putting people at the heart of economics since 1894 Ignoring George Why Britain's politicians don't want to know Back on Community A Hung the rails: Test: What Parliament: Rescuing we can Could it public learn from be best for transport Monopoly Britain? vol 117 SPRING 2010 117 vol 1227 contents cover story features ignoring george: As we approach the uk 12 Parliament: Better off 16 On the right track General election, David Triggs explores why hung? Britain’s public transport has come off the Britain’s politicians continue to disregard the rails, John Howell shows how the adoption of John Loveless argues that a hung parliament solutions found in the works of Henry George. lvt could get it moving again. may be Britain’s best chance of progress. regulars 14 Monopoly’s hidden 20 Portrait history We interview the people working at the front news 4-5 line to change opinions. This issue: book Robin Smith discovers how an earlier version publisher Anthony Werner. letter from the publisher 3 of the property trading game was aimed at HGF NEWS 6-7 exposing economic injustice. media watch 8-9 Edward J Dodson’s cooperative individualist view 13 letters 18 reviews 18-19 Lars Rindsig’s view from the right 19 columnists Edward J Dodson is Director of the us-based School of Cooperative Individualism and author of Discovery of First Principles. Lars Rindsig is Executive Editor of L&L. 2 No 1227 Spring 2010 letter from the publisher there is apparently some doubt about the story that Nero played the fiddle while Rome burned during the great fire of ad 64. No No 1227 Vol 117 Spring 2010 such doubts for us though. We are faced with a general election and crises galore but our political leaders, commentators, pundits and most of us continue to fiddle. PO Box 6408, London, W1A 3GY ph +44 (0) 800 048 8537 We know that our fiddling lifestyles are unsustainable and e [email protected] cannot be made available to the vast majority of people that share the planet with us. We ignore the link between the politico- Editor John Triggs economic arrangements that our forefathers devised and saw Executive Editor Lars Rindsig adopted throughout the world and the cheap food, clothing, Consultant Editor Peter Gibb Publisher Henry George Foundation manufactured goods and fuel that are produced for us by people Contributors Bart Dunlea, W.R. Elliott, living in less rich countries. Tommas Graves, John Howell, John Lipetz, Genuine trade between willing and free individuals brings John Loveless, Robin Smith benefit to both parties and harms no one, but the systems we operate Editorial support David Chester have not led to universal prosperity. On the contrary poverty, Distribution Michael Learoyd pauperism and debt have become normal for many in both rich and poor countries. An insecure dependency prevails. People in poor countries are obliged to produce for people in rich countries rather than for themselves but cannot afford to purchase what those in rich To receive Land&Liberty or support the work countries produce. At the same time people in rich countries are of the Henry George Foundation contact us obliged to buy what people in poor countries sell, since they cannot at the address above. earn a living producing them themselves. So where are we going Land&Liberty has chronicled world events wrong? In short the answer is a failure by governments to discharge for over 100 years. It has offered a unique their responsibilities for the management of land and money and perspective with its reports, analysis and understand their implications for earnings and trade. comment on the core issues of political In economic terms the poorest workers in society are the most economy. And that uniqueness remains. Land&Liberty aims to explore how our common important, because what they are able to earn sets a datum of wealth should be used—and to demonstrate earnings to which all others relate. Simple observation shows a that this is the key to building the bridge of pressing need for the simplest of skills and care in society, and sustainability between private life, the public how its application adds value to people’s lives and to public and sector and our resources—between the private places. Other people with finer and less abundant skills individual, the community and the environment. add yet more value, producing—for example—quality food and Land&Liberty—putting people at the heart of clothing. Each such enterprise needs the support of our poorest economics. worker as well as the services of professional specialists of one form Copyright in this and other Land&Liberty or another. Critical to this specialisation, of course, is exchange or publications belongs to the Henry George trade from the local shopkeeper to the international merchant. Foundation, which welcomes approaches for Traditionally merchants did not need money to engage in trade— the reproduction of articles. However reproduc- they needed credit. They paid their debts with the proceeds of their tion is prohibited without prior written permis- sales and traded both imports and exports in local money. They did sion of the copyright holders. No responsibility will be accepted for any errors or omissions not need an international currency. Today money and credit are or comments made by contributors or inter- virtually indistinguishable and currencies are unethically traded viewees. Views expressed are not necessarily as if they were commodities like any other. As recent events have those of the publishers. Goods and services demonstrated, national governments back money that they allow advertised are not necessarily endorsed by the private banks to create for commercial interests—their own. All publishers. this distorts the relative value of internationally traded goods and Land&Liberty is produced by the Henry George makes genuine free trade impossible. The taxation of labour and the Foundation and printed by A Local Printer Ltd products of labour do likewise, but the collection of rent does not. on Revive 100% post-consumer recycled paper. As Henry George pointed out the coexistence of progress and ISSN 0023-7574 poverty is not inevitable—except where economic justice is absent. Liberty.net and The Henry George Foundation is an independent economic and social justice think tank and public David Triggs education group with offices in London and members Executive Chairman throughout the UK. The Foundation deals in cutting-edge ideas, exploring and promoting principles for a just and Henry George Foundation prosperous society and a healthy environment. The Henry George Foundation of Great Britain Limited is a henrygeorgefoundation@ company limited by guarantee, registered in England, no. googlemail.com 00956714, and a charity registered in England under the Charities Act 1960, no. 259194. www.HenryGeorgeFoundation.org www.Land 3 news news in brief... New London considers LVT Resigned Registry The Land Registry plans to axe a total of 2,300 staff by the end of 2011. The cause of the dramatic cuts is the current recession, which has caused fewer property transactions and thus a decrease in income from registration fees. The Registry will also sell its London head office. While much more radical cuts were feared, but were prevented by union lobbyism, the move does not bode well for the quality and extent of the shared knowledge of uk land holdings. NZ rules out land tax New Zealand’s National Party Government appears to have The small us coastal city of New London in promoting the lvt idea. ruled out the implementation of a land value Connecticut is currently debating replacing “Land value taxation would shift the burden tax, despite recommendations from its own building taxes with a new Land Value Tax. onto property owners letting their land lay Tax Working Group that it should introduce The city of roughly 25,000 inhabitants, was fallow, urging them to build or sell to someone such a tax. designated a ‘distressed municipality’ by the who will.” In a statement in February Prime Minister state in 1990, meaning about half its budget It would also encourage the restoration and John Key told the New Zealand parliament: comes from state aid. upkeep of New London’s historic buildings, “A land tax is effectively a lump sum tax on Attempts to redevelop the city’s waterfront which are often left to crumble, in fear of rising people who own the land at the time the tax sparked an epic battle with landowners assessments, he said. is introduced, would only fall on people who over who owned the land, leaving large Yet nearly half the committee recently hold their wealth in one particular form, and areas empty after plans to develop them fell opposed the pilot project, arguing that the top would create cashflow problems for many through. In the downtown area, nearly one in properties whose bills would increase from the landowners, especially those with lower three buildings is vacant. switch—mostly car dealerships and malls—are incomes.” “As it is, owners of thriving, productive already developed to their full potential. A major shake up of the New Zealand tax buildings pay more in property taxes than The city council has asked for more time system is still expected in the next budget, due absentee landlords with abandoned buildings,” and may consider starting the pilot in a on May 20th. says Art Costa, a member of the committee portion of the city’s downtown area. City farms to use abandoned land High Speed land boost Plans for a high-speed rail link to the North from London, High Speed 2, are set to not only minimise travel times but also boost the prop- erty market.