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The Core of Economics since 1894 Restoring a timeless idea... Issue 1247 Summer 2019 The Core of Economics No 1229 Winter 2010/11 1 “ Free trade consists simply in letting peo- ple buy and sell as they want to buy and sell. It is protection that requires force, for it consists in preventing people from doing what they want to do... WWW.HENRYGEORGEFOUNDATION.ORG message from the honorary president No 1247 Summer 2019 At the beginning of his book The Science of Political Economy Henry PO Box 6408, London, W1A 3GY George suggests that whilst the world as it is presented to our perception +44 (0) 800 048 8537 may at bottom be one we are compelled in thought to distinguish, in their [email protected] actions and reactions, three independent and separable elements: Editor 1. That which feels, perceives, thinks, wills; which to distinguish we call Joseph Milne mind or soul or spirit. 2. That which has mass or weight or extension or form; which to Managing Editor distinguish we call matter. Jesper Raundall Christensen 3. That which acting on matter produces movement; which to distinguish, we call motion or force. Graphics and Production Jesper Raundall Christensen … of these from our standpoint, that which feels, perceives thinks, wills comes first in order of priority, for it is this which is first in our own Publisher Henry George Foundation consciousness, and it is only through this that we have consciousness of any other existence. In this, as our consciousness testifies, is the initiative of To receive Land&Liberty or support the work of the all our own motions and movements, so far as consciousness and memory Henry George Foundation contact us at the address shed light; and in all cases in which we trace the genesis of anything to its above. beginning we find that beginning in thought and will. Land&Liberty has chronicled world events for Here George highlights what underpins the economic choices we make, over 100 years. It has offered a unique perspective including what we produce, provide, buy, sell or acquire. However with its reports, analysis and comment on the core whether those choices accord with what is good for us and/or for issues of political economy. And that uniqueness others depends upon our character i.e. our distinctive mental and moral remains. Land&Liberty aims to explore how our common wealth should be used - and to what we are and what we consider ‘mine’. Our ability to choose will vary demonstrate that this is the key to building the accordingqualities. They to the will natural also reflect and socioeconomic the ideas we hold conditions about ourselves, under which who we or bridge of sustainability between private life, the live, in particular the degree of civil and economic freedom that prevails. public sector and our resources - between the individual, the community and the environment. Land&Liberty - putting justice at the heart of economics. shortcomings, has for many given the acquisition of wealth a bad name. Unfortunately a shortage of these freedoms, coupled with moral Copyright in this and other Land&Liberty essential to the life and well-being of every individual. Sometimes the publications belongs to the Henry George ideaUnfortunate; that acquiring because wealth the isacquisition bad arises ofwhen wealth people is actuallyconfuse claimsgood and on, Foundation, which welcomes approaches for the or greed for wealth, with wealth itself. At other times it may be because reproduction of articles. However, reproduction of its link with desire and a recognition that people do not always desire is prohibited without prior written permission what is good for either themselves or for others. It may also be due to of the copyright holders. No responsibility will how wealth is acquired or to a misunderstanding of what wealth truly is. be accepted for any errors or omissions or comments made by contributors or interviewees. Views expressed are not necessarily those of the everything we need comes from what nature provides we cannot make publishers. Goods and services advertised are not useIn addressing of it without these exerting mistakes ourselves. we need Even first to breatheto acknowledge requires that a measure whilst necessarily endorsed by the publishers. of exertion, and to access water, food, clothing, shelter and the needs and Land&Liberty is produced by the Henry George conveniences of modern living requires still more exertion by both body Foundation and printed by Premier Print Group on and spirit. The glory of our human and social nature however is that we 100% recycled paper. may exert ourselves in ways that provide for the needs of others and ISSN 0023-7574 have our own needs met by the exertions of others. Living in harmony with this aspect of our nature is critical to the survival and development of every civilisation and is why Political Economy is such an important subject for study. The science of political economy seeks to discover the laws of nature that govern the production and distribution of wealth. Effective use of those discoveries however requires a considerable measure of art. First the art required to describe and formulate those laws in ways that may be widely appreciated and second the art required to devise human laws and arrangements to suit a particular time, place and circumstance. Our new course The Science and Art of Political Economy will draw The Henry George Foundation is an independent economic on Henry George’s works in an attempt to meet this challenge under and social justice think tank and public education group today’s circumstances. The Foundation deals in cutting-edge ideas, exploring and David Triggs promotingwith offices principles in London for and a just members and prosperous throughout society the UK. and a healthy environment. Honorary President Henry George Foundation The Henry George Foundation of Great Britain is a www.landandliberty.net @landandliberty us on Twitter follow company limited by guarantee, registered in England, no. 00956714, and a charity registered in England under the henrygeorgefoundation@ Charities Act 1960, no. 259194. googlemail.com www.HenryGeorgeFoundation.org 3 CONTENTS issue 1247 SUMMER 2019 10 Regulars Cover Story Features 17 6 13 HGF News The Core of Economics: Slavery and Slavery The latest news and events of the The Birth of American Labour Toby Burtt presents his interpretation Henry George Foundation in London Edward J. Dodson lays out the context of a chapter from Henry George’s Social and historical perspective of the labour Problems trying to understand how 16 the contemporary issue of private land Reviews & Books Worth ownership ties into the institution of Reading movement in the United States slavery in the broadest sense How Our Economy Really Works by author Brian Hodgkinson explains 18 Closing Thoughts has become from investment going Our Closing Thoughts section is of intojust landhow ratherdistorted than the into UK productive economy particular importance this time as private enterprise. Finally, Why can’t Tommas Graves presents a touching you afford a home? by Josh Ryan-Collins tribute to Julia Bastian who is no alongside Who Owns England? by Guy longer among us. Your Land&Liberty No 1229 Winter 2010/11 1 Shrubsole are highlighted in this issue’s Cover Photograph editors want to use this opportunity to Books Worth Reading section USDA dedicate our summer issue to Julia Article image rights: pixabay.com & USDA Pomological Watercolor Collection 4 No No 1229 1247 Winter Summer 2010/11 2019 letter from the editor The law of rent demonstrates a clear distinction between private government would have no economic inequalities to mitigate. It and public. Wages belong to the private individual, while the land is also hard to imagine what functions would naturally belong value that arises through the presence of community belongs to to government where economic injustices were eliminated. We the public domain. This distinction is the basis of the land value have become accustomed to thinking of government primarily tax. It is also the basis of the distinction between the economic and in terms of economic interventions. And because its funding has the civil domains, the domains of individual responsibility and col- been drawn from production and wages rather than the natural lective responsibility. land value tax, we have come to think of government in terms of expenditure rather than its functions. We inadvertently place Since current forms of taxation fall on wealth production and government in the economic domain. wages rather than on land values, it appears that taxes of any kind place a burden on the economy and on the private individual. So In his 2019 Reith Lectures Jonathan Sumption asked what is the real distinction between the economic and civil domains is wrong with our present democracies. He stated very clearly that it is lack of public participation. Very few people are now mem- there is a general desire for lower taxation. bers of political parties. There are no doubt many reasons for this. lost. The civil domain seems to conflict with the private domain, so But from a Georgist perspective it is understandable that when However, the desire for lower taxation is confronted by the ever wages are pressed down to a minimum and housing costs are widening gulf between rich and poor, and in particular by the con- absorbing the largest ever proportion of family income, and the sequences of land speculation which raises the cost of housing. So gap between rich and poor is ever widening, there must follow a government and local authorities are forced to seek mitigation of disillusionment with government and a sense of powerlessness. the housing crisis and this means higher taxation is needed. We Land monopoly separates the people from government and ren- are trapped in a vicious circle.
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