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Georgism, also called in modern times Geoism, and known historically as the single tax movement, is an
economic ideology An economic ideology is a set of views forming the basis of an ideology on how the economy should run. It differentiates itself from economic theory in being normative rather than just explanatory in its approach, whereas the aim of economic the ...
holding that, although people should own the value they produce themselves, the
economic rent In economics, economic rent is any payment (in the context of a market transaction) to the owner of a factor of production in excess of the cost needed to bring that factor into production. In classical economics, economic rent is any payment m ...
derived from
land Land, also known as dry land, ground, or earth, is the solid terrestrial surface of the planet Earth that is not submerged by the ocean or other bodies of water. It makes up 29% of Earth's surface and includes the continents and various islan ...
—including from all
natural resources Natural resources are resources that are drawn from nature and used with few modifications. This includes the sources of valued characteristics such as commercial and industrial use, aesthetic value, scientific interest and cultural value. O ...
, the
commons The commons is the cultural and natural resources accessible to all members of a society, including natural materials such as air, water, and a habitable Earth. These resources are held in common even when owned privately or publicly. Commons ...
, and urban locations—should belong equally to all members of society. Developed from the writings of American economist and social reformer
Henry George Henry George (September 2, 1839 – October 29, 1897) was an American political economist and journalist. His writing was immensely popular in 19th-century America and sparked several reform movements of the Progressive Era. He inspired the eco ...
, the Georgist paradigm seeks solutions to
social Social organisms, including human(s), live collectively in interacting populations. This interaction is considered social whether they are aware of it or not, and whether the exchange is voluntary or not. Etymology The word "social" derives from ...
and
ecological problems Human impact on the environment (or anthropogenic impact) refers to changes to biophysical environments and to ecosystems, biodiversity, and natural resources caused directly or indirectly by humans. Modifying the environment to fit the needs ...
, based on principles of land rights and public finance which attempt to integrate
economic efficiency In microeconomics, economic efficiency, depending on the context, is usually one of the following two related concepts: * Allocative or Pareto efficiency: any changes made to assist one person would harm another. * Productive efficiency: no addit ...
with
social justice Social justice is justice in terms of the distribution of wealth, opportunities, and privileges within a society. In Western and Asian cultures, the concept of social justice has often referred to the process of ensuring that individuals fu ...
. Georgism is concerned with the distribution of
economic rent In economics, economic rent is any payment (in the context of a market transaction) to the owner of a factor of production in excess of the cost needed to bring that factor into production. In classical economics, economic rent is any payment m ...
caused by land ownership,
natural monopolies A natural monopoly is a monopoly in an industry in which high infrastructural costs and other barriers to entry relative to the size of the market give the largest supplier in an industry, often the first supplier in a market, an overwhelming adv ...
,
pollution Pollution is the introduction of contaminants into the natural environment that cause adverse change. Pollution can take the form of any substance (solid, liquid, or gas) or energy (such as radioactivity, heat, sound, or light). Pollutants, the ...
rights, and control of the
commons The commons is the cultural and natural resources accessible to all members of a society, including natural materials such as air, water, and a habitable Earth. These resources are held in common even when owned privately or publicly. Commons ...
, including
title A title is one or more words used before or after a person's name, in certain contexts. It may signify either generation, an official position, or a professional or academic qualification. In some languages, titles may be inserted between the f ...
of ownership for natural resources and other contrived privileges (e.g.
intellectual property Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, cop ...
). Any natural resource which is inherently limited in
supply Supply may refer to: *The amount of a resource that is available **Supply (economics), the amount of a product which is available to customers **Materiel, the goods and equipment for a military unit to fulfill its mission *Supply, as in confidenc ...
can generate economic rent, but the classical and most significant example of
land monopoly Concentration of land ownership refers to the ownership of land in a particular area by a small number of people or organizations. It is sometimes defined as additional concentration beyond that which produces optimally efficient land use. Distri ...
involves the extraction of common
ground rent As a legal term, ground rent specifically refers to regular payments made by a holder of a leasehold property to the freeholder or a superior leaseholder, as required under a lease. In this sense, a ground rent is created when a freehold piece of ...
from valuable urban locations. Georgists argue that taxing economic rent is efficient,
fair A fair (archaic: faire or fayre) is a gathering of people for a variety of entertainment or commercial activities. Fairs are typically temporary with scheduled times lasting from an afternoon to several weeks. Types Variations of fairs incl ...
and equitable. The main Georgist policy recommendation is a tax assessed on land value, arguing that revenues from a
land value tax A land value tax (LVT) is a levy on the value of land (economics), land without regard to buildings, personal property and other land improvement, improvements. It is also known as a location value tax, a point valuation tax, a site valuation ta ...
(LVT) can be used to reduce or eliminate existing taxes (such as on
income Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. Income is difficult to define conceptually and the definition may be different across fields. For ...
,
trade Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. An early form of trade, barter, saw the direct excha ...
, or
purchases Purchasing is the process a business or organization uses to acquire goods or services to accomplish its goals. Although there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly betwee ...
) that are unfair and inefficient. Some Georgists also advocate for the return of surplus public revenue to the people by means of a
basic income Universal basic income (UBI) is a social welfare proposal in which all citizens of a given population regularly receive an unconditional transfer payment, that is, without a means test or need to work. It would be received independently of a ...
or
citizen's dividend Citizen's dividend is a proposed policy based upon the Georgist principle that the natural world is the common property of all people. It is proposed that all citizens receive regular payments (dividends) from revenue raised by leasing or taxing ...
. The concept of gaining public revenues mainly from land and natural resource privileges was widely popularized by Henry George through his first book, ''
Progress and Poverty ''Progress and Poverty: An Inquiry into the Cause of Industrial Depressions and of Increase of Want with Increase of Wealth: The Remedy'' is an 1879 book by social theorist and economist Henry George. It is a treatise on the questions of why pover ...
'' (1879). The philosophical basis of Georgism draws on earlier thinkers such as
John Locke John Locke (; 29 August 1632 – 28 October 1704) was an English philosopher and physician, widely regarded as one of the most influential of Age of Enlightenment, Enlightenment thinkers and commonly known as the "father of liberalism ...
,
Baruch Spinoza Baruch (de) Spinoza (born Bento de Espinosa; later as an author and a correspondent ''Benedictus de Spinoza'', anglicized to ''Benedict de Spinoza''; 24 November 1632 – 21 February 1677) was a Dutch philosopher of Portuguese-Jewish origin, b ...
and
Thomas Paine Thomas Paine (born Thomas Pain; – In the contemporary record as noted by Conway, Paine's birth date is given as January 29, 1736–37. Common practice was to use a dash or a slash to separate the old-style year from the new-style year. In th ...
. Economists from
Adam Smith Adam Smith (baptized 1723 – 17 July 1790) was a Scottish economist and philosopher who was a pioneer in the thinking of political economy and key figure during the Scottish Enlightenment. Seen by some as "The Father of Economics"——— ...
and
David Ricardo David Ricardo (18 April 1772 – 11 September 1823) was a British Political economy, political economist. He was one of the most influential of the Classical economics, classical economists along with Thomas Robert Malthus, Thomas Malthus, Ad ...
, to
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the ...
and
Joseph Stiglitz Joseph Eugene Stiglitz (; born February 9, 1943) is an American New Keynesian economist, a public policy analyst, and a full professor at Columbia University. He is a recipient of the Nobel Memorial Prize in Economic Sciences (2001) and the Joh ...
, have observed that a public levy on land value does not cause
economic inefficiency In microeconomics, economic efficiency, depending on the context, is usually one of the following two related concepts: * Allocative or Pareto efficiency: any changes made to assist one person would harm another. * Productive efficiency: no addit ...
, unlike other taxes. A land value tax also has
progressive tax A progressive tax is a tax in which the tax rate increases as the taxable amount increases.Sommerfeld, Ray M., Silvia A. Madeo, Kenneth E. Anderson, Betty R. Jackson (1992), ''Concepts of Taxation'', Dryden Press: Fort Worth, TX The term ''progre ...
effects. Advocates of land value taxes argue that they would reduce
economic inequality There are wide varieties of economic inequality, most notably income inequality measured using the distribution of income (the amount of money people are paid) and wealth inequality measured using the distribution of wealth (the amount of we ...
, increase economic efficiency, remove incentives to under-utilize urban land and reduce
property speculation A real-estate bubble or property bubble (or housing bubble for residential markets) is a type of economic bubble that occurs periodically in local or global real-estate markets, and typically follow a land boom. A land boom is the rapid increase ...
. Georgist ideas were popular and influential during the late 19th and early 20th century. Political parties, institutions and communities were founded based on Georgist principles during that time. Early devotees of Henry George's economic philosophy were often termed ''Single Taxers'' for their political goal of raising public revenue mainly or only from a land value tax, although Georgists endorsed multiple forms of rent capture (e.g.
seigniorage Seigniorage , also spelled seignorage or seigneurage (from the Old French ''seigneuriage'', "right of the lord (''seigneur'') to mint money"), is the difference between the value of money and the cost to produce and distribute it. The term can be ...
) as legitimate. The term ''Georgism'' was invented later, and some prefer the term ''geoism'' as more generic.


Main tenets

Henry George Henry George (September 2, 1839 – October 29, 1897) was an American political economist and journalist. His writing was immensely popular in 19th-century America and sparked several reform movements of the Progressive Era. He inspired the eco ...
is best known for popularizing the argument that government should be funded by a tax on land rent rather than taxes on labor. George believed that although
scientific experiment An experiment is a procedure carried out to support or refute a hypothesis, or determine the efficacy or likelihood of something previously untried. Experiments provide insight into cause-and-effect by demonstrating what outcome occurs when a ...
s could not be performed in political economy, theories could be tested by comparing different societies with different conditions and by
thought experiments A thought experiment is a hypothetical situation in which a hypothesis, theory, or principle is laid out for the purpose of thinking through its consequences. History The ancient Greek ''deiknymi'' (), or thought experiment, "was the most anci ...
about the effects of various factors. Applying this method, he concluded that many of the problems that beset society, such as poverty, inequality, and economic booms and busts, could be attributed to the private ownership of the necessary resource, land rent. In his most celebrated book, ''
Progress and Poverty ''Progress and Poverty: An Inquiry into the Cause of Industrial Depressions and of Increase of Want with Increase of Wealth: The Remedy'' is an 1879 book by social theorist and economist Henry George. It is a treatise on the questions of why pover ...
'', George argues that the appropriation of land rent for private use contributes to persistent poverty in spite of technological progress, and causes economies to exhibit a tendency toward boom and bust cycles. According to George, people justly own what they create, but natural opportunities and
land Land, also known as dry land, ground, or earth, is the solid terrestrial surface of the planet Earth that is not submerged by the ocean or other bodies of water. It makes up 29% of Earth's surface and includes the continents and various islan ...
belong equally to all. George believed there was an important distinction between common and collective property. Although equal rights to land might be achieved by nationalizing land and then leasing it to private users, George preferred taxing unimproved land value and leaving the control of land mostly in private hands. George's reasoning for leaving land in private control and slowly shifting to land value tax was that it would not penalize existing owners who had improved land and would also be less disruptive and controversial in a country where land titles have already been granted. Georgists have observed that privately created wealth is socialized via the tax system (e.g., through
income Income is the consumption and saving opportunity gained by an entity within a specified timeframe, which is generally expressed in monetary terms. Income is difficult to define conceptually and the definition may be different across fields. For ...
and
sales tax A sales tax is a tax paid to a governing body for the sales of certain goods and services. Usually laws allow the seller to collect funds for the tax from the consumer at the point of purchase. When a tax on goods or services is paid to a govern ...
), while socially created wealth in land values are privatized in the price of land titles and bank mortgages. The opposite would be the case if land rents replaced taxes on labor as the main source of
public revenue Government revenue or national revenue is money received by a government from taxes and non-tax sources to enable it to undertake public expenditure. Government revenue as well as government spending are components of the government budget and ...
; socially created wealth would become available for use by the community, while the fruits of labor would remain private. According to Georgists, a land value tax can be considered a user fee instead of a tax, since it is related to the market value of socially created locational advantage, the privilege to exclude others from locations. Assets consisting of commodified privilege can be considered as wealth since they have exchange value, similar to taxi medallions. A land value tax, charging fees for exclusive use of land, as a means of raising public revenue is also a
progressive tax A progressive tax is a tax in which the tax rate increases as the taxable amount increases.Sommerfeld, Ray M., Silvia A. Madeo, Kenneth E. Anderson, Betty R. Jackson (1992), ''Concepts of Taxation'', Dryden Press: Fort Worth, TX The term ''progre ...
tending to reduce
economic inequality There are wide varieties of economic inequality, most notably income inequality measured using the distribution of income (the amount of money people are paid) and wealth inequality measured using the distribution of wealth (the amount of we ...
, since it applies entirely to ownership of valuable land, which is correlated with income, and there is generally no means by which landlords can shift the
tax burden In economics, tax incidence or tax burden is the effect of a particular tax on the distribution of economic welfare. Economists distinguish between the entities who ultimately bear the tax burden and those on whom tax is initially imposed. The tax ...
onto tenants or laborers. Landlords are unable to pass the tax on to tenants because the
supply and demand In microeconomics, supply and demand is an economic model of price determination in a Market (economics), market. It postulates that, Ceteris paribus, holding all else equal, in a perfect competition, competitive market, the unit price for a ...
of rented land is unchanged. Because the supply of land is perfectly
inelastic In economics, elasticity measures the percentage change of one economic variable in response to a percentage change in another. If the price elasticity of the demand of something is -2, a 10% increase in price causes the demand quantity to fall ...
, land rents depend on what tenants are prepared to pay, rather than on the expenses of landlords, and so the tax cannot be passed on to tenants.


Economic properties

Standard
economic An economy is an area of the Production (economics), production, Distribution (economics), distribution and trade, as well as Consumption (economics), consumption of Goods (economics), goods and Service (economics), services. In general, it is ...
theory suggests that a land value tax would be extremely efficient—unlike other taxes, it does not reduce economic productivity.
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the ...
described Henry George's tax on unimproved value of land as the "least bad tax", since unlike other taxes, it would not impose an excess burden on economic activity (leading to zero or even negative "
deadweight loss In economics, deadweight loss is the difference in production and consumption of any given product or service including government tax. The presence of deadweight loss is most commonly identified when the quantity produced ''relative'' to the amoun ...
"); hence, a replacement of other more "distortionary" taxes with a land value tax would improve economic welfare. As land value tax can improve the use of land and redirect investment toward productive, non-
rent-seeking Rent-seeking is the act of growing one's existing wealth without creating new wealth by manipulating the social or political environment. Rent-seeking activities have negative effects on the rest of society. They result in reduced economic effi ...
activities, it could even have a negative dead-weight loss that boosts productivity. Because land value tax would apply to foreign land speculators, the Australian Treasury estimated that land value tax was unique in having a negative marginal excess burden, meaning that it would increase long-run living standards. It was
Adam Smith Adam Smith (baptized 1723 – 17 July 1790) was a Scottish economist and philosopher who was a pioneer in the thinking of political economy and key figure during the Scottish Enlightenment. Seen by some as "The Father of Economics"——— ...
who first noted the efficiency and distributional properties of a land value tax in his book ''
The Wealth of Nations ''An Inquiry into the Nature and Causes of the Wealth of Nations'', generally referred to by its shortened title ''The Wealth of Nations'', is the ''magnum opus'' of the Scottish economist and moral philosopher Adam Smith. First published in 1 ...
''.
Benjamin Franklin Benjamin Franklin ( April 17, 1790) was an American polymath who was active as a writer, scientist, inventor, statesman, diplomat, printer, publisher, and political philosopher. Encyclopædia Britannica, Wood, 2021 Among the leading inte ...
and
Winston Churchill Sir Winston Leonard Spencer Churchill (30 November 187424 January 1965) was a British statesman, soldier, and writer who served as Prime Minister of the United Kingdom twice, from 1940 to 1945 Winston Churchill in the Second World War, dur ...
made similar distributional and efficiency arguments for taxing land rents. They noted that the costs of taxes and the benefits of public spending always eventually apply to and enrich, respectively, the owners of land. Therefore, they believed it would be best to defray public costs and recapture value of public spending by applying public charges directly to owners of land titles, rather than harming public welfare with taxes assessed against beneficial activities such as trade and labor. Henry George wrote that his plan for a high land value tax would cause people "to contribute to the public, not in proportion to what they produce ... but in proportion to the value of natural ommonopportunities that they hold onopolize. He went on to explain that "by taking for public use that value which attaches to land by reason of the growth and improvement of the community", it would, "make the holding of land unprofitable to the mere owner, and profitable only to the user". A high land value tax would discourage speculators from holding valuable natural opportunities (like urban real estate) unused or only partially used. Henry George claimed this would have many benefits, including the reduction or elimination of tax burdens from poorer neighborhoods and agricultural districts; the elimination of a multiplicity of taxes and expensive obsolete government institutions; the elimination of corruption, fraud, and evasion with respect to the collection of taxes; the enablement of true free trade; the destruction of monopolies; the elevation of wages to the full value of labor; the transformation of labor-saving inventions into blessings for all; and the equitable distribution of comfort, leisure, and other advantages that are made possible by an advancing civilization. In this way, the vulnerability that market economies have to credit bubbles and property manias would be reduced.


Sources of economic rent and related policy interventions

Income flow resulting from payments for restricted access to natural opportunities or for contrived privileges over geographic regions is termed
economic rent In economics, economic rent is any payment (in the context of a market transaction) to the owner of a factor of production in excess of the cost needed to bring that factor into production. In classical economics, economic rent is any payment m ...
. Georgists argue that economic rent of land, legal privileges, and
natural monopolies A natural monopoly is a monopoly in an industry in which high infrastructural costs and other barriers to entry relative to the size of the market give the largest supplier in an industry, often the first supplier in a market, an overwhelming adv ...
should accrue to the community, rather than private owners. In economics, "
land Land, also known as dry land, ground, or earth, is the solid terrestrial surface of the planet Earth that is not submerged by the ocean or other bodies of water. It makes up 29% of Earth's surface and includes the continents and various islan ...
" is everything that exists in nature independent of human activity. George explicitly included climate, soil, waterways, mineral deposits, laws/forces of nature, public ways, forests, oceans, air, and solar energy in the category of land. While the philosophy of Georgism does not say anything definitive about specific policy interventions needed to address problems posed by various sources of economic rent, the common goal among modern Georgists is to capture and share (or reduce) rent from all sources of natural monopoly and legal privilege. Henry George shared the goal of modern Georgists to socialize or dismantle rent from all forms of land monopoly and legal privilege. However, George emphasized mainly his preferred policy known as
land value tax A land value tax (LVT) is a levy on the value of land (economics), land without regard to buildings, personal property and other land improvement, improvements. It is also known as a location value tax, a point valuation tax, a site valuation ta ...
, which targeted a particular form of unearned income known as
ground rent As a legal term, ground rent specifically refers to regular payments made by a holder of a leasehold property to the freeholder or a superior leaseholder, as required under a lease. In this sense, a ground rent is created when a freehold piece of ...
. George emphasized ground-rent because basic locations were more valuable than other monopolies and everybody needed locations to survive, which he contrasted with the less significant streetcar and telegraph monopolies, which George also criticized. George likened the problem to a laborer traveling home who is waylaid by a series of highway robbers along the way, each who demand a small portion of the traveler's wages, and finally at the very end of the road waits a robber who demands all that the traveler has left. George reasoned that it made little difference to challenge the series of small robbers when the final robber remained to demand all that the common laborer had left. George predicted that over time technological advancements would increase the frequency and importance of lesser monopolies, yet he expected that ground rent would remain dominant. George even predicted that ground-rents would rise faster than wages and income to capital, a prediction that modern analysis has shown to be plausible, since the supply of land is fixed. Spatial rent is still the primary emphasis of Georgists because of its large value and the known dis-economies of misused land. However, there are other sources of rent that are theoretically analogous to ground-rent and are debated topics of Georgists. The following are some sources of economic rent. * Extractable resources (minerals and hydrocarbons) * Severables (forests and stocks of fish) * Extraterrestrial domains (geosynchronous orbits and airway corridor use) * Legal privileges that apply to specific location (taxi medallions, billboard and development permits, or the monopoly of electromagnetic frequencies) * Restrictions/taxes of pollution or
severance Severance may refer to: Arts and entertainment * ''Severance'' (film), a 2006 British horror film * ''Severance'' (novel), a 2018 novel by Ling Ma *''Severance'', a 2006 short-story collection by Robert Olen Butler * ''Severance'' (TV series), a ...
(
tradable emission permits Emissions trading is a market-based approach to controlling pollution by providing economic incentives for reducing the emissions of pollutants. The concept is also known as cap and trade (CAT) or emissions trading scheme (ETS). Carbon emission t ...
and fishing quotas) *
Right-of-way (transportation) A right-of-way (ROW) is a right to make a way over a piece of land, usually to and from another piece of land. A right of way is a type of easement granted or reserved over the land for transportation purposes, such as a highway, public footp ...
used by railroads, utilities, and internet service providers * Issuance of
legal tender Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered ("tendered") in pa ...
(see
seigniorage Seigniorage , also spelled seignorage or seigneurage (from the Old French ''seigneuriage'', "right of the lord (''seigneur'') to mint money"), is the difference between the value of money and the cost to produce and distribute it. The term can be ...
) * Privileges that are less location dependent but that still exclude others from natural opportunities (
patents A patent is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an enabling disclosure of the invention."A p ...
) Where free competition is impossible, such as telegraphs, water, gas, and transportation, George wrote, " ch business becomes a proper social function, which should be controlled and managed by and for the whole people concerned." Georgists were divided by this question of
natural monopolies A natural monopoly is a monopoly in an industry in which high infrastructural costs and other barriers to entry relative to the size of the market give the largest supplier in an industry, often the first supplier in a market, an overwhelming adv ...
and often favored public ownership only of the rents from common
rights-of-way Right of way is the legal right, established by grant from a landowner or long usage (i.e. by prescription), to pass along a specific route through property belonging to another. A similar ''right of access'' also exists on land held by a gov ...
, rather than public ownership of utility companies themselves.


Georgism and environmental economics

The early conservationism of the
Progressive Era The Progressive Era (late 1890s – late 1910s) was a period of widespread social activism and political reform across the United States focused on defeating corruption, monopoly, waste and inefficiency. The main themes ended during Am ...
was inspired partly by
Henry George Henry George (September 2, 1839 – October 29, 1897) was an American political economist and journalist. His writing was immensely popular in 19th-century America and sparked several reform movements of the Progressive Era. He inspired the eco ...
, and his influence extended for decades afterward. Some ecological economists still support the Georgist policy of
land value tax A land value tax (LVT) is a levy on the value of land (economics), land without regard to buildings, personal property and other land improvement, improvements. It is also known as a location value tax, a point valuation tax, a site valuation ta ...
as a means of freeing or
rewilding Rewilding may refer to: *Rewilding (conservation biology), the return of habitats to a natural state **Rewilding Europe, a programme to do so in Europe *** Pleistocene rewilding, a form of species reintroduction **Rewilding Institute, an organiz ...
unused land and conserving nature by reducing
urban sprawl Urban sprawl (also known as suburban sprawl or urban encroachment) is defined as "the spreading of urban developments (such as houses and shopping centers) on undeveloped land near a city." Urban sprawl has been described as the unrestricted growt ...
.Daly, Herman E., and Joshua C. Farley. Ecological Economics: Principles and Applications. Washington: Island, 2004. Pollution degrades the value of what Georgists consider to be
commons The commons is the cultural and natural resources accessible to all members of a society, including natural materials such as air, water, and a habitable Earth. These resources are held in common even when owned privately or publicly. Commons ...
. Because pollution is a negative contribution, a taking from the commons or a cost imposed on others, its value is
economic rent In economics, economic rent is any payment (in the context of a market transaction) to the owner of a factor of production in excess of the cost needed to bring that factor into production. In classical economics, economic rent is any payment m ...
, even when the polluter is not receiving an explicit income. Therefore, to the extent that society determines pollution to be harmful, most Georgists propose to limit pollution with taxation or quotas that capture the resulting rents for public use, restoration, or a ''citizen's dividend''. Georgism is related to the school of ecological economics, since both propose market-based restrictions for pollution. The schools are compatible in that they advocate using similar tools as part of a conservation strategy, but they emphasize different aspects.
Conservation Conservation is the preservation or efficient use of resources, or the conservation of various quantities under physical laws. Conservation may also refer to: Environment and natural resources * Nature conservation, the protection and managem ...
is the central issue of ecology, whereas
economic rent In economics, economic rent is any payment (in the context of a market transaction) to the owner of a factor of production in excess of the cost needed to bring that factor into production. In classical economics, economic rent is any payment m ...
is the central issue of geoism. Ecological economists might price pollution fines more conservatively to prevent inherently unquantifiable damage to the environment, whereas Georgists might emphasize mediation between conflicting interests and
human rights Human rights are Morality, moral principles or Social norm, normsJames Nickel, with assistance from Thomas Pogge, M.B.E. Smith, and Leif Wenar, 13 December 2013, Stanford Encyclopedia of PhilosophyHuman Rights Retrieved 14 August 2014 for ce ...
.
Geolibertarianism Geolibertarianism is a political and economic ideology that integrates libertarianism with Georgism. It favors a taxation system based (as in Georgism) on income derived from land and natural resources instead of on labor, coupled with a mini ...
, a market-oriented branch of Geoism, tends to take a direct stance against what it perceives as burdensome regulation and would like to see auctioned pollution quotas or taxes replace most
command and control regulation Command and Control (CAC) regulation finds common usage in academic literature and beyond. The relationship between CAC and environmental policy is considered in this article, an area that demonstrates the application of this type of regulation. Ho ...
. Since
ecologists This is a list of notable ecologists. A-D * John Aber (USA) * Aziz Ab'Saber (Brazil) * Charles Christopher Adams (USA) * Warder Clyde Allee (USA) * Herbert G. Andrewartha ( Australia) * Sarah Martha Baker ( UK) * Fakhri A. Bazzaz (USA) ...
are primarily concerned with conservation, they tend to emphasize less the issue of equitably distributing scarcity/pollution rents, whereas Georgists insist that unearned income not accrue to those who hold title to natural assets and pollution privilege. To the extent that geoists recognize the effect of
pollution Pollution is the introduction of contaminants into the natural environment that cause adverse change. Pollution can take the form of any substance (solid, liquid, or gas) or energy (such as radioactivity, heat, sound, or light). Pollutants, the ...
or share conservationist values, they will agree with ecological economists about the need to limit pollution, but geoists will also insist that pollution rents generated from those conservation efforts do not accrue to polluters and are instead used for public purposes or to compensate those who suffer the negative effects of pollution. Ecological economists advocate similar pollution restrictions but, emphasizing conservation first, might be willing to grant private polluters the privilege to capture pollution rents. To the extent that ecological economists share the geoist view of social justice, they would advocate auctioning pollution quotas instead of giving them away for free. This distinction can be seen in the difference between basic
cap and trade Emissions trading is a market-based approach to controlling pollution by providing economic incentives for reducing the emissions of pollutants. The concept is also known as cap and trade (CAT) or emissions trading scheme (ETS). Carbon emission t ...
and the geoist variation, cap and share, a proposal to auction temporary pollution permits, with rents going to the public, instead of giving pollution privilege away for free to existing polluters or selling perpetual permits.


Revenue uses

The revenue can allow the reduction or elimination of taxes, greater public investment/spending, or the direct distribution of funds to citizens as a pension or
basic income Universal basic income (UBI) is a social welfare proposal in which all citizens of a given population regularly receive an unconditional transfer payment, that is, without a means test or need to work. It would be received independently of a ...
/
citizen's dividend Citizen's dividend is a proposed policy based upon the Georgist principle that the natural world is the common property of all people. It is proposed that all citizens receive regular payments (dividends) from revenue raised by leasing or taxing ...
. In practice, the elimination of all other taxes implies a high land value tax, greater than any currently existing land tax. Introducing or increasing a land value tax would cause the purchase price of land to decrease. George did not believe landowners should be compensated and described the issue as being analogous to compensation for former slave owners. Other geoists disagree on the question of compensation; some advocate complete compensation while others endorse only enough compensation required to achieve Georgist reforms. Some geoists advocate compensation only for a net loss due to a shift of taxation to land value; most taxpayers would gain from the replacement of other taxes with a tax on land value. Historically, those who advocated for taxes on rent tax only great enough to replace other taxes were known as endorsers of ''single tax limited''.


Synonyms and variants

Most early advocacy groups described themselves as single taxers and George reluctantly accepted the single tax as an accurate name for his main political goal—the repeal of all unjust or inefficient taxes, to be replaced with a
land value tax A land value tax (LVT) is a levy on the value of land (economics), land without regard to buildings, personal property and other land improvement, improvements. It is also known as a location value tax, a point valuation tax, a site valuation ta ...
(LVT). Some modern proponents are dissatisfied with the name ''Georgist''. While Henry George was well known throughout his life, he has been largely forgotten by the public and the idea of a single tax of land predates him. Some now prefer the term ''geoism'', with ''geo'' (from Greek "earth, land") being the first compound of the name ''George'' < (Gr.) < "farmer" or "agriculture, farming" < + "work" deliberately ambiguous. The terms ''Earth Sharing'', ''geonomics'' and ''
geolibertarianism Geolibertarianism is a political and economic ideology that integrates libertarianism with Georgism. It favors a taxation system based (as in Georgism) on income derived from land and natural resources instead of on labor, coupled with a mini ...
'' are also used by some Georgists. These terms represent a difference of emphasis and sometimes real differences about how land rent should be spent (
citizen's dividend Citizen's dividend is a proposed policy based upon the Georgist principle that the natural world is the common property of all people. It is proposed that all citizens receive regular payments (dividends) from revenue raised by leasing or taxing ...
or just replacing other taxes), but they all agree that land rent should be recovered from its private recipients. Compulsory fines and fees related to land rents are the most common Georgist policies, but some geoists prefer voluntary
value capture Value capture is a type of public financing that recovers some or all of the value that public infrastructure generates for private landowners. In many countries, the public sector is responsible for the infrastructure required to support urban dev ...
systems that rely on methods such as non-compulsory or self-assessed location value fees,
community land trust A community land trust (CLT) is a nonprofit corporation that holds land on behalf of a place-based community, while serving as the long-term steward for affordable housing, community gardens, civic buildings, commercial spaces and other community ...
s and purchasing land value covenants. Some geoists believe that partially compensating landowners is a politically expedient compromise necessary for achieving reform. For similar reasons, others propose capturing only future land value increases, instead of all land rent. Some
libertarians Libertarianism (from french: libertaire, "libertarian"; from la, libertas, "freedom") is a political philosophy that upholds liberty as a core value. Libertarians seek to maximize autonomy and political freedom, and Minarchism, minimize the ...
and
minarchists A night-watchman state, or minarchy, whose proponents are known as minarchists, is a model of a state that is limited and minimal, whose functions depend on libertarian theory. Right-libertarians support it only as an enforcer of the non-aggr ...
take the position that limited social spending should be financed using Georgist concepts of rent
value capture Value capture is a type of public financing that recovers some or all of the value that public infrastructure generates for private landowners. In many countries, the public sector is responsible for the infrastructure required to support urban dev ...
, but that not all land rent should be captured. Today, this relatively conservative adaptation is usually considered incompatible with true
geolibertarianism Geolibertarianism is a political and economic ideology that integrates libertarianism with Georgism. It favors a taxation system based (as in Georgism) on income derived from land and natural resources instead of on labor, coupled with a mini ...
, which requires that excess rents be gathered and then distributed back to residents. During Henry George's time, this restrained Georgist philosophy was known as "single tax limited", as opposed to "single tax unlimited". George disagreed with the limited interpretation, but he accepted its adherents (e.g. Thomas Shearman) as legitimate "single-taxers". A key issue to the popular adoption of Georgism is that homes are illiquid yet governments need cash every year. Some economists have proposed other ways of extracting value from land such as building government housing and selling homes to new buyers in areas of fast-rising land value. The government would theoretically collect revenue from home sales without much cost to current homeowners while slowing down land value appreciation in high-demand areas.


Influence

Georgist ideas heavily influenced the politics of the early 20th century. Political parties that were formed based on Georgist ideas include the Commonwealth Land Party in the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
, the
Henry George Justice Party The Henry George Justice Party, also called the Henry George League, was a minor political party in the Australian state of Victoria during the 1950s. The party followed the tenets of Georgism, an economic philosophy and ideology espoused by Americ ...
in
Victoria Victoria most commonly refers to: * Victoria (Australia), a state of the Commonwealth of Australia * Victoria, British Columbia, provincial capital of British Columbia, Canada * Victoria (mythology), Roman goddess of Victory * Victoria, Seychelle ...
, the
Single Tax League The Single Tax League was a Georgist Australian political party that flourished throughout the 1920s and 1930s based on support for single tax. Based upon the ideas of Henry George, who argued that all taxes should be abolished, save for a single ...
in
South Australia South Australia (commonly abbreviated as SA) is a state in the southern central part of Australia. It covers some of the most arid parts of the country. With a total land area of , it is the fourth-largest of Australia's states and territories ...
, and the Justice Party in
Denmark ) , song = ( en, "King Christian stood by the lofty mast") , song_type = National and royal anthem , image_map = EU-Denmark.svg , map_caption = , subdivision_type = Sovereign state , subdivision_name = Danish Realm, Kingdom of Denmark ...
. In the
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
, George's writings were praised by emerging socialist groups in 1890s such as the
Independent Labour Party The Independent Labour Party (ILP) was a British political party of the left, established in 1893 at a conference in Bradford, after local and national dissatisfaction with the Liberals' apparent reluctance to endorse working-class candidates ...
and the
Fabian Society The Fabian Society is a British socialist organisation whose purpose is to advance the principles of social democracy and democratic socialism via gradualist and reformist effort in democracies, rather than by revolutionary overthrow. The Fa ...
, which would each go on to help form the modern-day Labour Party. The
Liberal Liberal or liberalism may refer to: Politics * a supporter of liberalism ** Liberalism by country * an adherent of a Liberal Party * Liberalism (international relations) * Sexually liberal feminism * Social liberalism Arts, entertainment and m ...
government included a land tax as part of several taxes in the 1909
People's Budget The 1909/1910 People's Budget was a proposal of the Liberal government that introduced unprecedented taxes on the lands and incomes of Britain's wealthy to fund new social welfare programmes. It passed the House of Commons in 1909 but was bloc ...
intended to redistribute wealth (including a progressively graded income tax and an increase of
inheritance tax An inheritance tax is a tax paid by a person who inherits money or property of a person who has died, whereas an estate tax is a levy on the estate (money and property) of a person who has died. International tax law distinguishes between an es ...
). This caused a political crisis that resulted indirectly in reform of the
House of Lords The House of Lords, also known as the House of Peers, is the Bicameralism, upper house of the Parliament of the United Kingdom. Membership is by Life peer, appointment, Hereditary peer, heredity or Lords Spiritual, official function. Like the ...
. The budget was passed eventually—but without the land tax. In 1931, the minority
Labour Labour or labor may refer to: * Childbirth, the delivery of a baby * Labour (human activity), or work ** Manual labour, physical work ** Wage labour, a socioeconomic relationship between a worker and an employer ** Organized labour and the labour ...
government passed a land value tax as part III of the 1931 Finance act. However, this was repealed in 1934 by the National Government before it could be implemented. In Denmark, the Georgist Justice Party has previously been represented in
Folketinget The Folketing ( da, Folketinget, ; ), also known as the Parliament of Denmark or the Danish Parliament in English, is the unicameral national legislature (parliament) of the Kingdom of Denmark—Denmark proper together with the Faroe Islands a ...
. It formed part of a centre-left government 1957–60 and was also represented in the
European Parliament The European Parliament (EP) is one of the legislative bodies of the European Union and one of its seven institutions. Together with the Council of the European Union (known as the Council and informally as the Council of Ministers), it adopts ...
1978–1979. The influence of Henry George has waned over time, but Georgist ideas still occasionally emerge in politics. For the United States 2004 presidential election,
third-party Third party may refer to: Business * Third-party source, a supplier company not owned by the buyer or seller * Third-party beneficiary, a person who could sue on a contract, despite not being an active party * Third-party insurance, such as a Veh ...
presidential candidate
Ralph Nader Ralph Nader (; born February 27, 1934) is an American political activist, author, lecturer, and attorney noted for his involvement in consumer protection, environmentalism, and government reform causes. The son of Lebanese immigrants to the Un ...
mentioned George in his policy statements. Economists still generally favor a land value tax.
Monetarist Monetarism is a school of thought in monetary economics that emphasizes the role of governments in controlling the amount of money in circulation. Monetarist theory asserts that variations in the money supply have major influences on national ...
economist
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the ...
publicly endorsed the Georgist land value tax as the "least bad tax". Economist
Joseph Stiglitz Joseph Eugene Stiglitz (; born February 9, 1943) is an American New Keynesian economist, a public policy analyst, and a full professor at Columbia University. He is a recipient of the Nobel Memorial Prize in Economic Sciences (2001) and the Joh ...
stated that: "Not only was Henry George correct that a tax on land is non-distortionary, but in an equilibrium society … tax on land raises just enough revenue to finance the (optimally chosen) level of government expenditure." He dubbed this proposition the Henry George theorem.


Communities

Several communities were initiated with Georgist principles during the height of the philosophy's popularity. Two such communities that still exist are
Arden, Delaware Arden, officially the Village of Arden, is a village and art colony in New Castle County, Delaware, United States, founded in 1900 as a radical Georgist single-tax community by sculptor Frank Stephens and architect Will Price. The village occup ...
, which was founded in 1900 by Frank Stephens and
Will Price William Lightfoot Price (November 9, 1861 – October 14, 1916) was an American architect, a pioneer in the use of reinforced concrete, and a founder of the utopian communities of Arden, Delaware and Rose Valley, Pennsylvania. Early life Price w ...
, and
Fairhope, Alabama Fairhope is a city in Baldwin County, Alabama, United States, located on the eastern shoreline of Mobile Bay. The 2020 Census lists the population of the city as 22,477. Fairhope is a principal city of the Daphne-Fairhope-Foley metropolita ...
, which was founded in 1894 under the auspices of the
Fairhope Single Tax Corporation Fairhope is a city in Baldwin County, Alabama, United States, located on the eastern shoreline of Mobile Bay. The 2020 Census lists the population of the city as 22,477. Fairhope is a principal city of the Daphne-Fairhope-Foley metropolitan ...
. Some established communities in the United States also adopted Georgist tax policies. A Georgist in
Houston, Texas Houston (; ) is the most populous city in Texas, the most populous city in the Southern United States, the fourth-most populous city in the United States, and the sixth-most populous city in North America, with a population of 2,304,580 in ...
, Joseph Jay "J.J." Pastoriza, promoted a Georgist club in that city established in 1890. Years later, in his capacity as a city alderman, he was selected to serve as Houston Tax Commissioner, and promulgated a "Houston Plan of Taxation" in 1912. Improvements to land and merchants' inventories were taxed at 25 percent of the appraised value, unimproved land was taxed at 70 percent of appraisal, and personal property was exempt. This Georgist tax continued until 1915, when two courts struck it down as violating the
Texas Constitution The Constitution of the State of Texas is the document that establishes the structure and function of the government of the U.S. state of Texas, and enumerates the basic rights of the citizens of Texas. The current document was adopted on Febr ...
in 1915. This quashed efforts in several other Texas cities which took steps towards implementing the Houston Plan in 1915:
Beaumont Beaumont may refer to: Places Canada * Beaumont, Alberta * Beaumont, Quebec England * Beaumont, Cumbria * Beaumont, Essex ** Beaumont Cut, a canal closed in the 1930s * Beaumont Street, Oxford France (communes) * Beaumont, Ardèche * ...
, Corpus Christi,
Galveston Galveston ( ) is a coastal resort city and port off the Southeast Texas coast on Galveston Island and Pelican Island in the U.S. state of Texas. The community of , with a population of 47,743 in 2010, is the county seat of surrounding Galvesto ...
,
San Antonio ("Cradle of Freedom") , image_map = , mapsize = 220px , map_caption = Interactive map of San Antonio , subdivision_type = Country , subdivision_name = United States , subdivision_type1= U.S. state, State , subdivision_name1 = Texas , s ...
, and
Waco Waco ( ) is the county seat of McLennan County, Texas, United States. It is situated along the Brazos River and I-35, halfway between Dallas and Austin. The city had a 2020 population of 138,486, making it the 22nd-most populous city in the st ...
. The German protectorate of the
Kiautschou Bay concession The Kiautschou Bay Leased Territory was a German leased territory in Imperial and Early Republican China from 1898 to 1914. Covering an area of , it centered on Jiaozhou ("Kiautschou") Bay on the southern coast of the Shandong Peninsula (g ...
in
Jiaozhou Bay The Jiaozhou Bay (; german: Kiautschou Bucht, ) is a bay located in the prefecture-level city of Qingdao (Tsingtau), China. The bay has historically been romanized as Kiaochow, Kiauchau or Kiao-Chau in English and Kiautschou in German. Geogra ...
,
China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
fully implemented Georgist policy. Its sole source of
government revenue Government revenue or national revenue is money received by a government from taxes and non-tax sources to enable it to undertake public expenditure. Government revenue as well as government spending are components of the government budget and ...
was the land value tax of six percent which it levied in its territory. The
German colonial empire The German colonial empire (german: Deutsches Kolonialreich) constituted the overseas colonies, dependencies and territories of the German Empire. Unified in the early 1870s, the chancellor of this time period was Otto von Bismarck. Short-li ...
had previously had economic problems with its African colonies caused by
land speculation In finance, speculation is the purchase of an asset (a commodity, goods, or real estate) with the hope that it will become more valuable shortly. (It can also refer to short sales in which the speculator hopes for a decline in value.) Many s ...
. One of the main reasons for using the land value tax in Jiaozhou Bay was to eliminate such speculation, which the policy achieved. The colony existed as a German protectorate from 1898 until 1914, when seized by Japanese and British troops in
World War I World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...
. In 1922 the territory was returned to the
Republic of China Taiwan, officially the Republic of China (ROC), is a country in East Asia, at the junction of the East and South China Seas in the northwestern Pacific Ocean, with the People's Republic of China (PRC) to the northwest, Japan to the northeast ...
. Georgist ideas were also adopted to some degree in
Australia Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the Australia (continent), Australian continent, the island of Tasmania, and numerous List of islands of Australia, sma ...
,
Hong Kong Hong Kong ( (US) or (UK); , ), officially the Hong Kong Special Administrative Region of the People's Republic of China ( abbr. Hong Kong SAR or HKSAR), is a city and special administrative region of China on the eastern Pearl River Delt ...
,
Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...
,
South Africa South Africa, officially the Republic of South Africa (RSA), is the southernmost country in Africa. It is bounded to the south by of coastline that stretch along the South Atlantic and Indian Oceans; to the north by the neighbouring countri ...
,
South Korea South Korea, officially the Republic of Korea (ROK), is a country in East Asia, constituting the southern part of the Korea, Korean Peninsula and sharing a Korean Demilitarized Zone, land border with North Korea. Its western border is formed ...
, and
Taiwan Taiwan, officially the Republic of China (ROC), is a country in East Asia, at the junction of the East and South China Seas in the northwestern Pacific Ocean, with the People's Republic of China (PRC) to the northwest, Japan to the nort ...
. In these countries, governments still levy some type of land value tax, albeit with exemptions. Many municipal governments of the US depend on real
property tax A property tax or millage rate is an ad valorem tax on the value of a property.In the OECD classification scheme, tax on property includes "taxes on immovable property or net wealth, taxes on the change of ownership of property through inheri ...
as their main source of revenue, although such taxes are not Georgist as they generally include the value of buildings and other improvements. One exception is the town of
Altoona, Pennsylvania Altoona is a city in Blair County, Pennsylvania. It is the principal city of the Altoona Metropolitan Statistical Area (MSA). The population was 43,963 at the time of the 2020 Census, making it the eighteenth most populous city in Pennsylvania. ...
, which for a time in the 21st century only taxed land value, phasing in the tax in 2002, relying on it entirely for tax revenue from 2011, and ending it 2017; the ''
Financial Times The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and published digitally that focuses on business and economic current affairs. Based in London, England, the paper is owned by a Japanese holding company, Nik ...
'' noted that "Altoona is using LVT in a city where neither land nor buildings have much value".


Institutes and organizations

Various organizations still exist that continue to promote the ideas of Henry George. According to ''
The American Journal of Economics and Sociology ''The American Journal of Economics and Sociology'' is a peer-reviewed academic journal established in 1941 by Will Lissner with support from the Robert Schalkenbach Foundation. The purpose of the journal was to create a forum for continuing disc ...
'', the periodical ''
Land&Liberty ''Land&Liberty'' is a quarterly magazine of popular political economics: its focus is the relationship between land and natural resource rights and 21st century economic policy. Published in the UK it covers international affairs and events fro ...
'', established in 1894, is "the longest-lived Georgist project in history". Founded during the
Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
in 1932, the Henry George School of Social Science in New York offers courses, sponsors seminars, and publishes research in the Georgist paradigm. Also in the US, the
Lincoln Institute of Land Policy The Lincoln Institute of Land Policy is a think tank based in Cambridge, Massachusetts. The Lincoln Institute of Land Policy seeks to "improve quality of life through the effective use, taxation, and stewardship of land". A nonprofit private opera ...
was established in 1974 based on the writings of Henry George. It "seeks to improve the dialogue about urban development, the built environment, and tax policy in the United States and abroad". The
Henry George Foundation The Henry George Foundation is an independent UK economic and social justice think tank and public education group concerned with "the development of sound relationships between the citizen, our communities (from the local to the global) and our ...
continues to promote the ideas of Henry George in the United Kingdom.
The IU The IU, in full the International Union for Land Value Taxation, The IU is the popular name of the International Union for Land Value Taxation and Free Trade, officially also known as the International Union for Land Value Taxation, and the Interna ...
is an international umbrella organisation that brings together organizations worldwide that seek land value tax reform.


Reception

The economist
Alfred Marshall Alfred Marshall (26 July 1842 – 13 July 1924) was an English economist, and was one of the most influential economists of his time. His book '' Principles of Economics'' (1890) was the dominant economic textbook in England for many years. I ...
believed that George's views in ''
Progress and Poverty ''Progress and Poverty: An Inquiry into the Cause of Industrial Depressions and of Increase of Want with Increase of Wealth: The Remedy'' is an 1879 book by social theorist and economist Henry George. It is a treatise on the questions of why pover ...
'' were dangerous, even predicting wars, terror, and economic destruction from the immediate implementation of its recommendations. Specifically, Marshall was upset about the idea of rapid change and the unfairness of not compensating existing landowners. In his lectures on ''Progress and Poverty'', Marshall opposed George's position on compensation while fully endorsing his ultimate remedy. So far as land value tax moderately replaced other taxes and did not cause the price of land to fall, Marshall supported
land value taxation A land value tax (LVT) is a levy on the value of land without regard to buildings, personal property and other improvements. It is also known as a location value tax, a point valuation tax, a site valuation tax, split rate tax, or a site-value ...
on economic and moral grounds, suggesting that a three or four percent tax on land values would fit this condition. After implementing land taxes, governments would purchase future land values at discounted prices and take ownership after 100 years. Marshall asserted that this plan, which he strongly supported, would end the need for a tax collection department of government. For newly formed countries where land was not already private, Marshall advocated implementing George's economic proposal immediately.
Karl Marx Karl Heinrich Marx (; 5 May 1818 – 14 March 1883) was a German philosopher, economist, historian, sociologist, political theorist, journalist, critic of political economy, and socialist revolutionary. His best-known titles are the 1848 ...
considered the single-tax platform as a regression from the transition to
communism Communism (from Latin la, communis, lit=common, universal, label=none) is a far-left sociopolitical, philosophical, and economic ideology and current within the socialist movement whose goal is the establishment of a communist society, a s ...
and referred to Georgism as "capitalism’s last ditch". Marx argued that, "The whole thing is ... simply an attempt, decked out with
socialism Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes the e ...
, to save capitalist domination and indeed to establish it afresh on an even wider basis than its present one." Marx also criticized the way land value tax theory emphasizes the value of land, arguing that George's "fundamental dogma is that everything would be all right if ground rent were paid to the state." Georgist Fred Harrison responded to these objections in 2003.
Richard T. Ely Richard Theodore Ely (April 13, 1854 – October 4, 1943) was an American economist, author, and leader of the Progressive movement who called for more government intervention to reform what they perceived as the injustices of capitalism, especia ...
agreed with the economic arguments for Georgism but believed that correcting the problem the way Henry George wanted, without compensation, was unjust to existing landowners. In explaining his position, Ely wrote, "If we have all made a mistake, should one party to the transaction alone bear the cost of the common blunder?"
John R. Commons John Rogers Commons (October 13, 1862 – May 11, 1945) was an American institutional economist, Georgist, progressive and labor historian at the University of Wisconsin–Madison. Early years John R. Commons was born in Hollansburg, Ohio on ...
supported Georgist economics, but opposed what he perceived as an environmentally and politically reckless tendency for advocates to rely on a one-size-fits-all approach to tax reform, specifically, the "single tax" framing. Commons concluded ''The Distribution of Wealth'', with an estimate that "perhaps 95% of the total values represented by these millionaire 'sic''fortunes is due to those investments classed as land values and natural monopolies and to competitive industries aided by such monopolies", and that "tax reform should seek to remove all burdens from capital and labour and impose them on monopolies". However, he criticized Georgists for failing to see that Henry George's anti-monopoly ideas must be implemented with a variety of policy tools. Commons wrote, "Trees do not grow into the sky—they would perish in a high wind; and a single truth, like a single tax, ends in its own destruction." Commons uses the natural soil fertility and value of forests as an example of this destruction, arguing that a tax on the in situ value of those depletable natural resources can result in overuse or over-extraction. Instead, Commons recommends an income tax based approach to forests similar to a modern Georgist
severance tax Severance taxes are taxes imposed on the removal of natural resources within a taxing jurisdiction. Severance taxes are most commonly imposed in oil producing states within the United States. Resources that typically incur severance taxes when e ...
. Other contemporaries such as
Austrian Austrian may refer to: * Austrians, someone from Austria or of Austrian descent ** Someone who is considered an Austrian citizen, see Austrian nationality law * Austrian German dialect * Something associated with the country Austria, for example: ...
economist
Frank Fetter Frank Albert Fetter (; March 8, 1863 – March 21, 1949) was an American economist of the Austrian School. Fetter's treatise, ''The Principles of Economics'', contributed to an increased American interest in the Austrian School, including the th ...
and neoclassical economist
John Bates Clark John Bates Clark (January 26, 1847 – March 21, 1938) was an American neoclassical economist. He was one of the pioneers of the marginalist revolution and opponent to the Institutionalist school of economics, and spent most of his career as ...
argued that it was impractical to maintain the traditional distinction between land and capital, and used this as a basis to attack Georgism.
Mark Blaug Mark Blaug FBA (; 3 April 1927 – 18 November 2011) was a Dutch-born British economist (naturalised in 1982), who covered a broad range of topics during his long career. He was married to Ruth Towse. Life and work Blaug was born on 3 April ...
, a specialist in the history of economic thought, credits Fetter and Clark with influencing mainstream economists to abandon the idea "that land is a unique factor of production and hence that there is any special need for a special theory of ground rent" claiming that "this is in fact the basis of all the attacks on Henry George by contemporary economists and certainly the fundamental reason why professional economists increasingly ignored him".Blaug, Mark. Interview in Andelson, Robert V
''Critics of Henry George: An Appraisal of Their Strictures on Progress and Poverty''
Blackwell Publishing. 1979. p. 686.
Robert Solow Robert Merton Solow, GCIH (; born August 23, 1924) is an American economist whose work on the theory of economic growth culminated in the exogenous growth model named after him. He is currently Emeritus Institute Professor of Economics at the Ma ...
endorsed the theory of Georgism, while being wary of the perceived injustice of
expropriation Nationalization (nationalisation in British English) is the process of transforming privately-owned assets into public assets by bringing them under the public ownership of a national government or state. Nationalization usually refers to pri ...
. Solow stated that taxing away expected land rents "would have no semblance of fairness"; however, Georgism would be good to introduce where location values were not already privatized or if the transition could be phased in slowly. George has also been accused of exaggerating the importance of his "all-devouring rent thesis" in claiming that it is the primary cause of poverty and injustice in society. George argued that the rent of land increased faster than wages for labor because the supply of land is fixed. Modern economists, including
Ottmar Edenhofer Ottmar Georg Edenhofer (born 8 July 1961) is a German economist who is regarded as one of the world's leading experts on climate change policy, environmental and energy policy, and energy economics. His work has been heavily cited. Edenhofer curr ...
have demonstrated that George's assertion is plausible but was more likely to be true during George's time than now. An early criticism of Georgism was that it would generate too much public revenue and result in unwanted growth of government, but later critics argued that it would not generate enough income to cover government spending.
Joseph Schumpeter Joseph Alois Schumpeter (; February 8, 1883 – January 8, 1950) was an Austrian-born political economist. He served briefly as Finance Minister of German-Austria in 1919. In 1932, he emigrated to the United States to become a professor at Ha ...
concluded his analysis of Georgism by stating that, "It is not economically unsound, except that it involves an unwarranted optimism concerning the yield of such a tax." Economists who study land conclude that Schumpeter's criticism is unwarranted because the rental yield from land is likely much greater than what modern critics such as
Paul Krugman Paul Robin Krugman ( ; born February 28, 1953) is an American economist, who is Distinguished Professor of Economics at the Graduate Center of the City University of New York, and a columnist for ''The New York Times''. In 2008, Krugman was th ...
suppose. Krugman agrees that land value taxation is the best means of raising public revenue but asserts that increased spending has rendered land rent insufficient to fully fund government. Georgists have responded by citing studies and analyses implying that land values of nations like the US, UK, and Australia are more than sufficient to fund all levels of government. Anarcho-capitalism, Anarcho-capitalist political philosopher and economist Murray Rothbard criticized Georgism in ''Man, Economy, and State'' as being philosophically incongruent with subjective value theory, and further stating that land is irrelevant in the factors of production, trade, and price systems, but this critique is seen by some, including other opponents of Georgism, as relying on false assumptions and flawed reasoning.
Austrian Austrian may refer to: * Austrians, someone from Austria or of Austrian descent ** Someone who is considered an Austrian citizen, see Austrian nationality law * Austrian German dialect * Something associated with the country Austria, for example: ...
economist Friedrich Hayek credited early enthusiasm for Henry George with developing his interest in economics. Later, Hayek said that the theory of Georgism would be very strong if assessment challenges did not result in unfair outcomes, but he believed that they would.


Notable Georgists


Economists

* Harry Gunnison Brown *
John R. Commons John Rogers Commons (October 13, 1862 – May 11, 1945) was an American institutional economist, Georgist, progressive and labor historian at the University of Wisconsin–Madison. Early years John R. Commons was born in Hollansburg, Ohio on ...
* Raymond Crotty * Herman Daly * Paul Douglas *
Ottmar Edenhofer Ottmar Georg Edenhofer (born 8 July 1961) is a German economist who is regarded as one of the world's leading experts on climate change policy, environmental and energy policy, and energy economics. His work has been heavily cited. Edenhofer curr ...
* Fred Foldvary *
Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the ...
Excerpt: Prof. Friedman:... In my opinion, and this may come as a shock to some of you, the least bad tax is the property tax on the unimproved value of land, the Henry George argument of many, many years ago. " * Mason Gaffney * Max Hirsch (economist), Max Hirsch * Harold Hotelling * Wolf Ladejinsky * Donald Shoup * Herbert A. Simon *
Robert Solow Robert Merton Solow, GCIH (; born August 23, 1924) is an American economist whose work on the theory of economic growth culminated in the exogenous growth model named after him. He is currently Emeritus Institute Professor of Economics at the Ma ...
*
Joseph Stiglitz Joseph Eugene Stiglitz (; born February 9, 1943) is an American New Keynesian economist, a public policy analyst, and a full professor at Columbia University. He is a recipient of the Nobel Memorial Prize in Economic Sciences (2001) and the Joh ...
* Nicolaus Tideman * William Vickrey * Léon Walras * Philip Wicksteed * Michael Hudson (economist), Michael Hudson


Heads of government

* John Ballance *
Winston Churchill Sir Winston Leonard Spencer Churchill (30 November 187424 January 1965) was a British statesman, soldier, and writer who served as Prime Minister of the United Kingdom twice, from 1940 to 1945 Winston Churchill in the Second World War, dur ...
* Alfred Deakin * Andrew Fisher * George Edward Grey, George Grey * Rutherford B. Hayes * William Morris Hughes * Robert Stout * Sun Yat-sen


Other political figures

* John Peter Altgeld * Newton D. Baker * Willie Brown (politician), Willie Brown * Clyde Cameron * George F. Cotterill * William Jay Gaynor * Frederic C. Howe * Blas Infante * Tom L. Johnson * Samuel M. Jones * Frank de Jong * Franklin Knight Lane * Hazen S. Pingree * Philip Snowden, 1st Viscount Snowden, Philip Snowden * Josiah Wedgwood, 1st Baron Wedgwood, Josiah C. Wedgwood * William Bauchop Wilson * Jackson Stitt Wilson * Andrew MacLaren MP * Joshua Nkomo * Baldomero Argente


Activists

* Jane Addams * Peter Barnes (entrepreneur), Peter Barnes * Sara Bard Field * Michael Davitt * Samuel Gompers * Bolton Hall (activist), Bolton Hall * Hubert Harrison * John Haynes Holmes * Stewart Headlam * Mary Elizabeth Lease * Benjamin C. Marsh * James Ferdinand Morton, Jr., James Ferdinand Morton * Thomas Mott OsborneGorgas, William Crawford, and Lewis Jerome Johnson. Two Papers on Public Sanitation and the Single Tax. New York: Single Tax Information Bureau, 1914. https://books.google.com/books?id=v3NHAAAAYAAJWare, Louise. George Foster Peabody, Banker, Philanthropist, Publicist. Athens: U of Georgia, 1951. http://dlg.galileo.usg.edu/ugapressbks/pdfs/ugp9780820334561.pdf * Amos Pinchot * Terence V. Powderly * Samuel Seabury (judge), Samuel Seabury * Catherine Helen Spence * Helen Taylor (feminist), Helen Taylor * William Simon U'Ren * Ida B. Wells * Frances Willard (suffragist), Frances Willard


Authors

* Ernest Howard Crosby * Charles Eisenstein * Hamlin Garland * Fred Harrison * James A. Herne * Ebenezer Howard * Elbert Hubbard * Aldous Huxley * James Howard Kunstler * Jose Martí * William D. McCrackan * Albert Jay Nock * Kathleen Norris * Upton Sinclair * George Bernard Shaw * Leo Tolstoy * Charles Erskine Scott Wood * Frank McEachran


Journalists

* William F. Buckley Jr. * Timothy Thomas Fortune * Theodor Herzl * Michael Kinsley * Suzanne La Follette * Dylan Matthews * Raymond Moley * Charles Edward Russell * Jacob Riis * Reihan Salam * Horace Traubel * Martin Wolf * Merryn Somerset Webb * Brand Whitlock * Tim Worstall * Matthew Yglesias


Artists

* David Bachrach * John Wilson BengoughMills, Allen. "Single Tax, Socialism and the Independent Labour Party of Manitoba: The Political Ideas of F.J. Dixon and S.J. Farmer." Labour / Le Travail 5 (1980): 33–56. JSTOR. Weborn 04 Dec. 2014. * Daniel Carter Beard * Matthew Bellamy * George de Forest Brush * Walter Burley Griffin * Hutchinson Family Singers, John Hutchinson * George Inness * Emma Lazarus * Agnes de Mille * Henry Churchill de Mille * William C. deMille * Francis Neilson * Eddie Palmieri * Banjo Paterson * Louis Prang *
Will Price William Lightfoot Price (November 9, 1861 – October 14, 1916) was an American architect, a pioneer in the use of reinforced concrete, and a founder of the utopian communities of Arden, Delaware and Rose Valley, Pennsylvania. Early life Price w ...
* Frank Stephens (sculptor), Frank Stephens * Frank Lloyd Wright


Philosophers

* Ralph Borsodi * Ludwig Büchner * Nicholas Murray Butler * Frank Chodorov * John B. Cobb * John Dewey * Silvio Gesell * Leon MacLaren * Franz Oppenheimer * Philippe Van Parijs * Bertrand Russell * Hillel Steiner


Others

* Roger Babson * Louis Brandeis * Clarence Darrow * Albert Einstein * Henry Ford * Spencer Heath * Mumia Abu-Jamal * Margrit Kennedy * Lincoln Electric, John C. Lincoln * Elizabeth Magie * Edward McGlynn * Buckey O'Neill * George Foster Peabody * Louis Freeland Post * Walter Rauschenbusch * Raymond A. Spruance * Silvanus P. Thompson * Fiske Warren * Alfred Russel Wallace * Joseph Fels


See also

* ''Agrarian Justice'' *
Arden, Delaware Arden, officially the Village of Arden, is a village and art colony in New Castle County, Delaware, United States, founded in 1900 as a radical Georgist single-tax community by sculptor Frank Stephens and architect Will Price. The village occup ...
* Basic income * Cap and Share * Causes of poverty * Citizen's dividend * Classical economics * Classical liberalism * Community land trust * Deadweight loss * Diggers * Economic rent * Enclosure * Excess burden of taxation * Externality * Free-market environmentalism * Freiwirtschaft *
Geolibertarianism Geolibertarianism is a political and economic ideology that integrates libertarianism with Georgism. It favors a taxation system based (as in Georgism) on income derived from land and natural resources instead of on labor, coupled with a mini ...
* Green economy * Labour economics, Labor economics * ''Laissez-faire'' * Land (economics) * Landed property * Land law * Land monopoly * Land registration * Land tenure * Land value tax * Law of rent * Lockean proviso * Manorialism * Natural and legal rights * Neoclassical liberalism * Optimal tax * Physiocracy * Pigovian tax * Poverty reduction * ''
Progress and Poverty ''Progress and Poverty: An Inquiry into the Cause of Industrial Depressions and of Increase of Want with Increase of Wealth: The Remedy'' is an 1879 book by social theorist and economist Henry George. It is a treatise on the questions of why pover ...
'' *
Progressive Era The Progressive Era (late 1890s – late 1910s) was a period of widespread social activism and political reform across the United States focused on defeating corruption, monopoly, waste and inefficiency. The main themes ended during Am ...
* Prosper Australia * Radical center (politics), Radical centrism * Rent-seeking * Tax reform * Tax shift * Three Principles of the People * Tragedy of the anticommons * Value capture * Wealth concentration * YIMBY


References

{{schools of economic thought Georgism, Agrarianism Economic ideologies Eponymous economic ideologies Eponymous political ideologies Land value taxation Left-libertarianism History of liberalism Property taxes Schools of economic thought Tax reform Tax reform in the United States