IN socialism as distinguished from individualism there is an unquestionable
truth — and that a truth to which (especially by those most identified
with free-trade principles) too little attention has been paid. Man is primarily
an individual — a separate entity, differing from his fellows in desires
and powers, and requiring for the exercise of those powers and the gratification
of those desires individual play and freedom. But he is also a social being,
having desires that harmonize with those of his fellows, and powers that
can only be brought out in concerted action. There is thus a domain of individual
action and a domain of social action — some things which can best be
done when each acts for himself, and some things which can best be done when
society acts for all its members. And the natural tendency of advancing civilization
is to make social conditions relatively more important, and more and more
to enlarge the domain of social action. This has not been sufficiently regarded,
and at the present time, evil unquestionably results from leaving to individual
action functions that by reason of the growth of society and the developments
of the arts have passed into the domain of social
action; just as, on the other hand, evil unquestionably results from social
interference with what properly belongs to the individual. Society
ought not to leave the telegraph and the railway to the management and control
of individuals; nor yet ought society to step in and collect individual debts
or attempt to direct individual industry. — Protection or Free
Trade, Chapter 28 econlib
THE primary purpose and end of government being to secure the natural rights
and equal liberty of each, all businesses that involve monopoly are within
the necessary province of governmental regulation, and businesses that are
in their nature complete monopolies become properly functions of the State.
As society develops, the State must assume these functions, in their nature
co-operative, in order to secure the equal rights and liberty of all. That
is to say, as, in the process of integration, the individual becomes more
and more dependent upon and subordinate to the all, it becomes necessary
for government, which is properly that social organ by which alone the whole
body of individuals can act, to take upon itself, in the interest of all,
certain functions which cannot safely be left to individuals. — Social
Problems — Chapter
17, The Functions of Government
IT is not the business of government to make men virtuous or religious, or to
preserve the fool from the consequences of his own folly. Government should be
repressive no further than is necessary to secure liberty by protecting the equal
rights of each from aggression on the part of others, and the moment governmental
prohibitions extend beyond this line they are in danger of defeating the very
ends they are intended to serve.— Social
Problems — Chapter
17, The Functions of Government
ALL schemes for securing equality in the conditions of men by placing the distribution
of wealth in the hands of government have the fatal defect of beginning at the
wrong end. They pre-suppose pure government; but it is not government that makes
society; it is society that makes government; and until there is something like
substantial equality in the distribution of wealth, we cannot expect pure government. — Protection
or Free Trade, Chapter 28 econlib
... go to "Gems from George"
Q22. What is privilege?
A. Strictly defined, privilege is, according to the Century Dictionary, "a
special and exclusive power conferred by law on particular persons or classes
of persons and ordinarily in derogation of the common right."
Q23. What is today the popular conception of privilege?
A. That it is the law-given power of one man to profit at another man's expense.
Q24. What are the principal forms of privilege?
A. The appropriation by individuals, or by public service corporations, of
the net rent of land created by the growth and activity of the community
without payment for the same. Also, the less important privileges connected
with patents, tariff, and the currency.
Q25. Where in does privilege differ from capital?
A. Capital is a material thing, a product of labor, stored-up wages; an instrument
of production paid for in human labor, and destined to wear out. Capital
is the natural ally of labor, and is harmless except as allied to privilege.
Privilege is none of these, but is an intangible statutory power, an unpaid-for
and perpetual lien upon the future labor of this and succeeding generations.
Capital is paid for and ephemeral. Privilege is unpaid for and eternal. A
man accumulated in his profession $5,000 capital, which he invested in land
in Canada. Ten years later he sold the same land for $200,000. Here is an
instance of $5,000 capital allied with $195,000 privilege. This illustrates
that privilege and not capital is the real enemy of labor.
Q26. How may franchises be treated?
A. Franchise privileges may be abated, or gradually abolished by lower rates,
or by taxation, or by both, in the interest of the community.
Q27. Why should privilege be especially taxed?
A. Because such payment is fairly due from grantee to the grantor of privilege
and also because a tax upon privilege can never be a burden upon industry
or commerce, nor can it ever operate to reduce the wages of labor or increase
prices to the consumer.
Q28. How are landlords privileged?
A. Because, in so far as their land tax is an "old" tax, it is a
burdenless tax, and because their buildings' tax is shifted upon their tenants;
most landlords who let land and also the tenement houses and business blocks
thereon avoid all share in the tax burden.
Q29. How does privilege affect the distribution of wealth?
A. Wealth as produced is now distributed substantially in but two channels,
privilege and wages. The abolition of privilege would leave but the one proper
channel, viz., wages of capital, hand, and brain.
Q26. How may franchises be treated?
A. Franchise privileges may be abated, or gradually abolished by lower rates,
or by taxation, or by both, in the interest of the community.
Q37. Does the single tax imply or involve the municipalization of public
utilities?
A. No. A public franchise value is a land value which the single tax would
assess at the same rate as other land values. The municipalization of the
public utilities themselves is a different question, and is no necessary
part of the single tax.
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