.
On Unrestricted Competition |
| [Reprinted from The
Freeman, November, 1938. This article orginally appeared in The
Standard] |
W. W. Head, secretary of the Shearers' Union, writes me from Wagga
Wagga, New South Wales, saying:
"Socialism of the Bellamy brand is spreading here, and
the only thing we have to offer as an argument against their doctrine
is an admission that the single tax will and must necessarily bring
voluntary co-operation and less governmental machinery -- less rule,
or more law and less force -- anarchy of a sort. Socialists admit the
pooling of land-values is the first step toward reform; but they set
as much value on the nationalization of banks and capital as that of
the land, and want lo start right away to nationalize those things
which we believe are not in their nature monopolies, and which would
not be monopolies if land-values were taken by the people. In short.
they do not believe in competition and want to abolish it right away.
If we stick to competition and regard it as almost a natural law, what
about the waste involved in our present industrial system? Taxation of
land-values will not prevent the employment of labor uselessly in
advertising, etc., or will it? If so, how?"
Answering Mr. Head's question in spirit, rather than in letter, I would
say: Yes; it will. For while the useless expenditure of labor in
advertising or any other branch of effort could not be prevented without
interfering with natural rights and without stifling useful effort, I
take Mr. Head to refer to that waste that goes on where three stores are
started in a place where two would suffice, or where a hundred men are
found in a business or profession in which sixty or seventy could do,
and would be glad to do, all that is needed. This waste of effort, which
is very striking all over the civilized world, the Socialists propose to
prevent by abolishing competition -- that is to say, by abolishing the
liberty of men to dispose their efforts as they please. They would have
the State manage and control all production and exchange, so that so
many men land necessarily such and such men) should be assigned to this
branch and place of effort, and so many men (that is to say, such and
such men should be assigned to that.
On the other hand we, who for want of a better term style ourselves
Single Tax men, tout whose fundamental idea would be better expressed by
some such term as equal rights men, or individual rights men, or natural
order men, propose to get rid of this difficulty in an easier and more
thorough way. Instead of abolishing competitions, we would abolish
restrictions on competition; Instead of imposing more restraints on
individual liberty, we would remove all restraints upon the liberty of
any one to do anything that did not interfere with the equal liberty of
others. The reason for, and the efficacy of, our method will be seen
when the cause of the waste of which our Australian friend is thinking
is traced.
From what does overcrowding of businesses and professions proceed? Does
it not proceed from that seeming glut in the labor market which causes
the opportunity to labor to seem a boon, and reduces the wages of labor
in the primary occupations to go low a point? And from what does this
spring? Does it not manifestly spring from those restrictions which
deprive men willing to labor of access to the natural opportunities of
exerting labor? Is this not clear whenever we consider that the natural
opportunities for the useful employment of labor offered by the globe on
which we live are simply illimitable, and that so long as desire
continues for things that the exertion of labor produces there must
always be an unsatisfied need for the useful exertion of labor?
What the taxation of land values irrespective of improvements would do,
would be to make land useless except to the user; to make the mere
monopolization of land unprofitable and impossible. And thus it would
Open to laborers the primary necessity and opportunity for all labor. At
the same time, by taking for the use of the community the great sums
that now go to non-producers, it would do away with taxes that greatly
lessen earnings in all branches of productive effort, and remove the
restrictions they impose.
With land thus opened to labor, and with the products of labor thus
freed from taxes, the one-sided competition that now shows itself in the
seeming overplus of demand for employment, would be met and relieved by
the demand for labor and the products of labor. This relief in the
market for the primary forma of labor would necessarily show itself in
all others, that is to say, in all businesses and professions, both by
withdrawing the competition of those not needed there, and for whom
better opportunities would be opened where they were needed, and toy the
increased demand for commodities and services consequent on the
increased purchasing power of better employed and better paid laborers.
Men would cease to push into places and vocations where they were not
needed, for the simple reason that places and vocations where they were
needed would be open to them, and would pay them better.
And the play of this free competition would have the effect of
determining, through the free will of individuals, what number of men,
and what men, should devote themselves to each of the multiform branches
of industry, in order to secure for society at large the most economical
use of productive forces, and the largest result in desired
satisfactions. But it cannot be said that this would absolutely end
effort, for the reason that, as to many things, what will be useful and
what useless cannot be determined without experiment. All new
inventions, discoveries, and adjustments, involve experiment and the
liability to useless effort; but to stop this would be to put an end to
progress. Thus, effort may be wasted in advertising, where a man thinks
that the public will want a thing which the result proves that they do
not. But to prevent this would be to prevent the public being apprised
of things that they do really want.
And where the conditions of equal freedom are fulfilled, where all men
are placed on an equal level with regard to natural opportunity, and
with regard to the benefits of an advancing civilization, the freedom of
individuals to do what they choose (provided, of course, that they do
not infringe the equal freedom of others) will result in the' greatest
benefit to society at large.
Here is the difference, and it is fundamental and irreconcilable,
between the Socialists and Single Taxers. They propose to cure the evils
that have come of restriction by more restriction. We propose to cure
the evils that have come of restriction by giving freedom. And a man
cannot favor the Socialistic scheme and the Single Tax scheme at the
same time, any more than he can go east and west at the same time.
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