Progress and Poverty by Henry George (most important books of all time txt) ๐
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Progress and Poverty, first published in 1879, was American political economist Henry Georgeโs most popular book. It explores why the economy of the mid-to-late 1800s had seen a simultaneous economic growth and growth in poverty. The bookโs appeal was in its balance of moral and economic arguments, challenging the popular notion that the poor, through uncontrolled population growth, were responsible for their own woes. Inspired by his years living in San Francisco and his own experience with privation, George argues instead that poverty had grown due to the increasing speculation and monopolization of land, as landowners had captured the increases in growth, investment, and productivity through the rising cost of rent.
To solve this, George proposes the complete taxation of the unimproved value of land, thus returning the value of land, created through location, to the community. This solution would incentivize individuals to use the land they own productively and remove the tendency to speculate upon landโs increasing value. Georgeโs argument was profoundly liberal, as individuals retain the right to own land and enjoy the profits generated from production upon it.
Progress and Poverty was hugely popular in the 1890s, being outsold only by the Bible. It inspired the Single Tax Movement, and influenced a wide range of intellectuals and policymakers in the early 1900s including Leo Tolstoy, Albert Einstein, and Winston Churchill.
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- Author: Henry George
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Be this as it may, it is evident that intelligence, which is or should be the aim of education, until it induces and enables the masses to discover and remove the cause of the unequal distribution of wealth, can operate upon wages only by increasing the effective power of labor. It has the same effect as increased skill or industry. And it can raise the wages of the individual only in so far as it renders him superior to others. When to read and write were rare accomplishments, a clerk commanded high respect and large wages, but now the ability to read and write has become so nearly universal as to give no advantage. Among the Chinese the ability to read and write seems absolutely universal, but wages in China touch the lowest possible point. The diffusion of intelligence, except as it may make men discontented with a state of things which condemns producers to a life of toil while non-producers loll in luxury, cannot tend to raise wages generally, or in any way improve the condition of the lowest classโ โthe โmud-sillsโ of society, as a Southern Senator once called themโ โwho must rest on the soil, no matter how high the superstructure may be carried. No increase of the effective power of labor can increase general wages, so long as rent swallows up all the gain. This is not merely a deduction from principles. It is the fact, proved by experience. The growth of knowledge and the progress of invention have multiplied the effective power of labor over and over again without increasing wages. In England there are over a million paupers. In the United States almshouses are increasing and wages are decreasing.
It is true that greater industry and skill, greater prudence, and a higher intelligence, are, as a rule, found associated with a better material condition of the working classes; but that this is effect, not cause, is shown by the relation of the facts. Wherever the material condition of the laboring classes has been improved, improvement in their personal qualities has followed, and wherever their material condition has been depressed, deterioration in these qualities has been the result; but nowhere can improvement in material condition be shown as the result of the increase of industry, skill, prudence, or intelligence in a class condemned to toil for a bare living, though these qualities when once attained (or, rather, their concomitantโ โthe improvement in the standard of comfort) offer a strong, and, in many cases, a sufficient, resistance to the lowering of material condition.
The fact is, that the qualities that raise man above the animal are superimposed on those which he shares with the animal, and that it is only as he is relieved from the wants of his animal nature that his intellectual and moral nature can grow. Compel a man to drudgery for the necessities of animal existence, and he will lose the incentive to industryโ โthe progenitor of skillโ โand will do only what he is forced to do. Make his condition such that it cannot be much worse, while there is little hope that anything he can do will make it much better, and he will cease to look beyond the day. Deny him leisureโ โand leisure does not mean the want of employment, but the absence of the need which forces to uncongenial employmentโ โand you cannot, even by running the child through a common school and supplying the man with a newspaper, make him intelligent.
It is true that improvement in the material condition of a people or class may not show immediately in mental and moral improvement. Increased wages may at first be taken out in idleness and dissipation. But they will ultimately bring increased industry, skill, intelligence, and thrift. Comparisons between different countries; between different classes in the same country; between the same people at different periods; and between the same people when their conditions are changed by emigration, show, as an invariable result, that the personal qualities of which we are speaking appear as material conditions are improved, and disappear as material conditions are depressed. Poverty is the Slough of Despond which Bunyan saw in his dream, and into which good books may be tossed forever without result. To make people industrious, prudent, skillful, and intelligent, they must be relieved from want. If you would have the slave show the virtues of the freeman, you must first make him free.
III From Combinations of WorkmenIt is evident from the laws of distribution, as previously traced, that combinations of workmen can advance wages, and this not at the expense of other workmen, as is sometimes said, nor yet at the expense of capital, as is generally believed; but, ultimately, at the expense of rent. That no general advance in wages can be secured by combination; that any advance in particular wages thus secured must reduce other wages or the profits of capital, or bothโ โare ideas that spring from the erroneous notion that wages are drawn from capital. The fallacy of these ideas is demonstrated, not alone by the laws of distribution as we have worked them out, but by experience, so far as it has gone. The advance of wages in particular trades by combinations of workmen, of which there are many examples, has nowhere shown any effect in lowering wages in other trades, or in reducing the rate of profits. Except as it may affect his fixed capital or current engagements, a diminution of wages can benefit, and an increase of wages injure an employer only in so far as it gives him an advantage or puts him at a disadvantage as compared with other employers. The employer who first succeeds in reducing the wages of his hands, or is first compelled to pay an advance, gains an advantage, or is put at a disadvantage in regard to his competitors, which ceases when the movement includes them also. So far, however, as the change in wages affects his contracts or stock
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