Wealth and Want
... because democracy alone is not enough to produce widely shared prosperity.
Home Essential Documents Themes All Documents Authors Glossary Links Contact Us

 

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

 

 

To share this page with a friend: right click, choose "send," and add your comments.

Red links have not been visited; .
Green links are pages you've seen

Essential Documents pertinent to this theme:

Home
Top of page
Essential Documents
Themes
to email this page to a friend: right click, choose "send"
   
Wealth and Want
www.wealthandwant.com
   
... because democracy alone hasn't yet led to a society in which all can prosper