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One Modern Economics Textbook on the
Single Tax |
[Originally appeared
in The Freeman, October, 1939, under the title "Omission
Plus Insinuation = Logic"]
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One of the most cunning examinations of the Single Tax to be found in
economic textbooks is that in Elementary Principles of Economics,
by Ely and Wicker, the MacMillan Company, 1920.
We quote from it:
.... we can do no better, therefore, than to explain the
proposed system in Mr. George's own words, as printed in his paper,
The Standard: --
"The Standard advocates the abolition of
all taxes upon industry and the products of industry, and the taking,
by taxation upon land values, irrespective of improvements, of the
annual rental value of all those various forms of natural
opportunities embraced under the general term, Land.
"We hold that to tax labor or its products is to discourage
industry. We hold that to tax land values to their full amount will
render it impossible for any man to exact from others a price for the
privilege of using those bounties of nature in which all living men
have an equal right of use; that it will compel every individual
controlling natural opportunities to utilize them by employment of
labor or abandon them to others; that it will thus provide
opportunities of work for all men, and secure to each the full reward
of his labor; and that as a result involuntary poverty will be
abolished, and the greed, intemperence, and vice that spring from
poverty and the dread of poverty will be swept away."
There follows this analysis by Ely and Wicker:
"The proposition is here definitely made that the
state should take all of the pure or economic rent of land, and the
claim is made in explanation and justification of the policy that it
will abolish poverty. Such a policy might, indeed, prevent landowners
who do not care to use their land from keeping it out of the hands of
those who would use it; but how it would effect all the other
predicted blessings is difficult for most people to comprehend. In the
first place, there are, no doubt, administrative difficulties in the
way of separating the pure economic rent of land from the annual value
of the separable improvements on the land. But apart from, this
difficulty, the appropriation of economic rent by the public without
compensation to the owners does not appeal to the conscience of the
American public as a just thing to do. No abstract reasoning, based on
'natural rights,' will persuade a modern nation to so radical a step.
This honestly and earnestly advocated policy is only one more
illustration of the danger of basing social reasoning on any theory of
'natural rights.' "
This examination runs very smoothly and with the firm voice of
authority, does it not? Yet read it carefully. It does not say what the
casual reader thinks it does.
Suppose we go over it, sentence by sentence.
"The proposition is here definitely made that the
state should take all of the pure or economic rent of land, and the
claim is made in explanation and justification of the policy that it
will abolish poverty."
True enough; though to imply that George can thoroughly state his case
in 128 words is hardly reasonable. Nor have the authors taken the
trouble to explain George's thesis of the effect of land speculation on
wages; an important omission.
"Such a policy might, indeed, prevent landowners who
do not care to use their land from keeping it out of the hands of
those who would use it; but how it would effect all the other
predicted blessings is difficult for most people to comprehend."
The authors concede that it would put land into use, while covering a
possible future retreat with the word might. A really delectable
bit, however, follows. They do not say it would not accomplish all that
George says it would; they do not say that they do not think it would do
so; they merely say that the fact is "difficult for most people
to comprehend." They are on firm ground. This is true. It is
also true of calculus; and yet a calculus textbook, instead of saying
that calculus is difficult to comprehend, and stopping there, goes on to
teach calculus. The more difficult it is to comprehend, the more care
should be devoted to helping people to comprehend it.
"In the first place, there are, no doubt,
administrative difficulties in the way of separating the pure economic
rent of land from the annual value of the separable improvements on
the land."
No doubt. There are also "administrative difficulties" in
everything the government does, in the operation of every business, in
the playing of a ball game on a vacant lot, in such a simple thing as
the selling and buying of a pair of pants. In spite of administrative
difficulties, I somehow buy and wear pants. This is another sentence
that, while absolutely true, is hardly a gold mine of information.
"But apart from this difficulty, the appropriation of
economic rent by the public without compensation to the owners does
not appeal to the conscience of the American public as just a thing to
do."
Marvellous! Scarcely to be surpassed for sheer truth. It is also true
that at one time the burning of a number of very wicked Witches appealed
to the conscience of a section of the American public as a just thing to
do. The authors do not say whether George's proposal actually is or is
not just; they do not say that they think it just or not; they merely
make the observation that it does not now appeal to the American public
as a just thing to do. It is interesting to remember that there was a
time when the authors could have said that the freeing of human beings
from slavery did not appeal to the conscience of the American public as
a just thing to do. Besides, is it the business of a text book to record
the author's opinion of public opinion ?
Upon this base, buttressed with these irrevocable truths, our authors
then set their thoroughly undemonstrated conclusion, which has nothing
to do with the desirability of George's proposal.
"No abstract reasoning, based on 'natural rights,'
will persuade a modern nation to so radical a step. This honestly and
earnestly advocated policy is only one more illustration of the danger
of basing social reasoning on any theory of 'natural rights.'"
Notice here that the authors do not say the Single Tax will not come;
they merely say that, abstract reasoning, based on 'natural rights,'
will not bring it; and they do not offer to prove even this assertion.
However, they here undertake to prophesy, and no doubt feel that they
could not :be considered irrevocably wrong in the eyes of most people
until the event had taken place.
This event is still in the future. The Single Tax is denounced and not
a fraudulent word is used.
Oddly enough, the authors have not said that George's proposal would
not do all that is claimed for it; they have not said that it is not
perfectly feasible of operation; they have not said that it is not just;
they have not said it will not come. They have actually said only that
some people think some of these things, an innocent enough statement of
an opinion which, when not refuted by the authors, takes on an implied
endorsement not actually specifically given, which can easily be
disowned on convenient occasions.
One might fairly expect more than this perpetuation of existing
ignorance from a book which claims to educate.
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