The Causes
of Poverty
Twice a week, I receive an e-mail from
an institute at a major ("public ivy") university devoted to poverty
research.
It provides links to articles in newspapers all over the U.S. about the
effects of poverty and various attempts to ease its effects,
particularly on children. I search it in vain for any awareness
that poverty is largely caused by how we structure our economy — the
privatization of land value and natural resources. All the little bandages
our society thinks to apply to try to reduce poverty's effects
are far less effective than striking at the root of
poverty. But then again, maybe a major university — public or
private — wouldn't
want to be caught rocking the boat. Their funding could be hurt. (See Upton
Sinclair.)
And if we can't correctly and accurately identify the causes of poverty,
the measures we adopt to reduce it are doomed to fail.
Place one hundred men on an island from which there is no escape, and
whether you make one of these men the absolute owner of the other ninety-nine,
or the absolute owner of the soil of the island, will make no difference
either to him or to them. In the one case, as the other, the one will
be the absolute master of the ninety-nine — his power extending
even to life and death, for simply to refuse them permission to live
upon the island would be to force them into the sea.
Upon a larger scale, and through more complex relations, the same cause
must operate in the same way and to the same end — the ultimate
result, the enslavement of laborers, becoming apparent just as the pressure
increases which compels them to live on and from land which is treated
as the exclusive property of others ... read
the whole chapter
Henry George: Salutatory, from
the first issue of The Standard (1887)
I begin the publication of this paper in response to many urgent requests,
and because I believe that there is a field for a journal that shall serve
as a focus for news and opinions relating to the great movement, now beginning,
for the emancipation of labor by the restoration of natural rights.
The generation that abolished chattel slavery is passing away, and the political
distinctions that grew out of that contest are becoming meaningless. The work
now before us is the abolition of industrial slavery.
What God created for the use of all should be utilized for the benefit of
all; what is produced by the individual belongs rightfully to the individual.
The neglect of these simple principles has brought upon us the curse of widespread
poverty and all the evils that flow from it. Their recognition will abolish
poverty, will secure to the humblest independence and leisure, and will lay
abroad and strong foundation on which all other reforms may be based. To secure
the full recognition of these principles is the most important task to which
any man can address himself today. It is in the hope of aiding in this work
that I establish this paper.
I believe that the Declaration of Independence is not a mere string of glittering
generalities. I believe that all men are really created equal, and that the
securing of those equal natural rights is the true purpose and test of government.
And against whatever law, custom or device that restrains men in the exercise
of their natural rights to life, liberty, and the pursuit of happiness I shall
raise my voice. ... read the whole
column
Henry George: The Crime
of Poverty (1885 speech)
There is a cause for this
poverty; and, if you trace it down, you will find its root in a primary
injustice. Look over the world today — poverty everywhere. The cause must
be a common one. You cannot attribute it to the tariff, or to the form
of government, or to this thing or to that in which nations differ;
because, as deep poverty is common to them all the cause that produces
it must be a common cause. What is that common cause? There is one sufficient cause that is common
to all nations; and that is the appropriation as the property of some
of that natural element on which and from which all must live.
...
Why, look all over this country — look at this town or any
other town. If men only took what they wanted to use we should all have
enough; but they take what they do not want to use at all. Here are a
lot of Englishmen coming over here and getting titles to our land in
vast tracts; what do they want with our land? They do not want it at
all; it is not the land they want; they have no use for American land.
What they want is the income that they know they can in a little while
get from it. Where does that income come from? It comes from labour,
from the labour of American citizens. What we are selling to these
people is our children, not land.
Poverty! Can there be any doubt of its cause? Go, into the old
countries — go into western Ireland, into the highlands of Scotland —
these are purely primitive communities. There you will find people as
poor as poor can be — living year after year on oatmeal or on potatoes,
and often going hungry. I could tell you many a pathetic story.
Speaking to a Scottish physician who was telling me how this diet was
inducing among these people a disease similar to that which from the
same cause is ravaging Italy (the Pellagra), I said to him: "There is
plenty of fish; why don't they catch fish? There is plenty of game; I
know the laws are against it, but cannot they take it on the sly?"
"That," he said, "never enters their heads. Why, if a man was even
suspected of having a taste for trout or grouse he would have to leave
at once."
There is no difficulty in discovering what makes those people
poor. They have no right to anything that nature gives them. All they
can make above a living they must pay to the landlord. They not only
have to pay for the land that they use, but they have to pay for the
seaweed that comes ashore and for the turf they dig from the bogs. They
dare not improve, for any improvements they make are made an excuse for
putting up the rent. These people who work hard live in hovels, and the
landlords, who do not work at all — oh! they live in luxury in London or
Paris. If they have hunting boxes there, why they are magnificent
castles as compared with the hovels in which the men live who do the
work. Is there any question as to the cause of poverty there?
Now go into the cities and what do you see! Why, you see even a
lower depth of poverty; aye, if I would point out the worst of the
evils of land monopoly I would not take you to Connemara; I would not
take you to Skye or Kintire — I would take you to Dublin or Glasgow or
London. There is something worse than physical deprivation, something
worse than starvation; and that is the degradation of the mind, the
death of the soul. That is what you will find in those cities.
Now, what is the cause of that? Why, it is plainly to be seen;
the people driven off the land in the country are driven into the slums
of the cities. For every man that is driven off the land the demand for
the produce of the workmen of the cities is lessened; and the man
himself with his wife and children, is forced among those workmen to
compete upon any terms for a bare living and force wages down. Get work
he must or starve — get work he must or do that which those people, so
long as they maintain their manly feelings, dread more than death, go
to the alms-houses. That is the reason, here as in Great Britain, that
the cities are overcrowded. Open the land that is locked up, that is
held by dogs in the manger, who will not use it themselves and will not
allow anybody else to use it, and you would see no more of tramps and
hear no more of over-production. ... read the whole speech
H.G. Brown: Significant
Paragraphs from Henry George's Progress & Poverty, Chapter 5: The
Basic Cause of Poverty (in the unabridged: Book
V: The Problem Solved)
The truth is self-evident. Put to any one capable of consecutive thought this
question:
"Suppose there should arise from the
English Channel or the German Ocean a no man's land on which common
labor to an unlimited amount should be able
to make thirty shillings a day and which should remain unappropriated
and of free access, like the commons which once comprised so large
a part of English
soil. What would be the effect upon wages in England?"
He would at once tell you that common wages throughout England must soon increase
to thirty shillings a day.
And in response to another question, "What would be the effect on rents?" he
would at a moment's reflection say that rents must necessarily fall;
and if he thought out the next step he would tell you that all this would
happen without
any very large part of English labor being diverted to the new natural
opportunities, or the forms and direction of industry being much changed;
only that kind of
production being abandoned which now yields to labor and to landlord
together less than labor could secure on the new opportunities. The great
rise in wages
would be at the expense of rent.
Take now the same man or another — some hardheaded business man, who
has no theories, but knows how to make money. Say to him: "Here is a little
village; in ten years it will be a great city — in ten years the
railroad will have taken the place of the stage coach, the electric light
of the candle;
it will abound with all the machinery and improvements that so enormously
multiply the effective power of labor. Will, in ten years, interest be
any higher?"
"Will the wages of common labor be any
higher; will it be easier for a man who has nothing but his labor to make
an independent living?"
He will tell you, "No; the wages of common
labor will not be any higher; on the contrary, all the chances are
that they will be lower; it will not be
easier for the mere laborer to make an independent living; the chances
are that it will be harder."
"What, then, will be higher?"
"Rent; the value of land. Go, get yourself
a piece of ground, and hold possession."
And if, under such circumstances, you take
his advice, you need do nothing more. You may sit down and smoke your pipe;
you may lie around like the lazzaroni
of Naples or the leperos of Mexico; you may go up in a balloon, or down
a hole in the ground; and without doing one stroke of work, without adding
one iota
to the wealth of the community, in ten years you will be rich! In the
new city you may have a luxurious mansion; but among its public buildings
will be an
almshouse.
In all our long investigation we have been advancing to this simple truth:
That as land is necessary to the exertion of labor in the production of wealth,
to command the land which is necessary to labor, is to command all the fruits
of labor save enough to enable labor to exist. ...
...For land is the habitation of man, the storehouse upon which he
must draw for all his needs, the material to which his labor must be
applied
for the
supply of all his desires; for even the products of the sea cannot
be taken, the light of the sun enjoyed, or any of the forces of nature
utilized, without
the use of land or its products. On the land we are born, from it we
live, to it we return again — children of the soil as truly as
is the blade of grass or the flower of the field. Take away from man
all that belongs
to land, and he is but a disembodied spirit. Material progress
cannot rid us of our dependence upon land; it can but add to the power
of producing
wealth from land; and hence, when land is monopolized, it
might go on to infinity without increasing wages or improving the condition
of
those who have but their labor. It can but add to the value
of land and the power which its possession gives. Everywhere, in all
times, among
all peoples, the possession of land is the base of aristocracy, the
foundation of great fortunes, the source of power. ... read
the whole chapter
Henry
George: Thou Shalt
Not Steal
(1887 speech)
Poverty attributed to
overproduction; poverty in the midst of
wealth; poverty in the midst of enlightenment; poverty, when steam
and electricity and a thousand laborsaving inventions that never
existed in the world before have been called to the aid of humanity.
There is manifestly no good reason for its existence, and it is time
that we should do something to abolish it.
There are not charitable
institutions enough to supply the
demand for charity; that demand seems incapable of being
supplied. But there are enough, at least, to show every thinking
woman and every thinking man that it is utterly impossible to
eradicate poverty by charity; to show everyone who will trace to its
root the cause of the disease that what is needed is not charity, but
justice — the conforming of human institutions to the eternal
laws of right.
But when we propose this, when we
say that poverty exists
because of the violation of God’s laws, we are taunted with
pretending to know more than humans ought to know about the designs
of Omnipotence. They
have set up for
themselves a god who rather likes poverty, since it affords the rich
a chance to show their goodness and benevolence; and they point to
the existence of poverty as a proof that God wills it. Our
reply is that poverty exists not because of God’s will, but
because of humanity’s disobedience. We say that we do know that
it is God’s will that there should be no poverty on earth, and
that we know it as we may know any other natural fact. ...
Crowded! Is it any wonder that
people are crowded together as they are in this city, when we see other
people taking up far more land than they can by any possibility use,
and holding it for enormous prices? Why, what would have happened if,
when these doors were opened, the first people who came in had claimed
all the seats around them, and demanded a price of others who
afterwards came in by the same equal right? Yet that is precisely the
way we are treating this continent.
That is the reason why people are huddled together in tenement
houses; that is the reason why work is difficult to get; the reason
that there seems, even in good times, a surplus of labor, and that in
those times that we call bad, the times of industrial depression, there
are all over the country thousands and hundreds of thousands of men
tramping from place to place, unable to find employment.
Not work enough! Why, what is work? Productive work is simply
the application of human labor to land, it is simply the transforming,
into shapes adapted to gratify human desires, of the raw material that
the Creator has placed here. Is there not opportunity enough for work
in this country? Supposing that, when thousands of men are unemployed
and there are hard times everywhere, we could send a committee up to
the high court of heaven to represent the misery and the poverty of the
people here, consequent on their not being able to find employment.
What answer would we get? "Are your lands all in use? Are your
mines all worked out? Are there no natural opportunities for the
employment of labor?" What could we ask the Creator to furnish us with
that is not already here in abundance? He has given us the globe amply
stocked with raw materials for our needs. He has given us the power of
working up this raw material.
If there seems scarcity, if there is want, if there are people
starving in the midst of plenty, is it not simply because what the
Creator intended for all has been made the property of the few? And in moving against this giant wrong,
which denies to labor access to the natural opportunities for the
employment of labor, we move against the cause of poverty. ...
And is
it not theft of the same kind when people go ahead in advance of
population and get land they have no use whatever for, and then, as
people come into the world and population increases, will not let
this increasing population use the land until they pay an exorbitant
price?
That is the sort of theft on which
our first families are founded.
Do that under the false code of morality which exists here today and
people will praise your forethought and your enterprise, and will say
you have made money because you are a very superior person, and that
all can make money if they will only work and be industrious! But is
it not as clearly a violation of the command: "Thou shalt not steal,"
as taking the money out of a person’s pocket?
"Thou shalt not steal." That
means, of course, that we
ourselves must not steal. But does it not also mean that we must not
suffer anybody else to steal if we can help it?
"Thou shalt not steal." Does it
not also mean: "Thou shalt not
suffer thyself or anybody else to be stolen from?" If it does, then
we, all of us, rich and poor alike, are responsible for this social
crime that produces poverty. Not merely the people who monopolize the
land — they are not to blame above anyone else, but we who
permit them to monopolize land are also parties to the theft. ...
Supposing we are confronted
with those souls, what will it
avail us to say that we individually were not responsible for their
earthly conditions? What, in the spirit of the parable of Matthew,
would be the reply from the Judgment seat? Would it not be: "I
provided for them all. The earth that I made was broad enough to give
them room. The materials that are placed in it were abundant enough
for all their needs. Did you or did you not lift up your voice
against the wrong that robbed them of their fair share in the
provision made for all?"
"Thou shalt not steal!" It is theft, it is robbery that is
producing poverty and disease and vice and crime among us. It is by
virtue of laws that we uphold; and those who do not raise their
voices against that crime, they are accessories.
There is no need for poverty in
this world, and in our
civilization. There is a provision made by the laws of the Creator
which would secure to the helpless all that they require, which would
give enough and more than enough for all social purposes. These
little children that are dying in our crowded districts for want of
room and fresh air, they are the disinherited heirs of a great
estate.
Did you ever consider the full
meaning of the significant fact
that as progress goes on, as population increases and civilization
develops, the one thing that ever increases in value is land?
Speculators all over the country appreciate that fact. Wherever
there is a chance for population coming; wherever railroads meet or a
great city seems destined to grow; wherever some new evidence of the
bounty of the Creator is discovered, in a rich coal or iron mine, or
an oil well, or a gas deposit, there the speculator jumps in, land
rises in value, and a great boom takes place, and people find
themselves enormously rich without ever having done a single thing to
produce wealth. ... read the whole article
Henry George: Progress & Poverty: The
Current Doctrine of Wages — Its Insufficiency
Reducing to its most compact form the problem we have set out to investigate,
let us examine, step by step, the explanation which political economy, as now
accepted by the best authority, gives of it.
The cause which produces poverty in the midst of advancing wealth is evidently
the cause which exhibits itself in the tendency, everywhere recognized, of
wages to a minimum. Let us, therefore, put our inquiry into this compact form:
Why, in spite of increase in productive power, do wages tend
to a minimum which will give but a bare living? ... read the entire chapter
Henry George: The Condition
of Labor — An Open Letter to Pope Leo XIII in response to Rerum
Novarum (1891)
... Your use, in so many passages of your Encyclical, of the inclusive
term “property” or “private” property,
of which in morals nothing can be either affirmed or denied, makes your
meaning, if we take isolated sentences, in many places ambiguous. But
reading it as a whole, there can be no doubt of your intention that private
property in land shall be understood when you speak merely of private
property. With this interpretation, I find that the reasons you urge
for private property in land are eight. Let us consider them in order
of presentation. You urge:
1. That what is bought with rightful property is rightful property.
(RN, paragraph 5) ...
2. That private property in land proceeds from man’s gift of reason.
(RN, paragraphs 6-7.) ...
3. That private property in land deprives no one of the use of land.
(RN, paragraph 8.) ...
4. That Industry expended on land gives ownership in the land itself.
(RN, paragraphs 9-10.) ...
5. That private property in land has the support of the common opinion
of mankind, and has conduced to peace and tranquillity, and that it is
sanctioned by Divine Law. (RN, paragraph 11.) ...
6. That fathers should provide for their children and that private property
in land is necessary to enable them to do so. (RN, paragraphs 14-17.)
...
7. That the private ownership of land stimulates industry, increases
wealth, and attaches men to the soil and to their country. (RN, paragraph
51.) ...
8. That the right to possess private property in land is from nature,
not from man; that the state has no right to abolish it, and that to
take the value of landownership in taxation would be unjust and cruel
to the private owner. (RN, paragraph 51.) ...
1. That what is bought with rightful property is rightful property. (5.)*
Clearly, purchase and sale cannot give, but can only transfer ownership.
Property that in itself has no moral sanction does not obtain moral sanction
by passing from seller to buyer.
If right reason does not make the slave the property of the slave-hunter
it does not make him the property of the slave-buyer. Yet your reasoning
as to private property in land would as well justify property in slaves.
To show this it is only needful to change in your argument the word land
to the word slave. It would then read:
It is surely undeniable that, when a man engages in remunerative labor,
the very reason and motive of his work is to obtain property, and to
hold it as his own private possession.
If one man hires out to another his strength or his industry, he does
this for the purpose of receiving in return what is necessary for food
and living; he thereby expressly proposes to acquire a full and legal
right, not only to the remuneration, but also to the disposal of that
remuneration as he pleases.
Thus, if he lives sparingly, saves money, and invests his savings, for
greater security, in a slave, the slave in such a case is only his wages
in another form; and consequently, a working-man’s slave thus purchased
should be as completely at his own disposal as the wages he receives
for his labor.
Nor in turning your argument for private property in land into an argument
for private property in men am I doing a new thing. In my own country,
in my own time, this very argument, that purchase gave ownership, was
the common defense of slavery. It was made by statesmen, by jurists,
by clergymen, by bishops; it was accepted over the whole country by the
great mass of the people. By it was justified the separation of wives
from husbands, of children from parents, the compelling of labor, the
appropriation of its fruits, the buying and selling of Christians by
Christians. In language almost identical with yours it was asked, “Here
is a poor man who has worked hard, lived sparingly, and invested his
savings in a few slaves. Would you rob him of his earnings by liberating
those slaves?” Or it was said: “Here is a poor widow; all
her husband has been able to leave her is a few negroes, the earnings
of his hard toil. Would you rob the widow and the orphan by freeing these
negroes?” And because of this perversion of reason, this confounding
of unjust property rights with just property rights, this acceptance
of man’s law as though it were God’s law, there came on our
nation a judgment of fire and blood.
The error of our people in thinking that what in itself was not rightfully
property could become rightful property by purchase and sale is the same
error into which your Holiness falls. It is not merely formally the same;
it is essentially the same. Private property in land, no less than private
property in slaves, is a violation of the true rights of property. They
are different forms of the same robbery; twin devices by which the perverted
ingenuity of man has sought to enable the strong and the cunning to escape
God’s requirement of labor by forcing it on others.
What difference does it make whether I merely own the land on which
another man must live or own the man himself? Am I not in the one case
as much his master as in the other? Can I not compel him to work for
me? Can I not take to myself as much of the fruits of his labor; as fully
dictate his actions? Have I not over him the power of life and death?
For to deprive a man of land is as certainly to kill him as to deprive
him of blood by opening his veins, or of air by tightening a halter around
his neck.
The essence of slavery is in empowering one man to obtain the labor
of another without recompense. Private property in land does this as
fully as chattel slavery. The slave-owner must leave to the slave enough
of his earnings to enable him to live. Are there not in so-called free
countries great bodies of working-men who get no more? How much more
of the fruits of their toil do the agricultural laborers of Italy and
England get than did the slaves of our Southern States? Did not private
property in land permit the landowner of Europe in ruder times to demand
the jus primae noctis? Does not the same last outrage exist today in
diffused form in the immorality born of monstrous wealth on the one hand
and ghastly poverty on the other?
In what did the slavery of Russia consist but in giving to the master
land on which the serf was forced to live? When an Ivan or a Catherine
enriched their favorites with the labor of others they did not give men,
they gave land. And when the appropriation of land has gone so far that
no free land remains to which the landless man may turn, then without
further violence the more insidious form of labor robbery involved in
private property in land takes the place of chattel slavery, because
more economical and convenient. For under it the slave does not have
to be caught or held, or to be fed when not needed. He comes of himself,
begging the privilege of serving, and when no longer wanted can be discharged.
The lash is unnecessary; hunger is as efficacious. This is why the Norman
conquerors of England and the English conquerors of Ireland did not divide
up the people, but divided the land. This is why European slave-ships
took their cargoes to the New World, not to Europe.
Slavery is not yet abolished. Though in all Christian countries its
ruder form has now gone, it still exists in the heart of our civilization
in more insidious form, and is increasing. There is work to be done for
the glory of God and the liberty of man by other soldiers of the cross
than those warrior monks whom, with the blessing of your Holiness, Cardinal
Lavigerie is sending into the Sahara. Yet, your Encyclical employs in
defense of one form of slavery the same fallacies that the apologists
for chattel slavery used in defense of the other!
The Arabs are not wanting in acumen. Your Encyclical reaches far. What
shall your warrior monks say, if when at the muzzle of their rifles they
demand of some Arab slave-merchant his miserable caravan, he shall declare
that he bought them with his savings, and producing a copy of your Encyclical,
shall prove by your reasoning that his slaves are consequently “only
his wages in another form,” and ask if they who bear your blessing
and own your authority propose to “deprive him of the liberty of
disposing of his wages and thus of all hope and possibility of increasing
his stock and bettering his condition in life”? ...
5. That private property in land has the support of the common
opinion of mankind, and has conduced to peace and tranquillity, and
that it is
sanctioned by Divine Law. (11.)
Even were it true that the common opinion of mankind has sanctioned
private property in land, this would no more prove its justice than the
once universal practice of the known world would have proved the justice
of slavery.
But it is not true. Examination will show that wherever we can trace
them the first perceptions of mankind have always recognized the equality
of right to land, and that when individual possession became necessary
to secure the right of ownership in things produced by labor some method
of securing equality, sufficient in the existing state of social development,
was adopted. Thus, among some peoples, land used for cultivation was
periodically divided, land used for pasturage and wood being held in
common. Among others, every family was permitted to hold what land it
needed for a dwelling and for cultivation, but the moment that such use
and cultivation stopped any one else could step in and take it on like
tenure. Of the same nature were the land laws of the Mosaic code. The
land, first fairly divided among the people, was made inalienable by
the provision of the jubilee, under which, if sold, it reverted every
fiftieth year to the children of its original possessors.
Private property in land as we know it, the attaching to land of the
same right of ownership that justly attaches to the products of labor,
has never grown up anywhere save by usurpation or force. Like slavery,
it is the result of war. It comes to us of the modern world from your
ancestors, the Romans, whose civilization it corrupted and whose empire
it destroyed.
It made with the freer spirit of the northern peoples the combination
of the feudal system, in which, though subordination was substituted
for equality, there was still a rough recognition of the principle of
common rights in land. A fief was a trust, and to enjoyment was annexed
some obligation. The sovereign, the representative of the whole people,
was the only owner of land. Of him, immediately or mediately, held tenants,
whose possession involved duties or payments, which, though rudely and
imperfectly, embodied the idea that we would carry out in the single
tax, of taking land values for public uses. The crown lands maintained
the sovereign and the civil list; the church lands defrayed the cost
of public worship and instruction, of the relief of the sick, the destitute
and the wayworn; while the military tenures provided for public defense
and bore the costs of war. A fourth and very large portion of the land
remained in common, the people of the neighborhood being free to pasture
it, cut wood on it, or put it to other common uses.
In this partial yet substantial recognition of common rights to land
is to be found the reason why, in a time when the industrial arts were
rude, wars frequent, and the great discoveries and inventions of our
time unthought of, the condition of the laborer was devoid of that grinding
poverty which despite our marvelous advances now exists. Speaking
of England, the highest authority on such subjects, the late Professor
Therold
Rogers, declares that in the thirteenth century there was no class so
poor, so helpless, so pressed and degraded as are millions of Englishmen
in our boasted nineteenth century; and that, save in times of actual
famine, there was no laborer so poor as to fear that his wife and children
might come to want even were he taken from them. Dark and rude in many
respects as they were, these were the times when the cathedrals and churches
and religious houses whose ruins yet excite our admiration were built;
the times when England had no national debt, no poor law, no standing
army, no hereditary paupers, no thousands and thousands of human beings
rising in the morning without knowing where they might lay their heads
at night.
With the decay of the feudal system, the system of private property
in land that had destroyed Rome was extended. As to England, it may briefly
be said that the crown lands were for the most part given away to favorites;
that the church lands were parceled among his courtiers by Henry VIII.,
and in Scotland grasped by the nobles; that the military dues were finally
remitted in the seventeenth century, and taxation on consumption substituted;
and that by a process beginning with the Tudors and extending to our
own time all but a mere fraction of the commons were inclosed by the
greater landowners; while the same private ownership of land was extended
over Ireland and the Scottish Highlands, partly by the sword and partly
by bribery of the chiefs. Even the military dues, had they been commuted,
not remitted, would today have more than sufficed to pay all public expenses
without one penny of other taxation.
Of the New World, whose institutions but continue those of Europe, it
is only necessary to say that to the parceling out of land in great tracts
is due the backwardness and turbulence of Spanish America; that to the
large plantations of the Southern States of the Union was due the persistence
of slavery there, and that the more northern settlements showed the earlier
English feeling, land being fairly well divided and the attempts to establish
manorial estates coming to little or nothing. In this lies the secret
of the more vigorous growth of the Northern States. But the idea that
land was to be treated as private property had been thoroughly established
in English thought before the colonial period ended, and it has been
so treated by the United States and by the several States. And though
land was at first sold cheaply, and then given to actual settlers, it
was also sold in large quantities to speculators, given away in great
tracts for railroads and other purposes, until now the public domain
of the United States, which a generation ago seemed illimitable, has
practically gone. And this, as the experience of other countries shows,
is the natural result in a growing community of making land private property.
When the possession of land means the gain of unearned wealth, the strong
and unscrupulous will secure it. But when, as we propose, economic rent,
the “unearned increment of wealth,” is taken by the state
for the use of the community, then land will pass into the hands of users
and remain there, since no matter how great its value, its possession
will be profitable only to users.
As to private property in land having conduced to the peace and tranquillity
of human life, it is not necessary more than to allude to the notorious
fact that the struggle for land has been the prolific source of wars
and of lawsuits, while it is the poverty engendered by private property
in land that makes the prison and the workhouse the unfailing attributes
of what we call Christian civilization.
Your Holiness intimates that the Divine Law gives its sanction to the
private ownership of land, quoting from Deuteronomy, “Thou shalt
not covet thy neighbor’s wife, nor his house, nor his field, nor
his man-servant, nor his maid-servant, nor his ox, nor his ass, nor anything
which is his.”
If, as your Holiness conveys, this inclusion of the words, “nor
his field,” is to be taken as sanctioning private property in land
as it exists today, then, but with far greater force, must the words, “his
man-servant, nor his maid-servant,” be taken to sanction chattel
slavery; for it is evident from other provisions of the same code that
these terms referred both to bondsmen for a term of years and to perpetual
slaves. But the word “field” involves the idea of use and
improvement, to which the right of possession and ownership does attach
without recognition of property in the land itself. And that this reference
to the “field” is not a sanction of private property in land
as it exists today is proved by the fact that the Mosaic code expressly
denied such unqualified ownership in land, and with the declaration, “the
land also shall not be sold forever, because it is mine, and you are
strangers and sojourners with me,” provided for its reversion every
fiftieth year; thus, in a way adapted to the primitive industrial conditions
of the time, securing to all of the chosen people a foothold in the soil.
Nowhere in fact throughout the Scriptures can the slightest justification
be found for the attaching to land of the same right of property that
justly attaches to the things produced by labor. Everywhere is it treated
as the free bounty of God, “the land which the Lord thy God giveth
thee.”
6. That fathers should provide for their children and that private property
in land is necessary to enable them to do so. (14-17.)
With all that your Holiness has to say of the sacredness of the family
relation we are in full accord. But how the obligation of the father
to the child can justify private property in land we cannot see. You
reason that private property in land is necessary to the discharge of
the duty of the father, and is therefore requisite and just, because —
It is a most sacred law of nature that a father must provide food and
all necessaries for those whom he has begotten; and, similarly, nature
dictates that a man’s children, who carry on, as it were, and continue
his own personality, should be provided by him with all that is needful
to enable them honorably to keep themselves from want and misery in the
uncertainties of this mortal life. Now, in no other way can a father
effect this except by the ownership of profitable property, which he
can transmit to his children by inheritance. (14.)
Thanks to Him who has bound the generations of men together by a provision
that brings the tenderest love to greet our entrance into the world and
soothes our exit with filial piety, it is both the duty and the joy of
the father to care for the child till its powers mature, and afterwards
in the natural order it becomes the duty and privilege of the child to
be the stay of the parent. This is the natural reason for that relation
of marriage, the groundwork of the sweetest, tenderest and purest of
human joys, which the Catholic Church has guarded with such unremitting
vigilance.
We do, for a few years, need the providence of our fathers after the
flesh. But how small, how transient, how narrow is this need, as compared
with our constant need for the providence of Him in whom we live, move
and have our being — Our Father who art in Heaven! It is to him, “the
giver of every good and perfect gift,” and not to our fathers after
the flesh, that Christ taught us to pray, “Give us this day our
daily bread.” And how true it is that it is through him that the
generations of men exist! Let the mean temperature of the earth rise
or fall a few degrees, an amount as nothing compared with differences
produced in our laboratories, and mankind would disappear as ice disappears
under a tropical sun, would fall as the leaves fall at the touch of frost.
Or, let for two or three seasons the earth refuse her increase, and how
many of our millions would remain alive?
The duty of fathers to transmit to their children profitable property
that will enable them to keep themselves from want and misery in the
uncertainties of this mortal life! What is not possible cannot be a duty.
And how is it possible for fathers to do that? Your Holiness has not
considered how mankind really lives from hand to mouth, getting each
day its daily bread; how little one generation does or can leave another.
It is doubtful if the wealth of the civilized world all told amounts
to anything like as much as one year’s labor, while it is certain
that if labor were to stop and men had to rely on existing accumulation,
it would be only a few days ere in the richest countries pestilence and
famine would stalk.
The profitable property your Holiness refers to, is private property
in land. Now profitable land, as all economists will agree, is land superior
to the land that the ordinary man can get. It is land that will yield
an income to the owner as owner, and therefore that will permit the owner
to appropriate the products of labor without doing labor, its profitableness
to the individual involving the robbery of other individuals. It is therefore
possible only for some fathers to leave their children profitable land.
What therefore your Holiness practically declares is, that it is the
duty of all fathers to struggle to leave their children what only the
few peculiarly strong, lucky or unscrupulous can leave; and that, a something
that involves the robbery of others — their deprivation of the
material gifts of God.
This anti-Christian doctrine has been long in practice throughout the
Christian world. What are its results?
Are they not the very evils set forth in your Encyclical? Are they not,
so far from enabling men to keep themselves from want and misery in the
uncertainties of this mortal life, to condemn the great masses of men
to want and misery that the natural conditions of our mortal life do
not entail; to want and misery deeper and more wide-spread than exist
among heathen savages? Under the régime of private property in
land and in the richest countries not five per cent of fathers are able
at their death to leave anything substantial to their children, and probably
a large majority do not leave enough to bury them! Some few children
are left by their fathers richer than it is good for them to be, but
the vast majority not only are left nothing by their fathers, but by
the system that makes land private property are deprived of the bounty
of their Heavenly Father; are compelled to sue others for permission
to live and to work, and to toil all their lives for a pittance that
often does not enable them to escape starvation and pauperism.
What your Holiness is actually, though of course inadvertently, urging,
is that earthly fathers should assume the functions of the Heavenly Father.
It is not the business of one generation to provide the succeeding generation “with
all that is needful to enable them honorably to keep themselves from
want and misery.” That is God’s business. We no more create
our children than we create our fathers. It is God who is the Creator
of each succeeding generation as fully as of the one that preceded it.
And, to recall your own words (7), “Nature [God], therefore, owes
to man a storehouse that shall never fail, the daily supply of his daily
wants. And this he finds only in the inexhaustible fertility of the earth.” What
you are now assuming is, that it is the duty of men to provide for the
wants of their children by appropriating this storehouse and depriving
other men’s children of the unfailing supply that God has provided
for all.
The duty of the father to the child — the duty possible to all
fathers! Is it not so to conduct himself, so to nurture and teach it,
that it shall come to manhood with a sound body, well-developed mind,
habits of virtue, piety and industry, and in a state of society that
shall give it and all others free access to the bounty of God, the providence
of the All-Father?
In doing this the father would be doing more to secure his children
from want and misery than is possible now to the richest of fathers — as
much more as the providence of God surpasses that of man. For the justice
of God laughs at the efforts of men to circumvent it, and the subtle
law that binds humanity together poisons the rich in the sufferings of
the poor. Even the few who are able in the general struggle to leave
their children wealth that they fondly think will keep them from want
and misery in the uncertainties of this mortal life — do they succeed?
Does experience show that it is a benefit to a child to place him above
his fellows and enable him to think God’s law of labor is not for
him? Is not such wealth oftener a curse than a blessing, and does not
its expectation often destroy filial love and bring dissensions and heartburnings
into families? And how far and how long are even the richest and strongest
able to exempt their children from the common lot? Nothing is more certain
than that the blood of the masters of the world flows today in lazzaroni
and that the descendants of kings and princes tenant slums and workhouses.
But in the state of society we strive for, where the monopoly and waste
of God’s bounty would be done away with and the fruits of labor
would go to the laborer, it would be within the ability of all to make
more than a comfortable living with reasonable labor. And for those who
might be crippled or incapacitated, or deprived of their natural protectors
and breadwinners, the most ample provision could be made out of that
great and increasing fund with which God in his law of rent has provided
society — not as a matter of niggardly and degrading alms, but
as a matter of right, as the assurance which in a Christian state society
owes to all its members.
Thus it is that the duty of the father, the obligation to the child,
instead of giving any support to private property in land, utterly condemns
it, urging us by the most powerful considerations to abolish it in the
simple and efficacious way of the single tax.
This duty of the father, this obligation to children, is not confined
to those who have actually children of their own, but rests on all of
us who have come to the powers and responsibilities of manhood.
For did not Christ set a little child in the midst of the disciples,
saying to them that the angels of such little ones always behold the
face of his Father; saying to them that it were better for a man to hang
a millstone about his neck and plunge into the uttermost depths of the
sea than to injure such a little one?
And what today is the result of private property in land in the richest
of so-called Christian countries? Is it not that young people fear to
marry; that married people fear to have children; that children are driven
out of life from sheer want of proper nourishment and care, or compelled
to toil when they ought to be at school or at play; that great numbers
of those who attain maturity enter it with under-nourished bodies, overstrained
nerves, undeveloped minds — under conditions that foredoom them,
not merely to suffering, but to crime; that fit them in advance for the
prison and the brothel?
If your Holiness will consider these things we are confident that instead
of defending private property in land you will condemn it with anathema!
...
... The explanation of this and of similar paradoxes that in our time
perplex on every side may be easily seen. The effect of all inventions
and improvements
that increase productive power, that save waste and economize effort,
is to lessen the labor required for a given result, and thus to save
labor, so that we speak of them as labor-saving inventions or improvements.
Now, in a natural state of society where the rights of all to the use
of the earth are acknowledged, labor-saving improvements might go to
the very utmost that can be imagined without lessening the demand for
men, since in such natural conditions the demand for men lies in their
own enjoyment of life and the strong instincts that the Creator has implanted
in the human breast. But in that unnatural state of society where the
masses of men are disinherited of all but the power to labor when opportunity
to labor is given them by others, there the demand for them becomes simply
the demand for their services by those who hold this opportunity, and
man himself becomes a commodity. Hence, although the natural effect of
labor-saving improvement is to increase wages, yet in the unnatural condition
which private ownership of the land begets, the effect, even of such
moral improvements as the disbandment of armies and the saving of the
labor that vice entails, is, by lessening the commercial demand, to lower
wages and reduce mere laborers to starvation or pauperism. If labor-saving
inventions and improvements could be carried to the very abolition of
the necessity for labor, what would be the result? Would it not be that
landowners could then get all the wealth that the land was capable of
producing, and would have no need at all for laborers, who must then
either starve or live as pensioners on the bounty of the landowners?
Thus, so long as private property in land continues — so long
as some men are treated as owners of the earth and other men can live
on it only by their sufferance — human wisdom can devise no means
by which the evils of our present condition may be avoided.
Nor yet could the wisdom of God.
By the light of that right reason of which St. Thomas speaks we may
see that even he, the Almighty, so long as his laws remain what they
are, could do nothing to prevent poverty and starvation while property
in land continues.
How could he? Should he infuse new vigor into the sunlight, new virtue
into the air, new fertility into the soil, would not all this new bounty
go to the owners of the land, and work not benefit, but rather injury,
to mere laborers? Should he open the minds of men to the possibilities
of new substances, new adjustments, new powers, could this do any more
to relieve poverty than steam, electricity and all the numberless discoveries
and inventions of our time have done? Or, if he were to send down from
the heavens above or cause to gush up from the subterranean depths, food,
clothing, all the things that satisfy man’s material desires, to
whom under our laws would all these belong? So far from benefiting man,
would not this increase and extension of his bounty prove but a curse,
enabling the privileged class more riotously to roll in wealth, and bringing
the disinherited class to more wide-spread starvation or pauperism? ...
Believing that the social question is at bottom a religious question,
we deem it of happy augury to the world that in your Encyclical the most
influential of all religious teachers has directed attention to the condition
of labor.
But while we appreciate the many wholesome truths you utter, while we
feel, as all must feel, that you are animated by a desire to
help the suffering and oppressed, and to put an end to any idea that the church
is divorced from the aspiration for liberty and progress, yet it is painfully
obvious to us that one fatal assumption hides from you the cause
of the evils you see, and makes it impossible for you to propose any
adequate
remedy. This assumption is, that private property in land is of the same
nature and has the same sanctions as private property in things produced
by labor. In spite of its undeniable truths and its benevolent spirit,
your Encyclical shows you to be involved in such difficulties as a physician
called to examine one suffering from disease of the stomach would meet
should he begin with a refusal to consider the stomach.
Prevented by this assumption from seeing the true cause, the only causes
you find it possible to assign for the growth of misery and wretchedness
are the destruction of working-men’s guilds in the last century,
the repudiation in public institutions and laws of the ancient religion,
rapacious usury, the custom of working by contract, and the concentration
of trade.
Such diagnosis is manifestly inadequate to account for evils that are
alike felt in Catholic countries, in Protestant countries, in countries
that adhere to the Greek communion and in countries where no religion
is professed by the state; that are alike felt in old countries and in
new countries; where industry is simple and where it is most elaborate;
and amid all varieties of industrial customs and relations.
But the real cause will be clear if you will consider that since labor
must find its workshop and reservoir in land, the labor question is but
another name for the land question, and will reexamine your assumption
that private property in land is necessary and right.
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!” ...
It seems to us that your Holiness misses its real significance in intimating
that Christ, in becoming the son of a carpenter and himself working as
a carpenter, showed merely that “there is nothing to be ashamed
of in seeking one’s bread by labor.” To say that is almost
like saying that by not robbing people he showed that there is nothing
to be ashamed of in honesty. If you will consider how true in any large
view is the classification of all men into working-men, beggar-men
and thieves, you will see that it was morally impossible that Christ during
his stay on earth should have been anything else than a working-man,
since he who came to fulfil the law must by deed as well as word obey
God’s law of labor.
See how fully and how beautifully Christ’s life on earth illustrated
this law. Entering our earthly life in the weakness of infancy, as it
is appointed that all should enter it, he lovingly took what in the natural
order is lovingly rendered, the sustenance, secured by labor, that one
generation owes to its immediate successors. Arrived at maturity, he
earned his own subsistence by that common labor in which the majority
of men must and do earn it. Then passing to a higher — to the very
highest — sphere of labor, he earned his subsistence by the teaching
of moral and spiritual truths, receiving its material wages in the love-offerings
of grateful hearers, and not refusing the costly spikenard with which
Mary anointed his feet. So, when he chose his disciples, he did not go
to landowners or other monopolists who live on the labor of others, but
to common laboring-men. And when he called them to a higher sphere of
labor and sent them out to teach moral and spiritual truths, he told
them to take, without condescension on the one hand or sense of degradation
on the other, the loving return for such labor, saying to them that “the
laborer is worthy of his hire,” thus showing, what we hold, that
all labor does not consist in what is called manual labor, but that whoever
helps to add to the material, intellectual, moral or spiritual fullness
of life is also a laborer.*
* Nor should it be forgotten that the investigator,
the philosopher, the teacher, the artist, the poet, the priest, though
not engaged
in the production of wealth, are not only engaged in the production
of utilities
and satisfactions to which the production of wealth is only a means,
but by acquiring and diffusing knowledge, stimulating mental powers
and elevating the moral sense, may greatly increase the ability to
produce
wealth. For man does not live by bread alone. . . . He who by any
exertion of mind or body adds to the aggregate of enjoyable wealth,
increases
the sum of human knowledge, or gives to human life higher elevation
or greater fullness — he is, in the large meaning of the words, a “producer,” a “working-man,” a “laborer,” and
is honestly earning honest wages. But he who without doing aught to make
mankind richer, wiser, better, happier, lives on the toil of others — he,
no matter by what name of honor he may be called, or how lustily the
priests of Mammon may swing their censers before him, is in the last
analysis but a beggar-man or a thief. — Protection or Free
Trade, pp. 74-75.
In assuming that laborers, even ordinary manual laborers, are naturally
poor, you ignore the fact that labor is the producer of wealth, and attribute
to the natural law of the Creator an injustice that comes from man’s
impious violation of his benevolent intention. In the rudest stage of
the arts it is possible, where justice prevails, for all well men to
earn a living. With the labor-saving appliances of our time, it should
be possible for all to earn much more. And so, in saying that poverty
is no disgrace, you convey an unreasonable implication. For poverty ought
to be a disgrace, since in a condition of social justice, it would, where
unsought from religious motives or unimposed by unavoidable misfortune,
imply recklessness or laziness.... 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)
THE general subjection of the many to the few, which we meet with wherever
society has reached a certain development, has resulted from the appropriation
of land as individual property. It is the ownership of the soil that
everywhere gives the ownership of the men that live upon it. It is slavery
of this kind to which the enduring pyramids and the colossal monuments
of Egypt yet bear witness, and of the institution of which we have, perhaps,
a vague tradition in the biblical story of the famine during which the
Pharaoh purchased up the lands of the people. It was slavery of this
kind to which, in the twilight of history, the conquerors of Greece reduced
the original inhabitants of that peninsula, transforming them into helots
by making them pay rent for their lands. It was the growth of the latifundia,
or great landed estates, which transmuted the population of ancient Italy
from a race of hardy husbandmen, whose robust virtues conquered the world,
into a race of cringing bondsmen; it was the appropriation of the land
as the absolute property of their chieftains which gradually turned the
descendants of free and equal Gallic, Teutonic and Hunnish warriors into
colonii and villains, and which changed the independent burghers of Sclavonic
village communities into the boors of Russia and the serfs of Poland;
which instituted the feudalism of China and Japan, as well as that of
Europe, and which made the High Chiefs of Polynesia the all but absolute
masters of their fellows. How it came to pass that the Aryan shepherds
and warriors who, as comparative philology tells us, descended from the
common birth-place of the Indo-Germanic race into the lowlands of India,
were turned into the suppliant and cringing Hindoo, the Sanscrit verse
which I have before quoted gives us a hint. The white parasols and the
elephants mad with pride of the Indian Rajah are the flowers of grants
of land. — Progress & Poverty — Book
VII, Chapter 1, Justice of the Remedy: Injustice of private property
in land
TRACE to their root the causes that are thus producing want in the midst of plenty,
ignorance in the midst of intelligence, aristocracy in democracy, weakness in
strength — that are giving to our civilization a one-sided and unstable
development, and you will find it something which this Hebrew statesman three
thousand years ago perceived and guarded against. Moses saw that the real cause
of the enslavement of the masses of Egypt was, what has everywhere produced enslavement,
the possession by a class of the land upon which, and from which, the whole people
must live. He saw that to permit in land the same unqualified private ownership
that by natural right attaches to the things produced by labor, would be inevitably
to separate the people into the very rich and the very poor, inevitably to enslave
labor — to make the few the masters of. the many, no matter what the political
forms, to bring vice and degradation, no matter what the religion.
And with the foresight of the philosophic statesman who legislates not for the
need of a day, but for all the future, he sought, in ways suited to his times
and conditions, to guard against this error. — Moses
THE women who by the thousands are bending over their needles or sewing machines,
thirteen, fourteen, sixteen hours a day; these widows straining and striving
to bring up the little ones deprived of their natural bread-winner; the children
that are growing up in squalor and wretchedness, under-clothed, under-fed, under-educated,
even in this city without any place to play — growing up under conditions
in which only a miracle can keep them pure — under conditions which condemn
them in advance to the penitentiary or the brothel — they suffer, they
die, because we permit them to be
robbed, robbed of their birthright, robbed by a system which disinherits the
vast majority of the children that come into the world. There is enough and to
spare for them. Had they the equal rights in the estate which their Creator has
given them, there would be no young girls forced to unwomanly toil to eke out
a mere existence, no widows finding it such a bitter, bitter struggle to put
bread in the mouths of their little children; no such misery and squalor as we
may see here in the greatest of American cities; misery and squalor that are
deepest in the largest and richest centers of our civilization today. — Thou
Shalt Not Steal
... go to "Gems from George"
Louis Post: Outlines of Louis F. Post's
Lectures, with Illustrative Notes and Charts (1894)
But it is not alone to objects of charity that the question of poverty
calls our attention. There is a keener poverty, which pinches and goes
hungry, but is beyond the reach of charity because it never complains.
And back of all and over all is fear of poverty, which chills the best
instincts of men of every social grade, from recipients of out-door relief
who dread the poorhouse, to millionaires who dread the possibility of
poverty for their children if not for themselves.38
38. A well known millionaire is quoted as saying: "I
would rather leave my children penniless in a world in which they
could at all
times obtain employment for wages equal to the value of their work
as measured
by the work of others, than to leave them millions of dollars in
a world like this, where if thy lose their inheritance, they may have
no chance
of earning am decent living."
It is poverty and fear of poverty that prompt men of honest instincts
to steal, to bribe, to take bribes, to oppress, either under color of
law or against law, and — what is worst than all, because it is
not merely a depraved act, but a course of conduct that implies a state
of depravity — to enlist their talents in crusades against their
convictions. 39 Our civilization cannot long resist such enemies as poverty
and fear of poverty breed; to intelligent observers it already seems
to yield. 40
39. "From whence springs this lust for gain, to gratify which men
tread everything pure and noble under their feet; to which they sacrifice
all the higher possibilities of life; which converts civility into a
hollow pretense, patriotism into a sham, and religion into hypocrisy;
which makes so much of civilized existence an Ishmaelitish warfare, of
which the weapons are cunning and fraud? Does it not spring from the
existence of want? Carlyle somewhere says that poverty is the hell of
which the modern Englishman is most afraid. And he is right. Poverty
is the openmouthed, relentless hell which yawns beneath civilized society.
And it is hell enough. The Vedas declare no truer thing than when the
wise crow Bushanda tells the eagle-bearer of Vishnu that the keenest
pain is in poverty. For poverty is not merely deprivation; it means shame,
degradation; the searing of the most sensitive parts of our moral and
mental nature as with hot irons; the denial of the strongest impulses
and the sweetest affections; the wrenching of the most vital nerves.
You love your wife, you love your children; but would it not be easier
to see them die than to see them reduced to the pinch of want in which
large classes in every highly civilized community live? ... From this
hell of poverty, it is but natural that men should make every effort
to escape. With the impulse to self-preservation and self-gratification
combine nobler feelings, and love as well as fear urges in the struggle.
Many a man does a mean thing, a dishonest thing, a greedy and grasping
and unjust thing, in the effort to place above want, or the fear of want,
mother or wife or children." — Progress and Poverty, book
ix, ch iv.
40. "There is just now a disposition to scoff at
any implication that we are not in all respects progressing ... Yet
it is evident that
there have been times of decline, just as there have been times of advance;
and it is further evident that these epochs of decline could not at first
have been generally recognized.
"He would have been a rash man who, when Augustus was changing
the Rome of brick to the Rome of marble, when wealth was augmenting and
magnificence increasing, when victorious legions were extending the frontier,
when manners were becoming more refined, language more polished, and
literature rising to higher splendors — he would have been a rash
man who then would have said that Rome was entering her decline. Yet
such was the case.
"And whoever will look may see that though our
civilization is apparently advancing with greater rapidity than ever,
the same cause
which turned Roman progress into retrogression is operating now.
"What has destroyed every previous civilization
has been the tendency to the unequal distribution of wealth and power.
This same tendency,
operating with increasing force, is observable in our civilization today,
showing itself in every progressive community, and with greater intensity
the more progressive the community. ... The conditions of social progress,
as we have traced the law, are association and equality. The general
tendency of modern development, since the time when we can first discern
the gleams of civilization in the darkness which followed the fall of
the Western Empire, has been toward political and legal equality ...
This tendency has reached its full expression in the American Republic,
where political and legal rights are absolutely equal ... it is the prevailing
tendency, and how soon Europe will be completely republican is only a
matter of time, or rather of accident. The United States are therefore
in this respect, the most advanced of all the great nations, in a direction
in which all are advancing, and in the United States we see just how
much this tendency to personal and political freedom can of itself accomplish.
... It is now ... evident that political equality, coexisting with an
increasing tendency to the unequal distribution of wealth, must ultimately
beget either the despotism of organized tyranny or the worse despotism
of anarchy.
"To turn a republican government into a despotism the basest and
most brutal, it is not necessary formally to change its constitution
or abandon popular elections. It was centuries after Cæsar before
the absolute master of the Roman world pretended to rule other than by
authority of a Senate that trembled before him.
"But forms are nothing when substance has gone, and the forms of
popular government are those from which the substance of freedom may
most easily go. Extremes meet, and a government of universal suffrage
and theoretical equality may, under conditions which impel the change,
most readily become a despotism. For there despotism advances in the
name and with the might of the people. ... And when the disparity of
condition increases, so does universal suffrage make it easy to seize
the source of power, for the greater is the proportion of power in the
hands of those who feel no direct interest in the conduct of government;
who, tortured by want and embruted by poverty, are ready to sell their
votes to the highest bidder or follow the lead of the most blatant demagogue;
or who, made bitter by hardships, may even look upon profligate and tyrannous
government with the satisfaction we may imagine the proletarians and
slaves of Rome to have felt, as they saw a Caligula or Nero raging among
the rich patricians. ... Now this transformation of popular government
into despotism of the vilest and most degrading kind, which must inevitably
result from the unequal distribution of wealth, is not a thing of the
far future. It has already begun in the United States, and is rapidly
going on under our eyes. ... The type of modern growth is the great city.
Here are to be found the greatest wealth and the deepest poverty. And
it is here that popular government has most clearly broken down. ...
In theory we are intense democrats. ... But is there not growing up among
us a class who have all the power without any of the virtues of aristocracy?
... Industry everywhere tends to assume a form in which one is master
and many serve. And when one is master and the others serve, the one
will control the others, even in such matters as votes. ... There is
no mistaking it — the very foundations of society are being sapped
before our eyes ... It is shown in greatest force where the inequalities
in the distribution of wealth are greatest, and it shows itself as they
increase. ... Though we may not speak it openly, the general faith in
republican institutions is, where they have reached their fullest development,
narrowing and weakening. It is no longer that confident belief in republicanism
as the source of national blessings that it once was. Thoughtful men
are beginning to see its dangers, without seeing how to escape them;
are beginning to accept the view of Macaulay and distrust that of Jefferson.
And the people at large are becoming used to the growing corruption.
The most ominous political sign in the United States today is the growth
of a sentiment which either doubts the existence of an honest man in
public office or looks on him as a fool for not seizing his opportunities.
That is to say, the people themselves are becoming corrupted. Thus in
the United States to-day is republican government running the course
it must inevitably follow under conditions which cause the unequal distribution
of wealth." — Progress and Poverty, book x, ch. iv.
But how is the development of these social enemies to be arrested? Only
by tracing poverty to its cause, and, having found the cause, deliberately
removing it. Poverty cannot be traced to its cause, however, without
serious thought; not mere reading and school study and other tutoring,
but thought. 41 To jump at a conclusion is very likely to jump over
the cause, at which no class is more apt than the tutored class.42
We must proceed step by step from familiar and indisputable premises.
...
d. Dependence of Labor upon Land
We have now seen that division of labor and trade, the distinguishing
characteristics of civilization, not only increase labor power, but grow
out of a law of human nature which tends, by maintaining a perpetual
revolution of the circle of trade, to cause opportunities for mutual
employment to correspond to desire for wealth. Surely there could be
no lack of employment if the circle flowed freely in accordance with
the principle here illustrated; work would abound until want was satisfied.
There must therefore be some obstruction. That indirect taxes hamper
trade, we have already seen;78 but there is a more fundamental obstruction.
As we learned at the outset, all the material wants of men are satisfied
by Labor from Land. Even personal services cannot be rendered without
the use of appropriate land.79 Let us then introduce into the preceding
chart, in addition to the different classes of Labor, the corresponding
classes of Land-owning interests, indicating them by black balls:
78. See ante, pp. 9, 6 and 16.
79. Demand for food is not only demand for all kinds
and grades of Food-makers, but also for as many different kinds of
land as there are different kinds of labor set at work. So a demand
for clothing is not only a demand for Clothing-makers, a demand for
shelter is not only one for Shelter-makers, a demand for luxuries
is not only one for Luxury-makers, a demand for services is not only
one for Personal Servants, but those demands are also demands for
appropriate land — pasture land for wool, cotton land for cotton,
factory land, water fronts and rights of way, store sites, residence
sites, office sites, theater sites, and so on to the end of an almost
endless catalogue.
Every class of Labor has now its own parasite.
The arrows which run from one kind of Labor to another, indicating an
out-flow of service, are respectively offset by arrows that indicate
a corresponding in-flow of service; but the arrows that flow
from the various classes of Labor to the various Land-owning interests
are offset by nothing to indicate a corresponding return. What possible
return could those interests make?
- They do not produce the land which they charge laborers for using;
nature provides that.
- They do not give value to it; Labor as a whole does that.
- They do not protect the community through the police, the courts,
or the army, nor assist it through schools and post offices; organized
society does that to the extent to which it is done, and the Land-owning
interests contribute nothing toward it other than a part of what they
exact from Labor.80
As between Labor interests and Land-owning interests the arrows can
be made to run only in the one direction.
80 See ante, pp. 12, 13, and 14.
Now, suppose that as productive methods improve, the exactions
of the Land-owning interests so expand — so enlarge the drain
from Labor — as to make it increasingly difficult for any of
the workers to obtain the Land they need in order to satisfy the demands
made upon them for the kind of Wealth they produce. Would it then be
much of a problem to determine the cause of poverty or to explain hard
times? Assuredly not. It would be plain that poverty and hard
times are due to obstacles placed by Land-owning interests in the way
of Labor's access to Land.
We thus see that in the civilized state as well as in the primitive,
the fundamental cause of poverty is the divorce of Labor from Land. 81
But the manner in which that divorce is accomplished in the civilized
state remains to be explained. ...
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.
d. Effect of Confiscating Rent to Private Use.
By giving Rent to individuals society ignores this most just law, 99
thereby creating social disorder and inviting social disease. Upon society
alone, therefore, and not upon divine Providence which has provided bountifully,
nor upon the disinherited poor, rests the responsibility for poverty
and fear of poverty.
99. "Whatever dispute arouses the passions of
men, the conflict is sure to rage, not so much as to the question
'Is it wise?' as to the question 'Is it right?'
"This tendency of popular discussions to take
an ethical form has a cause. It springs from a law of the human mind;
it rests upon a vague and instinctive recognition of what is probably
the deepest truth we can grasp. That alone is wise which is just;
that alone is enduring which is right. In the narrow scale of individual
actions and individual life this truth may be often obscured, but
in the wider field of national life it everywhere stands out.
"I bow to this arbitrament, and accept this test." — Progress
and Poverty, book vii, ch. i.
The reader who has been deceived into believing that
Mr. George's proposition is in any respect unjust, will find profit
in a perusal of the entire chapter from which the foregoing extract
is taken.
Let us try to trace the connection by means of a chart, beginning with
the white spaces on page 68. As before, the first-comers take possession
of the best land. But instead of leaving for others what they do not
themselves need for use, as in the previous illustrations, they appropriate
the whole space, using only part, but claiming ownership of the rest.
We may distinguish the used part with red color, and that which is appropriated
without use with blue. Thus: [chart]
But what motive is there for appropriating more of the space than is
used? Simply that the appropriators may secure the pecuniary benefit
of future social growth. What will enable them to secure that? Our system
of confiscating Rent from the community that earns it, and giving it
to land-owners who, as such, earn nothing.100
100. It is reported from Iowa that a few years ago
a workman in that State saw a meteorite fall, and. securing possession
of it after much digging, he was offered $105 by a college for his "find." But
the owner of the land on which the meteorite fell claimed the money,
and the two went to law about it. After an appeal to the highest
court of the State, it was finally decided that neither by right
of discovery, nor by right of labor, could the workman have the money,
because the title to the meteorite was in the man who owned the land
upon which it fell.
Observe the effect now upon Rent and Wages. When other men come, instead
of finding half of the best land still common and free, as in the corresponding
chart on page 68, they find all of it owned, and are obliged either to
go upon poorer land or to buy or rent from owners of the best. How much
will they pay for the best? Not more than 1, if they want it for use
and not to hold for a higher price in the future, for that represents
the full difference between its productiveness and the productiveness
of the next best. But if the first-comers, reasoning that the next best
land will soon be scarce and theirs will then rise in value, refuse to
sell or to rent at that valuation, the newcomers must resort to land
of the second grade, though the best be as yet only partly used. Consequently
land of the first grade commands Rent before it otherwise would.
As the sellers' price, under these circumstances, is arbitrary it cannot
be stated in the chart; but the buyers' price is limited by the superiority
of the best land over that which can be had for nothing, and the chart
may be made to show it: [chart]
And now, owing to the success of the appropriators of the best land
in securing more than their fellows for the same expenditure of labor
force, a rush is made for unappropriated land. It is not to use it that
it is wanted, but to enable its appropriators to put Rent into their
own pockets as soon as growing demand for land makes it valuable.101
We may, for illustration, suppose that all the remainder of the second
space and the whole of the third are thus appropriated, and note the
effect: [chart]
At this point Rent does not increase nor Wages fall, because there is
no increased demand for land for use. The holding of inferior land for
higher prices, when demand for use is at a standstill, is like owning
lots in the moon — entertaining, perhaps, but not profitable. But
let more land be needed for use, and matters promptly assume a different
appearance. The new labor must either go to the space that yields but
1, or buy or rent from owners of better grades, or hire out. The effect
would be the same in any case. Nobody for the given expenditure of labor
force would get more than 1; the surplus of products would go to landowners
as Rent, either directly in rent payments, or indirectly through lower
Wages. Thus: [chart]
101. The text speaks of Rent only as a periodical
or continuous payment — what would be called "ground rent." But
actual or potential Rent may always be, and frequently is, capitalized
for the purpose of selling the right to enjoy it, and it is to selling
value that we usually refer when dealing in land.
Land which has the power of yielding Rent to its owner
will have a selling value, whether it be used or not, and whether
Rent is actually derived from it or not. This selling value will
be the capitalization of its present or prospective power of producing
Rent. In fact, much the larger proportion of laud that has a selling
value is wholly or partly unused, producing no Rent at all, or less
than it would if fully used. This condition is expressed in the chart
by the blue color.
"The capitalized value of land is the actuarial
'discounted' value of all the net incomes which it is likely to afford,
allowance being made on the one hand for all incidental expenses,
including those of collecting the rents, and on the other for its
mineral wealth, its capabilities of development for any kind of business,
and its advantages, material, social, and aesthetic, for the purposes
of residence." — Marshall's Prin., book vi, ch. ix, sec.
9.
"The value of land is commonly expressed as a
certain number of times the current money rental, or in other words,
a certain 'number of years' purchase' of that rental; and other things
being equal, it will be the higher the more important these direct
gratifications are, as well as the greater the chance that they and
the money income afforded by the land will rise." — Id.,
note.
"Value . . . means not utility, not any quality
inhering in the thing itself, but a quality which gives to the possession
of a thing the power of obtaining other things, in return for it
or for its use. . . Value in this sense — the usual sense — is
purely relative. It exists from and is measured by the power of obtaining
things for things by exchanging them. . . Utility is necessary to
value, for nothing can be valuable unless it has the quality of gratifying
some physical or mental desire of man, though it be but a fancy or
whim. But utility of itself does not give value. . . If we ask ourselves
the reason of . . . variations in . . . value . . . we see that things
having some form of utility or desirability, are valuable or not
valuable, as they are hard or easy to get. And if we ask further,
we may see that with most of the things that have value this difficulty
or ease of getting them, which determines value, depends on the amount
of labor which must be expended in producing them ; i.e., bringing
them into the place, form and condition in which they are desired.
. . Value is simply an expression of the labor required for the production
of such a thing. But there are some things as to which this is not
so clear. Land is not produced by labor, yet land, irrespective of
any improvements that labor has made on it, often has value. . .
Yet a little examination will show that such facts are but exemplifications
of the general principle, just as the rise of a balloon and the fall
of a stone both exemplify the universal law of gravitation. . . The
value of everything produced by labor, from a pound of chalk or a
paper of pins to the elaborate structure and appurtenances of a first-class
ocean steamer, is resolvable on analysis into an equivalent of the
labor required to produce such a thing in form and place; while the
value of things not produced by labor, but nevertheless susceptible
of ownership, is in the same way resolvable into an equivalent of
the labor which the ownership of such a thing enables the owner to
obtain or save." — Perplexed Philosopher, ch. v.
The figure 1 in parenthesis, as an item of Rent, indicates potential
Rent. Labor would give that much for the privilege of using the space,
but the owners hold out for better terms; therefore neither Rent nor
Wages is actually produced, though but for this both might be.
In this chart, notwithstanding that but little space is used, indicated
with red, Wages are reduced to the same low point by the mere appropriation
of space, indicated with blue, that they would reach if all the space
above the poorest were fully used. It thereby appears that under a system
which confiscates Rent to private uses, the demand for land for speculative
purposes becomes so great that Wages fall to a minimum long before they
would if land were appropriated only for use.
In illustrating the effect of confiscating Rent to private use we have
as yet ignored the element of social growth. Let us now assume as before
(page 73), that social growth increases the productive power of the given
expenditure of labor force to 100 when applied to the best land, 50 when
applied to the next best, 10 to the next, 3 to the next, and 1 to the
poorest. Labor would not be benefited now, as it appeared to be when
on page 73 we illustrated the appropriation of land for use only, although
much less land is actually used. The prizes which expectation of future
social growth dangles before men as the rewards of owning land, would
raise demand so as to make it more than ever difficult to get land. All
of the fourth grade would be taken up in expectation of future demand;
and "surplus labor" would be crowded out to the open space
that originally yielded nothing, but which in consequence of increased
labor power now yields as much as the poorest closed space originally
yielded, namely, 1 to the given expenditure of labor force.102 Wages
would then be reduced to the present productiveness of the open space.
Thus: [chart]
102. The paradise to which the youth of our country
have so long been directed in the advice, "Go West, young man,
go West," is truthfully described in "Progress and Poverty," book
iv, ch. iv, as follows :
"The man who sets out from the eastern seaboard
in search of the margin of cultivation, where he may obtain land
without paying rent, must, like the man who swam the river to get
a drink, pass for long distances through half-titled farms, and
traverse vast areas of virgin soil, before he reaches the point
where land can be had free of rent — i.e., by homestead entry
or preemption."
If we assume that 1 for the given expenditure of labor force is the
least that labor can take while exerting the same force, the downward
movement of Wages will be here held in equilibrium. They cannot fall
below 1; but neither can they rise above it, no matter how much productive
power may increase, so long as it pays to hold land for higher values.
Some laborers would continually be pushed back to land which increased
productive power would have brought up in productiveness from 0 to 1,
and by perpetual competition for work would so regulate the labor market
that the given expenditure of labor force, however much it produced,
could nowhere secure more than 1 in Wages.103 And this tendency would
persist until some labor was forced upon land which, despite increase
in productive power, would not yield the accustomed living without increase
of labor force. Competition for work would then compel all laborers to
increase their expenditure of labor force, and to do it over and over
again as progress went on and lower and lower grades of land were monopolized,
until human endurance could go no further.104 Either that, or they would
be obliged to adapt themselves to a lower scale of living.105
103. Henry Fawcett, in his work on "Political
Economy," book ii, ch. iii, observes with reference to improvements
in agricultural implements which diminish the expense of cultivation,
that they do not increase the profits of the farmer or the wages
of his laborers, but that "the landlord will receive in addition
to the rent already paid to him, all that is saved in the expense
of cultivation." This is true not alone of improvements in agriculture,
but also of improvements in all other branches of industry.
104. "The cause which limits speculation in commodities,
the tendency of increasing price to draw forth additional supplies,
cannot limit the speculative advance in land values, as land is a
fixed quantity, which human agency can neither increase nor diminish;
but there is nevertheless a limit to the price of land, in the minimum
required by labor and capital as the condition of engaging in production.
If it were possible to continuously reduce wages until zero were
reached, it would be possible to continuously increase rent until
it swallowed up the whole produce. But as wages cannot be permanently
reduced below the point at which laborers will consent to work and
reproduce, nor interest below the point at which capital will be
devoted to production, there is a limit which restrains the speculative
advance of rent. Hence, speculation cannot have the same scope to
advance rent in countries where wages and interest are already near
the minimum, as in countries where they are considerably above it.
Yet that there is in all progressive countries a constant tendency
in the speculative advance of rent to overpass the limit where production
would cease, is, I think, shown by recurring seasons of industrial
paralysis." — Progress and Poverty, book iv, ch. iv.
105. As Puck once put it, "the man who makes
two blades of grass to grow where but one grew before, must not be
surprised when ordered to 'keep off the grass.' "
They in fact do both, and the incidental disturbances of general readjustment
are what we call "hard times." 106 These culminate in forcing
unused land into the market, thereby reducing Rent and reviving industry.
Thus increase of labor force, a lowering of the scale of living, and
depression of Rent, co-operate to bring on what we call "good times." But
no sooner do "good times" return than renewed demands for land
set in, Rent rises again, Wages fall again, and "hard times" duly
reappear. The end of every period of "hard times" finds Rent
higher and Wages lower than at the end of the previous period.107
106. "That a speculative advance in rent or land
values invariably precedes each of these seasons of industrial depression
is everywhere clear. That they bear to each other the relation of
cause and effect, is obvious to whoever considers the necessary relation
between land and labor." — Progress and Poverty, book
v, ch. i.
107. What are called "good times" reach
a point at which an upward land market sets in. From that point there
is a downward tendency of wages (or a rise in the cost of living,
which is the same thing) in all departments of labor and with all
grades of laborers. This tendency continues until the fictitious
values of land give way. So long as the tendency is felt only by
that class which is hired for wages, it is poverty merely; when the
same tendency is felt by the class of labor that is distinguished
as "the business interests of the country," it is "hard
times." And "hard times" are periodical because land
values, by falling, allow "good times" to set it, and by
rising with "good times" bring "hard times" on
again. The effect of "hard times" may be overcome, without
much, if any, fall in land values, by sufficient increase in productive
power to overtake the fictitious value of land.
The dishonest and disorderly system under which society confiscates
Rent from common to individual uses, produces this result. That maladjustment
is the fundamental cause of poverty. And progress, so long as the maladjustment
continues, instead of tending to remove poverty as naturally it should,
actually generates and intensifies it. Poverty persists with increase
of productive power because land values, when Rent is privately appropriated,
tend to even greater increase. There can be but one outcome if this continues:
for individuals suffering and degradation, and for society destruction.
...
IV. CONCLUSION
In "Progress and Poverty," after reaching his conclusion that
command of the land which is necessary for labor is command of all the
fruits of labor save enough to enable labor to exist, Henry George says:
So simple and so clear is this truth that to fully see it once is
always to recognize it. There are pictures which, though looked at
again and again, present only a confused labyrinth of lines or scroll-work — a
landscape, trees, or something of the kind — until once attention
is called to the fact that these things make up a face or a figure.
This relation once recognized is always afterward clear. 111 It is
so in this case. In the light of this truth all social facts group
themselves in an orderly relation, and the most diverse phenomena are
seen to spring from one great principle.
111. This idea of the concealed picture was graphically
illustrated with a story by Congressman James G. Maguire, at that
time a Judge of the Superior Court of San Francisco, in a speech
at the Academy of Music, New York City, in 1887. In substance he
said:
"I was one day walking along Kearney Street in
San Francisco, when I noticed a crowd around the show window of a
store, looking at something inside. I took a glance myself and saw
only a very poor picture of a very uninteresting landscape. But as
I was turning away my eye caught the words underneath the picture,
'Do you see the cat?' I looked again and more closely, but saw no
cat in the picture. Then I spoke to the crowd.
"'Gentlemen,' I said, 'I see no cat in that picture.
Is there a cat there?'
Some one in the crowd replied:
"'Naw, there ain't no cat there. Here's a crank
who says he sees the cat, but nobody else can see it.'
Then the crank spoke up:
'I tell you there is a cat there, too. It's all cat.
What you fellows take for a landscape is just nothing more than the
outlines of a cat. And you needn't call a man a crank either, because
he can see more with his eyes than you can.'
"Well," the judge continued, "I looked
very closely at the picture, and then I said to the man they called
a crank:
"'Really, sir, I cannot make out a cat. I can
see nothing but a poor picture of a landscape.'
"'Why, judge,' he exclaimed, 'just look at that
bird in the air. That's the cat's ear.'
I looked, but was obliged to say:
'I am sorry to be so stupid, but I can't make a cat's
ear of that bird. It is a poor bird, but not a cat's ear.'
"'Well, then,' the crank urged, 'look at that
twig twirled around in a circle. That's the cat's eye.'
But I couldn't make an eye of it.
'Oh, then,' said the crank a little impatiently, 'look
at those sprouts at the foot of the tree, and the grass. They make
the cat's claws.'
"After another deliberate examination, I reported
that they did look a little like a claw, but I couldn't connect them
with a cat.
"Once more the crank came back at me. 'Don't
you see that limb off there? and that other limb under it? and that
white space between? Well, that white space is the cat's tail.'
"I looked again and was just on the point of
replying that there was no cat there so far as I could see, when
suddenly the whole cat burst upon me. There it was, sure enough,
just as the crank had said; and the only reason that the rest of
us couldn't see it was that we hadn't got the right point of view.
But now that I saw it I could see nothing else in the picture. The
landscape had disappeared and a cat had taken its place. And, do
you know, I was never afterward able, upon looking at that picture,
to see anything in it but the cat!"
From this story as told by Judge Maguire, has come
the slang of the single tax agitation. To "see the cat " is
to understand the single tax.
Many events subsequent to his writing have gone to prove that Henry
George was right. Each new phase of the social problem makes it still
more clear that the disorderly development of our civilization is explained,
not by pressure of population, nor by the superficial relations of employers
and employed, nor by scarcity of money, nor by the drinking habits of
the poor, nor by individual differences in ability to produce wealth,
nor by an incompetent or malevolent Creator, but, as he has said, by "inequality
in the ownership of land." And each new phase makes it equally clear
that the remedy for poverty is not to be found in famine and disease
and war, nor in strikes which are akin to war, nor in the suppression
of strikes by force of arms, nor in the coinage of money, nor in prohibition
or high license, nor in technical education, nor in anything else short
of approximate equality in the ownership of land. This alone secures
equal opportunities to produce, and full ownership by each producer of
his own product. This is justice, this is order. And unless our civilization
have it for a foundation, new forms of slavery will assuredly lead us
into new forms of barbarism.112
112. "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." — Progress and
Poverty, book x, ch. v. ... read the book
Clarence Darrow: How to Abolish
Unfair Taxation (1913)
Everybody nowadays is anxious to help do something
for the poor, especially they who are on the backs of the poor; they
will do anything that is not
fundamental. Nobody ever dreams of giving the poor a chance to
help themselves. The reformers in this state have passed a law prohibiting
women
from working
more than eight hours in one day in certain industries — so
much do women love to work that they must be stopped by law. If
any benevolent
heathen see fit to come here and do work, we send them to gaol
or send them back where they came from.
All these prohibitory laws are froth. You can only cure effects by curing
the cause. Every sin and every wrong that exists in the world is the product
of law, and you cannot cure it without curing the cause. Lawyers, as a
class, are very stupid. What would you think of a doctor, who, finding
a case of malaria, instead of draining the swamp, would send the patient
to gaol, and leave the swamp where it is? We are seeking to improve conditions
of life by improving symptoms.
No man created the earth, but to a large extent
all take from the earth a portion of it and mould it into useful things
for the use of man. Without
land man cannot live; without access to it man cannot labor.
First of all, he must have the earth, and this he cannot have access
to until
the single
tax is applied. It has been proven by the history of the human
race that the single tax does work, and that it will work as its advocates
claim.
For instance, man turned from Europe, filled with a population
of the poor,
and discovered the great continent of America. Here, when he
could not get profitable employment, he went on the free land and worked
for
himself,
and in those early days there were no problems of poverty, no
wonderfully rich and no extremely poor — because there was cheap land. Men could
go to work for themselves, and thus take the surplus off the labor market.
There were no beggars in the early days. It was only when the landlord
got in his work — when the earth monopoly was complete — that
the great mass of men had to look to a boss for a job.
All the remedial laws on earth can scarcely
help the poor when the earth is monopolized. Men must live from the earth,
they must till the soil,
dig the coal and iron and cut down the forest. Wise men know it,
and cunning men know it, and so a few have reached out their hands and
grasped the
earth; and they say, "These mines of coal and iron, which it
took nature ages and ages to store, belong to me; and no man can
touch them
until he sees fit to pay the tribute I demand." ... read
the whole speech
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. ...
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
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 today. 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. ...
... Yet these words were penned in 1883, just
fifty years ago, by George in his work called Social Problems, every word
of which applies to our
present
condition, only in a more intense degree. Nor did our people have
to wait for the advent of technocrats to hear that the machine and the
control
of power make it possible to abolish poverty while actually improvements
in the machinery of production and distribution are working in the
opposite direction. Fifty years ago, George pointed out the same contrast.
On the
one hand, as he said: "Productive power in such a state of civilization
as ours is sufficient did we give it play, to so enormously increase the
production of wealth as to give abundance to all." On the other hand,
now, as when George wrote: "The tendency of all the inventions and
improvements so wonderfully augmenting productive power is to concentrate
enormous wealth in the hands of a few, to make the condition of the many
more hopeless . . . Without a single exception I can think of, the effect
of all modern industrial improvements is to production upon a large scale,
to the minute division of labor, to the giving of large capital an overpowering
advantage . . . The tendency of the machine is in everything not merely
to place it out of the power of the workman to become his own employer,
but to reduce him to the position of a mere feeder or attendant; to dispense
with judgment, skill and brains . . . He has no more control of the conditions
that give him employment than has the passenger in the railway train over
the motion of the train." And yet machine and scientific technology
contains in itself the possibility of the complete abolition of want
and poverty. What is the trouble? ... read the whole speech
Robert H. Browne: Abraham Lincoln
and the Men of His Time
“Christ knew better than we that 'No man having put his hand
to the plow and looking back is fit for the kingdom of God;' nor is
many man doing his duty who shrinks and is faithless to his fellow-men.
Now a word more about Abolitionists and new ideas in Government, whatever
they may be: We are all called Abolitionists now who desire any restriction
of slavery or believe that the system is wrong, as I have declared
for years. We are called so, not to help out a peaceful solution, but
in derision, to abase us, and enable the defamers to make successful
combinations against us. I never was much annoyed by these, less now
than ever. I favor the best plan to restrict the extension of slavery
peacefully, and fully believe that we must reach some plan that will
do it, and provide for some method of final extinction of the evil,
before we can have permanent peace on the subject. On other questions
there is ample room for reform when the time comes; but now it would
be folly to think that we could undertake more than we have on hand. But
when slavery is over with and settled, men should never rest content
while oppressions, wrongs, and iniquities are in force against them.
“The land, the earth that God gave to man for his home,
his sustenance, and support, should never be the possession of any
man, corporation, society, or unfriendly Government, any more than
the air or the water, if as much. An individual company or enterprise
requiring land should hold no more in their own right than is needed
for their home and sustenance, and never more than they have in actual
use in the prudent management of their legitimate business, and this
much should not be permitted when it creates an exclusive monopoly.
All that is not so used should be held for the free use of every
family to make homesteads, and to hold them as long as they are so
occupied.
“A reform like this will be worked out some time in
the future. The idle talk of foolish men, that is so common now,
on 'Abolitionists, agitators, and disturbers of the peace,' will
find its way against it, with whatever force it may possess, and
as strongly promoted and carried on as it can be by land monopolists,
grasping landlords, and the titled and untitled senseless enemies
of mankind everywhere.” ... read
extended excerpts
Peter Barnes: Capitalism
3.0 — Chapter 2: A Short History of Capitalism (pages 15-32)
In the beginning, the commons was everywhere. Humans and other animals
roamed around it, hunting and gathering. Like other species, we had
territories, but these were tribal, not individual. ...
Why did this happen? There are many explanations. One is that
welfare kept the poor poor; this was argued by Charles Murray in
his 1984 book Losing
Ground. Welfare, he contended, encouraged single mothers to remain
unmarried, increased the incidence of out-of-wedlock births, and created
a parasitic underclass. In other words, Murray (and others) blamed
victims or particular policies for perpetuating poverty, but paid scant
attention to why poverty exists in the first place.
There are, of course, many roots, but my own hypothesis is this: much
of what we label private wealth is taken from, or coproduced with,
the commons. However, these takings from the commons are far from equal.
To put it bluntly, the rich are rich because (through corporations)
they get the lion’s share of common wealth; the poor are poor
because they get very little.
Another way to say this is that, just as water flows downhill
to the sea, so money flows uphill to property. Capitalism by its very design
maximizes returns to existing wealth owners. It benefits, in particular,
those who own stock when a successful company is young; they can receive
hundreds, even thousands of times their initial investments when the
company matures. Moreover, once such stockholders accumulate wealth,
they can increase it through reinvestment, pass it on to their heirs,
and use their inevitable influence over politicians to gain extra advantages — witness
the steady lowering of taxes on capital gains, dividends, and inheritances.
On top of this, in the last few decades, has been the phenomenon called
globalization. The whole point of globalization is to increase the
return to capital by enabling its owners to find the lowest costs on
the planet. Hence the stagnation at the bottom alongside the surging
wealth at the top. ... read
the whole chapter
Turning land-value gains into
capital gains
Hiding the free lunch
Two appraisal methods
How land gets a negative value!
Where did all the land value go?
A curious asymmetry
Site values as the economy's "credit sink"
Immortally aging buildings
Real estate industry's priorities
THE FREE LUNCH Its cost to citizens
Its cost to the economy
Hiding the free
lunch
BAUDELAIRE OBSERVED that the
devil
wins at the point where he
convinces humanity that he does not exist. The Financial,
Insurance and Real Estate (FIRE) sectors seem to have adopted a
kindred philosophy that what is not quantified and reported will be
invisible to the tax collector, leaving more to be pledged for
mortgage credit and paid out as interest. It appears to have worked.
To academic theorists as well.,
breathlessly focused on their own
particular hypothetical world, the magnitude of land rent and
land-price gains has become invisible. But not to investors. They
are
out to pick a property whose location value increases faster rate
than the interest charges, and they want to stay away from earnings
on man-made capital -- like improvements. That's earned income, not
the "free lunch" they get from land value increases.
Chicago School
economists insist that no free lunch exists. But
when one begins to look beneath the surface of national income
statistics and the national balance sheet of assets and liabilities,
one can see that modern economies are all about obtaining a free
lunch. However, to make this free ride go all the faster, it helps if
the rest of the world does not see that anyone is getting the
proverbial something for nothing - what classical economists
called
unearned income, most
characteristically in the form of land rent.
You start by using a method of
appraising that undervalues the real
income producer, land. Here's how it's done. Read the
whole article
Bill Batt: How Our
Towns Got That
Way (1996 speech)
We face a far greater problem on
account of the way in which
America has allowed its landscape to be configured than most people
today realize. Over-reliance upon the
car causes inefficiencies in
transportation patterns and thereby disenfranchises the poor, the
disabled, the young and the old from their right to mobility.
One
1993 study concludes that "when the full range of costs of
transportation are tallied, passenger ground transportation costs the
American public a total of $1.2 to $1.6 trillion each year. This is
equal to about one-quarter of the annual GNP and is greater than our
total national annual expenditure on either education or health."
Just the costs of motor vehicle accidents nothing else represents a
figure equal to 8 percent of the American Gross Domestic Product.
Conventional American land use configurations and the automobile
dependent lifestyle that goes with it sap our resources and what
effort could be used for other ventures and activities. Since so much
of this activity is consumption and not production, it weakens
America's world economic position and precludes reinvestment in more
productive areas. Because of the way
in which we have encouraged
development, people who need jobs are frequently too poor to own the
cars necessary to get to them. ... read
the whole article
Martin Luther King, Jr: Where
Do We Go From Here? (1967)
Up to recently we have proceeded from a premise that poverty is a consequence
of multiple evils:
-
lack of education restricting job opportunities;
-
poor housing which stultified home life
and suppressed initiative;
-
fragile family relationships which distorted
personality development.
-
The logic of this approach suggested that each of these causes be attacked
one by one. Hence a housing program to transform living conditions, improved
educational facilities to furnish tools for better job opportunities, and
family counseling to create better personal adjustments were designed.
In combination these measures were intended to remove the causes of poverty.
While none of these remedies in itself is unsound, all have a fatal disadvantage.
...
In addition to the absence of coordination and sufficiency, the programs
of the past all have another common failing -- they are indirect. Each
seeks to solve poverty by first solving something else.
I am now convinced that the simplest approach will prove to be the most
effective -- the solution to poverty is to abolish it directly by a now
widely discussed measure: the guaranteed income. ...
Our nation's adjustment to a new mode of thinking will be facilitated
if we realize that for nearly forty years two groups in our society
have already been enjoying a guaranteed income. Indeed, it is a symptom
of our
confused social values that these two groups turn out to be the richest
and the poorest. The wealthy who own securities have always had an
assured income; and their polar opposite, the relief client, has been guaranteed
an income, however miniscule, through welfare benefits. ...
I want to say to you as I move to my conclusion,
as we talk about "Where
do we go from here," that we honestly face the fact that the Movement
must address itself to the question of restructuring the whole of American
society. There are forty million poor people here. And one day we must
ask the question, "Why are there forty million poor people in America?" And
when you begin to ask that question, you are raising questions about
the economic system, about a broader distribution of wealth. When you
ask that
question, you begin to question the capitalistic economy. And I'm simply
saying that more and more, we've got to begin to ask questions about
the whole society. We are called upon to help the discouraged beggars
in life's
market place. But one day we must come to see that an edifice which
produces beggars needs restructuring. It means that questions must
be raised. You
see, my friends, when you deal with this,
you begin to ask the question, "Who
owns the oil?"
You begin to ask the question, "Who owns the iron ore?"
You begin to ask the question, "Why is it that people have to pay
water bills in a world that is two thirds water?"
Thomas Flavin, writing in The
Iconoclast, 1897
Now, it is quite true that all taxes of whatever nature are paid out
of the products of labor. But must they be for that reason a tax on labor
products. Let us see.
I suppose you won't deny that a unit of labor applies to different kinds
of land will give very different results. Suppose that a unit of labor
produces on A's land 4, on B's 3, on C's 2 and on D's 1. A's land is
the most, and D's is the least, productive land in use in the community
to which they belong. B's and C's represent intermediate grades. Suppose
each occupies the best land that was open to him when he entered into
possession. Now, B, and C, and D have just as good a right to the use
of the best land as A had.
Manifestly then, if this be the whole story, there cannot be equality
of opportunity where a unit of labor produces such different results,
all other things being equal except the land.
How is this equality to be secured? There is but one possible way. Each
must surrender for the common use of all, himself included, whatever
advantages accrues to him from the possession of land superior to that
which falls to the lot of him who occupies the poorest.
In the case stated, what the unit of labor produces for D, is what it
should produce for A, B and C, if these are not to have an advantage
of natural opportunity over D.
Hence equity is secured when A pays 3, D, 2 and C, 1 into a common fund
for the common use of all--to be expended, say in digging a well, making
a road or bridge, building a school, or other public utility.
Is it not manifest that here the tax which A, B and C pay into a common
fund, and from which D is exempt, is not a tax on their labor products
(though paid out of them) but a tax on the superior advantage which they
enjoy over D, and to which D has just as good a right as any of them.
The result of this arrangement is that each takes up as much of the
best land open to him as he can put to gainful use, and what he cannot
so use he leaves open for the next. Moreover, he is at no disadvantage
with the rest who have come in ahead of him, for they provide for him,
in proportion to their respective advantages, those public utilities
which invariably arise wherever men live in communities. Of course he
will in turn hold to those who come later the same relation that those
who came earlier held to him.
Suppose now that taxes had been levied on labor products instead of
land; all that any land-holder would have to do to avoid the tax is to
produce little or nothing. He could just squat on his land, neither using
it himself nor letting others use it, but he would not stop at this,
for he would grab to the last acre all that he could possibly get hold
of. Each of the others would do the same in turn, with the sure result
that by and by, E, F and G would find no land left for them on which
they might make a living.
So they would have to hire their labor to those who had already monopolized
the land, or else buy or rent a piece of land from them. Behold now the
devil of landlordism getting his hoof on God's handiwork! Exit justice,
freedom, social peace and plenty. Enter robbery, slavery, social discontent,
consuming grief, riotous but unearned wealth, degrading pauperism, crime
breeding, want, the beggar's whine, and the tyrant's iron heel.
And how did it all come about? By the simple expedient of taxing labor
products in order that precious landlordism might laugh and grow fat
on the bovine stupidity of the community that contributes its own land
values toward its own enslavement!
And yet men vacuously ask, "What difference does it make?"
O tempora! O mores! To be as plain as is necessary, it makes this four-fold
difference.
- First, it robs the community of its land values;
- second, it robs labor of its wages in the name of taxation;
- third, it sustains and fosters landlordism, a most conspicuously
damnable difference;
- fourth, it exhibits willing workers in enforced idleness; beholding
their families in want on the one hand, and unused land that would
yield them abundance on the other.
This last is a difference that cries to heaven for vengeance, and if
it does not always cry in vain, will W. C. Brann be able to draw his
robe close around him and with a good conscience exclaim, "It's
none of my fault; I am not my brother's keeper."
Milton, quoted by James Dundas White in a pamphlet entitled "Land-Value
Policy"
"If every just man that now pines with
want
Had but a moderate and beseeming share
Of that which lewdly-pampered Luxury
Now heaps upon some few with vast excess,
Nature's full blessings would he well dispensed
In unsuperfluous even proportion,
And she no whit encumbered with her store."
[Milton, COMUS, 768-774]
Patrick Edward Dove, quoted by James Dundas White in a pamphlet entitled "Land-Value
Policy"
"Political economists have insisted
much on the small matters that affect the value of labor. By far the
most important is the mode
in which the land is distributed. Wherever there is a free soil,
labor maintains its value. Wherever the soil is in the hands of a
few proprietors,
or tied up by entails, labor necessarily undergoes depreciation.
In fact, it is the disposition of the land that determines the value
of
labor. If men could get the land to labor on, they would manufacture
only for a remuneration that afforded more profit than God has attached
to the cultivation of the earth. Where they cannot get the land to
labor on, they are starved into working for a bare subsistence." [Patrick
Edward DOVE, Theory of Human Progression, 1850, p. 406 n]
Rev. A. C. Auchmuty: Gems from
George, a themed collection of excerpts from the writings of Henry
George (with links to sources)
OR let him go to Edinburgh, the "modern Athens," of
which Scotsmen speak with pride, and in buildings from whose roofs
a bowman might strike the spires of twenty churches he will find
human beings living as he would not keep his meanest dog. Let him
toil up the stairs of one of those monstrous buildings, let him
enter one of those "dark houses," let him close the door,
and in the blackness think what life must be in such a place. Then
let him try the reduction to iniquity. And if he go to that good
charity (but, alas! how futile is Charity without Justice!) where
little children are kept while their mothers are at work, and children
are fed who would otherwise go hungry, he may see infants whose
limbs are shrunken from want of nourishment. Perhaps they may tell
him, as they told me, of that little girl, barefooted, ragged,
and hungry, who, when they gave her bread, raised her eyes and
clasped her hands, and thanked our Father in Heaven for His bounty
to her. They who told me that never dreamed, I think, of its terrible
meaning. But I ask the Duke of Argyll, did that little child, thankful
for that poor dole, get what our Father provided for her? Is He
so niggard? If not, what is it, who is it, that stands, between
such children and our Father's bounty? If it be an institution,
is it not our duty to God and to our neighbor to rest not till
we destroy it? If it be a man, were it not better for him that
a millstone were hanged about his neck and he were cast into the
depths of the sea? — The Reduction to Iniquity (a reply to
the Duke of Argyll), The Nineteenth Century, July, 1884
WE are so accustomed to poverty that even in the most advanced
countries we regard it as the natural lot of the great masses of
the people; that we take it as a matter of course that even in
our highest civilization large classes should want the necessaries
of healthful life, and the vast majority should only get a poor
and pinched living by the hardest toil. There are professors of
political economy who teach that this condition of things is the
result of social laws of which it is idle to complain! There are
ministers of religion who preach that this is the condition which
an all-wise, all-powerful Creator intended for His children! If
an architect were to build a theater so that not more than one-tenth
of the audience could see and hear, we should call him a bungler
and a botcher. If a man were to give a feast and provide so little
food that nine-tenths of his guests must go away hungry, we should
call him a fool, or worse. Yet so accustomed are we to poverty,
that even the preachers of what passes for Christianity tell us
that the great Architect of the Universe, to whose infinite skill
all nature testifies, has made such a botch job of this world that
the vast majority of the human creatures whom He has called into
it are condemned by the conditions he has imposed to want, suffering,
and brutalizing toil that gives no opportunity for the development
of mental powers — must pass their lives in a hard struggle
to merely live! — Social Problems
THAT thought on social questions is so confused and perplexed,
that the aspirations of great bodies of men, deeply though vaguely
conscious of injustice, are in all civilized countries being diverted
to futile and dangerous remedies, is largely due to the fact that
those who assume and are credited with superior knowledge of social
and economic laws have devoted their powers, not to showing where
the injustice lies but to hiding it; not to clearing common thought
but to confusing it. — A Perplexed Philosopher (Conclusion)
TAKE now some hard-headed businessman, who has no theories, but
knows how to make money. Say to him: "Here is a little village;
in ten years it will be a great city — in ten years the railroad
will have taken the place of the stagecoach, the electric light
of the candle; it will abound with all the machinery and improvements
that so enormously multiply the effective power of labor. Will,
in ten years, interest be any higher?"
He will tell you, "No!"
"Will the wages of common labor be any higher; will it be
easier for a man who has nothing but his labor to make an independent
living?"
He will tell you, "No; the wages of common labor will not
be any higher; on the contrary, all the chances are that they will
be lower; it will not be easier for the mere laborer to make an
independent living; the chances are that it will be harder."
"What, then, will be higher?" " Rent; the value
of land. Go; get yourself a piece of ground, and hold possession."
And if, under such circumstances, you take his advice, you need
do nothing more. You may sit down and smoke your pipe; you may
lie around like the lazzaroni of Naples or the leperos of Mexico:
you may go up in a balloon, or down a hole in the ground; and without
doing one stroke of work, without adding one iota to the wealth
of the community, in ten years you will be rich! In the new city
you may have a luxurious mansion; but among its public buildings
will be an almshouse. — Progress & Poverty — Book
V, Chapter 2: The Problem Solved: The Persistence of Poverty amid
Advancing Wealth
THERE may be disputes as to whether there is yet a science of
political economy, that is to say, whether our knowledge of the
natural economic laws is as yet so large and well digested as to
merit the title of science. But among those who recognize that
the world we live in is in all its spheres governed by law, there
can be no dispute as to the possibility of such a science. — The
Science of Political Economy — unabridged: Book I, Chapter
14, The Meaning of Political Economy: Political Economy as Science
and as Art • abridged: Part 1, Chapter 12: Political Economy
as Science and Art
THE domain of law is not confined to physical nature. It just
as certainly embraces the mental and moral universe, and social
growth and social life have their laws as fixed as those of matter
and of motion. Would we make social life healthy and happy, we
must discover those laws, and seek our ends in accordance with
them. — Social Problems — Chapter 22: Conclusion
THE general subjection of the many to the few, which we meet
with wherever society has reached a certain development, has resulted
from the appropriation of land as individual property. It is the
ownership of the soil that everywhere gives the ownership of the
men that live upon it. It is slavery of this kind to which the
enduring pyramids and the colossal monuments of Egypt yet bear
witness, and of the institution of which we have, perhaps, a vague
tradition in the biblical story of the famine during which the
Pharaoh purchased up the lands of the people. It was slavery of
this kind to which, in the twilight of history, the conquerors
of Greece reduced the original inhabitants of that peninsula, transforming
them into helots by making them pay rent for their lands. It was
the growth of the latifundia, or great landed estates, which transmuted
the population of ancient Italy from a race of hardy husbandmen,
whose robust virtues conquered the world, into a race of cringing
bondsmen; it was the appropriation of the land as the absolute
property of their chieftains which gradually turned the descendants
of free and equal Gallic, Teutonic and Hunnish warriors into colonii
and villains, and which changed the independent burghers of Sclavonic
village communities into the boors of Russia and the serfs of Poland;
which instituted the feudalism of China and Japan, as well as that
of Europe, and which made the High Chiefs of Polynesia the all
but absolute masters of their fellows. How it came to pass that
the Aryan shepherds and warriors who, as comparative philology
tells us, descended from the common birth-place of the Indo-Germanic
race into the lowlands of India, were turned into the suppliant
and cringing Hindoo, the Sanscrit verse which I have before quoted
gives us a hint. The white parasols and the elephants mad with
pride of the Indian Rajah are the flowers of grants of land. — Progress & Poverty — Book
VII, Chapter 1, Justice of the Remedy: Injustice of private property
in land
TRACE to their root the causes that are thus producing want in
the midst of plenty, ignorance in the midst of intelligence, aristocracy
in democracy, weakness in strength — that are giving to our
civilization a one-sided and unstable development, and you will
find it something which this Hebrew statesman three thousand years
ago perceived and guarded against. Moses saw that the real cause
of the enslavement of the masses of Egypt was, what has everywhere
produced enslavement, the possession by a class of the land upon
which, and from which, the whole people must live. He saw that
to permit in land the same unqualified private ownership that by
natural right attaches to the things produced by labor, would be
inevitably to separate the people into the very rich and the very
poor, inevitably to enslave labor — to make the few the masters
of. the many, no matter what the political forms, to bring vice
and degradation, no matter what the religion.
And with the foresight of the philosophic statesman who legislates
not for the need of a day, but for all the future, he sought,
in ways suited to his times and conditions, to guard against
this error. — Moses
THE women who by the thousands are bending over their needles
or sewing machines, thirteen, fourteen, sixteen hours a day; these
widows straining and striving to bring up the little ones deprived
of their natural bread-winner; the children that are growing up
in squalor and wretchedness, under-clothed, under-fed, under-educated,
even in this city without any place to play — growing up
under conditions in which only a miracle can keep them pure — under
conditions which condemn them in advance to the penitentiary or
the brothel — they suffer, they die, because we permit them
to be robbed, robbed of their birthright, robbed by a system which
disinherits the vast majority of the children that come into the
world. There is enough and to spare for them. Had they the equal
rights in the estate which their Creator has given them, there
would be no young girls forced to unwomanly toil to eke out a mere
existence, no widows finding it such a bitter, bitter struggle
to put bread in the mouths of their little children; no such misery
and squalor as we may see here in the greatest of American cities;
misery and squalor that are deepest in the largest and richest
centers of our civilization today. — Thou Shalt Not Steal
THE poverty to which in advancing civilization great masses of
men are condemned, is not the freedom from distraction and temptation
which sages have sought and philosophers have praised: it is a
degrading and embruting slavery, that cramps the higher nature,
dulls the finer feelings, and drives men by its pain to acts which
the brutes would refuse. It is into this helpless, hopeless poverty,
that crushes manhood and destroys womanhood, that robs even childhood
of its innocence and joy, that the working classes are being driven
by a force which acts upon them like a resistless and unpitying
machine. The Boston collar manufacturer who pays his girls two
cents an hour may commiserate their condition, but he, as they,
is governed by the law of competition, and cannot pay more and
carry on his business, for exchange is not governed by sentiment.
And so, through all intermediate gradations, up to those who receive
the earnings of labor without return, in the rent of land, it is
the inexorable laws of supply and demand, a power with which the
individual can no more quarrel or dispute than with the winds and
the tides, that seem to press down the lower classes into the slavery
of want.
But, in reality, the cause is that which always has, and always
must result in slavery — the monopolization by some of what
nature has designed for all. . . . Private ownership of land is
the nether millstone. Material progress is the upper millstone.
Between them; with an increasing pressure, the working classes
are being ground. — Progress & Poverty — Book VII,
Chapter 2, Justice of the Remedy: Enslavement of laborers the ultimate
result of private property in land
IT is not in the relations of capital and labor; it is not in
the pressure of population against subsistence that an explanation
of the unequal development of our civilization is to be found.
The great cause of inequality in the distribution of wealth is
inequality in the ownership of land. The ownership of land is the
great fundamental fact which ultimately determines the social,
the political and, consequently, the intellectual and moral condition
of a people. And it must be so. For land is the habitation of man,
the storehouse upon which he must draw for all his needs, the material
to which his labor must be applied for the supply of all his desires;
for even the products of the sea cannot be taken, the light of
the sun enjoyed, or any of the forces of nature utilized, without
the use of land or its products. On the land we are born, from
it we live, to it we return again — children of the soil
as truly as is the blade of grass or the flower of the field. — Progress & Poverty — Book
V, Chapter 2: The Problem Solved: The persistence of poverty amid
advancing wealth
THERE is nothing strange or inexplicable in the phenomena that
are now perplexing the world. It is not that material progress
is not in itself a good, it is not that nature has called into
being children for whom she has failed to provide; it is not that
the Creator has left on natural laws a taint of injustice at which
even the human mind revolts, that material progress brings such
bitter fruits. That amid our highest civilization men faint and
die with want is not due to the niggardliness of nature, but to
the injustice of man. Vice and misery, poverty and pauperism, are
not the legitimate results of increase of population and industrial
development; they only follow increase of population and industrial
development because land is treated as private property — they
are the direct and necessary results of the violation of the supreme
law of justice, involved in giving to some men the exclusive possession
of that which nature provides for all men. — Progress & Poverty — Book
VII, Chapter 1, Justice of the Remedy: Injustice of private property
in land
LABOR may be likened to a man who as he carries home his earnings
is waylaid by a series of robbers. One demands this much, and another
that much, but last of all stands one who demands all that is left,
save just enough to enable the victim to maintain life and come
forth next day to work. So long as this last robber remains, what
will it benefit such a man to drive off any or all of the other
robbers?
Such is the situation of labor today throughout the civilized
world. And the robber that takes all that is left, is private property
in land. Improvement, no matter how great, and reform, no matter
how beneficial in itself, cannot help that class who, deprived
of all right to the use of the material elements, have only the
power to labor — a power as useless in itself as a sail without
wind, a pump without water, or a saddle without a horse. — Protection
or Free Trade — Chapter 25: The Robber That Takes All That
Is Left - econlib | abridged
THERE is but one way to remove an evil — and that is, to
remove its cause. Poverty deepens as wealth increases, and wages
are forced down while productive power grows, because land, which
is the source of all wealth and the field of all labor, is monopolized.
To extirpate poverty, to make wages what justice commands they
should be, the full earnings of the laborer, we must therefore
substitute for the individual ownership of land a common ownership.
Nothing else will go to the cause of the evil — in nothing
else is there the slightest hope. — Progress & Poverty — Book
VI, Chapter 2, The Remedy: The True Remedy
BUT is there not some line the recognition of which will enable
us to say with something like scientific precision that this man
is rich and that man is poor; some line of possession which will
enable us truly to distinguish between rich and poor in all places
and conditions of society; a line of the natural mean or normal
possession, below which in varying degrees is poverty, and above
which in varying degrees is wealthiness? It seems to me that there
must be. And if we stop to think of it, we may see that there is.
If we set aside for the moment the narrower economic meaning of
service, by which direct service is conveniently distinguished
from the indirect service embodied in wealth, we may resolve all
the things which directly or indirectly satisfy human desire into
one term service, just as we resolve fractions into a common denominator.
Now is there not a natural or normal line of the possession or
enjoyment of service? Clearly there is. It is that of equality
between giving and receiving. This is the equilibrium which Confucius
expressed in the golden word of his teaching that in English we
translate into "reciprocity." Naturally the services
which a member of a human society is entitled to receive from other
members are the equivalents of those he renders to others. Here
is the normal line from which what we call wealthiness and what
we call poverty take their start. He who can command more service
than he need render, is rich. He is poor, who can command less
service than he does render or is willing to render: for in our
civilization of today we must take note of the monstrous fact that
men willing to work cannot always find opportunity to work. The
one has more than he ought to have; the other has less. Rich and
poor are thus correlatives of each other; the existence of a class
of rich involves the existence of a class of poor, and the reverse;
and abnormal luxury on the one side and abnormal want on the other
have a relation of necessary sequence. To put this relation into
terms of morals, the rich are the robbers, since they are at least
sharers in the proceeds of robbery; and the poor are the robbed.
This is the reason, I take it, why Christ, Who was not really a
man of such reckless speech as some Christians deem Him to have
been, always expressed sympathy with the poor and repugnance of
the rich. In His philosophy it was better even to be robbed than
to rob. In the kingdom of right doing which He preached, rich and
poor would be impossible, because rich and poor in the true sense
are the results of wrong-doing. And when He said, "It is easier
for a camel to pass through the eye of a needle than for a rich
man to enter the kingdom of heaven," He simply put in the
emphatic form of Eastern metaphor a statement of fact as coldly
true as the statement that two parallel lines can never meet. Injustice
cannot live where justice rules, and even if the man himself might
get through, his riches — his power of compelling service
without rendering service — must of necessity be left behind.
If there can be no poor in the kingdom of heaven, clearly there
can be no rich. And so it is utterly impossible in this, or in
any other conceivable world, to abolish unjust poverty, without
at the same time abolishing unjust possessions. This is a hard
word to the softly amiable philanthropists, who, to speak metaphorically,
would like to get on the good side of God without angering the
devil. But it is a true word nevertheless. — The Science
of Political Economy unabridged: Book II, Chapter 19, The Nature
of Wealth: Moral Confusions as to Wealth • abridged: Part
II, Chapter 15, The Nature of Wealth: Moral Confusions as to Wealth ...
"Wise" and "Babes"
IT is as bad for a man to think that he can know nothing as to think he knows
all. There are things which it is given to all possessing reason to know, if
they will but use that reason. And some things it may be there are, that — as
was said by one whom the learning of the time sneered at, and the high priests
persecuted, and polite society, speaking through the voice of those who knew
not what they did, crucified — are hidden from the wise and prudent and
revealed unto babes. — A Perplexed
Philosopher (Conclusion)
THAT thought on social questions is so confused and perplexed, that the aspirations
of great bodies of men, deeply though vaguely conscious of injustice, are in
all civilized countries being diverted to futile and dangerous remedies, is largely
due to the fact that those who assume and are credited with superior knowledge
of social and economic laws have devoted their powers, not to showing where the
injustice lies but to hiding it; not to clearing common thought but to confusing
it. — A Perplexed Philosopher (Conclusion)
POLITICAL economy is the simplest of the sciences. It is but the intellectual
recognition, as related to social life, of laws which in their moral aspect men
instinctively recognize, and which are embodied in the simple teachings of him
whom the common people heard gladly. But, like Christianity, political economy
has been warped by institutions which, denying the equality and brotherhood of
man, have enlisted authority, silenced objection, and ingrained themselves in
custom and habit of thought. — Protection or Free Trade, Chapter
1 econlib
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