The Importance of Criticism of the Georgist Analysis |
[Reprinted from Land and Freedom, September-October 1939]
|
WHETHER it meets approval or not it is quite
evident that the Georgeist movement has left
the apostolic stage and, at least in one phase of its development, has entered into what somewhat resembles the
higher criticism. In other words an attempt is being
made to apply the scientific method of investigation.
There is a conviction among the followers of Henry George
that, in his treatment of land, he laid the basis of a true
Science of Political Economy and it is reasonable to
expect that it will be so accepted when a sufficient amount
of proved data is furnished. Another closely related
viewpoint is that the movement has not progressed, that
it has made little impression upon scholars and business
men and that this may be due to some inherent defect
of presentation. Whatever the reason or motive there
are many forward-looking minds who are carefully, and
we believe impartially attempting both appraisal and
analysis. Is there any possible justification for doing
other than approve these efforts?
In Progress and Poverty Henry George says: "I pro-
pose in this inquiry to take nothing for granted but to
bring even accepted theories to the test." This of course
referred to the theories of others accepted at that time.
Would he deny to those who came after him the same
right to test his theories? Again he says: "I propose
to beg no question, to shrink from no conclusion but to
follow truth wherever it may lead. Upon us is the responsibility of seeking the law." Shall we, his followers,
close our minds on account of our convictions? What
are our responsibilities? In our reading of Henry George
and in our thought of him we feel that had he lived,
he would have gone on, and with his marvelous mind,
would have given us a higher criticism which now
must be furnished by others. If we have what we feel
is an understanding of the man he would have begged
no question even if his most carefully thought out
principles were subject to examination.
However, within the movement, there is no criticism
of the philosophy of Henry George. If Georgeists
do not stand for equal rights to the use of land then
nothing developed from this concept is to be considered.
Any such criticism would be like amending the purposes
of the Constitution, as such an amendment could only
do away with the instrument itself. Nor, without the
same result could Georgeists eliminate his fiscal measure,
"A Single Tax on Land Values." The wording may
be open to criticism but not the idea. We are aware
that the Single Tax is not a single tax and technically
it might be better expressed. We prefer to advocate
"The Payment of Rent for Public and Social Services."
Nevertheless this expression and such expressions as
"No Taxes" or "No Taxation" connote something entirely
different to the public mind. Calling the Single Tax
a misnomer only confuses and is negative in its effect.
The words "A Single Tax on Land Values" convey an
accepted meaning which has had its place for sixty years.
We have never been offered a real improvement on this
phrase, and if one is ever offered there will be a question
of its value when it is realized that the public must be
educated all over again to the same idea.
There can be no question then among Georgeists
as to his basic philosophy or his fiscal measure.
There may be differences of opinion as to ways and means
of carrying out or applying his principles and it may be
of utmost importance that a correct appraisal of the
effects of land value taxation be determined as far as
possible. We cannot adhere altogether to methods of
the past. The Henry George School as a development
of the educational method is an evidence of this. The
present may need even different treatment and the future
still new ways.
The fiscal reform is not so self evident as is the philosophy
and there should come a clarification as to how that
which we stand for can effectually be applied. We are
forced to admit that there is much confusion as to the
mechanism of the payment of ground-rent and also the
nature of ground-rent itself. Much has been written
but the subject needs simplification. Our higher criticism
would be well within their field if it were explained to
the layman wherein fertility enters into ground-rent.
This will be of particular interest to the cultivator of the
soil who knows that fertility must either be written off
each year or replaced as an operating expense.
Our higher criticism might also straighten us out
on Interest. We know that this has become a subject taboo among certain Single Taxers notwithstanding
the fact that George says: "The returns are Rent, Wages
and Interest." Some seem to think he said rent, wages
and the rate of return on loans. We have an idea that
this interest which George says is a return, has nothing
directly to do with loans and nothing whatever to do
with loan rates. Some dismiss the subject saying that
when the Single Tax is in full operation interest will "tend
to disappear or disappear altogether." We hope they
are not right in this because we feel that if this is so capital
will disappear also, and wages will then surely tend to a
minimum.
Our higher criticism might also tell us the difference
between government ownership of land and government empowered to collect 100 per cent of ground-rent.
At present the individual owns land only to the extent
of title in fee and this is not absolute ownership. By
what process may society, even with its authority, endow
its creation, the state, with rights, inherently denied to
any of its members. We are told that when land is
"free" the ground-rent will be determined by the higgling
of the market, that is by the bid-and-ask method. In
this case we ask who will make the proffer, and it is somewhat incongruous that under this freedom the government should levy on ground-rent. Incidentally, in a
free market, what will be the duties of the assessor?
THOSE who believe in the Science of Political Economy
may need enlightenment and those whose business
it is to administer the public revenue not only now but
in time to come will need a clear understanding of the
fiscal side of what Henry George so clearly outlined in
principle. In his preface to Progress and Poverty
George says: "What I have most endeavored to do is to
establish general principles, trusting to my readers to
carry further their application where this is needed."
Over the doors and in the literature of a large public
service corporation we find the following:
"Progress is assured in this system by a large group
of scientists and experts devoted exclusively to ways
and means for making its service better."
In a spirit, not of controversy but of true research
we feel that Georgeists should welcome the higher
criticism.
|