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Thomas Paine

 

Thomas Paine, quoted by James Dundas White in a pamphlet entitled "Land-Value Policy"

"The earth, in its natural state … is supporting but a small number of inhabitants, compared with what it is capable of doing in a cultivated state. And impossible to separate the improvement made by cultivation from the earth itself upon which that improvement is made, the idea of landed property arose from that inseparable connection; but it is nevertheless true that it is value of the improvement only, and not the earth itself, that is individual property. Every proprietor, therefore, of cultivated land owes to the community a ground-rent, for I know no better term to express the idea by, for the land which he holds. …Cultivation is one of the greatest natural improvements ever made. . . .But the landed monopoly that began with it has dispossessed more than half the inhabitants of every nation of their natural inheritance." [Thomas Paine, Agrarian Justice, 1797]

 

with some elision:

"The earth, in its natural, uncultivated state was, and ever would have continued to be, the common property of the human race." As the land gets cultivated, "it is the value of the improvement, only, and not the earth itself, that is in individual property. Every proprietor, therefore, of cultivated lands, owes to the community a ground-rent..to every person, rich or poor...because it is in lieu of the natural inheritance, which, as a right, belongs to every man, over and above the property he may have created, or inherited from those who did" - Thomas Paine 1796, p. 611; 612-613

Peter Barnes: Capitalism 3.0 — Chapter 2: A Short History of Capitalism (pages 15-32)

One observer of this transformation was Thomas Paine, America’s pro-independence pamphleteer. Seeing how enclosure of the commons benefited a few and disinherited many others, Paine proposed a remedy — not a reversal of enclosure, which he considered necessary for economic reasons, but compensation for it.

Like Locke, Paine believed nature was a gift of God to all. “There are two kinds of property,” he wrote. “Firstly, natural property, or that which comes to us from the Creator of the universe — such as the earth, air, water. Secondly, artificial or acquired property — the invention of men.” In the latter, he went on, equality is impossible, but in the former, “all individuals have legitimate birthrights.” Since such birthrights were diminished by enclosure, there ought to be an “indemnification for that loss.”

Paine therefore proposed a “national fund” that would do two things:

[Pay] to every person, when arrived at the age of twenty-one years, the sum of fifteen pounds sterling, as a compensation in part, for the loss of his or her natural inheritance, by the introduction of the system of landed property: And also, the sum of ten pounds per annum, during life, to every person now living, of the age of fifty years, and to all others as they shall arrive at that age.

A century and a half later, America created a national fund to do part of what Paine recommended — we call it Social Security. We’ve yet to adopt the other part, but its basic principle — that enclosure of a commons requires compensation — is as sound in our time as it was in Paine’s. ... read the whole chapter

Fred E. Foldvary — The Ultimate Tax Reform: Public Revenue from Land Rent

Thomas Paine, the eighteenth century political philosopher and activist known for his important role in the American Revolution, advocated in Agrarian Justice that land rent is the proper source of public revenue.19 Paine wrote, “it is the value of the improvements only, and not the Earth itself, that is individual property. Every proprietor, therefore, of cultivated land owes to the community a ground-rent, for I know no better term to express the idea by, for the land which he holds ...”20 ... read the whole document

Thomas Paine, Agrarian Justice

TO PRESERVE the benefits of what is called civilized life, and to remedy at the same time the evil which it has produced, ought to be considered as one of the first objects of reformed legislation.

Whether that state that is proudly, perhaps erroneously, called civilization, has most promoted or most injured the general happiness of man, is a question that may be strongly contested. On one side, the spectator is dazzled by splendid appearances; on the other, he is shocked by extremes of wretchedness; both of which it has erected. The most affluent and the most miserable of the human race are to be found in the countries that are called civilized.

To understand what the state of society ought to be, it is necessary to have some idea of the natural and primitive state of man; such as it is at this day among the Indians of North America. There is not, in that state, any of those spectacles of human misery which poverty and want present to our eyes in all the towns and streets in Europe.

Poverty, therefore, is a thing created by that which is called civilized life. It exists not in the natural state. On the other hand, the natural state is without those advantages which flow from agriculture, arts, science and manufacturers.

The life of an Indian is a continual holiday, compared with the poor of Europe; and, on the other hand it appears to be abject when compared to the rich. Civilization, therefore, or that which is so called, has operated two ways: to make one part of society more affluent, and the other more wretched, than would have been the lot of either in a natural state.

It is always possible to go from the natural to the civilized state, but it is never possible to go from the civilized to the natural state. The reason is that man in a natural state, subsisting by hunting, requires ten times the quantity of land to range over to procure himself sustenance, than would support him in a civilized state, where the earth is cultivated.

When, therefore, a country becomes populous by the additional aids of cultivation, art and science, there is a necessity of preserving things in that state; because without it there cannot be sustenance for more, perhaps, than a tenth part of its inhabitants. The thing, therefore, now to be done is to remedy the evils and preserve the benefits that have arisen to society by passing from the natural to that which is called the civilized state.

In taking the matter upon this ground, the first principle of civilization ought to have been, and ought still to be, that the condition of every person born into the world, after a state of civilization communities, ought not to be worse than it he had been born before that period.

But the fact is that the condition of millions, in every country in Europe, is far worse than if they had been born before civilization began, or had been born among the Indians of North America at the present day. I will show how this fact has happened.

It is a position not to be controverted that the earth, in its natural, uncultivated state was, and ever would have continued to be, the common property of the human race. In that state every man would have been born to property. He would have been a joint life proprietor with the rest in the property of the soil, and in all its natural productions, vegetable and animal.

But the earth in its natural state, as before said, is capable of supporting but a small number of inhabitants compared with what it is capable of doing in a cultivated state. And as it is impossible to separate the improvement made by cultivation from the earth itself, upon which that improvement is made, the idea of landed property arose from that inseparable connection; but it is nevertheless true, that it is the value of the improvement, only, and not the earth itself, that is individual property.

Every proprietor, therefore, of cultivated lands, owes to the community a ground-rent (for I know of no better term to express the idea) for the land which he holds; and it is from this ground-rent that the fund proposed in this plan is to issue.

It is deducible, as well from the nature of the thing as from all the histories transmitted to us, that the idea of landed property commenced with cultivation, and that there was no such thing as landed property before that time. It could not exist in the first state of man, that of hunters. It did not exist in the second state, that of shepherds: neither Abraham, Isaac, Jacob, nor Job, so far as the history of the Bible may be credited in probable things, were owners of land.

Their property consisted, as is always enumerated in flocks and herds, and they traveled with them from place to place. The frequent contentions at that time about the use of a well in the dry country of Arabia, where those people lived, also show that there was no landed property. It was not admitted that land could be claimed as property.

There could be no such thing at landed property originally. Man did not make the earth, and though he had a natural right to occupy it, he had no right to locate as his property in perpetuity any part of it; neither did the Creator of the earth open a land-office, from whence the first title-deeds should issue. Whence then, arose the idea of landed property? I answer as before, that when cultivation began the idea of landed property began with it, from the impossibility or separating the improvement made by cultivation from the earth itself, upon which that improvement was made.

The value of the improvement so far exceeded the value of the natural earth, at that time, as to absorb it; till, in the end, the common right of all became confounded into the cultivated right of the individual. But there are, nevertheless, distinct species of rights, and will continue to be, so long as the earth endures.

It is only by tracing things to their origin that we can gain rightful ideas of them, and it is by gaining such ideas that we discover the boundary that divides right from wrong, and teaches every man to know his own. I have entitled this tract "Agrarian Justice" to distinguish it from "Agrarian Law."

Nothing could be more unjust than agrarian law in a country improved by cultivation; for though every man, as an inhabitant of the earth, is a joint proprietor of it in its natural state, it does not follow that he is a joint proprietor of cultivated earth. The additional value made by cultivation, after the system was admitted, became the property of those who did it, or who inherited ii from them, or who purchased it. It had originally no owner. While, therefore, I advocate the right, and interest myself in the hard case of all those who have been thrown out of their natural inheritance by the introduction of the system of landed property, I equally defend the right of the possessor to the part which is his.

Cultivation is at least one of the greatest natural improvements ever made by human invention. It has given to created earth a tenfold value. But the landed monopoly that began with it has produced the greatest evil. It has dispossessed more than half the inhabitants of every nation of their natural inheritance, without providing for them, as ought to have been done, an indemnification for that loss, and has thereby created a species of poverty and wretchedness that did not exist before.

In advocating the case of the persons thus dispossessed, it is a right, and not a charity, that I am pleading for. Nor it is that kind of right which, being neglected at first, could not he brought forward afterwards till heaven had opened the way by a revolution in the system of government. Let us then do honor to revolutions by justice, and give currency to their principles by blessings.

Having thus in a few words, opened the merits of the case, I shall now proceed to the plan I have to propose, which is,

To create a national fund, out of which there shall be paid to every person, when arrived at the age of twenty-one years, the sum of fifteen pounds sterling, as a compensation in part, for the loss of his or her natural inheritance, by the introduction of the system of landed property:

And also, the sum of ten pounds per annum, during life, to every person now living, of the age of fifty years, and to all others as they shall arrive at that age.

Means By Which The Fund Is To Be Created

I have already established the principle, namely, that the earth, in its natural uncultivated state was, and ever would have continued to be, the common property of the human race; that in that state, every person would have been born to property; and that the system of landed property, by its inseparable connection with cultivation, and with what is called civilized life, has absorbed the property of all those whom it dispossessed, without providing as ought to have been done, an indemnification for that loss.

The fault, however, is not in the present possessors. No complaint is intended, or ought to be alleged against them, unless they adopt the crime by opposing justice. The fault is in the system, and it has stolen imperceptibly upon the world, aided afterwards by the agrarian law of the sword. But the fault can be made to reform itself by successive generations; and without diminishing or deranging the property of any of the present possessors, the operation of the fund can yet commence, and be in full activity, the first year of its establishment, or soon after, as I shall show.

It is proposed that the payments, as already stated, be made to every person, rich or poor. It is best to make it so, to prevent invidious distinctions. It is also right it should be so, because it is in lieu of the natural inheritance, which, as a right, belongs to every man, over and above the property he may have created, or inherited from those who did. Such persons as do not choose to receive it can throw it into the common fund.

Taking it then for granted that no person ought to be in a worse condition when born under what is called a state of civilization, than he would have been had he been born in a state of nature, and that civilization ought to have made, and ought still to make, provision for that purpose, it can only be done by subtracting from property a portion equal in value to the natural inheritance it has absorbed.

Various methods may be proposed for this purpose, but that which appears to be the best (not only because it will operate without deranging any present possessors, or without interfering with the collection of taxes or emprunts necessary for the purposes of government and the Revolution, but because it will be the least troublesome and the most effectual, and also because the subtraction will be made at a time that best admits it) is at the moment that property is passing by the death of one person to the possession of another. In this case, the bequeather gives nothing: the receiver pays nothing. The only matter to him is that the monopoly of natural inheritance, to which there never was a right, begins to cease in his person. A generous man would not wish it to continue, and a just man will rejoice to see it abolished.

My state of health prevents my making sufficient inquiries with respect to the doctrine of probabilities, whereon to round calculations with such degrees of certainty as they are capable of. What, therefore, I offer on this head is more the result of observation and reflection than of received information; but I believe it will be found to agree sufficiently with fact. In the first place, taking twenty-one years as the epoch of maturity, all the property of a nation, real and personal, is always in the possession of persons above that age. It is then necessary to know, as a datum of calculation, the average of years which persons above that age will live. I take this average to be about thirty years, for though many persons will live forty, fifty, or sixty years, after the age of twenty-one years, others will die much sooner, and some in every year of that time.

Taking, then, thirty years as the average of time, it will give, without any material variation one way or other, the average of time in which the whole property or capital of a nation, or a sum equal thereto, will have passed through one entire revolution in descent, that is, will have gone by deaths to new possessors; for though, in many instances, some parts of this capital will remain forty, fifty, or sixty years in the possession of one person, other parts will have revolved two or three times before those thirty years expire, which will bring it to that average; for were one-half the capital of a nation to revolve twice in thirty years, it would produce the same fund as if the whole revolved once.

Taking, then, thirty years as the average of time in which the whole capital of a nation, or a sum equal thereto, will revolve once, the thirtieth part thereof will be the sum that will revolve every year, that is, will go by deaths to new possessors; and this last sum being thus known, and the ratio per cent to be subtracted from it determined, it will give the amount or income of the proposed fund, to be applied as already mentioned.

In looking over the discourse of the English Minister, Pitt, in his opening of what is called in England the budget (the scheme of finance for the year 1796), I find an estimate of the national capital of that country. As this estimate or a national capital is prepared ready to my hand, I take it as a datum to act upon. When a calculation is made upon the known capital of any nation, combined with its population, it will serve as a scale for any other nation, in proportion as its capital and population be more or less.

I am the more disposed to take this estimate of Mr. Pitt, for the purpose of showing to that minister, upon his own calculation, how much better money may be employed than in wasting it, as he has done, on the wild project of setting up Bourbon kings. What, in the name of heaven, are Bourbon kings to the people of England? It is better that the people have bread.

Mr. Pitt states the national capital of England, real and personal, to be one thousand three hundred millions sterling, which is about one fourth part of the national capital of France, including Belgia. The event of the last harvest in each country proves that the soil of France is more productive than that of England, and that it can better support twenty-four or twenty-five millions of inhabitants than that of England can seven or seven and a half millions.

The thirtieth part of this capital of £1,300,000,000 is £43,333,333 which is the part that will revolve every year by deaths in that country to new possessors; and the sum that will annually revolve in France in the proportion of four to one, will be about one hundred and seventy-three millions sterling. From this sum of £ 43,333,333 annually revolving, is to be subtracted the value of the natural inheritance absorbed in it, which, perhaps, in fair justice, cannot be taken at less, and ought not to be taken for more, than a tenth part.

It will always happen that of the property thus revolving by deaths every year a part will descend in a direct line to sons and daughters, and the other part collaterally, and the proportion will he found to be about three to one; that is, about thirty millions of the above sum will descend to direct heirs, and the remaining sum of £ 13,333,333 to more distant relations, and in part to strangers.

Considering, then, that man is always related to society, that relationship will become comparatively greater proportion as the next of kin is more distant; it is therefore consistent with civilization to say that where there are no direct heirs society shall be heir to a part over and above the tenth part due to society.

If this additional part be from five to ten or twelve per cent, in proportion as the next of kin be nearer or more remote, so as to average with the escheats that may fall, which ought always to go to society and not to the government (an addition of ten per cent more), the produce from the annual sum of £ 43,333,333 will be:

From £ 30,000,000 at ten per cent £ 3,000,000
From £ 13,333,333 at ten per cent with the addition of ten percent more £ 2,666,666
£ 43,333,333 £5,666,666

Having thus arrived at the annual amount or the proposed fund, I come, in the next place, to speak of the population proportioned to this fund and to compare it with the uses to which the fund is to be applied.

The population (I mean that of England) does not exceed seven millions and a half, and the number of persons above the age of fifty will in that case be about four hundred thousand. There would not, however, he more than that number that would accept the proposed ten pounds sterling per annum, though they would he entitled to it. I have no idea it would be accepted by many persons who had a yearly income of two or three hundred pounds sterling. But as we often see instances of rich people falling into sudden poverty, even at the age of sixty, they would always have the right of drawing all the arrears due to them. Four millions, therefore, of the above annual sum of £5,666,666 will be required for four hundred thousand aged persons, ten pounds sterling each.

I come now to speak of the persons annually arriving at twenty-one years of age. If all the persons who died were above the age of twenty-one years, the number of persons annually arriving at that age must be equal to the annual number of deaths, to keep the population stationary. But the greater part die under the age of twenty-one, and therefore the number of persons annually arriving at twenty-one will be less than half the number of deaths.

The whole number of deaths upon a population of seven millions and a half will be about 220,000 annually. The number arriving at twenty-one years of age will be about 100,000. The whole number of these will not receive the proposed fifteen pounds, for the reasons already mentioned, though, as in the former case, they would be entitled to it. Admitting then that a tenth part declined receiving it, the amount would stand thus:
Fund annually                                      £ 5,666,666
To 400,000 aged persons at L10 each £ 4,000,000
To 90,000 persons of 21 yrs., L15 ster. each £ 1,350,000
--                                                        £ 5,350,000
Remains                                                  £ 316,666

There are. in every country, a number blind and lame persons totally incapable of earning a livelihood. But as it will always happen that the greater number of blind persons will be among those who are above the age of fifty years, they will be provided for in that class. The remaining sum of L316,666 will provide for the lame and blind under that age, at the same rate of L10 annually for each person.

 

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