.
Line Between Unjustly Rich, Poor is
Erasable |
| [Reprinted from the
Illinois Georgist, Vol.5, No.1, Winter 1993] |
It's "in" to soak the rich and give handouts to the poor. But
who are the rich? And who are the poor?
Aren't we ignoring basic justice? Who is enriched justly, who unjustly?
And who's impoverished justly, who unjustly?
Let's consider:
1) The Rich
1.1) The Justly Rich
The justly rich are those who work and produce, and thus earn. They
give full value for value received. Henry Ford made millions, and yet
for every $285 an original customer paid him, he provided a $285 Ford.
Both he and each customer were better off after every transaction
because each had satisfied a previous unfulfilled desire.
1.2) The Unjustly Rich
The unjustly rich are those made wealthy without productive effort, by
pocketing wealth produced by others. Illegally gained wealth (via theft,
fraud, drug traffics or "Insider trading") is the most
obvious.
But those unjustly enriched within the law are the most Insidious and
the most scary. Most notable are the land speculators, who acquire
unused or underused locations at low prices (or even for free, through
government grants"), then sit on them watching their values
escalate as the community builds up around them.
Think of It. The surrounding public creates the location values, then
the title-holders pocket them without lifting a finger.
2) The Poor
2.1)The Justly Poor
The justly poor are those who "want It that way". Their
poverty Is voluntary. (Witness the numbers of people who refuse to work
productively, preferring to beg and otherwise follow poverty as their
chosen lifestyle.) Leave them alone. It's their "right to choose".
2.2)The Unjustly Poor
The unjustly poor are those honest and able-bodied who want to produce
and earn, but cant find jobs or have no access to land on which they
could exert their labor and eke out a living from the soil.
The plight of the landless Is due to the fact that alt of the earth
from which they could produce is "owned" -- some, of course,
by people who produce wealth from it, and thus earn. But vast areas are
held out of use by land speculators whose Idea of "earning"
consists simply of doing nothing at all.
There are "gray" areas, of course. A person is entitled to
all he/she can earn by working/producing. But it's obscene to let the
same person, who also owns unused locations, pocket the unearned wealth
from escalating location values produced by the surrounding community.
The community is robbed not only of the location values it produces,
but also, through confiscatory taxation of large chunks of what it
collectively produces through honest labor.
Let's design our public revenue system to erase the ever widening gap
between the unjustly rich and the unjustly poor. We can accomplish this
by ensuring that Individuals keep ail the products of their labor, and
the community keeps, as public revenue, what the public produces as
location values. This could replace all penalty-type taxes.
We can start by adjusting our revenue system to permit collecting
public revenue via raising charges for owning valuable locations, while
at the same time reducing (eventually to zero) the confiscatory "taxes"
on buildings and improvements.
After that, we can continue to raise charges on locations, as necessary
to meet budget requirements, and gradually eliminate penalty-type "taxes"
on Income, gasoline, all sales and everything else.
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