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Land Rent and the Science of
Politcal Economy |
[Reprinted from Land
and Freedom, September-October 1942]
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All Natural Laws are inexorably operative, and so far as our "applied
sciences" are concerned, even the acceptance and applying of them
involves no moral questioning. But when they concern the self-willed
doings of human beings (instead of the reactions of senseless matter)
the applying of them actually depends upon personally responsible moral
thinking by "common-sense sense-of-justice" voters. Although
physical science laws have been "applied" without such
questioning, social science laws can obviously be applied only by
democratic conviction that they are just -- by unprejudiced rather
than learned thinking.
"Single Tax" is a short name for Government Collection of
the Society-Created Rent Values, which naturally attach to land as
being the Natural Law Revenue for Government Expenses. It means that the
socializing of land rent, and the leaving of individually produced
values to the producers of them, is the basic Law of Economic Science.
This Natural Laws is the self-evident truth that all humanity produced
values belong to the producers of them. And the clearly revealing
scientific fact is that these rental values of land are produced by and
therefore belong to human society - not to individuals.
This scientific fact is strikingly revealed in cities by high
competitive biddings for exclusive possession of business or residence
sites, which are more or less benefited by society improvements and
services; and by the apparent fact that these rental value biddings
amount approximately to the society expenditures which create and
maintain them.
Present "real estate values" are a confusing aggregation of
private property (buildings, etc.) , with these society-created rent
values which attach to God-given sites and which equitably belong to
society. The frequently enormous selling values of these
publicly-benefited sites are merely speculative capitalizations
of these privately-diverted land rent values - rising with "booms"
and falling with public collection.
As this fixedly-limited God-given earth is the heritage and sole
store-house and work-shop for human beings of all times, races and
abilities, the opportunities it affords for human living and development
are given equally to all, for due reward of their varying individual
doings. This obviously calls for common distribution of the rewards
which are jointly produced by their cooperation as gregarious
beings.
It is a clearly-revealed fact that these jointly-produced rewards are
beneficiently measured for human use by the Natural law of Land Rent -
which automatically measures privileges given by the possession of land.
"Single Tax" aims solely at fair distribution of these
jointly produced site values, by using them for payment of society
expenses. Without this, due reward for individual doings is impossible;
with it, free operation of known Natural Laws (supply and demand, etc),
will effectually guide to correction of other economic: wrongs without
the interference of man- made laws.
The socializing of land rents will not only yield revenue to provide
for the government expenditures which help create and maintain them, but
will enable owners of produced wealth to freely use it -- first, in
business enterprises yielding only uncertain ''profits" (as earned "wages"
competitively measured); and second, in guaranteed loanings with
guaranteed yields (as "interest" determined by supply and
demand) - but with no alternative of investing in land rent values.
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