[Reprinted from Land and Freedom, September-October 1937]
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If your house were on fire and your piano needed tuning,
to which would you telephone first: The Fire
Department or the piano tuner?
If a sane, intelligent ism-less means for ending our
economic distress were at hand and a host of futile panaceas were also before you, which would you choose: Ending your evils or poulticing your wounds?
If you were laboring, struggling, striving and failing
under an ism that was certain to keep you in misery, why
would you care if you were threatened with Communism
or Fascism or Bolshevism in exchange for your present
ism?
Well, your house is on fire and the remedy is at hand
and you are struggling against as miserable an ism as
any that you fear, so why don't you wake up Mr. Business
Man and Mr. Professional Man and Mr. Farmer and Mr.
Working Man and Mr. Artist and Mr. Artisan and Mr.
Merchant and Mr. Inventor and all you Misters who
have ideas and products and services to sell or provide,
and who do good work and who ought to be well rewarded
for it!
For the ism you labor under is Landlordism, And Landlordism is respectable racketeering.
And the remedy, so simple, so long before us, so thoroughly explained and so clearly described (with the burdens
and woes due to ignoring it, so marvelously prophesied)
is simply this:
Meet publicly created needs by publicly collecting publicly
created wealth. Leave privately created wealth in the hands
of those creating it.
And what is publicly created wealth? And what is
privately created wealth?
Publicly created wealth is the value of the land; privately created wealth is money earned. Only the presence
of the people can give value to land. The value appears
in rent that rises in proportion to the numbers of the people.
Put that rent in the public treasury. Stop taxing homes.
Stop taxing industry. Stop taxing the fruits of labor and
of genius. Stop taxing anything unless you want to
destroy it. A tax is a fine. Get your public revenue
from the value you publicly create.
We own our United States. We Americans. We
surely own our own country. You don't own it. I
don't own it. But WE do. And we prove it by taking
a part of the land rent that we create in the form of a
tax. And if the holder doesn't pay the little portion we
now take he forfeits the land. But we let landlords -- who
give nothing take the most of it and then we burden ourselves in our capacity as industrialists and workers and
capitalists, and in all other forms of serving our fellows
by taxing ourselves to make up the money they get for
letting us live in our own United States.
Yes. As capitalists. We need capitalists. Men who
work and build and save and plan are capitalists. A
capitalist is a man who saves his money and puts it to
work. But if we were wise and took all the land rental
value we create no capitalist would put his savings into
land. We do not need the aid of capital to furnish land.
We do need the aid of capital to prepare it sometimes.
And we need the aid of capital for many things.
It was not Capitalism that spurred the Russians to
bloody revolution. They has little capitalism in Russia.
Almost none. Try to think of some big Russian Company.
The railroads belonged to the state. What murdered
them was landlordism. The privilege of a few to tax
for their private use. The Russians happened to read
Marx instead of Henry George, and mistook Landlordism
for capitalism.
But capital invested in the privilege of collecting the
public revenue is money paid for the right to hold us up.
Nothing else. No matter how time-honored the custom
of permitting some of us to trade in the right to collect
land rent, a public revenue, it is different in form only
from giving the privilege of trading in black-jacks or
machine guns for the "protection" racket. In what
one of its effects on commerce and the public good does
collection of land rent differ from collection of protection?
In what way? What service does the landlord perform?
What service does the racketeer perform?
Landlordism is the father of all monopolies. Why do
we rage so about public utilities that absorb three percent of our income and furnish something for it, while
we supinely agree to Landlordism which absorbs thirty
per cent and gives nothing? And regulated utilities
could give cheaper service if their equipment were freed
of taxes.
Like Landlordism, taxes are a heritage of the ages of
man's ignorance. There should be no taxes. A tax is
a fine. In what way do they differ? To tax a man is
to take part of his money to pay public expenses, whether
he wants to pay it or not. Yet that same man by his
presence alone has made the land rent just that much
greater than it would be if he did not exist, be he a great
business executive, a great professional man or a day
laborer.
We Americans get along pretty well with private initiative. We have rewarded many men who have put things
at our disposal. We need them. We set our individual
hopes by them. A fine architect ought to get rich. A fine
doctor ought to get rich. An author who pleases. A
toolmaker. Why not?
But are we so dumb that we cannot discern the difference between reward for service and reward for useless
privilege?
Are we so damned dumb that we are going to let ourselves murder each other into Communism or Fascism
to protect our stupid practice of pouring public revenue
into hands that do nor earn it and tearing its equivalent
from private hands that do earn it?
Private enterprise deserves a reward, provided it isn't
the enterprise of the hold-up man. There should be rich
people if their riches are secured by furnishing something
that people want and that they produce out of themselves.
Brains should be rewarded. Brains that serve and create
are the only thing of value in the world. The public
does not begrudge a rich reward for brains that serve,
and we need not fear brains, for men of true intellect do
not prey upon their fellows.
Values created by individual thought and labor should
stay in the hands of that individual. Values created
by the cooperation of groups should remain in the hands
of those groups. But values created by the public should
remain in the hands of the public!
One concrete instance: San Francisco's largest office
building is the Russ Building. Capital built the Russ
Building and deserves a reward for placing so fine a
structure at the disposal of the people of San Francisco.
But that capital is having a hard time and is not getting
its reward. The capitalists who built that building pay
taxes. The tenants pay taxes. But the capitalists will
lose their reward and their capital too if they fail to continue to pay the ground rent ($120,000.00 per annum)
of their ninety-nine year lease. The ground rent to the
Russ estate for the privilege of existing in San Francisco.
And what does the Russ Estate do for them with the
money? It pays a fraction of it in taxes. The balance
may stay here but probably goes elsewhere. True it
may have bought the right* to levy tribute on the build-
ing, and to say to San Franciscans "Before you step on
this part of your city, pay here!" It bought a right
that is not a right. It is a privilege born of public stupidity.
And just as the purchaser of stolen goods loses them
without recompense when the owner discovers them, so
should the public take back its self-created value by levying a charge for rental against all the land to the full
extent of its yield. And take its collective hand out of
the thinker's and the worker's private pocket.
The private collection of land value or publicly created
income is wrong. The public appropriation of privately
earned income is wrong. As long as we cherish and
protect something dead wrong in our economics Kill
your pregnant pigs! Dole your dole. Plough in your
wheat. Putter, Peck and Dabble, but don't expect to
go ahead. The Free Land is gone.
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