Notice, however, that the magnitude and even the direction of changes in the other two terms are indeterminate. It would be high enough to end other taxes, especially upon labor and production, to provide limitless beneficial public investment in services such as transportation, since public investment is reflected in land value, and to provide social services such as a. I want you to read this book and give me your honest opinion on it, as you would on a legal question. This riddle, if not answered, will eventually topple our entire civilization. Imbalanced land title distribution is a symptom of statism. Unlike a mathematical equation, a system identity cannot address questions of linearity, exact proportionality, magnitudes, exponential effects, or time dependency.
George never answered the question of what happens to the titleholder who fails to pay this coerced ground rent tax. By focusing on a genuine wealth-for-wealth perspective barter and trade , he focused on discussing foundational principles. George did not address how humans capitalized their ventures. Instead, however, squalor, misery, vice and crime increased and are still increasing everywhere as our villages, towns and cities grow and as new technologies bring advantages to improve methods of production and exchange. Thus, two symbolic expressions that appear equivalent if viewed as mathematical equations are not at all equivalent in the world of systems. Knights of the Golden Rule the Intellectual as Christian Social Reformer in the 1890s. Recognizing as property all products created directly from labor is nothing but a social and legal convention.
The Remedy The equal right of all men and women to the use of land is as clear as their equal right to breathe the air. Unfortunately, George provided no evidentiary support for his question. In his Introduction he rhetorically described the general enigma of material progress and poverty coexisting, but he never laid a proper foundation or provided data that aggregate wages were decreasing with respect to material progress. George uses history and deductive logic to argue for a radical solution focusing on the capture of from natural resource and land titles. Artificial scarcity created through is the immediate problem, not land title distribution. Throw in the complexity of exponential compound interest and currency inflation and that new system looks nothing like what George discussed.
The Law of Conservation of Energy teaches that energy can be neither created nor destroyed but only converted into one form or another. Again, however, George missed the point that those capitalization processes are helped through a monetary exchange system. Payment by contract for future labor is a loan, not wages, although that loan must be repaid from the products of future labor. Land values are derived primarily from subjective desires. For 1st what other right exists from which the right to the exclusive possession of anything can be derived, save the right of a man to himself? Those characteristics affect how the system elements relate to one another. These questions are not answered easily.
The identity represents system relationships, not mathematical relationships. Humans are constrained by the time domain and are limited to performing all acts sequentially. That approach is an excellent introductory teaching method, but also an incomplete method for analyzing complex systems. Therefore, the currency being used to pay current wages represents future capital — future wealth. A Synopsis of Henry George's Progress and Poverty Al Katzenberger This synopsis, inspired by Dr. However, producing new currency through political privilege possesses the mystical power of creating capital and does so by placing production of capital into the future time domain, not in the past. Such a statement is confusing.
The same thing happens when politicians and bureaucrats use eminent domain to forcibly transfer land titles. Can spillover effects of perceived value be avoided? Is the salt-pork capital or wages? This opened the door for George to explore other reasons to explain the poverty enigma. This is the universal law. By happenstance more than astute evaluation and study, he tripped upon the problem of artificial scarcity in land as a contributing cause. New York: Hill and Wang.
However, all of the Industrialists of the 19th century capitalized their ventures with a monetary currency. Land availability was only a partial contributor to the local increases of wealth distribution. George argued that the battle is not between labor and capital, but he did not seem to recognize that in the Industrial Age capital is created by creating currency, currency that is introduced by political privilege through bankers, and that bankers charge compound interest for creating that currency. The proposal is to appropriate land rent for public revenue, rather than rob producers of their rightful earnings by punitive taxation. It is the taking by the community, for the use of the community, of that value which is the creation of the community.
Archived from on 30 October 2014. There are natural limits in aggregate production and artificially limiting the availability of land necessarily affects production, which affects how much wealth can be produced. All men to her stand upon an equal footing and have equal rights. Part of this confusion results from the misconception that is wealth and that all exchanges of wealth are instantaneous. When is poverty being defined objectively? Wherever the value of land is relatively low, wages and interest are relatively high. This is simple and this is unanswerable. Political systems always provide avenues for social imbalance.