Georgism

FREE TRADE FREE LAND FREE MEN (Georgist campaign button)

Georgism, also known as Geoism and the Single Tax Movement, is an economic philosophy and ideology that centers on the beliefs and writings of Henry George, a 19th-century economist and social reformer. Georgism advocates for the public collection of rent on land, emphasizing that while people should own the value they produce themselves, economic value derived from land (including natural resources) should belong equally to all members of society. This concept is often summarized by the phrase "the land belongs to the people," reflecting the view that private ownership of natural resources and land creates unequal opportunities and contributes to social injustices.

Principles

The core principle of Georgism is that the economic value derived from land and natural resources should be shared by society as a whole. This is based on the premise that land and natural resources are not the product of human labor and therefore should not be privately owned to the benefit of individual landowners at the expense of the community. Georgists argue that a tax on land value, known as a Land Value Tax (LVT), is the most efficient and equitable way to distribute this value. LVT is seen as a way to discourage speculative holding of land and encourage productive use, leading to more efficient land use and reducing inequality.

Land Value Tax

A Land Value Tax is a levy on the unimproved value of land, disregarding the value of buildings, personal property, and other improvements. A key feature of LVT is that it does not penalize property owners for improving or developing their property, as the tax is based solely on the underlying land value. Proponents argue that this encourages development and better use of land, leading to more vibrant communities and reducing urban sprawl.

Economic and Social Implications

Georgism has implications for a wide range of economic and social issues. By reducing speculative land holding, it can make housing and business locations more affordable, contributing to economic development and social equity. Georgists also argue that an LVT can replace other taxes that are considered more harmful to economic activity, such as taxes on income, sales, and production, potentially leading to more robust economic growth and efficiency.

Criticism and Challenges

Criticism of Georgism includes the practical challenges of assessing land values accurately and the political difficulties of implementing an LVT in places where land ownership is deeply entrenched in the economic and political system. Some critics also argue that a single tax on land may not be sufficient to fund all public expenditures, necessitating additional forms of taxation.

Modern Relevance and Application

In the modern context, Georgism has influenced various land tax reforms and policies around the world, though often in a more diluted form than George originally proposed. Some cities and countries have implemented versions of the land value tax with varying degrees of success. The philosophy continues to inspire movements and political parties advocating for land reform and economic justice.

See Also

• Henry George
• Economic philosophy
• Land Value Tax
• Social reform