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Mar 22, 2006

Henry George





"What is necessary for the use of land is not its private ownership, but the security of improvements. It is not necessary to say to a man, 'this land is yours,' in order to induce him to cultivate or improve it. It is only necessary to say to him, 'whatever your labor, or capital produces on this land shall be yours.' Give a man security that he may reap, and he will sow; assure him of the possession of the house he wants to build, and he will build it. These are the natural rewards of labor. It is for the sake of the reaping that men sow; it is for the sake of possessing houses that men build. The ownership of land has nothing to do with it."--Henry George

Henry George (9/2/1839-10/29/1897) was born in Philadelphia, the second of ten children of a poor, pious, evangelical Protestant family. His formal education was cut short at 14 and went to sea as a foremast boy on the Hindoo, bound for Melbourne and Calcutta eventually making a complete voyage around the world. Three years later, he was halfway through a second voyage as an able seaman when he left the ship in San Francisco and worked at various occupations (including gold mining) and eventually went to work as a journeyman printer and occasional typesetter before turning to newspaper writing in San Francisco including four years (1871-1875) as editor of his own San Francisco Daily Evening Post. George's experience in a number of trades, his poverty while supporting a family, and the examples of financial difficulties that came to his attention as wage earner and newspaperman gave impetus to his reformist tendencies. He was curious and attentive to everything around him.

"Little Harry George" (he was small of stature and slight of build, according to his son) was fortunate in San Francisco; he lived and worked in a rapidly developing society. George had the unique opportunity of studying the change of an encampment into a thriving metropolis. He saw a city of tents and mud change into a town of paved streets and decent housing, with tramways and buses. As he saw the beginning of wealth, he noted the appearance of pauperism. He saw a degradation forming with the advent of leisure and affluence, and felt compelled to discover why they arose concurrently. As he would continue to do as he struggled to support his family in San Francisco following the Panic of 1873.
Dabbling in local politics, he shifted loyalties from Lincoln Republicanism to the Democrats, and became a trenchant critic of railroad and mining interests, corrupt politicians, land speculators, and labor contractors. He failed as a Democratic candidate for the state legislature, but landed a patronage job of state inspector of gas meters (which allowed him time to write longer expositions).
As Alanna Hartzok has pointed out, Henry George's famous epiphany occurred

"One day, while riding horseback in the Oakland hills, merchant seaman and journalist Henry George had a startling epiphany. He realized that speculation and private profiteering in the gifts of nature were the root causes of the unjust distribution of wealth."
His son, Henry George, Jr., said
"...Henry George perceived that land speculation locked up vast territories against labor. Everywhere he perceived an effort to" corner" land; an effort to get it and to hold it, not for use, but for a"rise." Everywhere he perceived that this caused all who wished to use it to compete with each other for it; and he foresaw that as population grew the keener that competition would become. Those who had a monopoly of the land would practically own those who had to use the land."
"...in 1871 [he] sat down and in the course of four months wrote a little book under title of"Our Land and Land Policy." In that small volume of forty-eight pages he advocated the destruction of land monopoly by shifting all taxes from labor and the products of labor and concentrating them in one tax on the value of land, regardless of improvements. A thousand copies of this small book were printed, but the author quickly perceived that really to command attention, the work would have to be done more thoroughly.
Over the next several years, George devoted his time to the completion of his major work. In 1879, finding no publisher, he self-published Progress and Poverty (500 copies), and issued the following year in New York and London by Appleton's after George transported the printing plates to them. The plates were then taken by Appleton's and the book soon became a sensation, translated into many languages and assured George's fame, selling over 3 million copies.
At the heart of his critique of Gilded Age capitalism was the conviction that rent and private land-ownership violated the hallowed principles of Jeffersonian democracy and poverty was an affront to the moral values of Judeo-Christian culture. Progress and Poverty was “an inquiry into the cause of industrial depressions and of increase of want with increase of wealth.” In the fact that rent tends to increase not only with increase of population but with all improvements that increase productive power, George finds the cause of the tendency to the increase of land values and decrease of the proportion of the produce of wealth which goes to labor and capital, while in the speculative holding of land thus engendered he traces the tendency to force wages to a minimum and the primary cause of paroxysms of industrial depression.
The remedy for these he declares to be the appropriation of rent by the community, thus making land community owned and giving the user secure possession and leaving to the producer the full advantage of his exertion and investment. This notion of the single tax (the term which the successful attorney and free-trade advocate, Thomas G. Shearman (who, along with C.B. Fillebrown, led the more hard-core, pro-free market position within the single tax movement--although later to falter), gave to George's solution.
George moved his family to New York in 1880 due to the demands as writer and lecturer. In 1881 he published The Irish Land Question, and in 1883-4 he made another trip at the invitation of the Scottish land restoration league, producing on both tours a strong international interest in his ideas. In 1886 he was the candidate for the United labor party for mayor of New York, and received 68,110 votes against 90,552 for Abram S. Hewitt (Democrat), and 60,435 for Theodore Roosevelt(Republican). In 1887, George founded the “Standard,” a weekly newspaper (1887-92). He also published Social Problems (1884), and Protection or Free-Trade (1886), a radical examination of the tariff question, An Open Letter to the Pope (1891), a reply to Leo XIII's encyclical The Condition of Labor; A Perplexed Philosopher (1892), a critique of Herbert Spencer and, finally, his The Science of Political Economy (1897), begun in 1891 but uncompleted at his death, when he was running for Mayor of New York one final time.
George's legacy has been long and vibrant over the last century, leading to utopian communities, legislators, economists and political activists of all sorts. This is a mixed legacy which one can argue both positive and negative influences. But it cannot be ignored.
Just a thought.
Just Ken
CLASSical Liberalism



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Wade Ogletree - 6/28/2006

Get a taste of Fairhope history (via historic photography) at hometownfairhope.com. http://hometownfairhope.com

Wade

P.S.--I tried saying as much in my signature above, but I'm just learning how this particular system works.


Wade Ogletree - 6/28/2006

Since you're asking about Katrina, this response is probably a bit late...but here it is. Fairhope was on the outer edge. This was not a storm you wanted to be in the middle of. Inland areas did well. Waterfront was hit hard. The Fairhope Pier was completely submerged. The news reported it was gone. It is still being repaired as I write this, at the beginning of a new hurricane season.

Wade Ogletree
kgregglv@cox.net
http://classicalliberalism.blogspot.com/


kgregglv - 9/4/2005

Thanks Kevin!
I've been wondering how badly Fairhope was hit by Katrina. It appeared to be right in the middle of the mess!

Fairhope is a community, like Arden Delaware, which I've taken an interest in over the years due to its georgist connections. It's known for its beauty and I've thought that if I were to move to the South, it's one of the places that I would be interested in.

As you probably know, there are a number of books which have been written on Fairhope's history and the origins of the Fairhope Single Tax Corporation. It's quite an interesting experiment which has lasted far longer than most and much more successful.

Just a thought.
Just Ken


wmarina - 9/4/2005

Why would anyone mix their labor, and invest other kinds of capital to improve the productivity, or even beauty, of a piece of land upon which they did not hold a sound title?
In the case of Fla., where I developed properties thru my const. co., every piece of land I had traced back to 1819 and the King of Spain.
I'll be damned if I would have done any of the development with the uncertainty that he, or the federal gov't might claim it somewhere along the line.


Carrie-Ann Biondi Khan - 9/4/2005

Interesting town; thanks for the info! I am unclear, though, as to when your centennial was celebrated. Do you mean 1984, or 1994, or a different year?


Kevin Vallier - 9/4/2005

Strangely enough, I hail from Fairhope, Alabama, the largest single surviving single-tax colony. Our town was founded by a group of Georgists from Iowa, and is absolutely gorgeous (and is situated on a bluff 300-feet above the sea-level of Mobile Bay, so we do well during hurricanes). Within the inner city limits, the Fairhope Single Tax Corporation owns all the land and lends it to people for 99-year periods. The land fees still comprise a large portion of the city's revenue - and when rents are collected the FSTC gives a large majority of the money to the city. They donate large swaths of land for public projects like new libraries, schools, parks, and sidewalks and the city employees are very responsive to the needs of the citizenry, often bringing down city equipment to help citizens cut down tree limbs they can't reach, or to pick up trash.

Basically, our city government is a Hayekian Superlandlord that was set up voluntarily by the city's founders. I see no objection that a libertarian can make to the way my home is set-up and it has really reaped the benefits. Most of our town has resisted the crushing blow to development that the interstate system was. Travel there sometime; it is actually a real, surviving small town in much of the original town territory.

On our main bluff, we have an obelisk dedicated to George - three sides with three incriptions titled "Land", "Labor", and "Capital". We celebrated our centennial in 1894.

Voluntary Georgism is mildly confused, in my view, but appears to have good results.


Mark Brady - 9/4/2005

"dynamist", not "dynamicist"!


kgregglv - 9/4/2005

Quite true David.

He was, in Virginia Postrel's terminology, a "dynamicist." One of the great strengths that George had was in looking at the marketplace as an ever-changing process in which the government must stay away from setting any restrictions or controls over individual entrepreneurship, whether on an international scale, as in his "Protection or Free Trade," or in a local setting.
Just a thought.
Just Ken
kgregglv@cox.net


David T. Beito - 9/4/2005

Interestingly, George criticized the attempt to impose density restrictions and other restrictions on tenement housing in New York the during the 1890s. He argued that these laws would raise rents and limit housing for the poor.