| My
Thoughts for a Georgist Agenda |
| [Prepared for
presentation at the annual Council of Georgist Organizations
conference, held in Albuquerque, New Mexico, July, 2004] |
I have counted myself a Georgist only since 1993; I'm a tyro compared
to most of the people in this movement. I can actually date the time and
place when I very suddenly and strongly "saw the cat." It was
at the Los Angeles CGO meeting where Mason Gaffney put on a three-day
program that appealed to every part of me - its intellectual challenge,
its elementary decency, and its community of adherents. On a hunch,
Steve Cord said he'd pay my way out there, just to get me to go. My "conversion
experience," if you could call it that, was so profound that I
resolved shortly thereafter to devote the rest of my life to the
advocacy and implementation of our idea.
I was nonetheless very realistic in my decision to invest in this
movement. By nature, and throughout my life, I've been an irrepressible
reformer. I was one of the first Peace Corps Volunteers in 1962; that
experience sandwiched between my undergraduate and graduate study in
political science. But I've always elected to be part of social causes
that had a fair chance of success - I was very early on part of the
anti-smoking movement; I was for a decade a leader of the Hemlock
Society at both the state and national level; and I've joined the
Georgist cause with the same confidence that we will be successful.
When I departed from service to the New York State Legislature in 1992,
it was after working for a decade in a back-room capacity advising the
Assembly Speaker on tax policies. But I differed much from my office
colleagues in my belief that fiscal measures were as important an
instrument to effectuate other public choices as they are for raising
money. The other five seemed focused largely on comparative revenue
streams; I was concerned about measures of neutrality, efficiency,
equity, administrability, and so on. Perhaps it was comparing various
tax designs against what are the venerable textbook principles of sound
tax theory that ultimately brought me to the view that there was
something very right about taxing land value. I understood inelasticity,
but I had not yet grasped the concept of economic rent!
I came to regard the Georgist agenda as reachable, perhaps because I
was new to it. Perhaps because I haven't witnessed decades of seeing it
ignored, pushed aside, and discarded, I saw it as fresh, appealing, and
even demonstrable. I came to Georgism at a very crucial time: data and
computer power were just beginning to make possible the empirical
demonstration of its claims in a palpable and cogent way. Transportation
costs and sprawl development were becoming focuses of concern. For
decades Georgist claims were only plausible hypotheses, claims which,
even if sound in economic theory, were only that: they were beyond the
range of being tested. Now, for the first time, the massive databases of
cities, states and even national governments could be used to suggest,
if not actually to prove, the validity of these assertions. It was
possible now, and increasingly so, to show who would "win" and
who would "lose" in a Georgist economic regime. It was
possible, even more importantly, to show where taxes on land value would
be increased or decreased, thereby portraying in urban environments the
sweeping effects of such policies. Graphical mapping, the emerging
technology applications called GIS (geographical information systems),
now made it possible to show the power of taxation as an instrument of
policy. I could show not only where more favorable choices could be
induced, but - just as importantly - where distortions had been wrought
by fiscal policies that were destructive to community, to health, and to
prudential fiscal management. I could even identify potential new
sources of revenue that are to this day untapped, tax bases like the
spectrum that actually improve economic performance rather than dampen
it. It was all these considerations, which I could see very plainly
emerging, that led me to want to invest heavily in demonstrating the
value, the justice and the wisdom of the Georgist philosophy.
I have tried in the twelve years of my involvement in this movement to
play a small role in its promotion. I have, for example, tried to
demonstrate empirically that infrastructure investments can be paid for
by the recovered economic rent in proximate locations. My study of what
transportation people call "value capture," made it into the
American Journal of Economics and Sociology, and has since been
cited to endorse a later project in London. I took the assessment roll
of Tompkins County in upstate New York and portrayed the differential
gradients in a land "valuescape," something now being done far
more proficiently by Tony Vickers in the UK. I ran one of the first
simulations of how a shift from the conventional property tax to a land
tax would play out among various titleholders in a community, and have
now seen it become a standard exercise done for local governments by
Josh Vincent and the Center for the Study of Economics. By collecting
aggregate data on thousands of assessment districts throughout the USA,
I have been able to demonstrate the relative constancy of the land value
proportions from one municipality to another. Showing graphically that
the aggregate proportion of land value in a municipality is typically
between 40 and 50 percent, I have been able to show that there is indeed
a rich tax base from which cities can draw, and that there is no reason
at all for urban officials to lament the emptiness of their public
coffers. With Michael Hudson, a Georgist with a far greater
understanding of economics than I have, I am working on demonstrating
that the amount of economic rent available to support of the American
public sector is easily adequate for the purpose, a figure that we know
will belie the official government figure of only 2 percent of the GDP.
All these empirical studies are quite amateurish; I am by no means
sophisticated with databases and statistics. But I am trying in my own
modest way to show that there is every reason for us to be excited about
the prospect of Georgist agendas being implemented within my lifetime.
Philosophers take pains to show that "ought implies can."
That is to say, one cannot argue that one should do something unless it
is clear first that it can be done. Only now, for the first time, can we
Georgists demonstrate that what we argue for is indeed doable:
technically, administrably, economically, and politically. This is
really exciting. If first we are able to show the technical feasibility
of our ideas by sound empirical studies, we are then in a far better
position to argue their compelling justice. Until recently, we tended to
dwell almost totally on the justice issue, and had only a few books and
articles showing the economic desirability they have. But we are on the
cusp of being able to demonstrate, massively, the value of the truths we
believe. It is an exciting time to be a Georgist.
A last reason why we Georgists should be excited about our future is
that we hold the key to a revitalized basis of an intellectually
bankrupt Democratic Party in the US and for many other political parties
worldwide. At a time when a crude and amoral capitalism is feeding
Republican thought, and a tired and overworked socialism hangs on in
more progressive circles, we Georgists indeed reflect the "Third
Way!" Yet Georgist thought has a place in Republican thought too -
the idea of eliminating taxes on labor and capital should resonate well
in those circles. Our ideas stand for sound principles of economic
justice, just as strongly today as they did in Henry George's time. They
offer the answer to questions on how to support public services at a
time when a revolt against conventional tax designs is sweeping the
country and indeed the world. They provide a deft and subtle means by
which to foster environmental goals without the heavy hand of police
powers, litigation, and the costly economic burdens that typically go
along with such instruments. And lastly they offer a clear, coherent,
and sound belief system that political leaders can grasp and purvey in
an inspiring and defensible way. With the right set of data, graphics,
moral arguments and sound bites, there is no reason why it can't spread
like the proverbial wildfire of a grassroots movement. It could happen
at any moment. We are poised shortly for a skillful and imaginative
political figure to grasp what we have to offer. Our material is
increasingly out there; it is our task to make it cogent and known to
them, so that it is readily understood. We need to be ready at any time
for that event, for it could come momentarily. When it comes, we should
be prepared; all our forces should be at the ready to seize the day.
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