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The Void in College [Economics]
Curricula |
| [Reprinted from The
Freeman, September, 1939] |
This is the first of a series of
three articles by Professor Brown under the general title "The
Void in Our College Curricula." The three articles will be
reprinted as a pamphlet in which a page will be devoted to an
announcement of the correspondence course in fundamental
economics, and another page will advertise the classes. Copies
will be mailed to college and high school instructors, as well as
to students. Readers who would like to help this, project are
requested to send names of people to whom they would like to have
copies of the pamphlet sent. One dollar will cover the cost of
printing and mailing twenty-five pamphlets.
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Do you really want to understand the economics of location or site
value? Do you want to face frankly and hear discussed without
embarrassed withholding of vital considerations the question of the
right to use natural resources? Do you want to examine in all of its
significant aspects, the economic consequences of the fact that, in our
existing system of property and taxation, a majority must pay to a
comparatively few, billions of dollars a year for community-produced
location advantages, -- i.e., for permission to work and to live on the
earth in those locations where such advantages are available? And do you
want to gain a full understanding of the consequences to be expected
should government, by taxation, appropriate this annual
community-produced location value as a first source of revenue for
public expenditures?
If you really desire a full comprehension of this problem, you should
probably take one or more courses in The Henry George School of Social
Science.
I do not mean to say that you can learn about the problem nowhere else.
There are teachers of economics in a few of our universities and
colleges who do really give their classes assignments on the problem and
even, perhaps, take some pains to make them analyze the principles
involved in its solution. But this is not generally the case. In most
colleges and universities the student will either never have his
attention called to the subject at all, or he will be offered the
briefest summary, not in the least calculated to make him understand
what can be said in favor of the taxation of land values, followed by a
"refutation," but with no mention at all of considerations
which have again and again been presented in rebuttal.
Not long ago the very "liberal" St. Louis Post Dispatch
editorialized, with apparent satisfaction to the editorialist, on the
inability of a certain conservative organization to stamp out sentiments
of criticism and protest among college students. After commenting on the
persistence of socialistic and communistic groups the editorial
continued: "Here and there, even, an occasional single taxer is
found boring from within some department of economics." The
implication (though emphasis is my own) seems clear enough that the
land-value tax philosophy gets definitely less adherence than the
philosophy of socialism or of communism which, in turn, has the
adherence of a comparatively small minority.
At least one economist tells us that, in matters on which there is
controversy among his fellows, he has sought to be "meticulously
objective." He appears to believe that he can thus avoid any
suspicion of being a propagandist. But, in truth, fair suspicion of
being a propagandist or, at least, a near-propagandist, is not to be so
easily avoided. "Propaganda" may express itself in the very
selection of topics for presentation; in determining how much space to
allot, relatively, to the affirmative and to the negative side of an
argument; in deciding which view is to' have the last word; in the
somewhat disingenuous neglect to make perfectly clear to readers or
listeners the grounds upon which the intelligent opposition would rest
its case, -- and, after all, who of us does not strive harder to make
clear the arguments for belief s we ourselves hold than the arguments
for beliefs which, rightly or wrongly, we disapprove? "Propaganda"
may express itself in the easy acceptance and uncritical presentation of
arguments which even a little analysis would show to be invalid or
irrelevant. Indeed, silence may sometimes be "propaganda," if
not by formal definition at least in practical effect.
Under the circumstances, with a majority of professors of economics
seemingly unfriendly to the most essential elements in Henry George's
economic philosophy, it is hardly to be wondered at that this philosophy
does not receive a complete presentation --when it receives any
presentation whatever -- in most institutions of the so-called "higher
learning."
An interesting example of the type of argument presented by wellknown
academic economists against the view that the rental value of sites and
natural resources should go to the public, is to be found in Public
Finance (2nd edition) by Harley Leist Lutz of Princeton University.
Professor Lutz, discussing the local use of the "single tax"
in cities of Northwestern Canada, says that "the taxes on land
value were a fairly satisfactory source of support as long as the
community making use of it was growing and its land values were rising,"
but contends that this method of taxation "ceased to be
satisfactory as soon as the peak of land value inflation was reached"
and refers, with apparent approval, to the "reaction against a
narrow tax base."
Commenting on this discussion in my book on The Economic Basis of
Tax Reform, in 1932, I pointed out that whether land values are
increasing is not the matter of chief importance in deciding whether the
tax "base" is too "narrow" to yield adequate revenue
to the public, but that the real question is whether the total annual
economic rent is sufficiently great; and that, so long as a land-value
tax leaves to private owners any considerable amount of economic rent,
there is no sense in calling the tax base too narrow. And I further
pointed out that even if such a source did prove to be inadequate from
the point of view of securing sufficient revenue, this would be no
argument against relying on it for as much revenue as it could be made
to yield.
I then remarked on the fact that, in a book on public finance extending
to 750 pages and treating at length various kinds of taxes and taxing
systems, Professor Lutz was able to spare scarcely more than three pages
for a consideration of land-value taxation, and that the major part of
these three pages was given over to a brief discussion of a temporary
exemption of new dwellings in New York State, leaving only one page --
the page on which the land-value taxes in Northwestern Canada were
discussed! -- that is really devoted to the land-value-tax program.
The sequel is interesting. Perhaps -- who can tell! -- it is even
significant. Recently Professor Lutz brought out a new edition (the 3rd)
of his book, considerably enlarged. The new edition contains not just an
insignificant 750 pages, but 940 pages, covering numerous and varied
ideas and practices in government finance and taxation. But of the
problem of land-value taxation or of the arguments in support of such
taxation or of reference to Henry George who so effectively pleaded for
this reform, there is now not a single sentence. The criticism of the
use of the "single tax" in Northwestern Canada, on which I
commented in my book is neither revamped nor further developed. It has
simply disappeared. And with it, unless in my search I have
inadvertently overlooked it, has disappeared all reference to the single
tax or to any special taxation of land values.
And so the student at Princeton University -- or at any of the colleges
where Lutz's now massive book is the chosen text -- who takes a year's
course in public finance based on this text, can easily, however
faithfully he works at his assigned lessons, come out at the end utterly
unaware that anyone, anywhere, has ever suggested either the exclusive
or, even, the especially high taxation of land values.
If not all text books in public finance and taxation ignore the issue
thus thoroughly, it is certainly the case that various others give it
only a tiny bit of attention. It is altogether probable, therefore, that
the typical college student who pursues one or more courses in public
finance or taxation for a semester or for a year in the typical American
university or college, finishes his course with not a glimmer of
understanding of the "single tax" or land-value-tax theory,
although, indeed, he may imbibe a prejudice which will prevent his ever
thereafter giving it serious consideration; and frequently enough -- as
when the course is based on Lutz's text or some other text of similar
nature -- he finishes with no awareness that there is any such theory.
Is it not reasonably clear that teachers who use such texts, unless
with extended supplementing, are altogether willing -- even if not
positively desirous -- that the land question shall be entirely omitted
from consideration?
In view of the large number of teachers and educational institutions
whose courses in public finance fit one of the descriptions above, has
not The Henry George School of Social Science a task fully as important
in educating college graduates as in educating those who have never
attended college?
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