What does this sign mean? Who the hell is Henry George?
So, a guy bought a lot in Rockford, Illinois, in 1914, for $3600. It doesn’t seem like he had any plans for this lot, except holding it. But why would it gain value if he didn’t do anything with it? Because, as the sign says, profit is “made possible by the presence of this community and enterprise of its people.” Imagine a Starbucks and a school open next to your house, will it gain or lose value? Will you have worked for it? Having people do stuff around your land is enough for its value to increase!
So, isn’t it unfair that “everybody works but the vacant lot”?
Buying land is not like any other type of investment. If you buy shares of a company, you lend them money to increase their productivity. If you work, you’ll convert your efforts into output. But what returns does unoccupied land give? None at all! It’s only once you “improve” your land by building houses, factories, or drilling wells that it starts to be useful.
Furthermore, when speculators see a booming area where public services are good and there’s a business opportunity, they will be quick to buy land there and make the rents go crazy. Some people think this is the main cause of poverty in developed areas.
What should we do then?
Well, a guy called Henry George came up with a solution. Since land “doesn’t work,” it should be taxed! And the benefits of taxing land are huge.
For one thing, we would avoid rich people owning multiple lots and only living in one. That would clear space to do productive things or house people in need.
And most importantly, people who buy land would have to improve it if they want to make a profit. If they don’t improve their land, taxes would deter them from keeping it. That way, all land has a utility, and rents don’t spiral up.
I’ve been enthusiastic about Georgism since reading this review of Progress and Poverty (please read it too). I would love for a politician to be crazy enough to try it (like someone called Yang).
I’ll end with some quotes about Henry George:
“Henry George has always been to me one of the supreme heroes of humanity.” - Edwin Markham
"Only Darwin in the natural sciences has made a mark comparable to George's on social science." - José Marti
“Progress and Poverty is undoubtedly the most remarkable and important book of the present century” - Alfred Russel Wallace
“Henry George is one of the really great thinkers produced by our country” - Franklin D Roosevelt
“Men like Henry George are rare unfortunately. One cannot imagine a more beautiful combination of intellectual keenness, artistic form and fervent love of justice. Every line is written as if for our generation. The spreading of these works is a really deserving cause, for our generation especially has many and important things to learn from Henry George.” - Albert Einstein