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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It may be said that such a deadlock in production could never occur. This is true; but true only because no such thorough combination of labor as might produce it is possible. But the fixed and definite nature of land enables land owners to combine much more easily and efficiently than either laborers or capitalists. How easy and efficient their combination is, there are many historical examples. And the absolute necessity for the use of land, and the certainty in all progressive countries that it must increase in value, produce among land owners, without any formal combination, all the effects that could be produced by the most rigorous combination among laborers or capitalists. Deprive a laborer of opportunity of employment, and he will soon be anxious to get work on any terms, but when the receding wave of speculation leaves nominal land values clearly above real values, whoever has lived in a growing country knows with what tenacity land owners hold on.
And, besides these practical difficulties in the plan of forcing by endurance an increase of wages, there are in such methods inherent disadvantages which workingmen should not blink. I speak without prejudice, for I am still an honorary member of the union which, while working at my trade, I always loyally supported. But, see: The methods by which a trade union can alone act are necessarily destructive; its organization is necessarily tyrannical. A strike, which is the only recourse by which a trade union can enforce its demands, is a destructive contestโ โjust such a contest as that to which an eccentric, called โThe Money King,โ once, in the early days of San Francisco, challenged a man who had taunted him with meanness, that they should go down to the wharf and alternately toss twenty-dollar pieces into the bay until one gave in. The struggle of endurance involved in a strike is, really, what it has often been compared toโ โa war; and, like all war, it lessens wealth. And the organization for it must, like the organization for war, be tyrannical. As even the man who would fight for freedom, must, when he enters an army, give up his personal freedom and become a mere part in a great machine, so must it be with workmen who organize for a strike. These combinations are, therefore, necessarily destructive of the very things which workmen seek to gain through themโ โwealth and freedom.
There is an ancient Hindu mode of compelling the payment of a just debt, traces of something akin to which Sir Henry Maine has found in the laws of the Irish Brehons. It is called, sitting dharnaโ โthe creditor seeking enforcement of his debt by sitting down at the door of the debtor, and refusing to eat or drink until he is paid.
Like this is the method of labor combinations. In their strikes, tradesโ unions sit dharna. But, unlike the Hindu, they have not the power of superstition to back them.
IV From CooperationIt is now, and has been for some time, the fashion to preach cooperation as the sovereign remedy for the grievances of the working classes. But, unfortunately for the efficacy of cooperation as a remedy for social evils, these evils, as we have seen, do not arise from any conflict between labor and capital; and if cooperation were universal, it could not raise wages or relieve poverty. This is readily seen.
Cooperation is of two kindsโ โcooperation in supply and cooperation in production. Now, cooperation in supply, let it go as far as it may in excluding middlemen, only reduces the cost of exchanges. It is simply a device to save labor and eliminate risk, and its effect upon distribution can be only that of the improvements and inventions which have in modern times so wonderfully cheapened and facilitated exchangesโ โviz., to increase rent. And cooperation in production is simply a reversion to that form of wages which still prevails in the whaling service, and is there termed a โlay.โ It is the substitution of proportionate wages for fixed wagesโ โa substitution of which there are occasional instances in almost all employments; or, if the management is left
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