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The Critics of Henry George
Criticized - Part 4 |
[Reprinted from Land and Freedom,
May-June 1941]
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This is the fourth of a series of articles
by the same author, dealing with the objections of noted
economists to the doctrine of Henry George, and the refutation of
such objections. The first in the series, published in the
November-December 1940 issue, answered the objections of Prof. F.
W. Taussig. The second, in the January-February 1941 issue,
answered those of Prof. H. R. Seager. The third, in the
March-April 1941 issue, dealt with a contemporary of Henry George,
J. B. Miller.-ED.
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Having answered some early critics of Henry George, I shall now turn to
two modern critics, whose jointly written book appears in most reputable
public and college libraries. The book is, Economic Problems of
Modern Life, and the authors are Prof. S. Howard Patterson and Prof.
Karl W. H. Scholz (McGraw-Hill Co.).
(Samuel Howard Patterson, born in 1892, is a Professor of Economics at
the University of Pennsylvania, and the author of several works on
economic and social subjects. He is a member of the Pennsylvania State
Educational Association, the American Economic Association, the American
Association for Labor Legislation, and other societies.
Karl William Henry Scholz, born in 1886, is also a Professor of
Economics at the University of Pennsylvania. He is the economic advisor
of the Business Clinic, Inc., and a member of the Economic Association
and the Academy of Political and Social Science.)
In Economic Problems of Modern Life, the following objections
to the single tax are presented:
- Communities may develop varying rents, and a rapidly growing
community might hot derive sufficient revenues from the single tax
to keep pace with its various collective needs.
- A single tax would be undesirable, as there are other monopolies
which would then not be taxed.
- It would be inflexible; it could not be increased to meet urgent
public requirements in timer of national emergency.
- It would involve wholesale confiscation of land.
- It would be difficult to administer, since it is practically
impossible to distinguish between capital invested in permanent
improvements on land, and unimproved lands. To appropriate the
entire income from improvements would be to impose a tax in part
upon the fruits of human labor. (Sic)
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The following are my answers to the aforementioned objections:
(1)
The fear that a rapidly growing community might not derive sufficient
revenue from the single tax is easily assuaged by the fact that as a
community grows, rent grows with it. Rent itself is an indicator of the
rise of the people's needs. The greater the needs, the greater becomes
the demand for land -- and the greater becomes the value of such land.
Thus rent is always a measuring rod of the people's fluctuating demands.
(2)
It is true that under the single tax other monopolies would not be
directly taxed, but such taxation is not necessary. All monopolies are
based either on the private ownership of land or on inequalities which
are the result of such ownership. The shutting off of productive
enterprises by land monopoly results in unhealthy growths which feed
upon the natural production of the community. These cancers, which we
call monopolies, would disappear with the abolition of private ownership
of land. With free access to the resources of nature, labor would
receive wages commensurate with its produce, and capital would receive
real, not spurious, interest. The competition of a free market would
tend to destroy monopolistic practices.
(3)
If a national emergency should arise, the cost of which could not be
covered by rent, the temporary recourse to other forms of taxation would
not be an argument against the single tax any more than the sacrificing
of human life during an emergency would be an argument against the
preservation of life. However, it is difficult to imagine any emergency
that could not be met by the rent of land. Furthermore, it is no
argument at all to say that, because the single tax might not be
sufficient, and might cause us to resort to other forms of taxation, we
should therefore retain all the taxes we have today, most of which
brutally stifle production.
(4)
The authors probably imagine that by using the word "confiscation"
they will frighten people away from the single tax; It apparently does
not occur to them that the word "confiscation" could much more
justifiably be applied to our present system, in which human labor is
continually being confiscated by the pompous "owners" of God's
earth.
If the solution to our present-day ills were confiscation of land, it
should not be regarded as a terrible thing. However, single taxers do
not propose to confiscate land, or even titles. The present owners would
be welcome to remain on the land they how "own," if they pay
the full rent to the community. Only such rent would be collected, and
since the community itself creates the rent, certainly its collection
cannot be called, "confiscation."
(5)
This fifth objection is the one which appears most frequently as a
refutation of the single tax. I have already answered it twice in
previous articles, and believe that I can now state categorically that
it is possible to distinguish between land and improvements.
The second part of the professors' fifth objection is somewhat obscure.
Do they mean that under the single tax improvements would be taxed? If
so, it is simple to point out that the single tax is one tax placed upon
land values only. Whether improved or not, land bearing the same rental
would be taxed equally. Improvements do not cause the rise of rent; the
true cause is the growth of the community, which results both in
improvements and the rise of rent.
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