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Ireland's Land Problems -- Past,
Present and Future |
[Reprinted from Land
& Liberty, Vol. 110, No. 1206, Summer, 2003]
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Consider some of the results of rising population. It was Thomas
Malthus who showed why wages fell, and it was David Ricardo who showed
why the rent paid to landlords rose. Adam Smith had already pointed out
that 'The landlord reaps where he does not sow". Putting all this
together, Alfred Marshall argued that taxing rent would lead to
progress, and Henry George showed that such a tax could lead to progress
without poverty, and quite independently of demographic change.
So what was it that these giants of economics were saying, how does it
explain Ireland's past, and how might it inform Ireland's future? First,
what is rent in this context? It is a payment by those who use land,
anywhere and for any purpose, made to those who own it. It is not small:
the rent of the land of Ireland could be equivalent to a quarter of the
value of its national income. Why should it be taxed? There are strong
economic reasons. Paul Samuelson, perhaps the most widely read twentieth
century economist, said: "Pure land rent is in the nature of a
surplus that can be taxed heavily without distorting production
incentives or impairing efficiency." No other tax works in that
way. There are also strong social reasons for such a tax, reasons
connected with poverty, inequality and housing affordability. Let us now
put all this into the context of Ireland's history, but in such a way as
to suggest a path to future progress without poverty for the 'Celtic
tiger' of the EU.
In agrarian societies such as that of historical Ireland, the wealthy
owned the land and lived on its rents. The wealthy were typically the
rent-receiving kings, barons and lords and, in some periods of history,
also the church, in the form of rent-receiving monasteries and the
comfortable "glebes" and "livings" described, for
example, in the novels of Anthony Trolloppe. Rents were paid as a
proportion of wages, a portion of produce such as a tithe, or as an
obligation to fight for the landlord. As an example of the first, of the
shilling and sixpence per day paid for casual work in Connemara, one
shilling was withheld in rent. As an example of the second, Colin Clark
found that rents in populous agrarian societies tended towards fifty
percent of produce, paid to a landlord for actually doing very little.
As an example of the third, land holdings, and therefore rent, could be
increased by seizure, by landlord turned warlord, leading to one
description of European history as "a series of dynastic squabbles
over real estate."
For our purposes here we start in 1155 when Pope Adrian IV "granted
and donated Ireland to the illustrious king of England, Henry II, to be
held by him and his successors." A later Henry, the VIII, anxious
to maintain his family's landed inheritance through a male heir, helped
create a new branch of Christendom in order to achieve this. In 1541 he
then declared himself king of Ireland allowing him, as head of the
Church of England, to seize some wealthy Irish monasteries. To deal with
some bad reactions to this, particularly in Ulster, his daughter
Elizabeth I installed "plantations" of English and Scottish
settlers, evicting the locals into wretched conditions of semi-slavery.
In the 1641 uprising some 2000 of these settlers were killed. This led
to Cromwell's retaliatory massacres, the seizure of the best 25 percent
of Ireland's land for his soldiers, and the displacement of surplus
population to the relatively infertile West. The huge wealth shifts in
the form of transfers of wealth are not documented, but no doubt Ricardo
could have calculated them using his law of rent.
Fifty years after Cromwell's rampage came the battle of the Boyne.
Though a turning point in Irish history, its origins had nothing to do
with Ireland and everything to do with the Restoration in England and
(he Pope's concern over the outcome of Franco-Spanish rivalry. Arising
out of this, a Dutch Protestant, supported by the Pope, defeated a Scots
Catholic in the battle for what was, essentially, the ownership of the
rent of Ireland. The victory of the English Protestant forces resulted
in measures to protect existing rents, and to procure further rents, in
a period known as the "Ascendancy" of the descendants of
Elizabeth's settlers and Cromwell's soldiers. The protection of rent
came about from the "Penal Laws" whereby Catholics were
forbidden to buy land, practise their religion, or enter the
professions. The increase in rent came from further seizures. By 1750
Catholics owned only 15 percent of the land. By 1778 only five percent.
As population grew to 8 million rent also grew, not only absolutely but
as a proportion of wages, following Ricardo's law of rent, pushing the
population further into poverty. Then, when the potato crops failed,
living standards were pushed below subsistence. In the great famine of
1845-1851, one million died and one million emigrated. And a further
million emigrated in the next five years, carrying a bitterness which
survives today in America as well as in Ireland. During the famine,
excellent wheat harvests were being exported since there was no local
purchasing power. Soup kitchens --and all other temporary palliatives
tried then, and in other countries since - probably saved a few lives
but, typically of much government and charitable intervention, actually
helped to maintain rents by providing the wherewithal to pay them, a
lesson still not learned after fifty years of "developmental"
intervention in the third world. Some attempts at rent control were made
subsequently, but it was not until the 1890s that Henry George,
continuing where David Ricardo and J.S. Mill left off, visited Ireland
and explained how a tax on the rent of land could have removed poverty
and set Ireland on a path of economic growth.
There is nothing which happened in the 19th and 20th centuries, the
agitations of Parnell and of O'Connor, the agitations for Home Rule and
for Partition, and all the subsequent problems of Northern Ireland,
which cannot be explained by the land expropriations of the 16lh, 17lh
and 18'h centuries. That all this could have been prevented by a tax on
the rent of land remains obscured by two powerful myths which survive
today and continue to maintain a political impasse over Northern
Ireland, encouraging one gang of thugs to march provocatively and
another gang of thugs to shoot at them. The Nationalist myth of the
rapacious English landlord does contain a large grain of truth. Some
absentee landlords lived, and some still do, in England. But, even when
the battle of the Boyne was fought, the landlords descended from
Elizabeth's settlers and Cromwell's soldiers were by then no more
English than the rapacious Celt, Viking or Norman landlords who preceded
them. The enemy of the peasant was the landlord, regardless of
nationality.
The Loyalist myth of the superiority of Protestantism over Catholicism
is not susceptible of any kind of proof, and may simply be a
justification for a class system of discrimination, a remnant of the
land problem, which still persists in Northern Ireland. Another claim,
that landlords who evicted their tenants were selfless agents of
modernisation, endorses a policy which carried a huge and terrible price
lag, and exposes a most unfortunate ignorance of the works of Smith,
Ricardo, Mill and George, and of a land taxation system which could have
removed poverty while also supplying the revenue for modernisation.
Moving on, what can we learn from all this? I think it is this: that
the government collection of the rental value of land, a policy that
would have dramatically altered Ireland's history, remains the answer to
many of Ireland's modem economic and social problems, masked, as they
are today, by the effects of EU intervention and support.
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