The Riddle of Modern Society |
[An address delivered at the International Conference to Promote Land
Value Taxation and Free Trade, Edinburgh, Scotland, 29 July thru 4 August, 1929]
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As we may look among civilized countries
we find the same paradoxical conditions; on the
one hand highly-developed scientific and technical
knowledge, which makes it possible to produce the necessities
of life and luxuries in excess of the needs of humanity.
On the other hand poverty among the great mass of the
people which cries aloud to Heaven for redress. It is
true that in the past there have been periods in which
mankind suffered temporarily from want and privation,
but it was then usually a case of bad harvests which, owing
to the backward state of transport, could not be
counteracted by importing supplies from lands with good harvests.
Sometimes it was a case of objects in daily use not being
manufactured on account of poorly developed mechanical
knowledge. In other words: in earlier days mankind
suffered want because enough could not be produced;
today they suffer want whilst too much can be produced.
The most preposterous thing, however, is that
widespread unemployment should obtain. Last winter the
number of unemployed in Germany alone was not less
than 2^2 millions, without taking into account the large
number of workers on short time. At the same time,
poverty that is to say, lack of the products of work
also prevails. In other words: there are millions of people
who need housing accomodations and the necessities of
life, whilst these same millions would willingly produce
all such things, but find no opportunity to do so. Why
cannot demand and supply be brought into touch with
each other?
The answer to this question is of extraordinary urgency
as the discontent among the masses in all civilized
countries is assuming alarming proportions; and not only in
the ranks of wage-workers, but also in the ranks of
self-supporting manufacturers, tradesmen and merchants.
If one watches the efforts of statesmen to remedy these
evils, one must be astonished at the absolutely useless
measures and ineffective remedies proposed in order to
combat the danger. It might well be understood that the two
great problems of our day have not yet been solved, viz.:
Why, notwithstanding the gigantic technical progress
which has been made in the last hundred years, and despite
the resultant increase in wealth-producing power, the
wages of workers have not only not risen, but have,
calculated on the basis of real comforts, even fallen; and how
it happens that millions of men who are willing to work
can find no work to do, when "work" means apart from
a few negligible exceptions the production of food and
the necessities of life? With such widespread poverty
and misery a great task faces every sincere reformer.
With the exception of the English and Danish
Parliaments, and the local councils in such countries as Australia,
so far as I am aware, the teachings of Henry George are
ignored. In Progress and Poverty Henry George
has given a concise and clear answer to all the foregoing
queries. But he is hardly ever mentioned. Are his
teachings not known in other countries, or have people not
the courage to acknowledge such teachings? Perhaps
the reason lies in the fact that, when choosing the nation's
representatives, the people lay no emphasis on that quality
which should in reality form the main and centre point,
viz.: the candidate's knowledge of matters of political
economy. Indeed, people appear to attach no importance
whatever to the politico-economic knowledge of the
candidate to be elected. Otherwise it is incomprehensible
why legislative bodies should show a complete lack of
understanding and such helplessness in the face of
unemployment and poverty. Technical resources are so
numerous that if full use were made of our mechanical power
a sufficient supply of the necessities of life could be
produced so that every man might have a superfluity. And
yet there is widespread want. In the year 1900 the
political economist, Theodor Hertzka of Vienna, calculated
that with full use of our machinery we were in a position
to produce so much wealth every year in the shape of
houses, food supplies, clothes and other objects of use,
that their values would represent 400 (English pounds)
per head of the population, or for a family of four, not
less than 1,800.
In any case, the following idea forces itself upon the
unbiased observer: If it were a case of solving a problem,
involving difficult bridge construction, for instance, then
decidedly a skilled expert, and not a layman, would be
called in to advise. And so it should be with all important
problems. Only in the most important task of the nation,
that of choosing national representatives who have to
make decisions of vital economic importance, is there no
question asked whether the candidate possesses the most
elementary knowledge of his subject, namely, the science
of political economy! The results are as might be
expected! Fifty years ago Henry George published his
great work, "Progress and Poverty," and almost as early
he wrote his equally masterly book, "Protection or Free
Trade." Yet it is still being debated in Parliaments
which is better for a country protection or free trade!
Even today we can hear from politicians the view that
it is desirable for a country to export more than it imports.
Even today one can often hear superficial suggestions to
the effect that present-day distress arises from
over-population, from over-production, or too rapid increase of
machinery. In the meantime, the distress becomes more
acute. The nations cut themselves off from each other
by high duties; the struggle for existence becomes
increasingly sharper; large undertakings combine with still larger
ones, without regard to the best interests of humanity;
poverty becomes intensified. Regulations of one kind
and another lead to the ruin of trade, and to such
conditions that it is hardly possible for a man of 35 to find a
situation. General discontent and crime are increasing
to such an alarming extent that even the middle classes
driven to despair, no longer shrink from Bolshevist idea
and the legislator stands impotent in the face of all that
has been described.
If only a serious effort could be made to discover tht
reasons why, in spite of the fact that the earth can
produce many times its present yield, millions must go hungry
why, although more houses could be built than there is any
need for, yet there are millions who cannot find a house
and that, in spite of the fact that more clothes and other
necessities of life could be produced than are required
yet millions are suffering for want of these.
Then it would have to be acknowledged that the
underlying reason for the threatening phenomena of our time!
is rooted in the present-day monopoly of land, and that
it is nonsense to proclaim " Freedom and Equality of
Mankind" as the basic principles of Democracy when all
the same time mighty capitalists groups possess unlimited
power over the sources of all the raw materials and most
of the property. Is it not indeed an untenable position
for one group to possess all the coal fields; another all the
petroleum wells; a third the ore deposits; a fourth the
diamond and gold fields; a fifth (as in the U. S. A.) gigantic
forests; and for the surface of the earth to be owned by a
minority who grant the liberty to live and work on it
under conditions of ever-increasing tribute, which leave
to the users of the land only the minimum necessary to
maintain existence? Henry George, one of the greatest
thinkers of all time, has shown in the already mentioned
unparalleled book, "Progress and Poverty," that even
without expropriation or division of the land and without
resorting to Nationalization, a basic reform of the present
evils could be effected, which would bring benefit to all
classes. Then it must not be overlooked that the
millionaires of today cannot enjoy their lives free of care; they
feel that we are dancing on a volcano and unless some
alteration is effected the worst is to be feared. The
example which disinherited Russia has given us must always
be for us "Mene, mene tekel upharsing" which it is
impossible to take too seriously. Moreover, Bolshevism
in spite of the educated people who support it, cannot
bring a solution of the social problem any nearer because
instead of freedom, which must remain for its supporters
a political ideal, it has created a rigid and coercive economic
entity which cannot endure.
The Edinburgh Conference promoted by The
International Union for Land Value Taxation and Free Trade
has as one of its objects the important mission of
informing the world that neither the niggardliness of Mother
Earth, her alleged over-population, the presumed
over-production, or the world war, are to blame for the
ever-increasing misery of our time and the dangerous situation
into which the civilized world has drifted; but that it is
due solely and wholly to land monopoly. Material
progress has not raised the wages of the workers while millions
if those willing to work cannot find employment. Private
ownership of land which by all the laws of God and right
would belong to all is alone the reason why innumerable
people live in want and misery. Our "culture," which
stands so high in the branches of physical science and
technical knowledge, but in regard to economics is still in
infant school, is leading us towards an ugly state of
laws.
But the Edinburgh Conference will probably express
itself very emphatically in regard to another point of the
utmost importance, viz.: The fact that the origin of the
horrible war of our time was closely allied to the land
question. Land monopoly led to unemployment and to
the present misery of the masses, and this to a desperate
economic struggle which, in its turn, resulted in higher
protective tariffs. In this way a poisonous atmosphere
was created between the nations; the one regarding with
envy the rich storehouses of the other its mineral and
coal fields, its petroleum wells, its potash deposits, and so
on and simply waiting for an opportunity to obtain
possession of them for itself. These tendencies were
increased by the short-sighted and false egoism of the
countries that think of themselves only, and believe that if
they segregate themselves by high tariffs they will enrich
themselves at the cost of other countries. If the
sources of supply were not in private hands, but belonged
to the community, it would be much easier for countries
to come to an agreement as to the quantity of raw material
ceded by them, and the present inflammatory conditions
could be eliminated from the world.
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