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| The
Philosophy of Henry George in 1957 |
| [Reprinted from the
Henry George News, August, 1957] |
LET'S take a flash-back, to the time when Henry George held forth, to
see what, if any, difference there was between the world in which he
moved and that of our time. We may thus judge for ourselves whether his
thinking and preachments are really outmoded as is sometimes charged.
The year 1879, I think you will agree, is a particularly good year to
serve as the basis of comparison.
I delved into some statistical data in preparation for this little
journey back into time. The closest year of the United States census to
1879 was the year 1880. The population then was 50,155,783. Today,
according to reliable estimates, it is 166 millions, perhaps more. What
is the significance of this vast increase in the number of people?
George said that with every mouth that came into this world there were
also two hands that went with it.
The enormous increase in the population of the United States has
engendered an unprecedented speculation in land sites, particularly for
industrial, commercial and residential uses. At this moment building
lots and acreage in and about cities and municipalities of all sizes
throughout the country are at their highest prices in history.
What about production? Our/ current economists speak' of it as the "gross
national product" and estimate it as about 420 billions of dollars
for this year. This is a far cry from the gross national product of
George's day, to be sure, but all the more reason now exists to
emancipate land - the source of all production - from the monopolistic
grasp of the land speculators.
This tremendous productive output incidentally, seems to confirm in
part George's refutation of the Malthusian thesis. Manifestly,
subsistence need not lag behind the growth of population.
Henry George has shown that the failure of organized society to collect
the economic rent of land necessitates the taxing of labor and the
products of labor. What about such taxation? Well, everyone knows the
amount of the so-called "Eisenhower Budget" for this fiscal
year. Something like 71 billions, isn't it? Back in George's era,
statistics show, the government expended the sum of approximately 256
millions a year which was only three-tenths of one percent of what
they're spending now. And that spending, by reason of the taxation which
it necessitates, comes largely out of the pockets of labor.
John Marshall an early Chief Justice of the United States Supreme Court
and one of the best, said that the power to tax is the power to destroy.
The destructive nature of our current tax policies is becoming
increasingly evident every day. I have observed in my experience as a
lawyer that business and financial ventures depend largely on the tax
consequences which are expected to ensue. Deals are made and deals fall
through solely because of the tax impact on the enterprise and on the
individuals involved.
It is paradoxical, but true, that corporations which have been losing
money are coveted by other corporations. The "tax loss," as it
is called, helps reduce the successful businessman's tax burden, and
this makes a failing business a desirable thing!
One need not be a historian or a sociologist to know that wars have
been caused by economic stress or economic disparity between the warring
nations. When Progress and Poverty was first published the Civil
War - or War of The Rebellion, if you prefer, had been over for 15 years
and the next war, the Spanish-American, was still some 19 years in the
future. Since then, the U. S. has been involved in three major wars and
the worst one of all is now being feverishly prepared for. Would it not
be the understatement of the year to say we are presently "at peace"?
What of the other evil consequences which unwanted poverty and economic
insecurity bring in their wake? What of the family and the home? I
thought it would be interesting to see what the marriage situation was
in Henry George's day as compared to the present. Well, curiously
enough, the rate of new marriages annually has remained the same. One
would have thought that there would be a greater percentage of people
entering matrimony in times like the present which are alleged to be so
much better economically. On the other hand, the rate of divorces
annually is very significant - back in 1890 it was 0.5 percent now it is
2.5 percent - a 500 percent increase!
Other vital statistics are similarly enlightening: The number of crimes
committed has increased approximately 27 percent since the turn of the
century - that is roughly four times as fast as population has
increased. Persons under 18 represent about half the number arrested for
theft of one sort or another. Crimes against property - that is,
robbery, burglarly, embezzlement and larceny - have taken a big jump
proportionately since Henry George's time.
A few weeks ago, I had occasion to attend a session of the night court
on Centre Street in Manhattan. I was struck by the relatively large
number of shoplifters that were picked up in the department stores and
the number of people who were arrested for trying to ride the subways by
putting a slug instead of a 15-cent token into the turnstiles. One
pathetic old man pleaded to be sent to jail so he could at least have a
"home." Now, this is the year 1957 I am talking about, not 80
years ago.
So my search has not revealed that economic distress or, better, the
fear of economic insecurity, has been ended for all time. It is still
very much with us today. Civilizations have been known to decline and
fall as the result of the prolonged impoverishment of the masses, and
the lack of incentive. For the moment, we are living in an era of
plenty, but it can mean plenty of trouble. With all the present-day
creature comforts, there is still a vast number in this land of ours, to
say nothing of the rest of the world, who find life a difficult struggle
to obtain the bare necessities of life.
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