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| Why
Georgists Should be Green -- and Greens Georgist |
| [Reprinted from Land
& Liberty, May-June 1987] |
THE "Green"
philosophy, which expresses a practical concern for man's ecology, is
now the principal plank of new political parties in many countries.
Its advocates argue that man can no longer treat the resources of
nature at limitless.
DR. ROY DOUGLAS, a senior lecturer at the
University Of Surrey, argues that the time has come to synthesise the
Green philosophy with the older Georgist philosophy. He maintains that
the Georgist philosophy interprets problems in the economic terms
which are likely to be comprehensible and acceptable to the
materialistic, technologically-advanced societies; while the "Green's"
considerations, which are vital to human survival, can escape people
who focus too sharply on economic questions.
Dr. Douglas, the author of books on the history of the British
Liberal Party and the Second World War, maintains that these two
philosophies cannot be made to work satisfactorily without constant
reference to each other.
GEORGISTS are followers of the American political and economic
philosopher Henry George (1839-1897). George's teachings cover a wide
range of ideas, but at their root is the notion that land - a
term used to mean roughly the same as "natural resources" - is
fundamentally different from human labour and the products of human
labour.
He argued that all human beings have an equal right of access to land,
but that wealth produced by human labour should be left, so far as
possible, to those who have produced it.
Traditionally, Georgists have proposed to apply these ideas principally
by imposing a lax on the unimproved value of land over which a
particular individual claims "ownership". The value of
improvements to land - buildings, crops, etc - would not be taxed.
Many Georgists believed, and some still do believe, that collection of
the full annual value on all sites would suffice to supply all public
revenue, and all other taxes would eventually disappear. They are deeply
suspicious of the actions of all governments of all complexions, and
seek - so far as possible - to produce desired effects by a
self-regulating system with minimal coercion.
Georgists and Greens alike approach their doctrines from both economic
and moral angles, and to some extent from an aesthetic perspective.
These different approaches lead to the same, and not to mutually
exclusive, conclusions.
THE RATE at which human activity is damaging the natural environment
has increased greatly in the last 100 years, and all pointers suggest
that the rate of damage is likely to become much greater in the future.
There are various reasons for this. The number of people is growing
more rapidly. Technology provides an increasing power to change the
environment, and more people in all societies - "developed"
and "developing" alike - are coming to demand and expect
steadily rising material standards of life. Extrapolation of these
processes is likely to produce permanent environmental damage at an
ever-increasing rate unless drastic changes in attitudes and policies
are made at every level, from village communities through nation-states
to world-wide bodies like the United Nations.
Does all this imply a radical revision or abandonment of the
traditional Georgist position? The taxation of land values is not merely
consistent with "Green" concern for environmental questions,
but is an important aid towards objectives which environmentalists
entertain. This policy would encourage the owner of land to make best
use of his holding.
- The owner of a vacant city lot would have no incentive to keep
land vacant for speculative purposes while others who need that land
press avidly on rural areas. For the rate or tax carried by the
blighted site would be the same if it were developed. Nobody could
afford to hold expensive urban land out of use. Suburban "infilling"
would be encouraged, which reduces the pressure on the countryside.
- Land value taxation would also have a profound and beneficial
effect on the use of rural land. The present system has encouraged
the development of great farms with huge, hedgeless, fields. These
produce a high yield per pound invested when no tax is carried for
occupation of the land; but the value of food produced per acre is
nearly always a great deal less than that yielded by small family
farms, intensely cultivated for many different kinds of produce, and
often well-supplied with hedges which encourage wild life. As the
land value tax is the same for a particular piece of land whether it
is put to its most productive use or not, a farmer employing land to
less than its highest productivity would soon find himself unable to
afford the tax, and would therefore relinquish land to others who
would use it intensively.
YET IN some cases positive protection for wild life and natural
environments would be required. In many places, rare habitats are
threatened, and species of living organisms living upon them are
threatened with complete extinction. Land will be vital for future
generations as well as our own; and we have no right to diminish the
inheritance which we pass to our successors. "Land", in the
sense here used, includes wild organisms with their irreplaceable
genetic material, as well as the ground over which they roam.
Preservation of what is irreplaceable is a high obligation on all
public authorities, even where this preservation necessitates the
imposition of limits upon an owner's right to use his land as he
pleases. The landowner, in Georgist philosophy, has no absolute moral
title to his land, in the sense in which he has an absolute title to the
produce of his labour. He occupies land as the result of a transaction
between himself and the community, whose terms are renewable at
intervals.
The community, the rightful owner of all land, may legitimately
impose whatever terms it chooses for recognition of his occupation
rights, just as a man who lends a chattel to another may legitimately
impose whatever conditions he chooses as to its use.
Applying these principles to actual cases, a landholder on the edge of
a growing city whose land is restricted by law to arable, pastoral or
sylvan use will naturally be assessed, other things being equal, at a
lower tax than a similar landholder who is free to use his land for
building purposes. Circumstances could well arise where the holder of a
piece of land carrying developments such as buildings which are no
longer of beneficial use to him because the land which carries them has
been zoned for different kinds of use, might be morally entitled to
compensation in respect of those improvements.
This principle may become increasingly relevant in the future as "national
parks" become increasingly important for nature conservation.
In many parts of the world, permanent and irreplaceable damage has
already been done to land, and much more is threatened in future. The
removal of trees, followed by loss of topsoil and the creation of "dustbowls",
is a familiar example.
It is very likely impossible to obtain compensation today from those
who have raped the earth in such a manner; but it is not impossible to
develop national and international law to prevent similar damage in
future. As land belongs by right to the community and not to the
individual occupier, the community has the right to collect from any
individual who permanently damages land the value which he has
destroyed.
This principle will need to be applied increasingly not only in respect
of resources like tropical forests but extractive industries as well.
Irreplaceable fossil fuels, for example, are being depleted with great
speed; while the extraction process often does much ecological and
aesthetic damage. By imposing some kind of penalty on those who leave
land in a less valuable condition than it was when they entered it, the
development of renewable energy sources will be encouraged, and
permanent environmental damage discouraged.
A VERY large part of the human race is still compelled to labour in
onerous conditions for mere subsistence. Great numbers are dying of
starvation and avoidable diseases, and are incapable of improving their
plight by useful labour.
A "north-south" tension is being created, whose long-term
implications and risks cannot be missed by anybody with the slightest
sense of history. The deprived parts of the world will not consent to
this condition continuing for ever. Sooner or later they will demand
equality with the "developed" parts of mankind. There is a
race against time to ensure that the change should take place
peacefully, and not through violence.
The Georgist has frequently pointed out that extreme conditions of
human deprivation are seldom "natural". Communities in barren
lands seldom experience the extremes of deprivation which have
characterised some of the richest and most fertile lands on earth. These
places where poverty is most marked are also, for the most part, places
where people are excluded from access to those resources which could
allay their poverty.
Governments of wealthy and powerful States would be well advised, in
their own interests, to take what action they can to deter their
subjects from actions which increase the poverty of their neighbours;
and they also ought to stimulate land reforms which would promote
greater social equality.
There is little to suggest that "land reform" which gave
deprived peoples access to land would result in further environmental
damage, and much to suggest the reverse. Tribes which were free to roam
the Amazon forest or the sub-Sahara at will seem to have done little
damage to their environments. The damage in recent years has been
primarily the effect of intervention by outsiders.
There are, of course, new problems resulting from population increases
which may necessitate considerable regulation of land use; but these
problems must be tackled primarily by the people themselves rather than
by outsiders.
The application of Georgist land reform to nomadic peoples presents
special problems, out these are not insuperable. In some places, nomadic
populations are in occupation because the land produces a better yield
from a nomadic economy than from any available alternative. There is no
problem in principle in assessing the value of such land, and requiring
a tribe, rather than an individual, to pay the tax.
In other places, it may be desirable for ecological or even though
other forms of land use would prove more productive for that land. In
such a case, public authorities could zone the land for nomadic use
only, which would automatically reduce its value (and therefore the tax
which it could command) to one which the nomads could afford to pay.
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