Significant
Paragraphs from Progress and Poverty
by Henry George
with An Appreciation by John
Dewey
Harry
Gunnison Brown's Preface
Contents
An Appreciation of Henry George: John
Dewey
Selections from Progress and Poverty:
1.
The Problem
2. Poverty
Not Due to Over-Population
3. Land
Rent Grows as Community Develops
4. Land Speculation Causes Reduced Wages
5. The Basic Cause of Poverty
6. The Remedy
7. Simplicity of Method of Introducing Remedy
8. Why a Land-Value Tax is bettter than an Equal Tax on All
Property
9. Alleged Difficulty of Distinguishing Land from Improvements
10. Effect of Remedy upon Wealth Production
11. Effect of Remedy upon the Sharing of Wealth
12. Effect of Remedy upon Various Economic Classes
13. Effect of Remedy upon Social Ideals
14. Liberty, and Equality of Opportunity
15. The Cross of a New Crusade
Appendix: Opinions of Some Leading American Economists
"Significant Paragraphs" is an
abridgement, intended for use in college survey courses. This version
cross-references the material omitted from SP, via links that are right-justified.
Occasionally, paragraphs are abridged; links below will take you to the
unabridged version. After you've read Significant Paragraphs, you may
want to explore the omitted material; much of it is very inspiring,
and must have been difficult for Brown to omit!
If you are going to print it out, you might prefer the PDF version,
which does not use bullet points! |
Harry Gunnison Brown's Preface
to Brown's abridgement ("Significant Paragraphs")
of Henry George's book, Progress and Poverty
Probably no other writer has ever made the study of economics so interesting
to so many readers as has Henry George. And now, when more and more economists
of national and international reputation are coming to endorse the main idea
for which Henry George stood, it is almost preposterous, as well as unfair
to students of economics, that they should be assigned no reading on this idea
other than the inadequate account of it and the superficial' adverse criticism
which are all that some of the most widely used current texts in economics
— and even in public finance — contain.
But there has been a real difficulty even for instructors most anxious that
their students should have the case for bare-land-value taxation fairly presented
to them. The complete Progress and Poverty from which these selections are
made would take more time than most teachers might wish to devote to a single
topic in economics, whatever its importance.
The paragraphs here printed have been selected so as to present in brief compass
the essentials of Henry George's argument in his own eloquent and inimitable
style. Only such slight textual changes have been made as seemed necessary
to preserve continuity. In almost any course in economics can be found space
for the few assignments necessary to cover these selected paragraphs, and any
class can be asked to meet the trifling incident expense. Thus might be given
a new zest and renewed enthusiasm to the students whose sometimes waning interest
in the categories and laws of economics is a recurrent discouragement to their
instructors.
It is hoped, too, that many who are not in school or college, but who should
know and really desire to know something of the economic philosophy of Henry
George, will spare for that purpose the very few hours necessary to read this
little book.
Harry Gunnison Brown,
University of Missouri,
Columbia, Mo
| 1. The Problem |
| source: Introductory: The Problem, pages 3-9 |
Could a Franklin or a Priestley have seen,
in a vision of the future, the steamship taking the place of the sailing
vessel, the railroad train of the wagon, the reaping machine of the
scythe, the threshing machine of the flail;
- could he have heard the throb of the engines that in obedience
to human will, and for the satisfaction of human desire, exert a
power greater than that of all the men and all the beasts of burden
of the earth combined;
- could he have seen the forest tree transformed into finished lumber — into
doors, sashes, blinds, boxes or barrels, with hardly the touch of
a human hand; the great workshops where boots and shoes are turned
out by the case with less labor than the old-fashioned cobbler could
have put on a sole; the factories where, under the eye of a girl,
cotton becomes cloth faster than hundreds of stalwart weavers could
have turned it out with their hand-looms;
- could he have seen steam hammers shaping mammoth shafts and mighty
anchors, and delicate machinery making tiny watches; the diamond
drill cutting through the heart of the rocks, and coal oil sparing
the whale;
- could he have realized the enormous saving of labor resulting from
improved facilities of exchange and communication — sheep killed
in Australia eaten fresh in England and the order given by the London
banker in the afternoon executed in San Francisco in the morning
of the same day;
- could he have conceived of the hundred thousand improvements
which these only suggest, what would he have inferred as to the
social condition of mankind?
It would not have seemed like an inference; further than
the vision went it would have seemed as though he saw; and his heart
would have leaped and his nerves would have thrilled, as one who from
a height beholds just ahead of the thirst-stricken caravan the living
gleam of rustling woods and the glint of laughing waters. Plainly, in
the sight of the imagination,
- he would have beheld these new forces elevating
society from its very foundations, lifting the very poorest above the
possibility of want, exempting the very lowest from anxiety for the
material needs of life;
- he would have seen these slaves of the lamp of
knowledge
taking on themselves the traditional curse, these muscles of iron
and sinews of steel making the poorest laborer's life a holiday, in
which
every high quality and noble impulse could have scope to grow.
And out of these bounteous material conditions he would
have seen arising, as necessary sequences, moral conditions realizing
the golden age of which mankind always dreamed.
- Youth no longer stunted and starved;
- age no longer harried by avarice;
- the child at play with the tiger;
- the man with the muck-rake drinking in the glory of the stars!
- Foul things fled, fierce things tame;
- discord turned to harmony!
For how could there be greed where all had enough? How
could the vice, the crime, the ignorance, the brutality, that spring
from poverty and the fear of poverty, exist where poverty had vanished?
Who should crouch where all were freemen; who oppress where all were
peers?
More or less vague or clear, these have been the hopes,
these the dreams born of the improvements which give this wonderful century
its preeminence. They have sunk so deeply into the popular mind as to
radically change the currents of thought, to recast creeds and displace
the most fundamental conceptions. The haunting visions of higher possibilities
have not merely gathered splendor and vividness, but their direction
has changed — instead of seeing behind the faint tinges of an expiring
sunset, all the glory of the daybreak has decked the skies before.
It is true that disappointment has followed disappointment,
and that discovery upon discovery, and invention after invention, have
neither lessened the toil of those who most need respite, nor brought
plenty to the poor. But there have been so many things to which it seemed
this failure could be laid, that up to our time the new faith has hardly
weakened. We have better appreciated the difficulties to be overcome;
but not the less trusted that the tendency of the times was to overcome
them.
Now, however, we are coming into collision with facts which
there can be no mistaking. From all parts of the civilized world come
complaints
- of industrial depression;
- of labor condemned to involuntary idleness;
- of capital massed and wasting;
- of pecuniary distress among business men;
- of want and suffering and anxiety among the working classes.
All the dull, deadening pain, all the keen, maddening anguish,
that to great masses of men are involved in the words "hard times," have
afflicted the world. This state of things, common to communities
differing so widely in situation, in political institutions, in fiscal
and financial systems, in density of population and in social organization
can hardly be accounted for by local causes.
- There is distress where large standing armies are maintained, but
there is also distress where the standing armies are nominal;
- there is distress where protective tariffs stupidly and wastefully
hamper trade, but there is also distress where trade is nearly free;
- there is distress where autocratic government yet prevails, but
there is also distress where political power is wholly in the hands
of the people;
- in countries where paper is money, and
- in countries where gold and silver are the only currency.
Evidently, beneath all such things as these, we must infer
a common cause.
That there is a common cause, and that it is either
what we call material progress or something closely connected with
material progress, becomes more than an inference when it is noted
that the phenomena we class together and speak of as industrial depression
are but intensifications of phenomena which always accompany material
progress, and which show themselves more clearly and strongly as material
progress goes on.
It has always been to the newer countries — that
is, to the countries where material progress is yet in its earlier stages — that
laborers have emigrated in search of higher wages, and capital has flowed
in search of higher interest. It is in the older countries — that
is to say, the countries where material progress has reached later stages — that
widespread destitution is found in the midst of the greatest abundance.
Go into a new community where Anglo-Saxon vigor is just beginning the
race of progress;
- where the machinery of production and exchange is yet rude and
inefficient;
- where the increment of wealth is not yet great enough to enable
any class to live in ease and luxury;
- where the best house is but a cabin of logs or a cloth and paper
shanty, and the richest man is forced to daily work —
and though you will find an absence of wealth and all its
concomitants, you will find no beggars. There is no luxury, but there
is no destitution. No one makes an easy living, nor a very good living;
but every one can make a living, and
no one able and willing to work is oppressed by the fear of want.
But just as such a community realizes the conditions
which all civilized communities are striving for, and advances in the
scale of material progress — just as closer settlement and a
more intimate connection with the rest of the world, and greater utilization
of labor-saving machinery, make possible greater economies in production
and exchange, and wealth in consequence increases, not merely in the
aggregate, but in proportion to population — so does poverty
take a darker aspect. Some get an infinitely better and easier
living, but others find it hard to get a living at all. The "tramp" comes
with the locomotive, and almshouses and prisons are as surely the marks
of "material progress" as are costly dwellings, rich warehouses, and
magnificent churches. Upon streets lighted with gas and patrolled by
uniformed policemen, beggars wait for the passer-by, and in the shadow
of college, and library, and museum, are gathering the more hideous
Huns and fiercer Vandals of whom Macaulay prophesied.
This fact — the great fact that poverty and all
its concomitants show themselves in communities just as they develop
into the conditions towards which material progress tends — proves
that the social difficulties existing wherever a certain stage of progress
has been reached, do not arise from local circumstances, but are, in
some way or another, engendered by progress itself.
And, unpleasant as it may be to admit it, it is at last
becoming evident that the enormous increase in productive power which
has marked the present century and is still going on with accelerating
ratio, has no tendency to extirpate poverty or to lighten the burdens
of those compelled to toil. It simply widens the gulf between Dives
and Lazarus, and makes the struggle for existence more intense. The
march of invention has clothed mankind with powers of which a century
ago the boldest imagination could not have dreamed. But
- in factories where labor-saving machinery has reached its most
wonderful development, little children are at work;
- wherever the new forces are anything like fully utilized, large
classes are maintained by charity or live on the verge of recourse
to it;
- amid the greatest accumulations of wealth, men die of starvation,
and puny infants suckle dry breasts;
- while everywhere the greed of gain, the worship of wealth, shows
the force of the fear of want.
The promised land flies before us like the mirage. The
fruits of the tree of knowledge turn as we grasp them to apples of Sodom
that crumble at the touch.
It is true that wealth has been greatly increased, and
that the average of comfort, leisure, and refinement has been raised;
but these gains are not general. In
them the lowest class do not share. I do not mean that the condition
of the lowest class has nowhere nor in anything been improved; but that
there is nowhere any improvement which can be credited to increased productive
power. I mean that the tendency of what we call material progress
is in no wise to improve the condition of the lowest class in the essentials
of healthy, happy human life. Nay, more, that it is to still further
depress the condition of the lowest class. The new forces, elevating
in their nature though they be, do not act upon the social fabric from
underneath, as was for a long time hoped and believed, but strike it
at a point intermediate between top and bottom. It is as though an
immense wedge were being forced, not underneath society, but through
society. Those who are above the point of separation are elevated, but
those who are below are crushed down.
This depressing effect is not generally realized, for it
is not apparent where there has long existed a class just able to live.
Where the lowest class barely lives, as has been the case for a long
time in many parts of Europe, it is impossible for it to get any lower,
for the next lowest step is out of existence, and no tendency to further
depression can readily show itself. But in the progress of new settlements
to the conditions of older communities it may clearly be seen that material
progress does not merely fail to relieve poverty — it actually
produces it. |
[omitted material, p 9-10]
|
| source: The
Problem, p. 10 |
This
association of poverty with progress is the great enigma of our times.
- It is the central fact from which spring industrial, social, and
political difficulties that perplex the world, and with which statesmanship
and philanthropy and education grapple in vain.
- From it come the clouds that overhang the future of the most progressive
and self-reliant nations.
- It is the riddle which the Sphinx of Fate puts to our civilization,
and which not to answer is to be destroyed.
So long as all the increased wealth which modern progress
brings goes but to build up great fortunes, to increase luxury and
make sharper the contrast between the House of Have and the House of
Want, progress is not real and cannot be permanent. The reaction
must come. The tower leans from its foundations, and every new story
but hastens the final catastrophe. To educate men who must be condemned
to poverty, is but to make them restive; to base on a state of most
glaring social inequality political institutions under which men are
theoretically equal, is to stand a pyramid on its apex.
All-important as this question is, pressing itself from
every quarter painfully upon attention, it has not yet received a solution
which accounts for all the facts and points to any clear and simple remedy. |
[omitted material, p10-11]
|
| source: p. 11-12 |
|
It must be within the province of political economy
to solve it. For political economy is not a set of dogmas. It is
the explanation of a certain set of facts. It is the science which,
in the sequence of certain phenomena, seeks to trace mutual relations
and to identify cause and effect, just as the physical sciences seek
to do in other sets of phenomena. It lays its foundations upon firm
ground. The premises from which it makes its deductions are truths
which have the highest sanction; axioms which we all recognize; upon
which we safely base the reasoning and actions of every-day life, and
which may be reduced to the metaphysical expression of the physical
law that motion seeks the line of least resistance — viz., that
men seek to gratify their desires with the least exertion. |
[omitted material, p.12]
|
| page 12 [*] |
| I propose in the following pages to attempt to solve by the methods of
political economy the great problem I have outlined. I propose to seek
the law which associates poverty with progress, and increases want with
advancing wealth. Properly commenced and carefully pursued, such
an investigation must yield a conclusion that will stand every test, and
as truth, will correlate with all other truth. For in the sequence of phenomena
there is no accident. Every effect has a cause, and every fact implies
a preceding fact. |
[*omitted material p.12-13]
|
| source: page 13 |
| I propose in this inquiry to take nothing for granted. I propose
to beg no question, to shrink from no conclusion, but to follow truth wherever
it may lead. |
[*p. 13] |
[*Book I:
Wages
and Capital,
pages 3-88]
Chapter 1: The current doctrine of wages—its insufficiency
Chapter 2: The meaning of the terms
Chapter 3: Wages not drawn from capital, but produced by the labor
Chapter 4: The maintenance of laborers not drawn from capital
Chapter 5: The real functions of capital] |
| 2. Poverty Not Due to Over-Population |
[*Book II: Population and
Subsistence:
Chapter 1:
The Malthusian theory,
its genesis and support
(pages 81-102)
Chapter 2:
Inferences from facts
(pages 103-129)
Book II, Chapter
3:
Inferences from Analogy,
pages 129-134]
|
| Book II, Chapter
3: Inferences from Analogy, pages 134-137 |
| That vegetable and animal life tends to press against the limits of space
does
not prove the same tendency in human life. Granted that man is only a more
highly developed animal; that the ring-tailed monkey is a distant relative who
has gradually developed acrobatic tendencies, and the humpbacked whale a far-off
connection who in early life took to the sea — granted that back of these
he is kin to the vegetable, and is still subject to the same laws as plants,
fishes,
birds, and beasts. Yet there is still this difference between man and all
other animals — he is the only animal whose desires increase as they are
fed;
the only animal that is never
satisfied. The wants of every other living thing are uniform and fixed. The
ox of today aspires to no more than did the ox when man first yoked him. The
sea gull of the English Channel, who poises himself above the swift steamer,
wants no better food or lodging than the gulls who circled round as the keels
of Caesar's galleys first grated on a British beach. Of all that nature offers
them, be it ever so abundant, all living things save man can take, and care for,
only enough to supply wants which are definite and fixed. The only use they can
make of additional supplies or additional opportunities is
to multiply.
But not so with man. No sooner are his animal wants satisfied than new
wants arise. Food he wants first, as does the beast; shelter next, as
does the beast; and these given, his reproductive instincts assert their
sway, as do those of the beast. But here man and beast part company. The
beast never goes further; the man has but set his feet on the first step
of an infinite progression — a progression upon which the beast never
enters; a progression away from and above the beast.
The demand for quantity once satisfied, he seeks quality. The very desires
that he has in common with the beast become
extended, refined, exalted.
- It is not merely hunger, but taste, that seeks gratification in food;
- in clothes, he seeks not merely comfort, but adornment;
- the rude shelter becomes a house;
- the undiscriminating sexual attraction begins to transmute itself into
subtle influences, and
- the hard and common stock of animal life to blossom and to bloom into shapes
of delicate beauty.
As power to gratify his wants increases, so does aspiration grow.
- Held down to lower levels of desire, Lucullus will sup with Lucullus; twelve
boars turn on spits that Antony's mouthful of meat may be done to a turn;
every kingdom of Nature be ransacked to add to Cleopatra's charms, and marble
colonnades and hanging gardens and pyramids that rival the hills arise.
- Passing into higher forms of desire, that which slumbered in the plant
and fitfully stirred in the beast, awakes in the man. The eyes of the mind
are opened, and he longs to know. He braves the scorching heat of the desert
and the icy blasts of the polar sea, but not for food; he watches all night,
but it is to trace the circling of the eternal stars. He adds toil to toil,
to gratify a hunger no animal has felt; to assuage a thirst no beast can
know.
Out upon nature, in upon himself, back through the mists that shroud the past,
forward into the darkness that overhangs the future, turns the restless desire
that arises when the animal wants slumber in satisfaction. Beneath things,
he seeks the law; he would know how the globe was forged and the stars were
hung, and trace to their origins the springs of life. And, then, as the man
develops his nobler nature, there arises the desire higher yet — the
passion of passions, the hope of hopes — the desire that he, even he,
may somehow
aid in making life better and brighter, in destroying want and sin, sorrow
and shame. He masters and curbs the animal; he turns his back upon the feast
and renounces the place of power; he leaves it to others to accumulate wealth,
to gratify pleasant tastes, to bask themselves in the warm sunshine of the
brief day. He works for those he never saw and never can see; for a fame, or
maybe but for a scant Justice, that can only come long after the clods have
rattled upon his coffin lid. He toils in the advance, where it is cold, and
there is little cheer from men, and the stones are sharp and the brambles thick.
Amid the scoffs of the present and the sneers that stab like knives, he builds
for the future; he cuts the trail that progressive humanity may hereafter broaden
into a highroad. Into higher, grander spheres desire mounts and beckons, and
a star that rises in the east leads him on. Lo! the pulses of the man throb
with the yearnings of the god — he would aid in the process of the suns!
Is not the gulf too wide for the analogy to span? Give more food, open
fuller conditions of life, and the vegetable or animal can but multiply;
the man will develop. In the one the expansive force can but extend existence
in new numbers; in the other, it will inevitably tend to extend existence
in higher forms and wider powers.* Man is an animal; but he is an animal
plus something else. He is the mythic earth-tree, whose roots are in the
ground, but whose topmost branches may blossom in the heavens!
|
* Many contemporary economists while agreeing
that population does not necessarily tend to become too dense for the
greatest per capita prosperity,
would nevertheless argue that it may do so, and in certain times and countries
has done so. Population, they would say, does not automatically and
without human prevision adjust itself to available space and available
natural resources; but it may be made so to adjust itself, for the very
reason that human beings differ from non-humans in such ways as Henry George
here indicates. H. G. B.
|
[*Book II, Chapter
3:
Inferences from Analogy, pages 137-139]
Book II, Chapter 4: Disproof of the Malthusian
Theory, pages 140-150
|
| source: Book II, Chapter 4: Disproof of the Malthusian
Theory, p. 150. |
Look simply at the facts. Can anything
be clearer than that the cause of the poverty which festers in the
centers of civilization is not in
the weakness of the productive forces? In countries where poverty is
deepest, the forces of production are evidently strong enough, if fully
employed, to provide for the lowest not merely comfort but luxury.
It is this very fact -- that want appears where productive power is
greatest and the production of wealth is largest -- that constitutes
the enigma which perplexes the civilized world, and which we are trying
to unravel. Evidently the Malthusian theory, which attributes want to
the decrease of productive power, will not explain it. That theory is
utterly inconsistent with all the facts. It is really a gratuitous attribution to the laws
of God of results which, even from this examination, we may infer really
spring from the mal-adjustments of
men. |
[*Book II, Chapter 4:
Disproof of the Malthusian Theory,
p. 150] |
|
| 3. Land Rent Grows as Community Develops |
Book III: The Laws of Distribution:
Chapter 1: The Inquiry Narrowed
to the laws of distribution— the
necessary relation of these laws,
pages 153-162
|
Book III: The Laws of Distribution:
Chapter 1: The Inquiry Narrowed to the laws of distribution, p. 162 |
| Land, Labor, and Capital are the factors of production, The term Land
includes all natural opportunities or forces; the term Labor, all human
exertion; and the term Capital, all wealth used to produce more wealth.
In returns to these three factors is the whole produce distributed. That
part which goes to land owners as payment for the use of natural opportunities
is called Rent;that part which constitutes the reward of human exertion
is called Wages; andthat part which constitutes the return for the use
of capital is called Interest. These terms mutually exclude each other.The
income of any individual may be made up from any one, two, or all three
of these sources; but in the effort to discover the laws of distribution
we must keep them separate. |
|
| p. 163 |
There must be land before labor can be exerted, and
labor must be exerted before capital can be produced. Capital is a
result of labor, and is used by labor to assist it in further production.
Labor is the active and initial force, and labor is therefore the employer
of capital. Labor can be exerted only upon land, and it is from land
that the matter which it transmutes into wealth must be drawn. Land
therefore is the condition precedent, the field and material of labor.
The natural order is land, labor, capital.
|
[*p.164]
Book III: The
Laws of Distribution:
Chapter 2: Rent and the law of rent p. 165-172
Chapter 3: Of Interest and the Cause of Interest p. 173-188
Chapter 4: Of spurious capital and of profits often mistaken for interest
p. 189-194
Chapter 5: The Law of interest p. 195-203
Chapter 6: Wages and the law of wages p. 204-217
Chapter 7: Correlation and co-ordination of these laws p. 218-220
Chapter 8: The statics of the problem thus explained
p. 221-224
Book IV: Effect of Material Progress upon the Distribution
of Wealth
Chapter 1: The dynamics of the problem yet to seek
p.227-229
Chapter 2: Effect of increase of population upon the distribution of
wealth p.230-243
Chapter 2: Effect of increase of population
upon the distribution of wealth p. 234-235
|
Increasing population increases rent* without reference to the natural
qualities of land, for the increased powers of co-operation and exchange
which come with increased population are equivalent to — nay, I think
we can say without metaphor, that they give — an increased capacity
to land.
*Elsewhere, Henry George
explains, "I, of course, use 'rent' in its economic, not in its common
sense, meaning by it what is commonly called ground-rent."
I do not mean to say merely that, like an improvement in the methods or tools
of production, the increased power which comes with increased population gives
to the same labor an increased result, which is equivalent to an increase in
the natural powers of land; but that it brings out a superior power in labor,
which is localized on land; and which thus inheres in the land as much as any
qualities of soil, climate, mineral deposit, or natural situation, and passes,
as they do, with the possession of the land. |
|
| Chapter 2: Effect of increase of population upon the
distribution of wealth p. 235-235 |
| Here, let us imagine, is an unbounded savannah, stretching off in
unbroken sameness of grass and flower, tree and rill, till the traveler
tires of the monotony. Along comes the wagon of the first immigrant. Where
to settle he cannot tell — every acre seems as good as every other
acre. As to wood, as to water, as to fertility, as to situation, there
is absolutely no choice, and he is perplexed by the embarrassment of richness.
Tired out with the search for one place that is better than another, he
stops — somewhere, anywhere — and starts to make himself a
home. The soil is virgin and rich, game is abundant, the streams flash
with the finest trout. Nature is at her very best. He has what, were he
in a populous district, would make him rich; but he is very poor. To say
nothing of the mental craving, which would lead him to welcome the sorriest
stranger, he labors under all the material disadvantages of solitude. He
can get no temporary assistance for any work that requires a greater union
of strength than that afforded by his own family, or by such help as he
can permanently keep. Though he has cattle, he cannot often have fresh
meat, for to get a beefsteak he must kill a bullock. He must be his own
blacksmith, wagonmaker, carpenter, and cobbler — in short, a "jack
of all trades and master of none." He cannot have his children schooled,
for, to do so, he must himself pay and maintain a teacher. Such things
as he cannot produce himself, he must buy in quantities and keep on hand,
or else go without, for he cannot be constantly leaving his work and making
a long journey to the verge of civilization; and when forced to do so,
the getting of a vial of medicine or the replacement of a broken auger
may cost him the labor of himself and horses for days. Under such circumstances,
though nature is prolific, the man is poor. It is an easy matter for him
to get enough to eat; but beyond this, his labor will suffice to satisfy
only the simplest wants in the rudest way.
Soon there comes another immigrant. Although every quarter section*
of the boundless plain is as good as every other quarter section, he
is not beset by any embarrassment as to where to settle. Though the land
is the same, there is one place that is clearly better for him than any
other place, and that is where there is already a settler and he may
have a neighbor. He settles by the side of the first comer, whose condition
is at once greatly improved, and to whom many things are now possible
that were before impossible, for two men may help each other to do things
that one man could never do.
*The public prairie lands
of the United States were surveyed into sections of one mile square,
and a quarter section (160 acres) was the usual government allotment
to a settler under the Homestead Act.
Another immigrant comes, and, guided by the same attraction, settles where
there are already two. Another, and another, until around our first comer
there are a score of neighbors. Labor has now an effectiveness which, in
the solitary state, it could not approach. If heavy work is to be done,
the settlers have a logrolling, and together accomplish in a day what singly
would require years. When one kills a bullock, the others take part of
it, returning when they kill, and thus they have fresh meat all the time.
Together they hire a schoolmaster, and the children of each are taught
for a fractional part of what similar teaching would have cost the first
settler. It becomes a comparatively easy matter to send to the nearest
town, for some one is always going. But there is less need for such journeys.
A blacksmith and a wheelwright soon set up shops, and our settler can have
his tools repaired for a small part of the labor it formerly cost him.
A store is opened and he can get what he wants as he wants it; a postoffice,
soon added, gives him regular communication with the rest of the world.
Then come a cobbler, a carpenter, a harness maker, a doctor; and a little
church soon arises. Satisfactions become possible that in the solitary
state were impossible. There are gratifications for the social and the
intellectual nature — for that part of the man that rises above the
animal. The power of sympathy, the sense of companionship, the emulation
of comparison and contrast, open a wider, and fuller, and more varied life.
In rejoicing, there are others to rejoice; in sorrow, the mourners do not
mourn alone. There are husking bees, and apple parings, and quilting parties.
Though the ballroom be unplastered and the orchestra but a fiddle, the
notes of the magician are yet in the strain, and Cupid dances with the
dancers. At the wedding, there are others to admire and enjoy; in the house
of death, there are watchers; by the open grave, stands human sympathy
to sustain the mourners. Occasionally, comes a straggling lecturer to open
up glimpses of the world of science, of literature, or of art; in election
times, come stump speakers, and the citizen rises to a sense of dignity
and power, as the cause of empires is tried before him in the struggle
of John Doe and Richard Roe for his support and vote. And, by and by, comes
the circus, talked of months before, and opening to children whose horizon
has been the prairie, all the realms of the imagination — princes
and princesses of fairy tale, mailclad crusaders and turbaned Moors, Cinderella's
fairy coach, and the giants of nursery lore; lions such as crouched before
Daniel, or in circling Roman amphitheater tore the saints of God; ostriches
who recall the sandy deserts; camels such as stood around when the wicked
brethren raised Joseph from the well and sold him into bondage; elephants
such as crossed the Alps with Hannibal, or felt the sword of the Maccabees;
and glorious music that thrills and builds in the chambers of the mind
as rose the sunny dome of Kubla Khan.
Go to our settler now, and say to him: "You have so many fruit trees
which you planted; so much fencing, such a well, a barn, a house — in
short, you have by your labor added so much value to this farm. Your
land itself is not quite so good. You have been cropping it, and by and
by it will need manure. I will give you the full value of all your improvements
if you will give it to me, and go again with your family beyond the verge
of settlement." He would laugh at you. His land yields no more wheat
or potatoes than before, but it does yield far more of all the necessaries
and comforts of life. His labor upon it will bring no heavier crops,
and, we will suppose, no more valuable crops, but it will bring far more
of all the other things for which men work. The presence of other settlers — the
increase of population — has added to the productiveness, in these
things, of labor bestowed upon it, and this added productiveness gives
it a superiority over land of equal natural quality where there are as
yet no settlers. If no land remains to be taken up, except such as is
as far removed from population as was our settler's land when he first
went upon it, the value or rent of this land will be measured by the
whole of this added capability. If, however, as we have supposed, there
is a continuous stretch of equal land, over which population is now spreading,
it will not be necessary for the new settler to go into the wilderness,
as did the first. He will settle just beyond the other settlers, and
will get the advantage of proximity to them. The value or rent of our
settler's land will thus depend on the advantage which it has, from being
at the center of population, over that on the verge. In the one case,
the margin of production will remain as before; in the other, the margin
of production will be raised.
Population still continues to increase, and as it increases so do the
economies which its increase permits, and which in effect add to the
productiveness of the land. Our first settler's land, being the center
of population, the store, the blacksmith's forge, the wheelwright's shop,
are set up on it, or on its margin, where soon arises a village, which
rapidly grows into a town, the center of exchanges for the people of
the whole district. With no greater agricultural productiveness than
it had at first, this land now begins to develop a productiveness of
a higher kind. To labor expended in raising corn, or wheat, or potatoes,
it will yield no more of those things than at first; but to labor expended
in the subdivided branches of production which require proximity to other
producers, and, especially, to labor expended in that final part of production,
which consists in distribution, it will yield much larger returns. The
wheatgrower may go further on, and find land on which his labor will
produce as much wheat, and nearly as much wealth; but the artisan, the
manufacturer, the storekeeper, the professional man, find that their
labor expended here, at the center of exchanges, will yield them much
more than if expended even at a little distance away from it; and this
excess of productiveness for such purposes the landowner can claim just
as he could an excess in its wheat-producing power. And so our settler
is able to sell in building lots a few of his acres for prices which
it would not bring for wheatgrowing if its fertility had been multiplied
many times. With the proceeds, he builds himself a fine house, and furnishes
it handsomely. That is to say, to reduce the transaction to its lowest
terms, the people who wish to use the land build and furnish the house
for him, on condition that he will let them avail themselves of the superior
productiveness which the increase of population has given the land.
Population still keeps on increasing, giving greater and greater utility
to the land, and more and more wealth to its owner. The town has grown
into a city — a St. Louis, a Chicago or a San Francisco — and
still it grows. Production is here carried on upon a great scale, with
the best machinery and the most favorable facilities; the division of
labor becomes extremely minute, wonderfully multiplying efficiency; exchanges
are of such volume and rapidity that they are made with the minimum of
friction and loss. Here is the heart, the brain, of the vast social organism
that has grown up from the germ of the first settlement; here has developed
one of the great ganglia of the human world. Hither run all roads, hither
set all currents, through all the vast regions round about. Here, if
you have anything to sell, is the market; here, if you have anything
to buy, is the largest and the choicest stock. Here intellectual activity
is gathered into a focus, and here springs that stimulus which is born
of the collision of mind with mind. Here are the great libraries, the
storehouses and granaries of knowledge, the learned professors, the famous
specialists. Here are museums and art galleries, collections of philosophical
apparatus, and all things rare, and valuable, and best of their kind.
Here come great actors, and orators, and singers, from all over the world.
Here, in short, is a center of human life, in all its varied manifestations.
So enormous are the advantages which this land now offers for the application
of labor, that instead of one man — with a span of horses scratching
over acres, you may count in places thousands of workers to the acre, working
tier on tier, on floors raised one above the other, five, six, seven and
eight stories from the ground, while underneath the surface of the earth
engines are throbbing with pulsations that exert the force of thousands
of horses.
All these advantages attach to the land; it is on this land and no
other that they can be utilized, for here is the center of population — the
focus of exchanges, the market place and workshop of the highest forms
of industry. The productive powers which density of population
has attached to this land are equivalent to the multiplication of its
original fertility by the hundredfold and the thousandfold. And rent,
which measures the difference between this added productiveness and
that of the least productive land in use, has increased accordingly.
Our settler, or whoever has succeeded to his right to the land, is
now a millionaire. Like another Rip Van
Winkle, he may have lain down and slept; still he is rich — not
from anything he has done, but from the increase of population. There
are lots from which for every foot of frontage the owner may draw more
than an average mechanic can earn; there are lots that will sell for
more than would suffice to pave them with gold coin. In the principal
streets are towering buildings, of granite, marble, iron, and plate
glass, finished in the most expensive style, replete with every convenience.
Yet they are not worth as much as the land upon which they rest — the
same land, in nothing changed, which when our first settler came upon
it had no value at all.
That this is the way in which the increase of population powerfully
acts in increasing rent, whoever, in a progressive country, will look
around him, may see for himself. The process is going on under his eyes.
The increasing difference in the productiveness of the land in use, which
causes an increasing rise in rent, results not so much from the necessities
of increased population compelling the resort to inferior land, as from
the increased productiveness which increased population gives to the
lands already in use. The most valuable lands on the globe, the lands
which yield the highest rent, are not lands of surpassing natural fertility,
but lands to which a surpassing utility has been given by the increase
of population.
And where value seems to arise from superior natural qualities, such
as deep water and good anchorage, rich deposits of coal and iron, or
heavy timber, observation also shows that these superior qualities
are brought out, rendered tangible, by population. The coal and
iron fields of Pennsylvania, that today [1879] are worth enormous sums,
were fifty years ago valueless. What is the efficient cause of the
difference? Simply the difference in population. The coal and iron
beds of Wyoming and Montana, which today are valueless, will, in fifty
years from now, be worth millions on millions, simply because, in the
meantime, population will have greatly increased.
It is a well-provisioned ship, this on which we sail through space.
If the bread and beef above decks seem to grow scarce, we but open a
hatch and there is a new supply, of which before we never dreamed. And
very great command over the services of others comes to those who as
the hatches are opened are permitted to say, "This is mine!" |
p. 243
Book IV: Chapter 3: Effect of improvements in the arts
upon the distribution of wealth p. 244-254
Chapter 4: Effect of the expectation raised by material
progress p.255-262
|
| 4. Land Speculation Causes Reduced Wages |
Book __ Chapter 4, Effect of the Expectation Raised by Material Progress,
p. 255 |
| p 255-256 |
There is a cause, not yet adverted to, which must be taken into consideration
fully to explain the influence of material progress upon the distribution
of wealth.
That cause is the confident expectation of the future enhancement of
land values, which arises in all progressive countries from the steady
increase of rent, and which leads to speculation, or the holding of land
for a higher price than it would then otherwise bring.
We have hitherto assumed, as is generally assumed in elucidations of
the theory of rent, that the actual margin of cultivation always coincides
with what may be termed the necessary margin of cultivation — that
is to say, we have assumed that cultivation extends to less productive
points only as it becomes necessary from the fact that natural opportunities
are at the more productive points fully utilized.
This, probably, is the case in stationary or very slowly progressing
communities, but in rapidly progressing communities, where the swift
and steady increase of rent gives confidence to calculations of further
increase, it is not the case. In such communities, the confident expectation
of increased prices produces, to a greater or less extent, the effects
of a combination among landholders, and tends to the withholding of land
from use, in expectation of higher prices, thus forcing the margin of
cultivation farther than required by the necessities of production. |
p. 256 |
| p. 256-7 |
In communities like the United States, where the user of land generally
prefers, if he can, to own it, and where there is a great extent of land
to overrun, this cause operated with enormous power.
The immense area over which the population of the United States is
scattered shows this. 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-tilled 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 pre-emption. He (and, with him, the
margin of cultivation) is forced so much farther than he otherwise need
have gone, by the speculation which is holding these unused lands in
expectation of increased value in the future. And when he settles, he
will, in his turn, take up, if he can, more land than he can use, in
the belief that it will soon become valuable; and so those who follow
him are again forced farther on than the necessities of production require,
carrying the margin of cultivation to still less productive, because
still more remote points. |
p. 257 |
| p. 257 |
If the land of superior quality as to location were always fully used
before land of inferior quality were resorted to, no vacant lots would
be left as a city extended, nor would we find miserable shanties in the
midst of costly buildings. These lots, some of them extremely valuable,
are withheld from use, or from the full use to which they might be put,
because their owners, not being able or not wishing to improve them,
prefer, in expectation of the advance of land values, to hold them for
a higher rate than could now be obtained from those willing to improve
them. And, in consequence of this land being withheld from use, or from
the full use of which it is capable, the margin of the city is pushed
away so much farther from the center.
But when we reach the limits of the growing city — the actual
margin of building, which corresponds to the margin of cultivation in
agriculture — we shall not find the land purchasable at its value
for agricultural purposes, as it would be were rent determined simply
by present requirements; but we shall find that for a long distance beyond
the city, land bears a speculative value, based upon the belief that
it will be required in the future for urban purposes, and that to reach
the point at which land can be purchased at a price not based upon urban
rent, we must go very far beyond the actual margin of urban use. |
257-8 timberland in Marin County |
| p. 258 |
| That mineral land, when reduced to private ownership, is frequently withheld
from use while poorer deposits are worked, is well known, and in new states
it is common to find individuals who are called "land poor" --
that is, who remain poor, sometimes almost to deprivation, because they
insist on holding land, which they themselves cannot use, at prices at
which no one else can profitably use it. |
p. 258-9 |
| p. 259 |
| Whether we formulate it as an extension of the margin of production,
or as a carrying of the rent line beyond the margin of production, the
influence of speculation in land in increasing rent is a great fact which
cannot be ignored in any complete theory of the distribution of wealth
in progressive countries. It is the force, evolved by material progress,
which tends constantly to increase rent in a greater ratio than progress
increases production, and thus constantly tends, as material progress goes
on and productive power increases, to reduce wages, not merely relatively,
but absolutely. |
p. 259-60 |
| p. 260: |
| 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 continuously to reduce wages
until zero were reached, it would be possible continuously to 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. |
| |
| 5. The Basic Cause of Poverty |
Book V: The Problem Solved
Chapter 1: The primary cause of recurring paroxysms of
industrial depression p.263-282 |
| Chapter 2: the persistence of poverty amid advancing wealth p. 282 |
The great problem, of which these recurring seasons of industrial depression
are but peculiar manifestations, is now, I think, fully solved, and the
social phenomena which all over the civilized world appall the philanthropist
and perplex the statesman, which hang with clouds the future of the most
advanced races, and suggest doubts of the reality and ultimate goal of
what we have fondly called progress, are now explained.
The reason why, in spite of the increase of productive
power, wages constantly tend to a minimum which will give but a bare
living, is that, with increase in productive power, rent tends to even
greater increase, thus producing a constant tendency to the forcing down
of wages. |
p. 282-3 |
| p. 283: |
Land being necessary to labor, and being reduced to private
ownership, every increase in the productive power of labor but increases
rent -- the price that labor must pay for the opportunity to utilize
its powers; and thus all the advantages gained by the march of progress
go to the owners of land, and wages do not increase.*
*Whatever be the fact as to wages, the reader
will, of course, recognize that higher money wages which merely balance
higher living costs, are not to be reckoned as real wage increases.
H.G.B
|
p. 283-287 |
| p. 287-8 abbreviated |
The simple theory which I have outlined (if indeed it can be called
a theory which is but the recognition of the most obvious relations)
explains this conjunction of poverty with wealth, of low wages with high
productive power, of degradation amid enlightenment, of virtual slavery
in political liberty.
- It harmonizes, as results flowing from a general and inexorable
law, facts otherwise most perplexing, and exhibits the sequence and
relation between phenomena that without reference to it are diverse
and contradictory.
- It explains why improvements which increase the productive power
of labor and capital increase the reward of neither.
- It explains what is commonly called the conflict between labor
and capital, while proving the real harmony of interest between them.
- It cuts the last inch of ground from under the fallacies of protection,
while showing why free trade fails to benefit permanently the working
classes.
- It explains why want increases with abundance, and wealth tends
to greater and greater aggregations.
- It explains the vice and misery which show themselves amid dense
population, without attributing to the laws of the All-Wise and All-Beneficent
defects which belong only to the shortsighted and selfish enactments
of men.
|
p. 288-293 |
| p.293-296 |
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?"
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.
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. We have been advancing as through an enemy's country, in which
every step must be secured, every position fortified, and every bypath
explored; for this simple truth, in its application to social and political
problems, is hid from the great masses of men partly by its very simplicity,
and in greater part by widespread fallacies and erroneous habits of thought
which lead them to look in every direction but the right one for an explanation
of the evils which oppress and threaten the civilized world. And back
of these elaborate fallacies and misleading theories is an active, energetic
power, a power that in every country, be its political forms what they
may, writes laws and molds thought -- the power of a vast and dominant
pecuniary interest.
But so simple and so clear is this truth, that to see it
fully 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 the attention is called to the fact that these things make up a
face or a figure. This relation, once recognized, is always afterward
clear.*
*Hence the expression, current among adherents
of Henry George's proposal: "Do you see the cat?"
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. 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.
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. As said the Brahmins, ages ago—
"To whomsoever the soil at any time belongs, to
him belong the fruits of it. White parasols and elephants mad with
pride are the flowers of a grant of land."
|
| |
| 6. The Remedy |
Book 6 The Remedy: Chapter 1: Insufficiency of Remedies
Currently Advocated p.299-327
Chapter 2: The True Remedy p. 328 |
| source: Book
VI: The Remedy — Chapter 2: The True Remedy page 328 |
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.*
*By the phrase "common ownership" of land,
Henry George did not mean that land should be held in common or by
the State, nor did he propose to interfere with the existing system
of land tenures. (See Sections 7 and 12, post.) As in this condensation
much of George's argument necessarily has been omitted, the following
extracts from his later work "Protection or Free Trade," chapter
XXVI, are appended to make his position clear to the present reader.
"No one would sow a crop, or build
a house, or open a mine, or plant an orchard, or cut a drain, so
long as any one else could come in and turn him out of the land in
which or on which such improvement must be fixed. Thus is it absolutely
necessary to the proper use and improvement of land that society
should secure to the user and improver safe possession. ... We can
leave land now being used in the secure possession of those using
it. ... on condition that those who hold land shall pay to the community
a ... rent based on the value of the privilege the individual receives
from the community in being accorded the exclusive use of this much
of the common property, and which should have no reference to any
improvement he has made in or on it, or to any profit due to the
use of his labor and capital. In this way all would be placed on
an equality in regard to the use and enjoyment of those natural elements
which are clearly the common heritage."
|
p.328-330
Book VII Justice of the Remedy
Chapter 1: Injustice of private property in land p.333-6 |
| p.336 (paragraph abridged) |
| This right of ownership that springs from labor excludes the possibility
of any other right of ownership. If a man be rightfully entitled to the
produce of his labor, then no one can be rightfully entitled to the ownership
of anything which is not the produce of his labor, or the labor of some
one else from whom the right has passed to him. For the right to the produce
of labor cannot be enjoyed without the right to the free use of the opportunities
offered by nature, and to admit the right of property in these is to deny
the right of property in the produce of labor. When nonproducers can claim
as rent a portion of the wealth created by producers, the right of the
producers to the fruits of their labor is to that extent denied. |
p.336-7 |
| p337-8 |
A house and the lot on which it stands are alike property, as being
the subject of ownership, and are alike classed by the lawyers as real
estate. Yet in nature and relations they differ widely.
- The one is produced by human labor, and belongs to the class in
political economy styled wealth.
- The other is a part of nature, and belongs to the class in political
economy styled land.
The essential character of the one class of things is that they embody
labor, are brought into being by human exertion, their existence or nonexistence,
their increase or diminution, depending on man. The essential character
of the other class of things is that they do not embody labor, and exist
irrespective of human exertion and irrespective of man; they are the
field or environment in which man finds himself; the storehouse from
which his needs must be supplied, the raw material upon which and the
forces with which alone his labor can act.
The moment this distinction is realized, that moment is it seen that
the sanction which natural justice gives to one species of property is
denied to the other. |
p.338-41 |
| p.341-2 |
| For as labor cannot produce without the use of land, the denial of the
equal right to the use of land is necessarily the denial of the right of
labor to its own produce. If one man can command the land upon which others
must labor, he can appropriate the produce of their labor as the price
of his permission to labor. The fundamental law of nature, that her enjoyment
by man shall be consequent upon his exertion, is thus violated. The one
receives without producing; the others produce without receiving. The one
is unjustly enriched; the others are robbed. |
342-347
p.347 Chapter 2: The enslavement of laborers the ultimate
result of private property in land |
| p.347-8 |
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. |
p. xxx-343 |
| source: Book 7: Justice of the Remedy, Chapter 1: The injustice of private
property in land p.343-4 |
Yet, it will be said: As every man has a right to the use and enjoyment
of nature, the man who is using land must be permitted the exclusive
right to its use in order that he may get the full benefit of his labor.
But there is no difficulty in determining where the individual right
ends and the common right begins. A delicate and exact test is supplied
by value, and with its aid there is no difficulty, no matter how dense
population may become, in determining and securing the exact rights of
each, the equal rights of all.
The value of land, as we have seen, is the price of monopoly. It is
not the absolute, but the relative, capability of land that determines
its value. No matter what may be its intrinsic qualities land that is
no better than other land which may be had for the using can have no
value. And the value of land always measures the difference between it
and the best land that may be had for the using. Thus, the value of land
expresses in exact and tangible form the right of the community in land
held by an individual; and rent expresses the exact amount which the
individual should pay to the community to satisfy the equal rights of
all other members of the community.
Thus, if we concede to priority of possession the undisturbed use of
land, taxing rent into the public treasury for the benefit of the community,
we reconcile the fixity of tenure which is necessary for improvement
with a full and complete recognition of the equal rights of all to the
use of land. |
344-365
Chapter 3: Claim of landowners to compensation |
| p. 365-6 |
Consider what rent is. It does not arise spontaneously from land;
it is due to nothing that the land owners have done. It represents a
value created by the whole community.
Let the land holders have, if you please, all that the possession of
the land would give them in the absence of the rest of the community.
But rent, the creation of the whole community, necessarily belongs to
the whole community.*
* To the view of the extreme conservative that due
consideration for the claims of rent receivers negatives the adoption
of such a policy, it may be replied that society as such is under
no obligation to maintain an unchanged policy through out all future
time. Public policies are constantly changing in such ways as to
disappoint the expectations of persons who have invested on the supposition
that policies would not change and to affect the value of their property.
Tarriffs are raised, and lowered. The brewing of spirituous liquors
is at one time permitted and at another time outlawed. Prices of
monopolized services are first left to be fixed by the monopolist
and are then regulated. Taxes are increased on some goods and decreased
on others. In some communities taxes have already been made higher
on land values than on improvements. Purchasers of land have no right
to insist that society may not, even by gradual steps, discriminate
in taxation against land rent, which is an income socially produced.
(Henry George himself elsewhere said -- Century Magazine, July, 1890
-- that "we cannot get to the Single Tax at one leap, but only
by gradual steps.") We must presume that land owners, like other
persons, buy their property with no guarantee that public policy
will never change. The conservative insistence that society, which
makes frequent changes of policy in other matters, is under a binding
implied pledge and obligation never to move, even by successive steps,
towards the eventual taking of the economic rent of land by taxation,
seems preposterous. H. G. B.
|
p.365 |
| Source: Book 3: Claim of Landowners to Compensation |
| |
| 7. Simplicity of Method of Introducing Remedy |
Application of the Remedy: How Equal Rights May be
Asserted
p. 404-5 |
| It is an axiom of statesmanship, which the successful founders of
tyranny have understood and acted upon that great changes can best
be brought about under old forms. We, who would free men, should heed
the same truth. It is the natural method. When nature would make a
higher type, she takes a lower one and develops it. This, also, is
the law of social growth. Let us work by it. With the current we may
glide fast and far. Against it, it is hard pulling and slow progress. |
p. 405 |
| p. 405 |
By making use of this existing machinery, we may, without jar
or shock, assert the common right to land by appropriating rent by
taxation. We already take some rent in taxation. We have only to
make some changes in our modes of taxation to take it all.*
*Rent in the economic sense is not, as those unfamiliar
with economic terminology may assume, the whole amount paid for
the use of real estate. It is only that part of such amount which
is paid for the use of the bare land or site employed, exclusive
of the payment for the use of any buildings or other improvements
on it. H. G. B.
|
p. 405-6 |
| p. 406-7 |
In form, the ownership of land would remain just as now. No owner
of land need be dispossessed, and no restriction need be placed upon
the amount of land any one could hold. For, rent being taken by the
State in taxes, land, no matter in whose name it stood, or in what
parcels it was held, would be really common property, and every member
of the community would participate in the advantages of its ownership.
Now, insomuch as the taxation of rent, or land values, must necessarily
be increased just as we abolish other taxes, we may put the proposition
into practical form by proposing --
to abolish all taxation save that upon
land values.
As we have seen, the value of land is at the beginning of society
nothing, but as society develops by the increase of population and
the advance of the arts, it becomes greater and greater. In every
civilized country, even the newest, the value of the land taken as
a whole is sufficient to bear the entire expenses of government.
In the better developed countries it is much more than sufficient.
Hence it will not be enough merely to place all taxes upon the value
of land. It will be necessary, where rent exceeds the present governmental
revenues, commensurately to increase the amount demanded in taxation,
and to continue this increase as society progresses and rent advances.
But this is so natural and easy a matter, that it may be considered
as involved, or at least understood, in the proposition to put all
taxes on the value of land. That is the first step upon which the
practical struggle must be made. When the hare is once caught and
killed, cooking him will follow as a matter of course. When the common
right to land is so far appreciated that all taxes are abolished
save those which fall upon rent, there is no danger of much more
than is necessary to induce them to collect the public revenues being
left to individual landholders. |
407 |
| 407 |
Wherever the idea of concentrating all taxation upon land values
finds lodgment sufficient to induce consideration, it invariably
makes way, but there are few of the classes most to be benefited
by it, who at first, or even for a long time afterward, see its full
significance and power.
- It is difficult for workingmen to get over the idea that there
is a real antagonism between capital and labor.
- It is difficult for small farmers and homestead owners to get
over the idea that to put all taxes on the value of land would
be unduly to tax them.
- It is difficult for both classes to get over the idea that to
exempt capital from taxation would be to make the rich richer,
and the poor poorer.
These ideas spring from confused thought. But behind ignorance and
prejudice there is a powerful interest, which has hitherto dominated
literature, education, and opinion. A great wrong always dies hard,
and the great wrong which in every civilized country condemns the
masses of men to poverty and want, will not die without a bitter
struggle. |
407 |
| 8. Why a Land-Value Tax is Better than an Equal Tax on All
Property |
408-420 |
Book
VIII: Application of the Remedy —
Chapter 3: The proposition tried by the canons of taxation p.420-1 |
The ground upon which the equal taxation of all species of property
is commonly insisted upon is that it is equally protected by the
state. The basis of this idea is evidently that the enjoyment of
property is made possible by the state -- that there is a value created
and maintained by the community, which is justly called upon to meet
community expenses. Now, of what values is this true? Only of the
value of land. This is a value that does not arise until a community
is formed, and that, unlike other values, grows with the growth of
the community. It exists only as the community exists. Scatter again
the largest community, and land, now so valuable, would have no value
at all. With every increase of population the value of land rises;
with every decrease it falls. This is true of nothing else save of
things which, like the ownership of land, are in their nature monopolies.
The tax upon land values is, therefore, the most just and equal
of all taxes.
- It falls only upon those who receive from society a peculiar
and valuable benefit, and upon them in proportion to the benefit
they receive.
- It is the taking by the community, for the use of the community,
of that value which is the creation of the community.
- It is the application of the common property to common uses.
When all rent is taken by taxation for the needs of the community,
then will the equality ordained by Nature be attained. No citizen
will have an advantage over any other citizen save as is given by
his industry, skill, and intelligence; and each will obtain what
he fairly earns. Then, but not till then, will labor get its full
reward, and capital its natural return. |
p.421 |
| 9 Alleged Difficulty of Distinguishing Land From Improvements |
Chapter 4, p 422-424 |
| Book VIII: Application of the Remedy — Chapter 4: Indorsements
and Objections p. 424-425 |
The only objection to the tax on rent or land values which is
to be met with in standard politico-economic works is one which concedes
its advantages — for it is, that from the difficulty of separation,
we might, in taxing the rent of land, tax something else. McCulloch,
for instance, declares taxes on the rent of land to be impolitic
and unjust because the return received for the natural and inherent
powers of the soil cannot be clearly distinguished from the return
received from improvements and meliorations, which might thus be
discouraged. Macaulay somewhere says that if the admission of the
attraction of gravitation were inimical to any considerable pecuniary
interest, there would not be wanting arguments against gravitation — a
truth of which this objection is an illustration. For admitting that
it is impossible invariably to separate the value of land from the
value of improvements, is this necessity of continuing to tax some
improvements any reason why we should continue to tax all improvements?
If it discourage production to tax values which labor and capital
have intimately combined with that of land, how much greater discouragement
is involved in taxing not only these, but all the clearly distinguishable
values which labor and capital create?
But, as a matter of fact, the value of land can always be readily
distinguished from the value of improvements.
- In countries like the United States there is much valuable land
that has never been improved; and in many of the States the value
of the land and the value of improvements are habitually estimated
separately by the assessors, though afterward reunited under the
term real estate.
- Nor where ground has been occupied from immemorial times, is
there any difficulty in getting at the value of the bare land,
for frequently the land is owned by one person and the buildings
by another, and when a fire occurs and improvements are destroyed,
a clear and definite value remains in the land.
- In the oldest country in the world no difficulty whatever can
attend the separation, if all that be attempted is to separate
the value of the clearly distinguishable improvements, made within
a moderate period, from the value of the land, should they be destroyed.
This, manifestly, is all that justice or policy requires. Absolute
accuracy is impossible in any system, and to attempt to separate
all that the human race has done from what nature originally provided
would be as absurd as impracticable. A swamp drained or a hill terraced
by the Romans constitutes now as much a part of the natural advantages
of the British Isles as though the work had been done by earthquake
or glacier. The fact that after a certain lapse of time the value
of such permanent improvements would be considered as having lapsed
into that of the land, and would be taxed accordingly, could have
no deterrent effect on such improvements, for such works are frequently
undertaken upon leases for years. The fact is, that each generation
builds and improves for itself, and not for the remote future. And
the further fact is, that each generation is heir, not only to the
natural powers of the earth, but to all that remains of the work
of past generations. |
p.425-429 |
| source: Part
VIII: Application of the Remedy, Chapter 4: Indorsements and Objections |
| |
| 10 Effect of Remedy Upon Wealth Production |
| |
The elder Mirabeau, we are told, ranked the proposition of Quesnay,
to substitute one single tax on rent (the impôt unique)
for all other taxes, as a discovery equal in utility to the invention
of writing or the substitution of the use of money for barter.
To whosoever will think over the matter, this saying will appear
an evidence of penetration rather than of extravagance. The advantages
which would be gained by substituting for the numerous taxes by which
the public revenues are now raised, a single tax levied upon the
value of land, will appear more and more important the more they
are considered.
- This is the secret which would transform the little village
into the great city.*
- With all the burdens removed which now oppress industry and
hamper exchange, the production of wealth would go on with a rapidity
now undreamed of.
- This, in its turn, would lead to an increase in the value of
land -- a new surplus which society might take for general purposes.
- And released from the difficulties which attend the collection
of revenue in a way that begets corruption and renders legislation
the tool of special interests, society could assume functions which
the increasing complexity of life makes it desirable to assume,
but which the prospect of political demoralization under the present
system now leads thoughtful men to shrink from.
*At the beginning of Book
IX of the complete Progress & Poverty, Henry George
quotes from Themistocles: "I cannot play upon any stringed
instrument, but I can tell you how of a little village to make
a great and glorious city."
Consider the effect upon the production of wealth.
To abolish the taxation which, acting and reacting, now hampers
every wheel of exchange and presses upon every form of industry,
would be like removing an immense weight from a powerful spring.
Imbued with fresh energy, production would start into new life, and
trade would receive a stimulus which would be felt to the remotest
arteries. The present method of taxation operates upon exchange like
artificial deserts and mountains;
- it costs more to get goods through a custom house than it does
to carry them around the world.
- It operates upon energy, and industry, and skill, and thrift,
like a fine upon those qualities.
- If I have worked harder and built myself a good house while
you have been contented to live in a hovel, the taxgatherer now
comes annually to make me pay a penalty for my energy and industry,
by taxing me more than you.
- If I have saved while you wasted, I am mulct, while you are
exempt.
- If a man build a ship we make him pay for his temerity, as though
he had done an injury to the state;
- if a railroad be opened, down comes the tax collector upon it,
as though it were a public nuisance;
- if a manufactory be erected we levy upon it an annual sum which
would go far toward making a handsome profit.
- We say we want capital, but if any one accumulate it, or bring
it among us, we charge him for it as though we were giving him
a privilege.
- We punish with a tax the man who covers barren fields with ripening
grain,
- we fine him who puts up machinery, and him who drains a swamp.
How heavily these taxes burden production only those realize who
have attempted to follow our system of taxation through its ramifications,
for, as I have before said, the heaviest part of taxation is that
which falls in increased prices. |
| |
To abolish these taxes would be to lift the whole enormous weight
of taxation from productive industry. The needle of the seamstress
and the great manufactory; the cart horse and the locomotive; the
fishing boat and the steamship; the farmer's plow and the merchant's
stock, would be alike untaxed. All would be free to make or to save,
to buy or to sell, unfined by taxes, unannoyed by the taxgatherer.
Instead of saying to the producer, as it does now, "The more
you add to the general wealth the more shall you be taxed!" the
state would say to the producer, "Be as industrious, as thrifty,
as enterprising as you choose, you shall have your full reward! You
shall not be fined for making two blades of grass grow where one
grew before; you shall not be taxed for adding to the aggregate wealth."
And will not the community gain by thus refusing to kill the goose
that lays the golden eggs; by thus refraining from muzzling the ox
that treadeth out the corn; by thus leaving to industry, and thrift,
and skill, their natural reward, full and unimpaired? For there is
to the community also a natural reward. The law of society is, each
for all, as well as all for each. No one can keep to himself the
good he may do, any more than he can keep the bad. Every productive
enterprise, besides its return to those who undertake it, yields
collateral advantages to others. If a man plant a fruit tree, his
gain is that he gathers the fruit in its time and season. But in
addition to his gain, there is a gain to the whole community. Others
than the owner are benefited by the increased supply of fruit; the
birds which it shelters fly far and wide; the rain which it helps
to attract falls not alone on his field; and, even to the eye which
rests upon it from a distance, it brings a sense of beauty. And so
with everything else. The building of a house, a factory, a ship,
or a railroad, benefits others besides those who get the direct profits. |
| |
Well may the community leave to the individual producer all that
prompts him to exertion; well may it let the laborer have the full
reward of his labor, and the capitalist the full return of his capital.
For the more that labor and capital produce, the greater grows the
common wealth in which all may share. And in the value or rent of
land is this general gain expressed in a definite and concrete form.
Here is a fund which the state may take while leaving to labor and
capital their full reward. With increased activity of production
this would commensurately increase.
And to shift the burden of taxation from production and exchange
to the value or rent of land would not merely be to give new stimulus
to the production of wealth; it would be to open new opportunities.
For under this system no one would care to hold land unless to use
it, and land now withheld from use would everywhere be thrown open
to improvement.
The selling price of land would fall; land speculation would receive
its death blow; land monopolization would no longer pay.* Millions
and millions of acres from which settlers are now shut out by high
prices would be abandoned by their present owners or sold to settlers
upon nominal terms. And this not merely on the frontiers, but within
what are now considered well settled districts.
* The fact that a tax on the rental value of land
cannot be shifted by landowners to tenants, though recognized
by all competent economists, is sometimes a stumbling block to
persons untrained in economics. The reason such a tax cannot
be shifted is that it cannot limit the supply of land. Landowners
are presumably, before the tax is laid, charging all the rent
they can get. There is nothing in a tax on the rental value of
land to make tenants willing to pay more or to make land more
difficult to hire. On the contrary, more land will be on the
market, because of such a tax, rather than less, since the tax
puts a heavy penalty on holding land out of use and unimproved
for mere speculation. The competition of former vacant land speculators
to get their land used will make land cheaper to rent rather
than more expensive. And since only the net rent remaining after
the tax is subtracted is capitalized into salable value, land
will be very much cheaper to buy. H.G.B.
|
| |
And it must be remembered that this would apply, not merely to
agricultural land, but to all land. Mineral land would be thrown
open to use, just as agricultural land; and in the heart of a city
no one could afford to keep land from its most profitable use, or
on the outskirts to demand more for it than the use to which it could
at the time be put would warrant. Everywhere that land had attained
a value, taxation, instead of operating, as now, as a fine upon improvement,
would operate to force improvement. Whoever planted an orchard, or
sowed a field, or built a house, or erected a manufactory, no matter
how costly, would have no more to pay in taxes than if he kept so
much land idle.
- The monopolist of agricultural land would be taxed as much as
though his land were covered with houses and barns, with crops
and with stock.
- The owner of a vacant city lot would have to pay as much for
the privilege of keeping other people off of it until he wanted
to use it, as his neighbor who has a fine house upon his lot.
- It would cost as much to keep a row of tumble-down shanties
upon valuable land as though it were covered with a grand hotel
or a pile of great warehouses filled with costly goods.
Thus, the bonus that wherever labor is most productive must now
be paid before labor can be exerted would disappear.
- The farmer would not have to pay out half his means, or mortgage
his labor for years, in order to obtain land to cultivate;
- the builder of a city homestead would not have to lay out as
much for a small lot as for the house he puts upon it*;
- the company that proposed to erect a manufactory would not have
to expend a great part of its capital for a site.
- And what would be paid from year to year to the state would
be in lieu of all the taxes now levied upon improvements, machinery,
and stock.
*Many persons, and among them some professional
economists, have never succeeded in getting a thorough comprehension
of this point. Thus, the editor has heard the objection advanced
that the greater cheapness of land is no advantage to the
poor man who is trying to save enough from his earnings to
buy a piece of land; for, it is said, the higher taxes on
the land after it is acquired, offset the lower purchase
price. What such objectors do not see is that even if the
lower price of land does no more than balance the higher
tax on it, (and this overlooks, for one thing, the discouragement
to speculation in land), the reduction or removal of other
taxes is all clear gain. It is easier to save in proportion
as earnings and commodities are relieved of taxation. It
is easier to buy land, because its selling price is lower,
if the land is taxed. And although the land, after its purchase,
continues to be taxed, not only can this tax be fully paid
out of the annual interest on the saving in the purchase
price, but also there is to be reckoned the saving in taxes
on buildings and other improvements and in whatever other
taxes are thus rendered unnecessary. H.G.B.
Consider the effect of such a change upon the labor market. Competition
would no longer be one-sided, as now. Instead of laborers competing
with each other for employment, and in their competition cutting
down wages to the point of bare subsistence, employers would everywhere
be competing for laborers, and wages would rise to the fair earnings
of labor. For into the labor market would have entered the greatest
of all competitors for the employment of labor, a competitor whose
demand cannot be satisfied until want is satisfied -- the demand
of labor itself. The employers of labor would not have merely to
bid against other employers, all feeling the stimulus of greater
trade and increased profits, but against the ability of laborers
to become their own employers upon the natural opportunities freely
opened to them by the tax which prevented monopolization.
With natural opportunities thus free to labor;
- with capital and improvements exempt from tax, and exchange
released from restrictions, the spectacle of willing men unable
to turn their labor into the things they are suffering for would
become impossible;
- the recurring paroxysms which paralyze industry would cease;
- every wheel of production would be set in motion;
- demand would keep pace with supply, and supply with demand;
- trade would increase in every direction, and wealth augment
on every hand.
|
| source: Part
IX: Effects of the Remedy— Chapter 1: Of the Effect Upon the
Production of Wealth |
| |
| 11. Effect of Remedy Upon the Sharing of Wealth |
But great as they thus appear, the advantages of a transference
of all public burdens to a tax upon the value of land cannot be fully
appreciated until we consider the effect upon the distribution of
wealth.
Tracing out the cause of the unequal distribution of wealth which
appears in all civilized countries, with a constant tendency to greater
and greater inequality as material progress goes on, we have found
it in the fact that, as civilization advances, the ownership of land,
now in private hands, gives a greater and greater power of appropriating
the wealth produced by labor and capital.
Thus, to relieve labor and capital from all taxation, direct and
indirect, and to throw the burden upon rent, would be, as far as
it went, to counteract this tendency to inequality, and, if it went
so far as to take in taxation the whole of rent, the cause of inequality
would be totally destroyed. Rent, instead of causing inequality,
as now, would then promote equality. Labor and capital would then
receive the whole produce, minus that portion taken by the state
in the taxation of land values, which, being applied to public purposes,
would be equally distributed in public benefits.
That is to say, the wealth produced in every community would be
divided into two portions.
- One part would be distributed in wages and interest between
individual producers, according to the part each had taken in the
work of production;
- the other part would go to the community as a whole, to be distributed
in public benefits to all its members.
In this all would share equally -- the weak with the strong, young
children and decrepit old men, the maimed, the halt, and the blind,
as well as the vigorous. And justly so -- for while one part represents
the result of individual effort in production, the other represents
the increased power with which the community as a whole aids the
individual.
Thus, as material progress tends to increase rent, were rent taken
by the community for common purposes the very cause which now tends
to produce inequality as material progress goes on would then tend
to produce greater and greater equality. |
| |
| Who can say to what infinite powers the wealth-producing capacity
of labor may not be raised by social adjustments which will give to
the producers of wealth their fair proportion of its advantages and
enjoyments! With present processes the gain would be simply incalculable,
but just as wages are high, so do the invention and utilization of
improved processes and machinery go on with greater rapidity and ease. |
| |
| But I shall not deny, and do not wish to lose sight of the fact, that while thus
preventing waste and thus adding to the efficiency of labor, the equalization
in the distribution of wealth that would result from the simple plan of taxation
that I propose, must lessen the intensity with which wealth is pursued. It
seems to me that in a condition of society in which no one need fear poverty,
no one would desire great wealth -- at least, no one would take the trouble
to strive and to strain for it as men do now. For, certainly, the spectacle
of men who have only a few years to live, slaving away their time for the sake
of dying rich, is in itself so unnatural and absurd, that in a state of society
where the abolition of the fear of want had dissipated the envious admiration
with which the masses of men now regard the possession of great riches, whoever
would toil to acquire more than he cared to use would be looked upon as we
would now look on a man who would thatch his head with half a dozen hats. |
| |
And though this incentive to production be withdrawn, can we not
spare it? Whatever may have been its office in an earlier stage of
development, it is not needed now. The dangers that menace our civilization
do not come from the weakness of the springs of production. What
it suffers from, and what, if a remedy be not applied, it must die
from, is unequal distribution!
Nor would the removal of this incentive, regarded only from the
standpoint of production, be an unmixed loss. For, that the aggregate
of production is greatly reduced by the greed with which riches are
pursued, is one of the most obtrusive facts of modern society. While,
were this insane desire to get rich at any cost lessened, mental
activities now devoted to scraping together riches would be translated
into far higher spheres of usefulness. |
| source: Part
IX — Effects of the Remedy: Chapter 2 — Of the Effect
Upon Distribution and Thence Upon Production |
| |
| 12. Effect of Remedy Upon Various Economic Classes |
| When it is first proposed to put all taxes upon the value of land,
all landholders are likely to take the alarm, and there will not be
wanting appeals to the fears of small farm and homestead owners, who
will be told that this is a proposition to rob them of their hard-earned
property. But a moment's reflection will show that this proposition
should commend itself to all whose interests as landholders do not
largely exceed their interests as laborers or capitalists, or both.
And further consideration will show that though the large landholders
may lose relatively, yet even in their case there will be an absolute
gain. For, the increase in production will be so great that labor and
capital will gain very much more than will be lost to private landownership,
while in these gains, and in the greater ones involved in a more healthy
social condition, the whole community, including the landowners themselves,
will share. |
| |
-
It is manifest, of course, that the change I propose will
greatly benefit all those who live by wages, whether of hand
or of head -- laborers, operatives, mechanics, clerks, professional
men of all sorts.
-
It is manifest, also, that it will benefit all those who
live partly by wages and partly by the earnings of their
capital -- storekeepers, merchants, manufacturers, employing
or undertaking producers and exchangers of all sorts from
the peddler or drayman to the railroad or steamship owner
-- and
-
it is likewise manifest that it will increase
the incomes of those whose incomes are drawn from the earnings
of capital.
Take, now, the case of the homestead owner — the mechanic,
storekeeper, or professional man who has secured himself a house
and lot, where he lives, and which he contemplates with satisfaction
as a place from which his family cannot be ejected in case of
his death. He will not be injured; on the contrary, he will be
the gainer. The selling value of his lot will diminish — theoretically
it will entirely disappear. But its usefulness to him will not
disappear. It will serve his purpose as well as ever. While,
as the value of all other lots will diminish or disappear in
the same ratio, he retains the same security of always having
a lot that he had before. That is to say, he is a loser only
as the man who has bought himself a pair of boots may be said
to be a loser by a subsequent fall in the price of boots. His
boots will be just as useful to him, and the next pair of boots
he can get cheaper. So, to the homestead owner, his lot will
be as useful, and should he look forward to getting a larger
lot, or having his children, as they grow up, get homesteads
of their own, he will, even in the matter of lots, be the gainer.
And in the present, other things considered, he will be much
the gainer. For though he will have more taxes to pay upon his
land, he will be released from taxes upon his house and improvements,
upon his furniture and personal property, upon all that he and
his family eat, drink and wear, while his earnings will be largely
increased by the rise of wages, the constant employment, and
the increased briskness of trade. His only loss will be, if he
wants to sell his lot without getting another, and this will
be a small loss compared with the great gain.
And so with the farmer. I speak not now of the farmers who never
touch the handles of a plow, but of the working farmers who constitute
such a large class in the United States — men who own small
farms, which they cultivate with the aid of their boys, and perhaps
some hired help, and who in Europe would be called peasant proprietors.
Paradoxical as it may appear to these men until they understand
the full bearings of the proposition, of all classes above that
of the mere laborer they have most to gain by placing all taxes
upon the value of land. That they do not now get as good a living
as their hard work ought to give them, they generally feel, though
they may not be able to trace the cause. The fact is that taxation,
as now levied, falls on them with peculiar severity. They are
taxed on all their improvements — houses, barns, fences,
crops, stock. The personal property which they have cannot be
as readily concealed or undervalued as can the more valuable
kinds which are concentrated in the cities. They are not only
taxed on personal property and improvements, which the owners
of unused land escape, but their land is generally taxed at a
higher rate than land held on speculation, simply because it
is improved. But further than this, all taxes imposed on commodities,
and especially the taxes which, like our protective duties, are
imposed with a view of raising the prices of commodities, fall
on the farmer without mitigation.
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