Henry George's Critics
in the Early 20th Century
Benjamin W. Burger
[Originally published with the title, "A
Bachelor of Laws 'Corrects' A Master of Economics." Reprinted
from Land and Freedom, July-August, 1935]
The publication of Progress and Poverty in 1879 let loose a
flood of criticisms of Henry George. By hundreds, magazine articles,
books, tracts, pamphlets, newspaper reviews poured forth,
demonstrating George's "errors," and pointing out "fallacies"
in his reasoning. More than one hundred have come into the possession
of this reviewer, and he has not yet gathered all.
Many critics were not content to expose "flaws," but aimed
their poisoned darts at the figure of Henry George. These shall remain
nameless.
Today they are forgotten. Only a historian delving into obscure
corners, could unearth their names and writings. Progress and
Poverty lives on, sound as ever. It has made a profound impression
on modern economic thought, and no economic treatise is so widely
read. It is studied in our colleges and universities. Harvard,
Princeton, University of Illinois, amongst others, (as the reports of
The Robert Schalkenbach Foundation show) buy Progress and Poverty
in increasing quantities.
A new school of critics has arisen. These, starting out with the
admission that whatever economic knowledge they possess was acquired
from Henry George, proceed, gently but firmly, to "correct"
his reasoning. He being no longer available for personal attack, they
now center their fire on his philosophy.
Of this ilk are George Bernard Shaw, whose book, The Intelligent
Woman's Guide to Socialism and Capitalism we reviewed in these
columns in the July-August, 1928 issue, (p. 121).
On another page, our co-worker, Mr. Fowles, competently handles
another author who believes George "erred."
Our Australian friends, confusing interest with usury, are certain
that George fumbled on that subject.
Most critics of George, while puffing with a sense of their own
importance, wind up by exposing their own ignorance of fundamental
economic principles.
Now comes "A Tax Talk to Business Men by William J. Ogden, LL.B."
(Why is it necessary for our author to reveal that he is a Bachelor of
Laws? What especial qualifications in economics does that degree
confer?)
Mr. Ogden writes, (pp. 154-155):
"If ever 'truth' was 'crushed to earth,' the great
cardinal truth of the Single Tax has so suffered at the hands of its
professed authoritative protagonists.
"It is to rescue the truth from a jumble of truth and error,
that this little book is written.
"Right here I want to acknowledge my debt of gratitude to
Henry George. He, more than any other man, opened the way for the
Single Tax on land values. The truth that his heart revealed is not
destroyed by his manifest error. He will be remembered for his
greatness of soul, his self-giving love for humanity, and his
powerful presentation of the vital importance of a just system of
taxation."
And at page 167, Mr. Ogden humbly writes:
"I have found the solution of his error, and with
head bowed in deepest reverence, confess myself his grateful debtor
for the revealed truth of the Single Tax, which is herein freed from
any taint of Socialism or Communism."
Henry George, writes Mr. Ogden, "simply blundered in a splendid
human effort to lead men to the truth." (p. 148).
He erred "in attributing the origin of land value to such a
general and indefinite thing as 'population.'" (p. 149).
Will Mr. Ogden tell us when and where George wrote this. It was our
impression that Henry George clearly showed that it was the presence
and activities of people which produced land values. If population
alone made land values, China, with 400 million people, would have
higher land values than the United States with 125 million people.
Mr. Ogden contends "that public services are the reason, the
source, and the continuance of land values," (p. 70) and that "land
values are the products of the services of government." (p. 35).
His reasoning may be judged from this non sequitur:
"Here (in Maryland) our landowners pay taxes on
their lands. They therefore earn the increment to their land values."
(p. 65).
He repeatedly falls into the common error of referring to the
Georgist philosophy as a "tax system." (pp. 83, 86, 107,
112, 154). Rather, it is a philosophy that would abolish taxation. For
the community to collect its community-created land values and use
them for community needs can never be called taxation. It is but to
recognize the difference between "mine and thine" on the one
hand, and "curs" on the other.
In writing as I have, I would not be understood as claiming inerrancy
for Henry George. He would have been the last one to make such claim.
But, I submit, it will take a more astute intelligence than Messrs.
Bernard Shaw, Jorgenson, our Australian friends and Mr. Ogden,
collectively, possess, to find any lapsi linguae in the
numerous writings and speeches of the great master of economic
reasoning.
Forty years ago, Mr. Ogden made the same claims in the columns of
The New Earth. The editor of LAND AND FREEDOM pointed out to
him that land values might exist, and often did exist, independently
of public service. Mr. Ogden persists in his fallacy.
And here it will be interesting to quote from that article by Mr.
Ogden:
"When I conceive of trade without roads, I may then
conceive of land value arising without government service. When
distance has been obliterated, and goods can be transferred without
a consideration of the elements of time, space or resistance, then
rent will disappear, and the dreams of some of our friends realized;
but I am inclined to think that as long as we have legs, we'll use
'em, and that roads will always remain, and with them rent."
Well, the very thing Mr. Ogden conceived as impossible, has come to
pass. Airplanes can and do carry mail and merchandise, "with- out
roads;" "distance has been obliterated" (almost) but
land rent keeps increasing.
Why? Because every human activity, even flying in the air, requires
land, and those who "own" our earth can charge the users
Rent, without rendering any service in return.
Mr. Ogden claims that George failed to perceive that individual right
to land value is as clearly defined as individual right to any
property produced by an individual.
Evidently our author is unaware that there are six qualities which
distinguish land from private property, and therefore stamp it as
unique.
- The earth on which we live was not produced by any human being,
but is the free gift of the Creator to all his children.
- It is limited in quantity.
- It is essential to our existence, because we can produce
nothing without it.
- It does not owe its value to anything which landowners choose
to put upon it.
- It owes its value entirely to the presence and activities of
the community.
- It cannot be carried away or concealed.
Were he clearly to grasp the significance of these distinctions, he
would not write:
"A good title to individual ownership in the land
and all the value that attaches to it is therefore founded upon the
same right of self- ownership that is the foundation of the right to
own personal prop- erty." (p. 90).
Mr. Odgen informs us that before his death, Henry George modified his
declaration that "private property in land is unjust." (p.
112).
Pray, when and where did this take place? This reviewer is authorized
to offer Mr. Ogden $500.00 to substantiate that statement.
Chapter XVIII is entitled "The Error of Henry George." Our
author attempts to prove that George made "a fundamental error in
omitting the largest and most important factor in production, viz.,
Government." (pp. 144-145). Mr. Ogden contends that land value is
produced by an individual "as truly as was the house and personal
property therein." (p. 150).
If this were true, how will Mr. Ogden explain why land values decline
when population moves away?
This chapter might more accurately have been entitled "The
Errors of William J. Ogden, LL.B."
Mr. Ogden has been familiar with the Georgist philosophy at least
forty years, but, as his book amply demonstrates, he has failed to
grasp it, not only in its material phases, but in its vastly greater
spiritual implications.
Henry George sought to introduce a spiritual condition of equality in
a material condition of inequality. Only that which is spiritual is
constant; that which is material must ever be inconstant. Our common
Mother, the Earth, being material and inconstant, rather than
spiritual and constant, does not yield to her children the same wages
for the same labor.
Henry George showed how we could approximate a spiritual condi- tion
of equality in a material condition of inequality by expressing the
inequalities in nature in land rent, and distributing the land rent
equally amongst all Earth's children.
For that he will ever be remembered, long after his critics are
forgotten.
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