Review of The Theory of the Land
Question
by George Raymond Geiger |
[Reprinted from Land and Freedom,
January-February 1937]
|
| Joseph Dana Miller was
during this period Editor of Land and Freedom. Many of the
editorials published were unsigned. This review is signed by Mr.
Miller. |
This work dedicated "To the Memory of my Father," is George
Geiger's latest contribution to economic thought. It is a smaller work
than the Philosophy of Henry George, and is addressed like the
first to those who have advanced beyond the initial stages of
speculation on this important subject. It is for this reason that the
language occasionally employed seems now and then to be rather
difficult. But he is never cloudy, and indeed for the most part is
delightfully clear.
There is a vein of humor that runs through much of the first chapter.
The author cannot frankly express his contempt for the current
speculations of so-called economists, so he conceals it with a few sly
phrases which are a substitution for the withering scorn to which he
must be tempted now and then to give expression.
The book is in great part controversial. It must be that since a
correct thesis on the land question involves the clearing away of a
number of current fallacies. And this makes the work delightful
reading, for Professor Geiger is master of the rapier thrust and his
dazzling sword-play is full of surprises.
Some of the chapters are not easy reading, for they require hard
thinking. But any attempt to understand what may appear difficult will
repay the effort.
The discussion of the nature of value, always a terra incognita of
economics, is well done. After explaining that man produces
commodities because he needs them, he then proceeds to an impressive
analysis of a different kind of value, land value, and says:
"It (land value) comes as a by-product of social
life. In no significant way can man control such value.
Unconsciously and gratuitously does society manufacture a special
and supplementary surplus as it grows; this is what so impressed the
classical writers as an un- earned increment. It functions
independently of man's conscious efforts as they are directed, for
example, to the production of wealth. Man creates land value not by
any deliberate effort, but only as he congregates in communities
this congregation being the result of psychological forces that
operate almost automatically." (Page 40.)
Chapter II is a meticulous exposition of the nature of economic rent
which he declares is unearned because no service is contributed. He
presses this point from many different angles. He makes his
demonstration complete. He is very much in earnest here and has little
time for the light touches which in the first chapter have a flavor of
irony.
Chapter III is entitled Land and Capital, and it contains a perfectly
delightful wealth of allusion, in which theory and humor are mingled,
a combination which make this work, despite its philosophic
background, such pleasant reading. We quote from page 58:
"Now, it has long been the custom for writers on
capital to preface their own remarks by an extended survey of the
thirty-six different meanings the word has had, and then to add a
thirty-seventh. . . . These prefaces seem almost as obligatory as
the invocations to divinities by epic poets. In the present case,
however, the reader will have to give the writer the benefit of the
doubt of having gazed at that opaque background of controversies
over capital; there will be no encyclopaedic parade of definitions.
All that will be attempted will be a passing mention of the most
acceptable if that is possible connotations the word has for
contemporary economists."
Professor Geiger notes the various definitions which economists for
purposes of their own give to land. We are not supposed to talk of
land without first describing the kind of land. It would seem that a
working agreement might be arrived at which would establish a certain
unity in the use of the word so that when land was referred to it
would have some unmistakable characteristics shared everywhere by this
natural factor. We may indicate that the Ricardian Law has
demonstrated that unity since it applies to rural and urban land. The
persistence with which this is overlooked argues something more than
intellectual difference but rather deliberate avoidance.
The distinction between land and capital has never been more clearly
stated. Note this from page 87:
The inferences that follow . . . should be clear and
simple, but they need to be made articulate. If labor and capital
cannot operate without land, i.e., without sites, rights of way,
lots, farms, favorable geographical locations, and all else that
comes under the heading of land, then, to that degree, land is the
dominant factor in economic production. If capital and all the tools
of production that man uses are essentially reproducible and
replaceable, whereas land space and site value are just as
essentially irreproducible, then land, under private control as it
is, represents the final and limiting restriction in economic
production. If land rent and land value are essentially unearned
incomes, depending upon such private control of a given
irreplaceable economic element, then the exploiter of that unearned
increment occupies the keystone position in economic distribution."
Historical Aspects of the Land Question is the title of Chapter IV.
There is one statement to which we must take exception. That is Prof.
Geiger's dictum that it cannot be historically demonstrated that
private property in land is the cause of the decay of nations. It may
be true that a general history of the land question, which would
reveal this, has not yet been written. But such a book may yet come
from the press, and it was Oscar Geiger's hope that his gifted !son
might write it. If land has the important place assigned to it by both
father and son the effect of systems of land tenure on the decay and
deaths of civilizations should find its chronicler. What is needed
perhaps for such a work is the faculty of imagination in which the son
is not quite equal to the father, fine scholar and expositor as he is.
But what remains in the minds of so many of us as a firm conviction,
though not readily translatable into detailed exposition, will find
its historian when the future gives a larger and more comprehensive
elevation from which the problem may be surveyed, in the economic and
social march of time. For this the days may not yet be ripe.
That portion of the work devoted to the historical aspects of the
land question contains much evidence of the fine scholarship of the
author and should be studied for its many implications. They include
excursions into all lands. It needs to be studied rather than read.
In this part of the work, with its wealth of historic allusion,
Professor Geiger does much to reinforce the conviction that one of the
important factors in the decline of civilization, if not the most
important, is the prevailing system of land ownership.
And it must be so. If the secret of social well being is "association
in equality," which is axiomatic, it must be that a system which
most directly and most effectively determines the state of equality or
inequality, is a potent factor in the life of civilization. And more
emphatically it may be said that there is no other cause which can so
rapidly destroy the fibre of a civilization and so surely hasten its
decay and death as the division of people into masters and slaves, a
system infallibly produced by an order which denies the equal right to
the use of the earth. And to this Professor Geiger assents in the
concluding part of his work when he says that "the conjunction
between social misery and the ownership of the earth" is
perennial and ubiquitous."
We think Professor Geiger is in error when he says:
"Although he (Henry George) and his followers are
ordinarily classed as individualistic in their philosophy, the very
programme of the Single Tax must tremendously strengthen the power
of the state by giving it amazing control of social life in the
disposition of the huge revenues from ground rents. ... This problem
has never been adequately considered, it seems, by the
individualistic adherents of land value taxation."
We were accustomed in the old days to deal with two forms of
objections to the taking of economic rent for public purposes, one
being that there would not be enough to meet current expenses of
government, and a directly opposite contention that it would be so
large as to corrupt the sources of government.
Mr. Geiger's dictum is without ground to support it. We do not know
whether there would be huge revenues from this source or not.
Nor do we think that the advocates of the individualistic philosophy
need to abandon their ground. The taking of economic rent in lieu of
all taxes is the final expression of individualism. For the abolition
of all taxes and the taking of ground rent mean an enormous
simplification in government. For the first time in history its
functions will be circumscribed and this is true whether the revenues
from ground rents be large or small. The present administration has
familiarized us with large federal expenditures, but because this is
drawn from hundreds of sources the bureaucratic and overlapping
functional structure has created a Frankenstine monster. This has
enormously magnified government, so that its ramifications are
countless. It is not so much the huge revenues that vitiate the
character of governments, but the multifarious activities for which
government must assume responsibility when everything conceivable is
taxed over and over again, and where the activities it attempts to
support are not the true functions of government at all.
But despite the points of difference between author and reviewer we
must again assert our belief that this is a very valuable work,
skillfully done, keen in its analysis, broad if cautious in its
summarizing, and abounding in telling blows in behalf of the basic
remedy for our economic ills. J. D. M
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