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How Henry George Made History |
[An address delivered
at the 1996 Council of Georgist Organizations conference. Reprinted
in GroundSwell, March-April 1997]
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I came here to talk to you about how Henry George made history. I mean
that phrase in a special sense of' "making" history the way
somebody "makes" the headlines. That is, I want to discuss the
various reasons why historians (and I mean non-Georgist historians) have
considered George significant enough to write about, and how they've
approached the task of interpreting his life and work. Before I go on, I
should stress that my field is American history, and what I have to say
will primarily consider the American context in which George worked. But
a good deal of what I say here could be applied, mutatis mutandis in
other countries where George has been influential.
Historians have tried to find a place for Henry George in the history
of American reform in three basic ways. The simplest, which has origins
in Georges own lifetime, has been to characterize his ideas in terms of
his ostensibly eccentric personality, in short, Henry George as crank.
One of the few remaining examples of this approach appears in Robert
Heilbronner's enormously successful textbook on the history of economic
thought, The Worldly Philosophers. There Heilbronner, though
demonstrating a certain admiration for George as reformer and moralist,
breezily describes the economist as a "semi-crackpot" and "almost-Messiah
who inhabited the "underworld" of Victorian economic thought.
The crank interpretation, however, has been difficult to maintain ever
since Charles Albro Barker's masterful biography of George appeared in
1955. Barker's George was a man of broad interest sand high intellectual
gifts, a self-taught sophisticate who could hold his own in exchanges
with the likes of John Stuart Mill, Herbert Spencer, and Alfred Russell
Wallace. This was Henry George as intellectual. So cosmopolitan and
many-faceted was this George that one could hardly believe that he would
develop, let alone promote, so simple an idea as the single tax. And
indeed, Barker defended George from just that accusation. The single
tax, Barker insisted, was a "derivation" from George's work,
consistent with but not characteristic of his thought. Barker implied
that it was George's followers, not the economist himself, who were the
cranks.
The most enduring interpretation of George, however, and the easiest to
square with our rather chaotic picture of the Gilded Age, is George as "prophet
of unrest," one of a number of rare birds who populated the late
nineteenth century radical scene. In this scenario the single tax is
rather like a gaudy piece of bric-a-brac in some Victorian whatnot
cabinet, where it is displayed alongside any number of other nostrums of
the day, such as Edward Bellamy's utopian-socialist Nationalism, or
Henry Demarest Lloyd's Hegelian-flavored social democracy, or perhaps
free silver, the agricultural subtreasury, or Ethical Culture. The
assortment of prophets varies a bit from author to author, but this
interpretation usually presents its subjects as transitional figures who
stand between the two reform traditions that historians feel they
understand best the antebellum reformism that culminated in the
abolition of slavery then dwindled a way during Reconstruction, and the
Progressive-era movement s that gave us twentieth-century "liberalism."
Henry George appears in such accounts as something of a place holder who
helps tend the flame of reform until the real achievers, the
Progressives or perhaps the socialists, show up for work.
This way of making history with Henry George has the advantage for the
historian of organizing a whole collection of exotic phenomena under a
single, if rather forced, category. The approach has been a boon to
textbook writers, who regularly dispense with George and Bellamy in the
same short paragraph. The best recent expression of the "prophets
of unrest" scenario, Professor John Thomas's Alternative
America, uncovers some illuminating parallels in the careers of
George, Bellamy, and Lloyd. But Thomas does so at the cost of
understating the truly dramatic differences between George and the
others, grouping all three of them together within a common "adversary
tradition." So we have Henry George as crank, as intellectual man
of the world, and as generic prophet of unrest.
If there is a single theme common to all of these interpretations, it
has been historians' unwillingness lo take the economist seriously when
he said, as he did in Progress and Poverty, that the land value
tax would "raise wages, increase the earnings of capital, extirpate
pauperism, abolish poverty, give remunerative employment to whoever
wishes it, ... lessen crime, elevate morals, and taste, and
intelligence, purify government and carry civilization to yet nobler
heights." The crank theory holds that George was crazy to believe
this; the intellectual theory says that he was too smart to really mean
it: and the prophet-of-unrest theory maintains that what really counts
about George was his social critique and good intentions, not his
unfortunate and somewhat embarrassing panacea.
The irony here is that these historical interpretations measure George
by just the standard of social analysis that George himself was fighting
in the last years of his life: the Progressive social scientists' notion
that societies are highly complex, that they must be managed rather than
transformed, and that sound social theory is developed by disinterested,
formally-trained experts who make limited claims and avoid reference
either to natural law or to moral intuition. To historians whose own
professional standards constitute one variation on this line of thought,
the fact that Henry George could have believed that the system of land
tenure affected virtually every social relationship, or that his
followers could literally regard converting to Georgism ("seeing
the cat," in their phrase) as a religious awakening, has posed a
fundamental problem of credibility that scholars have variously treated
with sarcasm, evasion, or apologetics.
Yet it is not necessary to do so. The very differentness that we
recognize in the nineteenth-century single taxers, their enthusiasm and
their supposed monomania, are clues to a major historical transformation
shift in what we recognize as credible and inspiring social thought.
George did indeed envision, in Professor Thomas's phrase, an alternative
America, but the tools he used in constructing his political economy
were far more deeply embedded in the national culture than the German "socialism
of the chair" that inspired so many Progressive social scientists.
From the evangelical Protestantism of his youth George borrowed the
notion of transformative change, the idea, so fundamental to American
religious culture, that one can be "born again," shifting from
a state of sin to a state of grace in a single revelatory moment. From
his Jacksonian political heritage George derived an ideal of social
equality and the concept that natural differences of talent could not
account for the enormous differences of condition that prevailed in
Gilded Age America. From his study of classical political economy,
George learned a sturdy, but by no means uncritical, appreciation of the
market a s a social arbiter, and from his travels around the world he
developed an instinct for comparative social analysis.
The glue that held all this together was the Common Sense philosophy, a
product of the Scottish Enlightenment that permeated most of American
intellectual life in George's youth and early adulthood. In its American
manifestation, Common Sense stressed that ordinary people are naturally
endowed with the means to apprehend the world and discover its modes of
operation; it held, as well, that the web of natural law that holds the
universe together is fully internally consistent, and that Nature's law
corresponds with the moral law, which all people are also equipped to
understand. Common Sense was a democratic philosophy par excellence, and
George never deviated, as his reform successors did, from the notion
that a true political economy must, as he put it in Progress and
Poverty, "commend itself to the perceptions of the great masses
of men." Equipped with these intellectual tools, George created a
powerful and accessible political economy that placed land at the nexus
of all economic relations.
Progress and Poverty succeeded as well as it did in the United
States not because masses of Americans suddenly developed an interest in
the wages fund theory or Ricardo' s theory of rent, but because the book
was so appealing on a cultural level. George's work resolved in a mature
synthesis some of the most troubling conflicts in nineteenth-century
American culture: the clash between evangelical revelation and
Enlightenment natural law; between Hamiltonian institution-building and
Jeffersonian anti-statism; between the liberal ideal of personal freedom
and the republican ethic of civic responsibility; between the rights of
labor and the rights of capital. George achieved this synthesis mainly
by defining a realm of social property that could supply and protect
social security without violating the standards of liberal property
theory.
When George's followers said that they had "seen the cat,"
they meant that George's work had resolved artificial conflicts between
fundamentally compatible ideas, and offered not merely a new policy to
support, but a philosophical totality, in short, a new way of seeing the
world. George's system offered, I think, the best-articulated
alternative to the form of liberalism that would dominate
twentieth-century reform. To me, this is how Henry George "made
history." I don't have time here to consider all of the
implications that might flow from thinking of George in this way. But
since the subject of this panel is where Georgism's future lies, I
thought it might be useful to consider briefly how its past illuminates
at least the present.
For the sake of argument, let's take Bill Clinton's State of the Union
claim that "the era of Big Government is over" as the symbolic
endpoint of American progressive liberalism (as I'll call both the
original Progressive movement and its successors in the New Deal and
Great Society). How well did George anticipate the weaknesses of this
model as we see them today?
The most striking characteristic of the contemporary Left, whether
moderate or radical, is its incoherence, and in particular its inability
to define a distinctive alternate political economy. Modern dissent can
point to various social outcomes which it desires or deplores, but is
much less acute when asked to describe any fundamental process inherent
to capitalist economic relations that produces injustice. The virtual
disappearance of functioning non-capitalist societies has made it
impossible for the Left to temporize any longer over its inability to
define a non-capitalist economics. More immediately relevant to American
liberalism's intellectual turmoil, though, has been the decline of
Keynesian economics, which carried on the anti-laissez faire impetus
that began with the Progressives. Increasingly faced in recent decades
with the dominance of neo-classical, neo-conservative models within
economics and policy studies, liberals have either quibbled, in a very
constrained fashion, over the efficiency of markets or the role of "social
capital," or have abandoned economics altogether for historical
accounts of exploitation that foster remedies based on compensatory,
mandated social outcomes. Perhaps the closest thing to an ideological
core that modern progressive movements possess is the hope that allied
particular grievances, loosely held together through commitment to "diversity,"
can constitute an effective reform bloc.
By contrast, the most consistent single theme in Henry George's reform
career was his belief that movements for social renovation must possess,
and be true to, a coherent political economy. One phase of his concern
is evident in Progress and Poverty, where George identified a
specific mechanism underlying modern social distress. As a reform
leader, too, George constantly warned that merely aggregating
disaffected groups did not create viable movements; some larger
principle must hold the movement together in the face of both internal
and external pressures. George's famous purge of the socialists from his
United Labor Party in 1887, which later historians often interpreted as
a reactionary move, was grounded in this idea, as were his less
well-known critiques of the Knights of Labor, the Populists, and the
Bellamyites. George never solved the problem of how to keep "incongruous
elements" out without narrowing his movement's base. But George did
succeed in giving his program an intellectual tightness of the type
which, in the last generation, has served the Right so well.
Other than intellectual purity, what could a Georgist-derived social
ideology have provided that progressive liberalism did not? To me, the
central contribution of Georgism was its capacity, as one prominent
nineteenth-century single taxer put it, to "draw boldly and
unmistakably the line between that which of right belongs to the
community and that which properly belongs to the individual."
Georgism confronted the question of social property head-on, suggesting
that a cultural consensus regarding common needs could be built on the
distinction between natural resources and other forms of property.
Progressive liberalism, on the other hand, has treated the subject of
public property pragmatically at best and opportunistically at worst,
drawing up vaguely-defined areas of public interest and submitting them
to weak, ambiguous judicial and administrative review. Whipsawed between
a naive mythology of absolute property rights and an unreliable system
of state intervention, Americans today possess a stunted and
increasingly cynical conception of the public good. Modern social
reformers are unlikely to prosper until they can articulate a more
appealing rationale for social property and communal interest.
NIMBYism and the "takings" movement represent two outgrowths
of our confused treatment of public property, but far more prominent in
recent years, and far more deeply involved progressive liberalism's
decline, ha been questions of public finance. Here, too, George offered
a path not taken. George abhorred public debt, which, wrote, rests "upon
the preposterous assumption that one generation may bind another",
but, more distinctively, he also sought structural means to balance
social need with public revenue. Whether the land value tax could (or
can) sustain the demands of a modern society is a question I will leave
to economists: my point here is that George recognized from the
beginning as few of his reform contemporaries did, that social programs
are no more secure or successful than the fiscal system that pays for
them. Progressive liberalism gave Americans a core of services and
programs that retain at least rough support today, but the disjointed
system of public finance that evolved over the twentieth century has
proved to be the Achilles heel of the modern welfare state. George, some
times accused of being a mere tinkerer with fiscal reform, in fact
foresaw the dangers of disconnecting social responsibility, as
represented in taxation from social rights, as embodied in entitlements
and services.
I hope it will be clear that in raising these points, I don't wish to
contribute to the cult of a clairvoyant and faultless Henry George, nor
to deny that the progressive- liberal model has enjoyed a long run of
success and power. But I do suggest that that model has dominated our
sense of social reform for so long that returning to another, well
reasoned system of reform thought can help us see other paths to social
change that remain locked up in the liberal tradition.
I said earlier that in my view, Henry George made history by providing
his era's best-reasoned alternative to progressive-liberal social
policy. You have some history-making of your own on the agenda today,
and I don't want to keep you from it. I do hope, however, that an
invigorated historical interest in Henry George will aid you in your
work.
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