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Liberty: Where the Georgists and the
Austrians Meet |
Libertarians and Austrian economists are passionate in their advocacy
of private property. Any encroachment on private property, except by
free agreement or consent/ is literally a breach of human rights.
Insofar as private property rights are, and are enforced as, sovereign,
there is no scope at all for taxation, i.e. non-voluntary
payments specifically to fund government expenditure. This being the
case, it is not surprising that most politicians in Washington, D.C. are
so reticent about, if not actually terrified of, admitting the sovereign
rights of property owners.
All of this I heartily and passionately agree with. However, the
problem with most libertarians and free market economists is that they
do not properly consider what "property" is. It is one thing
to say that private property must be respected; it is quite another to
say that "this" is private property. (There may be many
reasons why economists' treatment of this subject is so weak, but a
primary reason must be the conventional division of labor which asserts
that this is not the business of the economist -even the political
economist - but of the lawyer or jurist, who throughout history has had
a licence to promote obscurity. However, there is also a prejudice among
some economists that if economics is to be a science then it must be "value-judgement-ftee",
meaning that economists must accept as "property" what is
deemed to be property in a particular society. This was a view with
which Henry George -- and surely also Mises -- seriously disagreed.)
The first, and most important, question is: does the law prescribe
property rights, or is its task to enforce pre-existing natural rights
of property? All Georgists - and I would hope all Misesians -- would
assert the latter. Our next task is to determine what natural rights of
property there are.
It may be noted, in passing, that in George's formative years,
political economists had asserted or conceded that slaves were "chattels",
"property" and "wealth". George always disagreed
with this classification; if slaves "were" anything, they "were"
labor. This misclassification, according to George meant that such a
theory of political economy, far from being value-free, was actually
value-dependent; for a simple statute abolishing chattel slavery would
upset the basis of the whole theory.
According to George all property rights derive from the sovereignty of
the individual - the right of the individual to himself and to what he
himself produces. In this way, George actually asserts that property
arises from freedom, and consequently that where there is no property
there cannot be freedom - despite what communists may preach to the
contrary. All this is pure George, and also pure Mises.
George then asserts that our basic ideas of property stem from property
in chattels. (You try explaining to a child what a convertible
redeemable preference share is and how and why it is property!)
All our fundamental ideas and concepts flow from very basic
experiences. About the first year after birth, the human infant acquires
what child psychologists term "ego boundaries". He learns that
this is "my" arm, "my" hands, "ray" legs,
etc. These are not things he owns; they are part of him; he learns where
"I" stop and the world begins. Shortly thereafter he learns
that this is "my" mother, "my" father, "my"
teddy-bear. The interesting aspect of this is that the word "my"
in the first two of these instances has a different conceptual meaning
from that in the third. The child does not own his mother or father,
notwithstanding that they are certainly "his". The word "my"
in this context connotes a relationship between two things (in this case
two people). This is what lies at the heart of the concept of "property"
-- a relationship. When we assert that this is "my (home)land",
we mean that this is where we belong; but when we say this particular
piece of land is "my land" rather curiously we mean that the
land belongs to us. This is something that the Australian Aborigines and
Native Americans find baffling about us Europeans. When they say this is
"my land" they use the word in exactly the same way that we do
when we talk of "my mother", and with the same degree of
reverence. To them, home is where we belong, not something that belongs
to us.
This is the great cultural divide facing Americans - not that between "communism"
and so-called "capitalism" -- but between the ideas of the
Native Americans and the ideas of European America, and it is fitting
that we should consider this on the 500th anniversary of Columbus' "discovery"
of the New World. Communists and capitalists disagree, rather like
disputing slave traders, about "who" owns the land - the state
or the individual people -- without realising that this is the wrong
question, and consequently has no answer. Indeed the Native Americans
who dealt with the European settlers found it literally meaningless. (It
is worth noting in passing that the assertion that "nobody owns the
land" is likewise a false statement; to assert that land is res
nullius is to assume that land can be a "res" in the first
place! The same objection has been made to Proudhon's quip that "property
is theft", because you cannot have a concept of theft without a
concept of property. As another Austrian, the philosopher Ludwig
Wittgenstein, might have said, property in land is something whereof we
strictly cannot speak.)
Jurists have long recognised that legal ownership of land is actually a
fiction. It is exactly the same sort of fiction -- a convention -- as
that according to which the law speaks of a corporation as a legal
person. Corporations do not exist; the terminology of corporate law is
simply legal shorthand for a highly complex series of relationships
among people -- real people -- individuals. In exactly the same way, the
terminology of "property" in land is legal shorthand for a
highly complex series of relationships among people who use, or seek to
use, land.
Next time you sit at home, just think about the telephone company that
lays wires under your garden, the underground train that hurtles beneath
your house, the aircraft that flys overhead, the television station that
transmits electromagnetic waves across your back yard. Have all these
people obtained permission to use "your" land? In a
libertarian world would you be entitled to refuse them access? (Can you
imagine the chaos that would ensue if airlines had to obtain permission
from every single landowner to fly over "their" land?)
A word of clarification here. Georgists use the term "land"
in a very special sense - the same as that of the Native Americans. It
encompasses the whole of nature, including the seas, the air, the sun,
and not merely terra firraa. Equally, it excludes everything produced by
man, including buildings and other improvements, which Georgists assert
are and should be private property. So Georgists and libertarians are
actually in agreement in most major respects about property in "Land"
(in the Georgist sense). They both agree that there is and should be
property in man's products; they both agree (I hope) that there should
not be private property in the air, the sun, the oceans. The respects in
which they disagree are in relation to terra firma, the earth beneath
your feet.
Henry George said that we all have a right to exist -- that is a
fundamental tenet of libertarianism. If we do have a right to exist, it
must be a right to exist on this earth -- unless we are to try to
homestead another planet for our children. Think about it. Every child
born occupies somebody's land upon birth. Do current landowners have the
right collectively to say "not here, thank you". If so, that
is nothing more nor less than a denial of the right to life itself.
This whole issue is one of supreme importance. If libertarians wish to
diminish the power of the State they must hit it where it hurts most;
the State exists to defend private property in land. The State is also,
by the way, the largest landowner in America. Refusing to grapple with
this issue is to give up on life itself and to sell out to the anti-life
culture which libertarians are so quick to decry. America is busy asset
stripping on a huge scale, selling land to overseas buyers - either
directly or through company stock. It is rapidly once more becoming a
colony. Americans laugh at how the Russians have regressed full circle
to where they were less than a century ago. They do not realise that
America is regressing (on a wider orbit) to its own reappointment with
history - a new colonial war of independence. Perhaps xenophobia will
bring America to its senses, if political economy will not. America is
truly on the new road to serfdom.
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