Jobs
Chasing People
Wouldn't it be nice to live in a society where, instead of people
chasing jobs and wages being driven down, jobs were chasing people, driving
wages up, and perhaps permitting us to choose more leisure, if that were our
preference?
If we were in that situation, our society's need for publicly
funded social safety
nets
would be very different.
Our best route to living in such a society is to provide incentives
for putting our best land to its highest and best use, and reducing the
disincentives. Further, by making land available to those who have an entrepreneurial
plan
they want to try, we all benefit — all of us except the one whose "business
plan"
is to speculate on land or whose "job" description is "landlord." In
George's time, he would have been known as a "dog
in the manger."
H.G. Brown: Significant
Paragraphs from Henry George's Progress & Poverty:
10. Effect of Remedy Upon Wealth Production (in the unabridged P&P: Part
IX — Effects of the Remedy: Chapter 1 — Of the effect upon the
production of wealth)
The elder Mirabeau, we are told, ranked the proposition of Quesnay, to substitute
one single tax on rent (the impôt unique) for all other taxes,
as a discovery equal in utility to the invention of writing or the substitution
of the use of money for barter.
To whosoever will think over the matter, this saying will appear an evidence
of penetration rather than of extravagance. The advantages which would be gained
by substituting for the numerous taxes by which the public revenues are now
raised, a single tax levied upon the value of land, will appear more and more
important the more they are considered. ...
Thus, the bonus that wherever labor is most productive must now be paid before
labor can be exerted would disappear.
- The farmer would not have to pay out half his means, or mortgage his
labor for years, in order to obtain land to cultivate;
- the builder of a city homestead would not have to lay out as much for
a small lot as for the house he puts upon it*;
- the company that proposed to erect a manufactory would not have to expend
a great part of its capital for a site.
- And what would be paid from year to year to the state would be in lieu
of all the taxes now levied upon improvements, machinery, and stock.
*Many persons, and among them some professional economists,
have never succeeded in getting a thorough comprehension of this point.
Thus, the editor has heard the objection advanced that the greater
cheapness of land is no advantage to the poor man who is trying to
save enough from his earnings to buy a piece of land; for, it is said,
the higher taxes on the land after it is acquired, offset the lower
purchase price. What such objectors do not see is that even if the
lower price of land does no more than balance the higher tax on it,
(and this overlooks, for one thing, the discouragement to speculation
in land), the reduction or removal of other taxes is all clear gain.
It is easier to save in proportion as earnings and commodities are
relieved of taxation. It is easier to buy land, because its selling
price is lower, if the land is taxed. And although the land, after
its purchase, continues to be taxed, not only can this tax be fully
paid out of the annual interest on the saving in the purchase price,
but also there is to be reckoned the saving in taxes on buildings and
other improvements and in whatever other taxes are thus rendered unnecessary.
H.G.B.
Consider the effect of such a change upon the labor market. Competition
would no longer be one-sided, as now. Instead of laborers competing with
each other
for employment, and in their competition cutting down wages to the point
of bare subsistence, employers would everywhere be competing for laborers,
and
wages would rise to the fair earnings of labor. For into the labor market
would have entered the greatest of all competitors for the employment of
labor, a
competitor whose demand cannot be satisfied until want is satisfied — the
demand of labor itself. The employers of labor would not have merely to
bid against other employers, all feeling the stimulus of greater trade
and increased
profits, but against the ability of laborers to become their own employers
upon the natural opportunities freely opened to them by the tax which prevented
monopolization.
With natural opportunities thus free to labor;
- with capital and improvements exempt from tax, and exchange released
from restrictions, the spectacle of willing men unable to turn their labor
into
the things they are suffering for would become impossible;
- the recurring paroxysms which paralyze industry would cease;
- every wheel of production would be set in motion;
- demand would keep pace with supply, and supply with demand;
- trade would increase in every direction, and wealth augment on every
hand. ... read the whole chapter
Henry George: Thou Shalt Not
Steal (1887 speech)
The relation of employer and
employed is a relation of
convenience. It is not one imposed by the natural order. People are
brought into the world with the power to employ themselves, and they
can employ themselves wherever the natural opportunities for
employment are not shut up from them.
People do not have a natural right to
demand employment of
another, but they have a natural right, an inalienable right, a right
given by their Creator, to demand opportunity to employ themselves.
And whenever that right is acknowledged, whenever the people who want
to go to work can find natural opportunities to work upon, then there
will be as much competition among employers who are anxious to get
people to work for them, as there will be among people who are
anxious to get work.
Wages will rise in every vocation
to the true rate of wages —
the full, honest earnings of labor. That done, with this ever
increasing social fund to draw upon, poverty will be abolished, and
in a little while will come to be looked upon — as we are now
beginning to look upon slavery — as the relic of a darker and
more ignorant age. ... read the whole article
Henry George: Thy Kingdom Come
(1889 speech)
Mr Abner Thomas, of New York, a
strict orthodox Presbyterian
— and the son of Rev Dr Thomas, author of a commentary on the
bible —wrote a little while ago an allegory. Dozing off in his
chair, he dreamt that he was ferried over the River of Death, and,
taking the straight and narrow way, came at last within sight of the
Golden City. A fine-looking old gentleman angel opened the wicket,
inquired his name, and let him in; warning him, at the same time,
that it would be better if he chose his company in heaven, and did
not associate with disreputable angels.
“What!” said the newcomer, in
astonishment: “Is
not this heaven?”
“Yes,” said the warden: “But
there are a lot of
tramp angels here now."
“How can that be?” asked Mr
Thomas. “I thought
everybody had plenty in heaven.”
“It used to be
that way some time ago,” said the
warden: “And if you wanted to get your harp polished or your
wings combed, you had to do it yourself. But matters have changed
since we adopted the same kind of property regulations in heaven as
you have in civilised countries on earth, and we find it a great
improvement, at least for the better class.”
Then the warden told the newcomer
that he had better decide
where he was going to board.
“I don’t want to board anywhere,”
said Thomas:
“I would much rather go over to that beautiful green knoll and
lie down.”
“I would not advise you to do
so,” said the warden:
“The angel who owns that knoll does not like to encourage
trespassing. Some centuries ago, as I told you, we introduced the
system of private property into the soil of heaven. So we divided the
land up. It is all private property now.”
“I hope I was considered in that
division?” said
Thomas.
“No,” said the warden: “You were
not; but if you
go to work, and are saving, you can easily earn enough in a couple of
centuries to buy yourself a nice piece. You get a pair of wings free
as you come in, and you will have no difficulty in hypothecating them
for a few days board until you find work. But I should advise you to
be quick about it, as our population is constantly increasing, and
there is a great surplus of labour. Tramp angels are, in fact,
becoming quite a nuisance.”
“What shall I go to work at?”
asked Thomas.
“Our principal industries are the
making of harps and
crowns and the growing of flowers,” responded the warden:
“But there any many opportunities for employment in personal
service.”
“I love flowers,” said Thomas. “I
will go to work
growing them, There is a beautiful piece of land over there that
nobody seems to be using. I will go to work on that.”
“You can’t do that,” said the
warden. “That
property belongs to one of our most far-sighted angels who has got
very rich by the advance of land values, and who is holding that
piece for a rise. You will have to buy it or rent it before you can
work on it, and you can’t do that yet.”
The story goes on to describe how
the roads of heaven, the
streets of the New Jerusalem, were filled with disconsolate tramp
angels, who had pawned their wings, and were outcasts in Heaven
itself.
You laugh, and it is
ridiculous. But there is a moral in it that
is worth serious thought. Is it not ridiculous to imagine the
application to God’s heaven of the same rules of division that
we apply to God’s earth, even while we pray that His will may be
done on earth as it is done in Heaven? ... Read the
whole speech
Henry George: How to Help the Unemployed
In the first quarter of this century an educated and thoughtful Englishman,
Edward Gibbon Wakefield, visited this country. He saw its great resources,
and noted the differences between the English-speaking society growing up
here and that to which he had been used. Viewing everything from the standpoint
of a class accustomed to look on the rest of mankind as created for their
benefit,
'what he deemed the great social and economic disadvantage of the United
States was "the scarcity of labor." It was to this he traced the rudeness
of even what he styled the upper class, its want of those refinements, enjoyments,
and delicacies of life common to the aristocracy of England. How could an
English
gentleman emigrate to a country where labor was so dear that he might actually
have to black his own boots; so dear that even the capitalist might have
to work, and no one could count on a constant supply ready to accept as a
boon
any opportunity to perform the most menial, degrading, and repulsive services?
Mr. Wakefield was not a man to note facts without
seeking their connection. He saw that
this "scarcity of labor" came from the cheapness of land where the vast area
of the public domain
was open for settlement at nominal prices. A man of his class and time,
without the slightest question that land was made to be owned by landlords,
and laborers were made to furnish a supply of labor for the upper classes,
he was
yet a man of imagination. He saw the future before the English-speaking race
in building up new nations in what were yet the waste spaces of the earth.
But he wished those new nations to be socially, politically, and economically
newer
Englands;
not to be settled as the United States had been, from the "lower
classes" alone, but to contain from the first a proper proportion of
the "upper classes" as well. He saw that "scarcity of employment" would in time
succeed "scarcity of labor" even in countries like the United States by the
growth of speculation in land; but he did not want to wait for that in the
newer Britains
which his imagination
pictured. He proposed at once to produce
such salutary "scarcity of
employment " in new colonies as would give cheap and abundant labor, by a governmental
refusal to sell public land, save at a price so high as to prevent the poorer
from getting land, thus compelling them
to offer their labor for hire.
This was the
essential part of what was once well known as the Wakefield plan of colonization. It
is founded on a correct theory. In any country, however new and vast, it
would be possible to change "scarcity of labor" into "scarcity of employment" by
increasing the price put on the use of land. If
three families settled a virgin continent, one family could command the
services of the others as laborers for hire just as fully as though they
were its
chattel slaves, if it was accorded the ownership of the land and could
put its own price on its use. Wakefield proposed only that land
should be held at what he called "a sufficient price" -- that is, a price
high enough to keep wages in new colonies only a little higher than wages
in the mother-country,
and to produce not actual inability to get employment on the part of laborers,
but only such difficulty as would keep them tractable, and ready to accept
what from his standpoint were reasonable wages. Yet it is evident that
it would only require a somewhat greater increase in the price of land
to go
beyond this point and to bring about in the midst of abundant natural opportunities
for the employment of labor, the phenomena of laborers vainly seeking employment.
Now, in the United States we have not attempted to create "scarcity of
employment" by
Wakefield's plan. But we have made haste by sale and gift to put the public
domain in the hands of private owners, and thus allowed speculation to
bring about more quickly and effectually than he could have anticipated,
more than
Wakefield aimed at. The public domain is now practically gone; land is
rising to European prices, and we are at last face to face with social
difficulties
which in the youth of men of my time we were wont to associate with "the
effete monarchies of the Old World." Today, as the last census reports show, the majority
of American farmers are rack-rented tenants, or hold under mortgage, the
first form of tenancy; and the great majority of our people are landless
men, without right to employ their own labor and without stake in the land
they still foolishly speak of as their country. This is the reason why
the army of the unemployed has appeared among us, why by pauperism has
already
become chronic, and why in the tramp we have in more dangerous type the
proletarian of ancient Rome. ... Read the whole article
Rev. A. C. Auchmuty: Gems from George, a
themed collection of
excerpts from the writings of Henry George (with links to sources)
AND will not the community gain by thus refusing to kill the goose that
lays the golden eggs; by thus refraining from muzzling the ox that treadeth
out the corn; by thus leaving to industry, and thrift, and skill, their natural
reward, full and unimpaired? For there is to the community also a natural
reward. The law of society is, each for all, as well as all for each. No
one can keep to himself the good he may do, any more than he can keep the
bad. Every productive enterprise, besides its return to those who undertake
it, yields collateral advantages to others. If a man plant a fruit tree,
his gain is that he gathers the fruit in its time and season. But in addition
to his gain, there is a gain to the whole community. Others than the owner
are benefited by the increased supply of fruit; the birds which it shelters
fly far and wide; the rain which it helps to attract falls not alone on his
field; and, even to the eye which rests upon it from a distance, it brings
a sense of beauty. And so with everything else. The building of a house,
a factory, a ship, or a railroad, benefits others besides those who get the
direct profits. Nature laughs at a miser. He is like the squirrel who buries
his nuts and refrains from digging them up again. Lo! they sprout and grow
into trees. In fine linen, steeped in costly spices, the mummy is laid away.
Thousands and thousands of years thereafter, the Bedouin cooks his food by
a fire of its encasings, it generates the steam by which the traveler is
whirled on his way, or it passes into far-off lands to gratify the curiosity
of another race. The bee fills the hollow tree with honey, and along comes
the bear or the man. — Progress & Poverty — Book
IX, Chapter 1, Effects of the Remedy: Of the Effect upon the Production of
Wealth
CONSIDER the effect of such a change upon the labor market. Competition
would no longer be one-sided, as now. Instead of laborers competing with
each other for employment, and in their competition cutting down wages to
the point of bare subsistence, employers would everywhere be competing for
laborers, and wages would rise to the fair earnings of labor. For into the
labor market would have entered the greatest of all competitors for the employment
of labor, a competitor whose demand cannot be satisfied until want is satisfied — the
demand of labor itself. The employers of labor would not have merely to bid
against other employers, all feeling the stimulus of greater trade and increased
profits, but against the ability of laborers to become their own employers
upon the natural opportunities freely opened to them by the tax which prevented
monopolization. — Progress & Poverty — Book
IX, Chapter 1, Effects of the Remedy: Of the Effect upon the Production of
Wealth
... go to "Gems from George"
Louis Post: Outlines of Louis F. Post's
Lectures, with Illustrative Notes and Charts (1894)
Note 71: Farmers, millers, bakers, ranchers, butchers, fishermen, hunters,
makers of food-producing implements, food merchants, railroad men, sailors,
draymen,
coal miners, metal miners, builders, bankers who by exchanging commercial
paper facilitate trade. together with clerks, bookkeepers, foremen, journeymen,
common laborers, seeking for them instead of their seeking for work. To
specify the labor that would be profitably affected by this demand would
involve the cataloguing of all workmen, all business men, and all professional
men who either directly or indirectly are connected with food industries,
and the naming of every grade of such labor, from the newest apprentice
to the largest supervising employer.
Would not this be putting an end to "hard times"? For what is
the most striking manifestation of "hard times"? Is it not "scarcity
of work"? Is it not that there are more men seeking work than there
are jobs to do? Certainly it is. And to say that, is not to limit "hard
times" to hired men. The real trouble with the business man when he
complains of "hard times" is that people do not employ him as much
as he expects to be employed. Work is scarce with him, just as with those
he employs, or as he would phrase it, "business is slack."
Let there be ten men and but nine jobs, and you have "hard times." The
tenth man will be out of work. He may be a good union man who abhors a "scab" and
will not take work away from his brother workman. So he hunts for a job which
does not exist, until all his savings are gone. Still he will not be a "scab," and
he suffers deprivation. But after a while hunger gets the better of him,
and he takes one of the nine jobs away from another man by underbidding.
He becomes a "scab." And who can blame him? any one would rather
be a "scab" than a corpse. Then the man who has lost his place
becomes a "scab" too, and turns out some one else by underbidding.
And so it goes again and again until wages fall so low that they but just
support life. Then the poorhouse or a charitable institution takes care of
the tenth man, who thereafter serves the purpose of preventing arise in wages.
Meanwhile, diminished purchasing power, due to low wages, bears down upon
business generally.
But let there be ten jobs and but nine men. Conditions would instantly reverse,
Instead of a man all the time seeking for a job, a job would be all the time
seeking for a man; and wages would rise until they equaled the value of the
work for which they were paid. And as wages rose purchasing power would rise,
and business in general would flourish.
If demand freely directed production, there would always be ten jobs for
nine men, and no longer only nine jobs for ten men. It could not be otherwise
while any wants were unsatisfied. ...
Q25. What good would the single tax do to the poor? and how?
A. By constantly keeping the demand for labor above the supply it would enable
them to abolish their poverty.
Q27. Would working people, whose savings are in savings banks or insurance
companies which own land or have mortgages upon land, lose by the shrinkage
in land values?
A. Not if the companies were managed intelligently. Well managed companies
would shift their investments as they observed the persistent decline of
land values. They would do it even as soon as conditions appeared which would
naturally cause land values to shrink. But working people could well afford
to give all their savings for the permanent employment and high wages that
the single tax would bring about. It is not working people but idle people
who would lose anything by the single tax.
wealthandwant editorial comment: Post may be confusing land prices and land
value. Land value will continue to rise; land price will fall,
as the land tax is capitalized into the price.
Q29. Under the single tax could employers cut wages to the starvation point?
A. No. Under the single tax employers would be constantly bidding for workmen,
instead of workmen constantly bidding for employers as is the case now.
It is the "oversupply" of labor that makes starvation wages possible,
and the single tax would abolish that; not by reducing the supply of labor,
the Malthusian device, but by allowing the effective demand for labor to
freely increase.
Q31. Will not the capitalist be able under the single tax to undersell
the laborer — to sell goods for less than cost, at least temporarily — and
thereby force him to accept the capitalist's terms?
A. With capitalists continually hunting for men to help them fill their orders,
and bidding against each other to get men, as would be the case under the
single tax, such a contingency would be in the highest degree improbable.
It is practically impossible. Nothing short of a trust, an absolutely perfect
trust, of all the owners of capital the world over could produce it. And
even then, plenty of very useful land of all kinds being free and labor products
being exempt from taxation, all people who were outside of the trust would
resort co-operatively to the land, and the trust would be obliged to take
them in as the alternative of falling to pieces under their competition.
... read the book
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