste and thus adding to the efficiency of labor, the equalization
in the distribution of wealth that would result from the simple plan of
taxation that I propose, must lessen the intensity with which wealth is pursued.
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.
And though this incentive to production be withdrawn, can we not spare it?
Whatever may have been its office in an earlier stage of development, it is
not needed now. The dangers that menace our civilization do not come from the
weakness of the springs of production. What it suffers from, and what, if a
remedy be not applied, it must die from, is unequal distribution!
Nor would the removal of this incentive, regarded only from the standpoint
of production, be an unmixed loss. For, that the aggregate of production is
greatly reduced by the greed with which riches are pursued, is one of the most
obtrusive facts of modern society. While, were this insane desire to get rich
at any cost lessened, mental activities now devoted to scraping together riches
would be translated into far higher spheres of usefulness. ... read the whole chapter
H.G. Brown: Significant
Paragraphs from Henry George's Progress & Poverty:
14 Liberty, and Equality of Opportunity (in the unabridged P&P: Part
X: The Law of Human Progress — Chapter 5: The Central Truth)
The truth to which we were led in the politico-economic branch of our inquiry
is as clearly apparent in the rise and fall of nations and the growth and decay
of civilizations, and it accords with those deep-seated recognitions of relation
and sequence that we denominate moral perceptions. Thus are given to our conclusions
the greatest certitude and highest sanction.
This truth involves both a menace and a promise. It shows that the
evils arising from the unjust and unequal distribution of wealth, which are
becoming more
and more apparent as modern civilization goes on, are not incidents of progress,
but tendencies which must bring progress to a halt; that they will not cure
themselves, but, on the contrary, must, unless their cause is removed, grow
greater and greater, until they sweep us back into barbarism by the road every
previous civilization has trod. But it also shows that these evils are not
imposed by natural laws; that they spring solely from social maladjustments
which ignore natural laws, and that in removing their cause we shall be giving
an enormous impetus to progress.
The poverty which in the midst of abundance pinches and embrutes men, and
all the manifold evils which flow from it, spring from a denial of justice.
In permitting the monopolization of the opportunities which nature freely
offers to all, we have ignored the fundamental law of justice — for,
so far as we can see, when we view things upon a large scale, justice seems
to be
the supreme law of the universe. But by sweeping away this injustice and
asserting the rights of all men to natural opportunities, we shall conform
ourselves
to the law —
- we shall remove the great cause of unnatural inequality in the distribution
of wealth and power;
- we shall abolish poverty;
- tame the ruthless passions of greed;
- dry up the springs of vice and misery;
- light in dark places the lamp of knowledge;
- give new vigor to invention and a fresh impulse to discovery;
- substitute political strength for political weakness; and
- make tyranny and anarchy impossible.
The reform I have proposed accords with all that is politically, socially,
or morally desirable. It has the qualities of a true reform, for it will
make all other reforms easier. What is it but the carrying out in letter
and spirit
of the truth enunciated in the Declaration of Independence — the "self-evident" truth
that is the heart and soul of the Declaration —"That all men
are created equal; that they are endowed by their Creator with certain
inalienable
rights; that among these are life, liberty, and the pursuit of happiness!"
These rights are denied when the equal right to land — on which and
by which men alone can live — is denied. Equality of political rights
will not compensate for the denial of the equal right to the bounty of nature.
Political liberty, when the equal right to land is denied, becomes, as population
increases and invention goes on, merely the liberty to compete for employment
at starvation wages. This is the truth that we have ignored. And so
- there come beggars in our streets and tramps on our roads; and
- poverty enslaves men who we boast are political sovereigns; and
- want breeds ignorance that our schools cannot enlighten; and
- citizens vote as their masters dictate; and
- the demagogue usurps the part of the statesman; and
- gold weighs in the scales of justice; and
- in high places sit those who do not pay to civic virtue even the compliment
of hypocrisy; and
- the pillars of the republic that we thought so strong already bend under
an increasing strain.
We honor Liberty in name and in form. We set up her statues and sound her
praises. But we have not fully trusted her. And with our growth so grow her
demands. She will have no half service!
Liberty! it is a word to conjure with, not to vex the ear in empty boastings.
For Liberty means Justice, and Justice is the natural law — the law
of health and symmetry and strength, of fraternity and co-operation.
They who look upon Liberty as having accomplished her mission when
she has abolished hereditary privileges and given men the ballot, who think
of her
as having no further relations to the everyday affairs of life, have not seen
her real grandeur — to them the poets who have sung of her
must seem rhapsodists, and her martyrs fools! As the sun is the lord of
life, as well
as of light; as his beams not merely pierce the clouds, but support all
growth, supply all motion, and call forth from what would otherwise be
a cold and inert
mass all the infinite diversities of being and beauty, so is liberty to
mankind. It is not for an abstraction that men have toiled and died; that
in every age
the witnesses of Liberty have stood forth, and the martyrs of Liberty have
suffered.
We speak of Liberty as one thing, and of virtue, wealth, knowledge, invention,
national strength, and national independence as other things. But, of all these,
Liberty is the source, the mother, the necessary condition. ...
Only in broken gleams and partial light has the sun of Liberty yet beamed
among men, but all progress hath she called forth. ...
Shall we not trust her?
In our time, as in times before, creep on the insidious forces that,
producing inequality, destroy Liberty. On the horizon the clouds begin to
lower. Liberty
calls to us again. We must follow her further; we must trust her fully. Either
we must wholly accept her or she will not stay. It is not enough that men should
vote; it is not enough that they should be theoretically equal before the law.
They must have liberty to avail themselves of the opportunities and means of
life; they must stand on equal terms with reference to the bounty of nature.
Either this, or Liberty withdraws her light! Either this, or darkness comes
on, and the very forces that progress has evolved turn to powers that work
destruction. This is the universal law. This is the lesson of the centuries.
Unless its foundations be laid in justice the social structure cannot stand.
Our primary social adjustment is a denial of justice. In allowing
one man to own the land on which and from which other men must live, we have
made them
his bondsmen in a degree which increases as material progress goes on. This
is the subtile alchemy that in ways they do not realize is extracting from
the masses in every civilized country the fruits of their weary toil; that
is instituting a harder and more hopeless slavery in place of that which has
been destroyed; that is bringing political despotism out of political freedom,
and must soon transmute democratic institutions into anarchy.
It is this that turns the blessings of material progress into a curse. It
is this that crowds human beings into noisome cellars and squalid tenement
houses; that fills prisons and brothels; that goads men with want and consumes
them with greed; that robs women of the grace and beauty of perfect womanhood;
that takes from little children the joy and innocence of life's morning.
Civilization so based cannot continue. The eternal laws of the universe
forbid it. Ruins of dead empires testify, and the witness that
is in every soul answers, that it cannot be. It is something grander
than Benevolence, something more
august than Charity — it is Justice herself that demands of us to right
this wrong. Justice that will not be denied; that cannot be put off — Justice
that with the scales carries the sword. Shall we ward the stroke with liturgies
and prayers? Shall we avert the decrees of immutable law by raising churches
when hungry infants moan and weary mothers weep?
Though it may take the language of prayer, it is blasphemy that attributes
to the inscrutable decrees of Providence the suffering and brutishness that
come of poverty; that turns with folded hands to the All-Father and lays
on Him the responsibility for the want and crime of our great cities. We
degrade the Everlasting. We slander the Just One. A merciful man would
have better ordered the world; a just man would crush with his foot such
an ulcerous
ant-hill! It is not the Almighty, but we who are responsible for the
vice and misery that fester amid our civilization. The Creator showers
upon us
his gifts — more than enough for all. But like swine scrambling for
food, we tread them in the mire — tread them in the mire, while
we tear and rend each other!
In the very centers of our civilization today are want and suffering
enough to make sick at heart whoever does not close his eyes and steel his
nerves. Dare we turn to the Creator and ask Him to relieve it? Supposing
the prayer were heard, and at the behest with which the universe sprang into
being there should glow in the sun a greater power; new virtue fill the air;
fresh vigor the soil; that for every blade of grass that now grows two should
spring up, and the seed that now increases fiftyfold should increase a hundredfold!
Would poverty be abated or want relieved? Manifestly no! Whatever benefit
would accrue would be but temporary. The new powers streaming through the
material universe could be utilized only through land.
This is not merely a deduction of political economy; it is a fact of experience. We
know it because we have seen it. Within our own times, under our
very eyes, that Power which is above all, and in all, and through all; that
Power of which the whole universe is but the manifestation; that Power which
maketh all things, and without which is not anything made that is made, has
increased the bounty which men may enjoy, as truly as though the fertility
of nature had been increased.
- Into the mind of one came the thought that harnessed steam for the service
of mankind.
- To the inner ear of another was whispered the secret that compels the
lightning to bear a message round the globe.
- In every direction have the laws of matter been revealed;
- in every department of industry have arisen arms of iron and fingers
of steel, whose effect upon the production of wealth has been precisely
the
same as an increase in the fertility of nature.
What has been the result? Simply that landowners get all the gain.
Can it be that the gifts of the Creator may be thus misappropriated
with impunity? Is it a light thing that labor should be robbed of its earnings
while greed rolls in wealth — that the many should want while the few
are surfeited? Turn to history, and on every page may be read
the lesson that such wrong never goes unpunished; that the Nemesis that
follows
injustice never falters nor sleeps! Look around today. Can this state
of things continue? May we even say, "After us the deluge!" Nay;
the pillars of the State are trembling even now, and the very foundations
of
society begin to quiver with pent-up forces that glow underneath. The
struggle that must either revivify, or convulse in ruin, is near at hand,
if it be
not already begun.
The fiat has gone forth! With steam and electricity, and the new powers born
of progress, forces have entered the world that will either compel us to a
higher plane or overwhelm us, as nation after nation, as civilization after
civilization, have been overwhelmed before. ...
- We cannot go on permitting men to vote and forcing them to tramp.
- We cannot go on educating boys and girls in our public schools and then
refusing them the right to earn an honest living.
- We cannot go on prating of the inalienable rights of man and then denying
the inalienable right to the bounty of the Creator.
Even now, in old bottles the new wine begins to ferment, and elemental forces
gather for the strife!
But if, while there is yet time, we turn to Justice and obey her,
if we trust Liberty and follow her, the dangers that now threaten must disappear, the
forces that now menace will turn to agencies of elevation. Think
of the powers now wasted; of the infinite fields of knowledge yet to be explored;
of the possibilities of which the wondrous inventions of this century give
us but a hint.
- With want destroyed;
- with greed changed to noble passions;
- with the fraternity that is born of equality taking the place of the
jealousy and fear that now array men against each other;
- with mental power loosed by conditions that give to the humblest comfort
and leisure; and
- who shall measure the heights to which our civilization may soar?
Words fail the thought! It is the Golden Age of which poets have sung
and high-raised seers have told in metaphor! It is the glorious vision which
has always haunted man with gleams of fitful splendor. It is what he saw
whose eyes at Patmos were closed in a trance. It is the culmination of Christianity — the
City of God on earth, with its walls of jasper and its gates of pearl! It
is the reign of the Prince of Peace! ... read the whole
chapter
Henry George: Thy Kingdom Come
(1889 speech)
One cannot look, it seems to me,
through nature — whether
one looks at the stars through a telescope, or have the microscope
reveal to one those worlds that we find in drops of water. Whether
one considers the human frame, the adjustments of the animal kingdom,
or any department of physical nature, one must see that there has
been a contriver and adjuster, that there has been an intent. So
strong is that feeling, so natural is it to our minds, that even
people who deny the Creative Intelligence are forced, in spite of
themselves, to talk of intent; the claws on one animal were intended,
we say, to climb with, the fins of another to propel it through the
water.
Yet, while in looking through the
laws of physical nature, we
find intelligence we do not so clearly find beneficence. But in the
great social
fact that as population
increases, and improvements are
made, and men progress in civilisation, the one thing that rises
everywhere in value is land, and in this we may see a proof of the
beneficence of the Creator.
Why, consider what it means! It means that the social laws are
adapted to progressive humanity! In a rude state of society
where
there is no need for common expenditure, there is no value attaching
to land. The only value which attaches there is to things produced by
labour. But as civilisation goes on, as a division of labour takes
place, as people come into centres, so do the common wants increase,
and so does the necessity for public revenue arise. And so in that
value which attaches to land, not by reason of anything the
individual does, but by reason of the growth of the community, is a
provision intended — we may safely say intended — to meet
that social want.
Just as society grows, so do the
common needs grow, and so grows
this value attaching to land — the provided fund from which they
can be supplied. Here is a value that may be taken, without impairing
the right of property, without taking anything from the producer,
without lessening the natural rewards of industry and thrift. Nay,
here is a value that must be taken if we would prevent the most
monstrous of all monopolies. What does all this mean? It means that
in the creative plan, the natural advance in civilisation is an
advance to a greater and greater equality instead of to a more and
more monstrous inequality. ... Read the
whole speech
Henry George: Ode to
Liberty (1877 speech)
Our primary social adjustment is a denial of justice. In allowing one
man to own the land on which and from which other men must live, we
have made them his bondsmen in a degree which increases as material
progress goes on. This is the subtle alchemy that in ways they do not
realize is extracting from the masses in every civilized country the
fruits of their weary toil; that is instituting a harder and more
hopeless slavery in place of that which has been destroyed; that is
bringing political despotism out of political freedom, and must soon
transmute democratic institutions into anarchy.
It is this that turns the blessings of material progress into a
curse. It is this that crowds human beings into noisome cellars and
squalid tenement houses; that fills prisons and brothels; that goads
men with want and consumes them with greed; that robs women of the
grace and beauty of perfect womanhood; that takes from little children
the joy and innocence of life’s morning.
Civilization so based cannot continue. The eternal laws of the
universe forbid it. Ruins of dead empires testify, and the witness that
is in every soul answers, that it cannot be. It is something grander
than Benevolence, something more august than Charity — it is Justice
herself that demands of us to right this wrong. Justice that will not
be denied; that cannot be put off — Justice that with the scales
carries the sword. Shall we ward the stroke with liturgies and prayers?
Shall we avert the decrees of immutable law by raising churches when
hungry infants moan and weary mothers weep? ... read the whole speech
Henry George: The
Land Question (1881)
This thing is absolutely certain: Private property in land blocks the way of
advancing civilization.
The two cannot long coexist. Either private property in land
must be
abolished, or, as has happened again and again in the history of
mankind, civilization must again turn back in anarchy and bloodshed.
Let the remaining years of the nineteenth century bear me witness. Even
now, I believe, the inevitable struggle has begun. It is not
conservatism which would ignore such a tremendous fact. It is the
blindness that invites destruction. He that is truly conservative let
him look the facts in the face; let him speak frankly and
dispassionately. This is the duty of the hour. For, when a great social
question presses for settlement, it is only for a little while that the
voice of Reason can be heard. The masses of men hardly think at any
time. It is difficult even in sober moments to get them to reason
calmly. But when passion is roused, then they are like a herd of
stampeded bulls. I do not fear that present social adjustments can
continue. That is impossible. What I fear is that the dams may hold
till the flood rises to fury. What I fear is that dogged resistance on
the one side may kindle a passionate sense of wrong on the other. What
I fear are the demagogues and the accidents. ... read the whole article
Henry George: The Condition of
Labor — An Open Letter to Pope Leo XIII in response to Rerum Novarum (1891)
God’s laws do not change. Though their applications may alter with
altering conditions, the same principles of right and wrong that hold when
men are few and industry is rude also hold amid teeming populations and complex
industries. In our cities of millions and our states of scores of millions,
in a civilization where the division of labor has gone so far that large
numbers are hardly conscious that they are land-users, it still remains true
that we are all land animals and can live only on land, and that land is
God’s bounty to all, of which no one can be deprived without being
murdered, and for which no one can be compelled to pay another without being
robbed. But even in a state of society where the elaboration of industry
and the increase of permanent improvements have made the need for private
possession of land wide-spread, there is no difficulty in conforming individual
possession with the equal right to land. For as soon as any piece of land
will yield to the possessor a larger return than is had by similar labor
on other land a value attaches to it which is shown when it is sold or rented.
Thus, the value of the land itself, irrespective of the value of any improvements
in or on it, always indicates the precise value of the benefit to which all
are entitled in its use, as distinguished from the value which, as producer
or successor of a producer, belongs to the possessor in individual right.
To combine the advantages of private possession with the justice of common
ownership it is only necessary therefore to take for common uses what value
attaches to land irrespective of any exertion of labor on it. The principle
is the same as in the case referred to, where a human father leaves equally
to his children things not susceptible of specific division or common use.
In that case such things would be sold or rented and the value equally applied.
It is on this common-sense principle that we, who term ourselves single-tax
men, would have the community act.
We do not propose to assert equal rights to land by keeping land common,
letting any one use any part of it at any time. We do not propose the task,
impossible in the present state of society, of dividing land in equal shares;
still less the yet more impossible task of keeping it so divided.
We propose — leaving land in the private possession of individuals,
with full liberty on their part to give, sell or bequeath it — simply
to levy on it for public uses a tax that shall equal the annual value of
the land itself, irrespective of the use made of it or the improvements on
it. And since this would provide amply for the need of public revenues, we
would accompany this tax on land values with the repeal of all taxes now
levied on the products and processes of industry — which taxes, since
they take from the earnings of labor, we hold to be infringements of the
right of property.
This we propose, not as a cunning device of human ingenuity, but as a conforming
of human regulations to the will of God.
God cannot contradict himself nor impose on his creatures laws that clash.
If it be God’s command to men that they should not steal — that
is to say, that they should respect the right of property which each one
has in the fruits of his labor;
And if he be also the Father of all men, who in his common bounty has intended
all to have equal opportunities for sharing;
Then, in any possible stage of civilization, however elaborate, there must
be some way in which the exclusive right to the products of industry may
be reconciled with the equal right to land.
If the Almighty be consistent with himself, it cannot be, as say those socialists
referred to by you, that in order to secure the equal participation of men
in the opportunities of life and labor we must ignore the right of private
property. Nor yet can it be, as you yourself in the Encyclical seem to argue,
that to secure the right of private property we must ignore the equality
of right in the opportunities of life and labor. To say the one thing or
the other is equally to deny the harmony of God’s laws.
But, the private possession of land, subject to the payment to the community
of the value of any special advantage thus given to the individual, satisfies
both laws, securing to all equal participation in the bounty of the Creator
and to each the full ownership of the products of his labor. ....
Nor do we hesitate to say that this way of securing the equal right to the
bounty of the Creator and the exclusive right to the products of labor is
the way intended by God for raising public revenues. For we are not atheists,
who deny God; nor semi-atheists, who deny that he has any concern in politics
and legislation.
It is true as you say — a salutary truth too often forgotten — that “man
is older than the state, and he holds the right of providing for the life
of his body prior to the formation of any state.” Yet, as you too perceive,
it is also true that the state is in the divinely appointed order. For He
who foresaw all things and provided for all things, foresaw and provided
that with the increase of population and the development of industry the
organization of human society into states or governments would become both
expedient and necessary.
No sooner does the state arise than, as we all know, it needs revenues.
This need for revenues is small at first, while population is sparse, industry
rude and the functions of the state few and simple. But with growth of population
and advance of civilization the functions of the state increase and larger
and larger revenues are needed.
Now, He that made the world and placed man in it, He that pre-ordained civilization
as the means whereby man might rise to higher powers and become more and
more conscious of the works of his Creator, must have foreseen this increasing
need for state revenues and have made provision for it. That is to say: The
increasing need for public revenues with social advance, being a natural,
God-ordained need, there must be a right way of raising them — some
way that we can truly say is the way intended by God. It is clear that this
right way of raising public revenues must accord with the moral law.
Hence:
It must not take from individuals what rightfully belongs to individuals.
It must not give some an advantage over others, as by increasing the prices
of what some have to sell and others must buy.
It must not lead men into temptation, by requiring trivial oaths, by making
it profitable to lie, to swear falsely, to bribe or to take bribes.
It must not confuse the distinctions of right and wrong, and weaken the
sanctions of religion and the state by creating crimes that are not sins,
and punishing men for doing what in itself they have an undoubted right to
do.
It must not repress industry. It must not check commerce. It must not punish
thrift. It must offer no impediment to the largest production and the fairest
division of wealth.
Let me ask your Holiness to consider the taxes on the processes and products
of industry by which through the civilized world public revenues are collected — the
octroi duties that surround Italian cities with barriers; the monstrous customs
duties that hamper intercourse between so-called Christian states; the taxes
on occupations, on earnings, on investments, on the building of houses, on
the cultivation of fields, on industry and thrift in all forms. Can these
be the ways God has intended that governments should raise the means they
need? Have any of them the characteristics indispensable in any plan we can
deem a right one?
All these taxes violate the moral law. They take by force what belongs to
the individual alone; they give to the unscrupulous an advantage over the
scrupulous; they have the effect, nay are largely intended, to increase the
price of what some have to sell and others must buy; they corrupt government;
they make oaths a mockery; they shackle commerce; they fine industry and
thrift; they lessen the wealth that men might enjoy, and enrich some by impoverishing
others.
Yet what most strikingly shows how opposed to Christianity is this system
of raising public revenues is its influence on thought.
Christianity teaches us that all men are brethren; that their true interests
are harmonious, not antagonistic. It gives us, as the golden rule of life,
that we should do to others as we would have others do to us. But out of
the system of taxing the products and processes of labor, and out of its
effects in increasing the price of what some have to sell and others must
buy, has grown the theory of “protection,” which denies this
gospel, which holds Christ ignorant of political economy and proclaims laws
of national well-being utterly at variance with his teaching. This theory
sanctifies national hatreds; it inculcates a universal war of hostile tariffs;
it teaches peoples that their prosperity lies in imposing on the productions
of other peoples restrictions they do not wish imposed on their own; and
instead of the Christian doctrine of man’s brotherhood it makes injury
of foreigners a civic virtue.
“By their fruits ye shall know them.” Can anything more clearly
show that to tax the products and processes of industry is not the way God
intended public revenues to be raised?
But to consider what we propose — the raising of public revenues by
a single tax on the value of land irrespective of improvements — is
to see that in all respects this does conform to the moral law.
Let me ask your Holiness to keep in mind that the value we propose to tax,
the value of land irrespective of improvements, does not come from any exertion
of labor or investment of capital on or in it — the values produced
in this way being values of improvement which we would exempt. The value
of land irrespective of improvement is the value that attaches to land by
reason of increasing population and social progress. This is a value that
always goes to the owner as owner, and never does and never can go to the
user; for if the user be a different person from the owner he must always
pay the owner for it in rent or in purchase-money; while if the user be also
the owner, it is as owner, not as user, that he receives it, and by selling
or renting the land he can, as owner, continue to receive it after he ceases
to be a user.
Thus, taxes on land irrespective of improvement cannot lessen the rewards
of industry, nor add to prices,* nor in any way take from the individual
what belongs to the individual. They can take only the value that attaches
to land by the growth of the community, and which therefore belongs to the
community as a whole.
* As to this point it may be well to add that all economists
are agreed that taxes on land values irrespective of improvement or use — or what
in the terminology of political economy is styled rent, a term distinguished
from the ordinary use of the word rent by being applied solely to payments
for the use of land itself — must be paid by the owner and cannot be
shifted by him on the user. To explain in another way the reason given in
the text: Price is not determined by the will of the seller or the will of
the buyer, but by the equation of demand and supply, and therefore as to
things constantly demanded and constantly produced rests at a point determined
by the cost of production — whatever tends to increase the cost
of bringing fresh quantities of such articles to the consumer increasing
price
by checking supply, and whatever tends to reduce such cost decreasing
price by increasing supply. Thus taxes on wheat or tobacco or cloth add
to the
price that the consumer must pay, and thus the cheapening in the cost
of producing steel which improved processes have made in recent years
has greatly
reduced the price of steel. But land has no cost of production, since
it is created by God, not produced by man. Its price therefore is fixed —
1 (monopoly rent), where land is held in close monopoly, by what the owners
can extract from the users under penalty of deprivation and consequently
of starvation, and amounts to all that common labor can earn on it beyond
what is necessary to life;
2 (economic rent proper), where there is no special monopoly, by what the
particular land will yield to common labor over and above what may be had
by like expenditure and exertion on land having no special advantage and
for which no rent is paid; and,
3 (speculative rent, which is a species of monopoly rent, telling particularly
in selling price), by the expectation of future increase of value from social
growth and improvement, which expectation causing landowners to withhold
land at present prices has the same effect as combination.
Taxes on land values or economic rent can therefore never be shifted by
the landowner to the land-user, since they in no wise increase the demand
for land or enable landowners to check supply by withholding land from use.
Where rent depends on mere monopolization, a case I mention because rent
may in this way be demanded for the use of land even before economic or natural
rent arises, the taking by taxation of what the landowners were able to extort
from labor could not enable them to extort any more, since laborers, if not
left enough to live on, will die. So, in the case of economic rent proper,
to take from the landowners the premiums they receive, would in no way increase
the superiority of their land and the demand for it. While, so far as price
is affected by speculative rent, to compel the landowners to pay taxes on
the value of land whether they were getting any income from it or not, would
make it more difficult for them to withhold land from use; and to tax the
full value would not merely destroy the power but the desire to do so.
To take land values for the state, abolishing all taxes on the products
of labor, would therefore leave to the laborer the full produce of labor;
to the individual all that rightfully belongs to the individual. It would
impose no burden on industry, no check on commerce, no punishment on thrift;
it would secure the largest production and the fairest distribution of wealth,
by leaving men free to produce and to exchange as they please, without any
artificial enhancement of prices; and by taking for public purposes a value
that cannot be carried off, that cannot be hidden, that of all values is
most easily ascertained and most certainly and cheaply collected, it would
enormously lessen the number of officials, dispense with oaths, do away with
temptations to bribery and evasion, and abolish man-made crimes in themselves
innocent.
But, further: That God has intended the state to obtain the revenues it
needs by the taxation of land values is shown by the same order and degree
of evidence that shows that God has intended the milk of the mother for the
nourishment of the babe.
See how close is the analogy. In that primitive condition ere the need for
the state arises there are no land values. The products of labor have value,
but in the sparsity of population no value as yet attaches to land itself.
But as increasing density of population and increasing elaboration of industry
necessitate the organization of the state, with its need for revenues, value
begins to attach to land. As population still increases and industry grows
more elaborate, so the needs for public revenues increase. And at the same
time and from the same causes land values increase. The connection is invariable.
The value of things produced by labor tends to decline with social development,
since the larger scale of production and the improvement of processes tend
steadily to reduce their cost. But the value of land on which population
centers goes up and up. Take Rome or Paris or London or New York or Melbourne.
Consider the enormous value of land in such cities as compared with the value
of land in sparsely settled parts of the same countries. To what is this
due? Is it not due to the density and activity of the populations of those
cities — to the very causes that require great public expenditure for
streets, drains, public buildings, and all the many things needed for the
health, convenience and safety of such great cities? See how with the growth
of such cities the one thing that steadily increases in value is land; how
the opening of roads, the building of railways, the making of any public
improvement, adds to the value of land. Is it not clear that here is a natural
law — that is to say a tendency willed by the Creator? Can it mean
anything else than that He who ordained the state with its needs has in the
values which attach to land provided the means to meet those needs?
That it does mean this and nothing else is confirmed if we look deeper still,
and inquire not merely as to the intent, but as to the purpose of the intent.
If we do so we may see in this natural law by which land values increase
with the growth of society not only such a perfectly adapted provision for
the needs of society as gratifies our intellectual perceptions by showing
us the wisdom of the Creator, but a purpose with regard to the individual
that gratifies our moral perceptions by opening to us a glimpse of his beneficence.
Consider: Here is a natural law by which as society advances the one thing
that increases in value is land — a natural law by virtue of which
all growth of population, all advance of the arts, all general improvements
of whatever kind, add to a fund that both the commands of justice and the
dictates of expediency prompt us to take for the common uses of society.
Now, since increase in the fund available for the common uses of society
is increase in the gain that goes equally to each member of society, is it
not clear that the law by which land values increase with social advance
while the value of the products of labor does not increase, tends with the
advance of civilization to make the share that goes equally to each member
of society more and more important as compared with what goes to him from
his individual earnings, and thus to make the advance of civilization lessen
relatively the differences that in a ruder social state must exist between
the strong and the weak, the fortunate and the unfortunate? Does it not show
the purpose of the Creator to be that the advance of man in civilization
should be an advance not merely to larger powers but to a greater and greater
equality, instead of what we, by our ignoring of his intent, are making it,
an advance toward a more and more monstrous inequality? ...
That the value attaching to land with social growth is intended for social
needs is shown by the final proof. God is indeed a jealous God in the sense
that nothing but injury and disaster can attend the effort of men to do things
other than in the way he has intended; in the sense that where the blessings
he proffers to men are refused or misused they turn to evils that scourge
us. And just as for the mother to withhold the provision that fills her breast
with the birth of the child is to endanger physical health, so for society
to refuse to take for social uses the provision intended for them is to breed
social disease.
For refusal to take for public purposes the increasing values that attach
to land with social growth is to necessitate the getting of public revenues
by taxes that lessen production, distort distribution and corrupt society.
It is to leave some to take what justly belongs to all; it is to
forego the only means by which it is possible in an advanced civilization
to combine
the security of possession that is necessary to improvement with the equality
of natural opportunity that is the most important of all natural rights. It is thus at the basis of all social life to set up an unjust inequality
between man and man, compelling some to pay others for the privilege of living,
for the chance of working, for the advantages of civilization, for the gifts
of their God. But it is even more than this. The very robbery that the masses
of men thus suffer gives rise in advancing communities to a new robbery.
For the value that with the increase of population and social advance attaches
to land being suffered to go to individuals who have secured ownership of
the land, it prompts to a forestalling of and speculation in land wherever
there is any prospect of advancing population or of coming improvement, thus
producing an artificial scarcity of the natural elements of life and labor,
and a strangulation of production that shows itself in recurring spasms of
industrial depression as disastrous to the world as destructive wars. It
is this that is driving men from the old countries to the new countries,
only to bring there the same curses. It is this that causes our material
advance not merely to fail to improve the condition of the mere worker, but
to make the condition of large classes positively worse. It is this that
in our richest Christian countries is giving us a large population whose
lives are harder, more hopeless, more degraded than those of the veriest
savages. It is this that leads so many men to think that God is a bungler
and is constantly bringing more people into his world than he has made provision
for; or that there is no God, and that belief in him is a superstition which
the facts of life and the advance of science are dispelling.
The darkness in light, the weakness in strength, the poverty amid wealth,
the seething discontent foreboding civil strife, that characterize our civilization
of today, are the natural, the inevitable results of our rejection of God’s
beneficence, of our ignoring of his intent. Were we on the other hand to
follow his clear, simple rule of right, leaving scrupulously to the individual
all that individual labor produces, and taking for the community the value
that attaches to land by the growth of the community itself, not merely could
evil modes of raising public revenues be dispensed with, but all men would
be placed on an equal level of opportunity with regard to the bounty of their
Creator, on an equal level of opportunity to exert their labor and to enjoy
its fruits. And then, without drastic or restrictive measures the forestalling
of land would cease. For then the possession of land would mean only security
for the permanence of its use, and there would be no object for any one to
get land or to keep land except for use; nor would his possession of better
land than others had confer any unjust advantage on him, or unjust deprivation
on them, since the equivalent of the advantage would be taken by the state
for the benefit of all.
The Right Reverend Dr. Thomas Nulty, Bishop of Meath, who sees all this
as clearly as we do, in pointing out to the clergy and laity of his diocese*
the design of Divine Providence that the rent of land should be taken for
the community, says:
I think, therefore, that I may fairly infer, on the strength of authority
as well as of reason, that the people are and always must be the real owners
of the land of their country. This great social fact appears to me to be
of incalculable importance, and it is fortunate, indeed, that on the strictest
principles of justice it is not clouded even by a shadow of uncertainty or
doubt. There is, moreover, a charm and a peculiar beauty in the clearness
with which it reveals the wisdom and the benevolence of the designs of Providence
in the admirable provision he has made for the wants and the necessities
of that state of social existence of which he is author, and in which the
very instincts of nature tell us we are to spend our lives. A vast public
property, a great national fund, has been placed under the dominion and at
the disposal of the nation to supply itself abundantly with resources necessary
to liquidate the expenses of its government, the administration of its laws
and the education of its youth, and to enable it to provide for the suitable
sustentation and support of its criminal and pauper population. One of the
most interesting peculiarities of this property is that its value is never
stationary; it is constantly progressive and increasing in a direct ratio
to the growth of the population, and the very causes thatincrease and multiply
the demands made on it increase proportionately its ability to meet them.
* Letter addressed to the Clergy and
Laity of the Diocese of Meath, Ireland,
April 2, 1881.
There is, indeed, as Bishop Nulty says, a peculiar beauty in the clearness
with which the wisdom and benevolence of Providence are revealed in this
great social fact, the provision made for the common needs of society in
what economists call the law of rent. Of all the evidence that natural religion
gives, it is this that most clearly shows the existence of a beneficent God,
and most conclusively silences the doubts that in our days lead so many to
materialism.
For in this beautiful provision made by natural law for the social
needs of civilization we see that God has intended civilization;
that all our discoveries and inventions do not and cannot outrun his forethought,
and that steam,
electricity and labor-saving appliances only make the great moral laws clearer
and more important. In the growth of this great fund, increasing with social
advance — a fund that accrues from the growth of the community and
belongs therefore to the community — we see not only that there is
no need for the taxes that lessen wealth, that engender corruption, that
promote inequality and teach men to deny the gospel; but that to
take this fund for the purpose for which it was evidently intended would
in the highest
civilization secure to all the equal enjoyment of God’s bounty, the
abundant opportunity to satisfy their wants, and would provide amply for
every legitimate need of the state. 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 characterize
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 necessities, 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. ...
See how fully adequate is the cause I have pointed out. The most important
of all the material relations of man is his relation to the planet he inhabits,
and hence, the “impious resistance to the benevolent intentions of
his Creator,” which, as Bishop Nulty says, is involved in private property
in land, must produce evils wherever it exists. But by virtue of the law, “unto
whom much is given, from him much is required,” the very progress of
civilization makes the evils produced by private property in land more wide-spread
and intense.
What is producing throughout the civilized world that condition of things
you rightly describe as intolerable is not this and that local error or minor
mistake. It is nothing less than the progress of civilization itself;
nothing less than the intellectual advance and the material growth in which
our century
has been so preeminent, acting in a state of society based on private property
in land; nothing less than the new gifts that in our time God has been showering
on man, but which are being turned into scourges by man’s “impious
resistance to the benevolent intentions of his Creator.”
The discoveries of science, the gains of invention, have given to us in
this wonderful century more than has been given to men in any time before;
and, in a degree so rapidly accelerating as to suggest geometrical progression,
are placing in our hands new material powers. But with the benefit comes
the obligation. In a civilization beginning to pulse with steam and electricity,
where the sun paints pictures and the phonograph stores speech, it will not
do to be merely as just as were our fathers. Intellectual advance and material
advance require corresponding moral advance. Knowledge and power are neither
good nor evil. They are not ends but means — evolving forces that if
not controlled in orderly relations must take disorderly and destructive
forms. The deepening pain, the increasing perplexity, the growing discontent
for which, as you truly say, some remedy must be found and quickly found,
mean nothing less than that forces of destruction swifter and more terrible
than those that have shattered every preceding civilization are already menacing
ours — that if it does not quickly rise to a higher moral level; if
it does not become in deed as in word a Christian civilization, on the wall
of its splendor must flame the doom of Babylon: “Thou art weighed in
the balance and found wanting!” ... read the whole letter
Rev. A. C. Auchmuty: Gems from George, a
themed collection of
excerpts from the writings of Henry George (with links to sources)
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 ...
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 ...
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 Extended • abridged:
Chapter 2: The Greater Leviathan
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 Economy — unabridged:
Book I, Chapter 5, The Meaning of Political Economy: The Origin and Genesis
of Civilization • abridged:
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
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 Economy — unabridged:
Book III, Chapter 11, The Production of Wealth: The Office of Exchange in Production • unabridged
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
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
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.
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
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
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)
... go to "Gems from George"
Louis Post: Outlines of Louis F. Post's
Lectures, with Illustrative Notes and Charts (1894)
c. Significance of the Upward Tendency of Rent
Now, what is the meaning of this tendency of Rent to rise with social progress,
while Wages tend to fall? Is it not a plain promise that if Rent be treated
as common property, advances in productive power shall be steps in the direction
of realizing through orderly and natural growth those grand conceptions of
both the socialist and the individualist, which in the present condition
of society are justly ranked as Utopian? Is it not likewise a plain warning
that if Rent be treated as private property, advances in productive power
will be steps in the direction of making slaves of the many laborers, and
masters of a few land-owners? Does it not mean that common ownership of Rent
is in harmony with natural law, and that its private appropriation is disorderly
and degrading? When the cause of Rent and the tendency illustrated in the
preceding chart are considered in connection with the self-evident truth
that God made the earth for common use and not for private monopoly, how
can a contrary inference hold? Caused and increased by social growth, 97
the benefits of which should be common, and attaching to land, the just right
to which is equal, Rent must be the natural fund for public expenses. 98
97. Here, far away from civilization, is a solitary settler.
Getting no benefits from government, he needs no public revenues, and
none of the land about him has any value. Another settler comes, and
another, until a village appears. Some public revenue is then required.
Not much, but some. And the land has a little value, only a little; perhaps
just enough to equal the need for public revenue. The village becomes
a town. More revenues are needed, and land values are higher. It becomes
a city. The public revenues required are enormous, and so are the land
values.
98. Society, and society alone, causes Rent. Rising with
the rise, advancing with the growth, and receding with the decline of
society, it measures the earning power of society as a whole as distinguished
from that of the individuals. Wages, on the other hand, measure the earning
power of the individuals as distinguished from that of society as a whole.
We have distinguished the parts into which Wealth is distributed as Wages
and Rent; but it would be correct, indeed it is the same thing, to regard
all wealth as earnings, and to distinguish the two kinds as Communal
Earnings and Individual Earnings. How, then, can there be any question
as to the fund from which society should be supported? How can it be
justly supported in any other way than out of its own earnings?
If there be at all such a thing as design in the universe — and who
can doubt it? — then has it been designed that Rent, the earnings of
the community, shall be retained for the support of the community, and that
Wages, the earnings of the individual, shall be left to the individual in
proportion to the value of his service. This is the divine law, whether we
trace it through complex moral and economic relations, or find it in the
eighth commandment.
... read the book
Joseph Fels: True Christianity and
My Own Religious Beliefs
Do you question the relationship between taxation and righteousness?
Let us see. If government is a natural growth, then surely God's
natural law provides food and sustenance for government as that food is
needed; for where in Nature do we find a creature coming into the world
without timely provision of natural food for it? It is in our system of
taxation that we find the most emphatic denial of the Fatherhood of God
and the Brotherhood of Man, because, first, in order to meet our common
needs, we take from individuals what does not belong to us in common;
second, we permit individuals to take for themselves what does belong
to us in common; thus, third, under the pretext of taxation for public
purposes, we have established a system that permits some men to tax
other men for private profit.
Does not that violate the natural, the divine law? Does it not
surely
beget wolfish greed on the one hand, and gaunt poverty on the other?
Does it not surely breed millionaires on one end of the social scale
and tramps on the other end? Has it not brought into civilization a
hell, of which the savage can have no conception? Could any better
system be devised for convincing men that God is the father of a few
and the stepfather of the many? Is not that destructive of the
sentiment of brotherhood? With such a condition, how is it possible for
men in masses to obey the new commandment, "that ye love one another"?
What could more surely thrust men apart? What could more surely divide
them into warring classes?
You say that you need money to train young men and fit them "to
carry
the Word to the heathen of foreign lands, and thus be instrumental in
dispelling the darkness that reigns among millions of our brethren in
other lands." That is a noble purpose. But what message would your
school give to these young men to take to the benighted brethren that
would stand a fire of questions from an intelligent heathen? Suppose,
for example, your school sends to some pagan country an intelligent
young man, who delivers his message; and suppose an intelligent man in
the audience asks these questions:
You come from America, when your religion has been taught for about 400
years, where every small village has one of your churches, and the
great cities have scores upon scores. Do all the people attend these
churches? Do your countrymen generally practice what you preach to us?
Does even a considerable minority practice it? Are your laws consistent
with or contrary to the religion you preach to us? Are your cities
clean morally in proportion to the number of churches they contain? Do
your courts administer Justice impartially between man and man, between
rich and poor? Is it as easy for a poor man as for a rich one to get
his rights in your courts?
You have great and powerful millionaires. How did they get their money?
Have they more influence than the poor in your churches and in your
congress, your legislatures and courts? Do they, in dealing with their
employees, observe the moral law that "the laborer is worthy of his
hire"? Do they treat their hired laborers as brothers? Do they put
children to work who ought to be at play or at school?
Do your churches protect when the militia is called out during a
strike, or do they forget at such times what Jesus said about the use
of the sword?
After four centuries of teaching and preaching of your religion in your
country, has crime disappeared or diminished? Have you less use for
jails? Are fewer and fewer of your people driven into madhouses, and
have suicides decreased? Is there a larger proportion of crime amongst
Jews and infidels than among those who profess the Christian Religion?
What answers would your missionary return to these questions?
How would
you answer them?
I do not attack Christianity. The foregoing questions are not
intended
as criticism of the great moral code underlying Christianity, but as
criticism of the men who preach, but do not practice that code. My
contention is that the code of morals taught to the fishermen of
Galilee by the Carpenter of Nazareth is all-embracing and
all-sufficient for our social life.
I shall be glad to contribute to your theological school or to
any
other that gets down to the bedrock of that social and moral code,
accepts it in its fulness, and trains its students to teach and preach
it regardless of the raiment, the bank accounts, the social standing or
political position of the persons in the pews. ...
read the
whole letter
Upton Sinclair: The Consequences of Land
Speculation are Tenantry and Debt on the Farms, and Slums and Luxury in the
Cities
I know of a woman — I have never had the pleasure of making her acquaintance,
because she lives in a lunatic asylum, which does not happen to be on my
visiting list. This woman has been mentally incompetent from birth. She is
well taken
care of, because her father left her when he died the income of a large
farm on the outskirts of a city. The city has since grown and the land is
now worth,
at conservative estimate, about twenty million dollars. It is covered with
office buildings, and the greater part of the income, which cannot be spent
by the woman, is piling up at compound interest. The woman enjoys good
health, so she may be worth a hundred million dollars before she dies.
I choose this case because it is one about which there can be no disputing;
this woman has never been able to do anything to earn that twenty million dollars.
And if a visitor from Mars should come down to study the situation, which would
he think was most insane, the unfortunate woman, or the society which compels
thousands of people to wear themselves to death in order to pay her the income
of twenty million dollars?
The fact that this woman is insane makes it easy to see that she is not
entitled to the "unearned increment" of the land she owns. But how about all
the other people who have bought up and are holding for speculation the most
desirable land? The value of this land increases, not because of anything these
owners do — not because of any useful service they render to the community — but
purely because the community as a whole is crowding into that neighborhood
and must have use of the land.
The speculator who bought this land thinks that he deserves the increase,
because he guessed the fact that the city was going to grow that way. But it
seems clear enough that his skill in guessing which way the community was going
to grow, however useful that skill may be to himself, is not in any way useful
to the community. The man may have planted trees, or built roads, and put in
sidewalks and sewers; all that is useful work, and for that he should be paid.
But should he be paid for guessing what the rest of us were going to need?
Before you answer, consider the consequences of this guessing game. The
consequences of land speculation are tenantry and debt on the farms, and
slums and luxury
in the cities. A great part of the necessary land is held out of use, and
so the value of all land continually increases, until the poor man can no
longer
own a home. The value of farm land also increases; so year by year more
independent farmers are dispossessed, because they cannot pay interest on
their mortgages.
So the land becomes a place of serfdom, that land described by the poet, "where
wealth accumulates and men decay." The great cities fill up with festering
slums, and a small class of idle parasites are provided with enormous fortunes,
which they do not have to earn, and which they cannot intelligently spend.
This condition wrecked every empire in the history of mankind, and
it is wrecking modern civilization. One of the first to perceive
this was Henry George, and he worked out the program known as the Single
Tax. Let society as a whole take
the full rental value of land, so that no one would any longer be able
to hold land out of use. So the value of land would decrease, and everyone
could have
land, and the community would have a great income to be spent for social
ends. ...
...I have before me a little book entitled "Enclaves of Economic Rent," by
C. W. Huntington....This book is published by Mr. Fiske Warren, a millionaire
paper manufacturer who lives at Harvard, Massachusetts, and believes in the
Single Tax by way of enclaves....I sought to persuade Mr. Warren that a great
crisis was impending; that the inequality of wealth in our society a thing
continually growing worse, was bound to bring a smash-up long before mankind
had been persuaded to live in enclaves. To this Mr. Warren answered, in substance: "You
may be right; but if this civilization collapses, something else will have
to be put in its place, and it may be useful to men to have a model of
a better community."
...How are these enclaves run? The principle is very simple. The community
owns the land, and fixes the site value year by year, and those who occupy
the land pay the full rental value of the land they occupy. Improvements of
any kind are not taxed; you pay only for the use of what nature and the community
have created. The community takes all this wealth and uses it, first to pay
all the taxes on the land [and buildings -ds] the remaining money being expended
for community purposes, by the democratic vote of all. ...
In Philadelphia, as in all our great cities, are enormously wealthy families,
living on hereditary incomes derived from crowded slums. Here and there among
these rich men is one who realizes that he has not earned what he is consuming,
and that it has not brought him happiness, and is bringing still less to his
children. Such men are casting about for ways to invest their money without
breeding idleness and parasitism. Some of them might be grateful to learn about
this enclave plan, and to visit the lovely village of Arden, and see what its
people are doing to make possible a peaceful and joyous life, even in this
land of bootleggers and jazz orchestras. ... read
the whole article
John Dewey: Steps to Economic Recovery
No wonder people are asking what sort of a crazy economic system we have when
at a time when millions are short of adequate food, when babies are going without
the milk necessary for their growth, the best remedy that experts can think
of and that the Federal Government can recommend is to pay a premium to farmers
to grow less grain with which to make flour to feed the hungry, and pay a premium
to dairymen to send less milk to market.
Henry George called attention to this situation over fifty years ago. The
contradiction between increasing plenty, increase of potential security--and
actual want and insecurity is stated in the title of his chief work, Progress
and Poverty. That is what his book is about. It is a record of the fact that
as the means and appliances of civilization increase, poverty and insecurity
also increase. It is an exploration of why millionaires and tramps multiply
together. It is a prediction of why this state of affairs will continue; it
is a prediction of the plight in which the nation finds itself to-day. At the
same time it is the explanation of why this condition is artificial, man-made,
unnecessary, and how it can be remedied. So I suggest that as a beginning of
the first steps to permanent recovery there be a nationwide revival of interest
in the writings and teachings of Henry George and that there be such an enlightenment
of public opinion that our representatives in legislatures and public places
be compelled to adopt the changes he urged. ... read
the whole speech
Weld Carter: An Introduction to
Henry George
What
is the law of human progress?
George saw ours alone among the civilizations of the world as
still progressing; all others had either petrified or had vanished.
And in our civilization he had already detected alarming evidences of
corruption and decay. So he sought out the forces that create
civilization and the forces that destroy it.
He found the incentives to
progress to be the desires inherent in
human nature, and the motor of progress to be what he called mental
power. But the mental power that is available for progress is only
what remains after nonprogressive demands have been met. These
demands George listed as maintenance and conflict.
In his isolated state, primitive
man's powers are required simply
to maintain existence; only as he begins to associate in communities
and to enjoy the resultant economies is mental power set free for
higher uses. Hence, association is the first essential of progress:
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.
He concluded this phase of his
analysis of civilization in these
words: "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..."
However, as the primary relation
of man is to the earth, so must
the primary social adjustment concern the relation of man to the
earth. Only that social adjustment which affords all mankind equal
access to nature and which insures labor its full earnings will
promote justice, acknowledge equality of right between man and man,
and insure perfect liberty to each.
This, according to George, was
what the single tax would do. It
was why he saw the single tax as not merely a fiscal reform but as
the basic reform without which no other reform could, in the long
run, avail. This is why he said, "What is inexplicable, if we lose
sight of man's absolute and constant dependence upon land, is clear
when we recognize it." ... read
the whole article
Nic Tideman: The Constitutional
Conflict Between Protecting Expectations and Moral Evolution
Three hundred years ago virtually no one questioned the propriety of slavery.
Even John Locke, that most articulate advocate of human freedom, invested in
slaves. But over the course of the eighteenth and nineteenth centuries, amid
extreme controversy in some times and places, slavery was nearly eliminated
from the world. With a bit of a lag, a consensus gradually evolved among humanity
that slavery was wrong, indeed that no distinctions in civil rights based on
race
could be justified.
Two hundred years ago almost no one thought that women should be allowed to
vote. Amid extreme controversy in some times and places, they were granted
voting rights. Now virtually no one argues that women should be denied any
rights that men have. We have not yet arrived at a consensus about what equality
of the sexes means, but we are near a consensus that we should strive for it.
The next point to be made is that it would not be reasonable to expect constitutional
changes that reflect new moral understandings to be made as approximate Pareto
improvements. It would have been possible to end slavery in a way that made
almost no one noticeably worse off as compared to their expected utilities
under slavery. It would merely have been necessary to declare the slaves free,
provided that they made reasonable progress on paying debts to their former
masters equal to their market value as slaves, and that they used their first
earnings to buy insurance policies that would compensate their former masters
in the event that they died or became incapacitated before they finished paying
the debts. But such an end to slavery would never have satisfied the impulse
that pushed for its abolition.
Ending slavery was not an issue of economic efficiency or voter preferences.
Slavery needed to be ended because so many people could not in good conscience
participate in a legal system that enforced slavery. If slavery was wrong,
there was no basis for requiring persons subjected to slavery to purchase
their freedom. They had to be recognized as unconditionally free. Others
would need
to bear the loss from the fact that those formerly recognized as the owners
of slaves would no longer be allowed to appropriate the product of slave
labor. Who should bear the loss? ... read
the whole article
Nic Tideman: The Political Economy of Moral
Evolution
This paper argues that a liberal theory of the resolution of disagreements
about the requirements of justice must include the possibility of secession.
When such a possibility is allowed, it can be predicted that there will be
changes not only in the character of disputes about the requirements of justice,
but also in the patterns of taxes and public expenditures. There will be a
greater propensity for seeing the other side's point of view in disputes about
the requirements of justice, and a greater tendency to support public activities
by efficient taxes on the beneficiaries of public
expenditures.
The paper begins with a discussion of the nature of moral truth, its relation
to scientific truth, and the way in which moral knowledge grows. Next discussed
is the difficulty of translating moral knowledge into social institutions,
arising from the inevitability and impropriety of judging one's own cause.
Ackerman's "neutral dialogue" is endorsed as the most acceptable way of dealing
with this difficulty. But I suggest that in dialogues regarding the requirements
of justice there should be an understanding that one possible outcome of
the dialogue is failure to agree on mutually acceptable conditions for being
part
of the same society, leading to a parting of the ways. The conditions under
which such a parting would occur constitute the most fundamental question
of justice. I suggest that Ackerman's proposed condition of equal sharing
of the
providence of nature (Ackerman's initial manna) among all generations constitutes
an appropriate basis for parting if agreement should be impossible. ... read
the whole article
Judge Samuel Seabury: An Address delivered
upon the 100th anniversary of the birth of Henry George
WE are met to celebrate the 100th anniversary of the birth of Henry George.
We meet, therefore, in a spirit of joy and thanksgiving for the great life
which he devoted to the service of humanity. To very few of the children of
men is it given to act the part of a great teacher who makes an outstanding
contribution toward revealing the basic principles to which human society must
adhere if it is to walk in the way which leads to freedom. This Henry George
did, and in so doing he expressed himself with a clarity of thought and diction
which has rarely been surpassed. ...
We must not delude ourselves with the belief that the great battle now going
on between the dictatorships and the so-called democracies is merely a matter
of the nominal form of government. It is not. The difference is much more fundamental.
Opposing and diametrically opposite philosophies confront one another. The
contest is between the philosophy of dictatorship and the philosophy of freedom.
Irrespective of the name we give our form of government, or the method by which
we choose its administrators, the philosophy of freedom cannot be realized
unless the world recognizes the common rights of men in the resources of nature,
unless it recognizes the right of every people to trade with other peoples,
unless it safeguards the individual rights of life, liberty and property and
unless it insures tolerance of opinion. These principles are the essential
life-giving attributes of freedom: without them there can be no civilization
in the sense in which that term is used by a free people.
...Indeed, if we try to envision, in view of our present location this afternoon, "The
World of Tomorrow," I have no hesitation in saying that if the world
of tomorrow is to be a civilized world, and not a world which has relapsed
into
barbarism, it can be so only by applying the principles of freedom which
Henry George taught. The principles to which I refer are:
First, that men have equal rights in natural resources, and that these rights
may find recognition in a system which gives effect to the distinction between
what is justly private property because it has relation to individual initiative
and is the creation of labor and capital, and what is public property because
it is either a part of the natural resources of the country, whose value is
created by the presence of the community, or is founded upon some governmental
privilege or franchise.
Henry George believed in an order of society in which monopoly should be abolished
as a means of private profit. The substitution of state monopoly for private
monopoly will not better the situation. It ignores the fact that even where
a utility is a natural monopoly which must be operated in the public interests,
it should be operated as a result of cooperation between the representatives
of labor, capital. and consumers, and not by the politiciaps w'ho control the
political state.
We should never lose sight of the fact that all monopolies are created and
perpetuated by state laws. If the states wish seriously to abolish monopoly,
they can do so by withdrawing their privileges; but they cannot grant the privileges
which make monopoly inevitable and avoid the consequences by invoking anti-trust
laws against them.
It is strange that the state, which has assumed all sorts of functions which
it cannot with advantage perform, still persists in neglecting a vital
function which it should and can perform — the function of collecting
public revenues, as far as possible, from those who reap the benefits of
natural resources.
In view of public and social needs, it is remarkable that no effort has
been made by governments to reduce the tax burdens on labor and capital,
which are
engaged in increasing production, by transferring them to those who restrict
production by making monopoly privileges special to themselves.
These monopolistic privileges are of course disguised under many different
forms, but the task of ascertaining what they are, and their true value, is
a task within the competency of government if it really desires to accomplish
it.
The second principle to which I wish to refer is Henry George's advocacy
of freedom of trade among the nations — not free trade introduced overnight,
but freedom of trade as an end toward which the nations should move. When he
wrote his great work on "Protection or Free Trade," he demolished
the protectionist argument and in chapter after chapter he showed the absurdities
to which the protectionist principle led if carried to its logical conclusion.
But even he, penetrating as his vision was, could not foresee that mankind
was heading for a world order of economic nationalism and isolation, based
upon the principle of protection carried to its utmost extreme. And yet
that it is precisely the doctrine which is now currently accepted. If it
becomes
general, it can serve only to sow the seeds of destruction of that measure
of civilization which we now have and force a lowering of the standard
of living throughout the world.
There are two ways by which the people of one nation can acquire the property
or goods of the people of another nation. These are by war and by trade. There
are no other methods. The present tendency among civilized people to outlaw
trade must drive the states which prescribe such outlawry to acquire the property
and goods of other peoples by war. Early in man's struggle for existence the
resort to war was the common method adopted. With the advancement of civilization
men resorted to trade as a practical substitute for war. The masses of men
wish to trade with one another. The action of the states alone prevents them
from so doing. In prohibiting trade, the state gives an importance to territorial
boundaries which would not exist if freedom of trade existed. In accentuating
the importance of mere boundary disputes, rather than assuring the right of
peoples to trade with one another, the nations put the emphasis upon the precise
issue which is, itself, one of the most prolific causes of war.
All the great modern states are turning away from freedom of trade, and indeed,
from trade itself, and forbidding their people the right to earn their own
livelihood and to associate freely with one another in industry. In order to
accomplish this end they are compelled to regiment the lives of their people
under state bureaucracies and this can be accomplished only by a despotic state.
If the powers of the modern states are to be augmented by conferring upon them
the right to run all industry, despotism is inevitable. A dictator may, by
reducing the standard of living and regimenting the people, run all industry
within the state over which he rules, but a democracy, which, if it is to be
true to itself, must preserve individual initiative, can not do so without
transforming itself into a dictatorship. ... read the whole speech
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