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| Strategy:
Time (for Georgists) to Decide |
| [Reprinted from Land
& Liberty, Winter 2000] |
Under "Which Route to Justice?" Tony Vickers (Land
& Liberty, Autumn 2000, p.3) opens a most significant debate for
the Georgist Movement. Will it gather strength by "small fiscal
steps" or by the "frontal assault" of George's
philosophy?
The "frontal assault" was the route George himself adopted in
his lectures and writings; and it was the route he spelt out in his
crucial utterances. The method of "small fiscal steps" seems
to have originated from those around him.
In the concluding chapter of Social Problems George says "Social
reform is not to be secured by noise and shouting; by complaints, and
denunciation; by the formation of parties, or the making of revolutions;
but by the awakening of thought and the progress of ideas. Until there
be correct thought, there cannot be right action; and when there is
correct thought, right action will follow". That is the "frontal
assault".
The Science of Political Economy begins "The place I would
take is not that of a teacher, who states what is to be believed, but
rather that of a guide, who points out what by looking is to be seen".
That is the "frontal assault".
It is strange to see the article in Land and Liberty imply that
the enunciation of basic moral and economic principles and their
implications -- the "frontal assault" - is not even an "alternative
way" to justice.
George was reluctant to adopt the term "single tax" to
describe his philosophy; it was only "the method he would take to
apply it", according to his son. George said that it was ''the
fiscal side of our aims'', and even ''a misnomer". One can think
that it was a "misnomer" because it implied that the aim was
simply to replace all existing taxes by one tax upon land values.
While the US has had its two-rate property tax, Australia has had its "land
tax" and "site value rating". The gradual imposition of
land value taxation is certainly closer to what George proposed. Yet,
besides proving c. 1920 that the collection of the full economic rent by
"Twelve Steps of One Penny" in the Pound of land tax was far
more difficult in execution than what it seemed; the Melbourne Georgist
Fred Hodgkiss wrote:
"The Land Taxer's ideal -- of rising symmetrically
from an all-round minimum Penny to an all-round minimum Twopence, then
a basal Threepence, and thus by successive minimum steps -- in
Australia shows no glimmer of realisation".
Accenting the difficulty of getting to the "12th Penny", some
in Australia presently advocate not even trying. Instead, they say, aim
for a tax mix which has a proportion of land tax that will not be
difficult to attain; that will still collect a substantial part of
economic rent; and that will at the same time yield an increase in land
values that attracts property owners. The reader must be left to judge
whether that or the two-rate property tax exudes the spirit of Henry
George.
One reason why it has been so easy to blow over so much of site value
rating in Australia in recent times is that no one knows what site
rating was about anyway -- few even knew in the early 1900s. This is the
trouble with "fiscal reforms" . In this regard one might see
the recent Goods and Services Tax (GST) as a prelude to an assault upon
land tax.
Time is running out for the Georgist Movement. In Australia less than a
handful try to undertake full-time propagation -- I say "try"
since it is regrettably true that much time is consumed by attempts to
get funding -- and there has been no significant education undertaken
for more than a generation.
Why is the movement imploding? I suspect the reason has to do with the
debate about "small fiscal steps" or "the frontal assault".
In Australia there is too little education in the basic philosophy and
economics of Henry George to attract more than the few individuals who "see
the cat" after a handful of classes. Most of us need more exposure
to Henry George than a few lessons. Those who claim to know all about
Georgism without coming to classes -- they have learnt it from someone
or been convinced by a leaflet -- are generally of the "small
fiscal step" kind. They are confident that if they spend enough
money they are going to convert the world. They denigrate reading and
education; it all seems like wasting time. "Let's get on with it."
One of the wisest Georgists produced in Australia, the teacher of a
whole generation of devoted Georgists (I refer to Mr. W.A. Dowe),
emphasised reading. I initially thought he was wrong. Now I know he was
right. The world is not refashioned by pieces of legislation; it is done
by changing minds.
The basic moral and economic principles which George pointed out are
still there and, as he said, they are simple to see for those. who will
look - far, far more effective and comprehensible than fiscal arguments
about some small addition to land tax or the land component of the
two-rate property tax. George was not a fiscal reformer; he was a social
reformer.
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