HENRY GEORGE BROCHURE DESIGNED The following text is reprinted by permission of the author, 15-year old Max Pensack who did the graphics -- not included here -- and text for his sophomore American studies class at Steamboat Springs, CO High School this year. Max's uncle is well known Georgist Yisroel Pensack, who may be emailed at yisroel@citycom.com. The Social Analysis of Poverty: Its Causes, Development, and Cure... Henry George's Progress and Poverty Henry George's Philosophy of Economics Max Pensack Presents: Henry George: The Forgotten Philosopher At one time in history, Henry George was one of the most famous people in the United States. Only praise for Mark Twain and Thomas Edison topped that of Henry George. Today, however, a majority of the people have not even heard of Henry George. His name and his teachings have fallen away from mainstream thinking. Ironically, they are perhaps more relevant today than ever before. The story of Henry George and his teachings began in the mid-1800's. As a small boy from Philadelphia, George grew up in a rapidly changing and developing society. He left school at the age of 13 and took a job as a cabin boy aboard a ship that would voyage around the world. George observed poverty and desolation abroad and was extremely influenced by this experience. He returned to the U.S. and moved to San Francisco. The gold rush provided a unique situation in California at the time. George was able to view the creation of a society where before, there was nothing. With the emergence of progress in California, there occurred simultaneously the emergence of poverty. George wondered at this problem and set out to solve it. Henry George was a true original in his thinking. Through education and awareness, perhaps Henry George could return to popularity so his ideas can continue to influence the battle against injustice and poverty worldwide. To understand Henry George's teachings, one must first analyze his social observations at the time. George's Axioms or assumptions about mankind lie at the heart of his philosophy: 1. Man seeks to gratify his desires with the least amount of excursion possible. 2. Man's desires are endless. These patterns can be seen in everyday life and are constantly a part of George's teachings. The next important aspect of Georgian Economics is George's thoughts on land and its respective value. Land is a required ingredient for economic progress. Without land, there would be no crops, no place to put buildings, no way to survive as a race, and no way to progress. Land, however, is a limited resource, therefore, its value increases as its surrounding economy progresses. George stated that this pattern had been occurring since the beginning of time. If one person, for example, claims the best parcel of land in a specific area, and another person comes, he must then claim the second best parcel of land. If the two work the same amount of hours, have the same weather, and work with the same skill, the first man will yield more crops, simply by virtue that he has better land. This pattern continues as more people claim land. At this point, the first land owner can rent his land to someone with poorer land. This first land owner will allow a poorer land owner to do all the work on his land and will reap profits, having done no work. He only has to pay labor at the cost of the least valuable land in the area. This means that the first parcel of land increases in value with each less valuable piece of land claimed. He does no work to earn this extra land value. Progress and Poverty Single Tax: Society's Liberator In much simpler terms, George thought it unfair for wealthy land owners to collect such large sums of unearned rent. He would not stand for a system in which the wealthy made money while doing no work, and the poor were made to work, with lower and lower wages. His solution was called single tax. If it was unfair for the land owners to collect the large sums of rent, it should be taken away. George believed that if all land rent was taxed away, it would generate enough government revenue to do away with all other forms of tax. Since every person's land would only be as valuable as the poorest parcel of land, both capital and labor would pick up the slack, making extreme advances in progress. Falling wages would be demolished as would land speculation, and eventually all the land would increase in value. Governments would also have the simplicity of one, understandable tax. His ideas were heavily supported by humanitarian and religious groups. Where Has Single Tax Gone? During his lifetime, Henry George was the major advocate of his own philosophy. He would travel world wide, presenting his books and preaching his theories. Especially in the United States, the idea of a single tax system was extremely popular. When Henry George died in 1897, few people continued to educate the public about single tax economics. Upon the emergence of communism, the single tax theory was almost completely forgotten. Today, some single tax ideals are practiced in Australia, New Zealand, Canada, and areas of the United States. Quotes From Progress and Poverty "Passing into higher forms of desire, that which slumbered in the plant, and fitfully stirred in the beast, awakes in the man. " "For as labor cannot produce without the use of land, the denial of the equal right to use the land is necessarily the denial of the labor to its own produce. " "The equal right of all men to the use of land is as clear as their equal right to breathe the air -- it is a right proclaimed by the fact of their existence. For we cannot suppose that some men have a right to be in this world, and others no right." "Three things unite to production -- labor, capital, and land. Three parties divide the produce -- the laborer, the capitalist, and the land owner. If, with an increase of production the laborer gets no more and the capitalist gets no more, it is a necessary inference that the landowner reaps the whole gain." The Early Bird Gets the Rent!!! Wealth - natural materials produced by labor, intended to satisfy human desires, and having an exchange rate Capital - wealth used to produce more wealth Wages - a share of the total wealth that should return to labor Rent - paying for the use of land Max Pensack, American Studies Final Project Works Cited De Mille, Agnes George., Who Was Henry George?, Robert Schalkenbach Foundation. Jan. 1979. 8 May 2005. . George, Henry., Britannica Student Encyclopedia. 2005. Encyclopaedia Britannica Online School Edition. 5 May, 2005. . George, Henry. Progress and Poverty. New York: Robert Schalkenbach Foundation, 1962. Pensack, Yisroel. Telephone Interview. 8 May 2005. Single Tax., Encyclopaedia Britannica. 2005. Encyclopaedia Britannica Online School Edition. 5 May, 2005. [Back to the GroundSwell page]       [Home]