Curing Slums: The Jane Jacobs Way and the Henry George Way

Henry George and Jane Jacobs were both self‐taught public figures who shared an appreciation of the density, productivity, diversity, and cultural creativity of big cities. A century separated them, during which architects and planners designed cities according to abstract principles, but George and Jacobs expected the creative potential of a city to emerge from its inhabitants, not from a central planner. Although the interests and concerns of George and Jacobs overlapped on only a few topics, they both believed that slum dwellers could solve their own problems, given the right tools. For Jacobs, the solution to dilapidated housing lay not in bulldozing neighborhoods, but in rehabilitating them through a process she called “unslumming,” a gradual process of self‐improvement that has at times been accused of being gentrification. Henry George offered a different solution, involving taxation of land values, one that did not focus on particular neighborhoods and thus avoided the paradox that local improvements would raise the price of real estate too high for local residents to stay. An example is given of how George's solution actually worked in the Rosslyn neighborhood of Arlington, Virginia. In this case, no change in tax policy was needed to bring about a local economic renaissance in the 1960s, merely the realignment of property assessments that correctly reflected the actual value of land.     

Does the Henry George Theorem Provide a Practical Guide to Optimal City Size?

A bstract .   The spatial distribution of economic activity is determined by a balancing of increasing and decreasing returns to scale activities. The Henry George Theorem states roughly that, if economic activity is efficiently organized over a "large" space, aggregate land rents equal the aggregate losses from the decreasing returns to scale activities. Kanemoto, Ohkawara, and Suzuki have tentatively applied the Henry George Theorem to investigate whether Tokyo has too large a population. This paper has two aims. The first is to explore the Theorem and its generality; the second is to examine whether it provides a promising conceptual foundation for estimating whether particular cities are over- or underpopulated.     

Henry George and the Shakers: Evolution of Communal Attitudes Towards Land Ownership

A bstract . The influence of Henry George on the Shakers has been misunderstood. The most prominent late nineteenth century Shaker elder was Frederick W. Evans , brother of George Henry Evans , the land reformer of the second quarter of the century. Similarities in the programs of G. H. Evans and Henry George have been recognized, but the two proposed different kinds of land reforms. Evans promoted quantitative restrictions on land ownership , while George was known for his advocacy of a single tax on land. The New York Shakers, as large land owners, successfully resisted early G. H. Evans type land reforms. Later, Shakers led by F. W. Evans embraced Henry George-type policy proposals and supported George for mayor of New York City. E. W. Evans himself, however, conflated Henry George's proposals with those of his brother, never realizing the contradiction between the two, much less resolving it. The consequences of Shaker ambivalence toward their large landholdings persisted well into the twentieth century.     

Henry George and Jane Jacobs on the Sources of Economic Growth

Henry George and Jane Jacobs shared a remarkably similar vision of the economic functioning of cities and of the sources of the economic growth of cities, despite having differing primary objectives. George wrote Progress and Poverty and subsequent works to persuade the public of the equity and efficiency of public capture of economic rents of land and other natural resources and elimination of taxes on labor and capital. Jacobs acquired fame for The Death and Life of Great American Cities in which she challenged the prevailing orthodoxy of the urban planning profession. Both saw the density and diversity of economic and cultural activities in cities as a facilitator of innovation and entrepreneurship in all aspects of civilization. Both also recognized the power of the price system in coordinating the activities of independent decision makers and the importance of trade for economic growth.     

Henry George and The Reconstruction of Capitalism

A bstract . The moral basis for the recommendation of Henry George that land , not labor and capital, be taxed is explained. The justification is that the value of land is socially created by density of population and as a result of private and public improvements , such as roads and utilities. This policy is advocated on the basis of its very successful, if limited, use in many places. It is contended that the need for many forms of social intervention in the economic process, which have many side consequences, would be dramatically lessened.     

Sun Yat-sen and Henry George:

A bstract . Of Sun Yat-sen's "Three Principles of the People," the third principle, namely the People's Livelihood, forms the ultimate goal for social welfare. In this principle Dr. Sun tried to syncretize the economic theories of the West and adapt them within the Chinese context.
The equalization of land ownership through taxation of self-assessed land values, and the land value increment tax are the most essential ingredients of the third principle. Underlying Dr. Sun's concept of equalization of land ownership is the unearned increment theory of Henry George.
Dr. Sun conceived of agrarian reform as basic to the solution of the livelihood problem. Henry George also saw the cause of distress and destitution in the defective land tenure structure and the monopoly of land.     

Public Choice and Land Tax Fairness

Land value taxation (LVT) as desirable U.S. tax policy was brilliantly set forth by the American publicist and economist, Henry George, in the book Progress and Poverty, published 100 years ago. Economists concerned with state and local taxation have generally accepted the basic elements of George's analysis. The absence of substantial LVT legislation despite the economic efficiency and ethical strengths of land as a tax base arises from two sources. First, the public perception of land has not separated land's attributes from those possessed by other property. Second, land ownership data have not been gathered and publicized. Groups favoring taxes that promote economic justice and efficiency should support efforts to develop land ownership data. It would be an important first step toward fully utilizing the potential of LVT.     

The role of equity financing to support entrepreneurship in Asia—The experience of Singapore and Thailand

This paper is concerned with the role of equity financing to support entrepreneurship in Asia with a particular focus on venture capital (VC) financing policies of Singapore and Thailand. Although Singapore and Thailand adopt the government intervention approach in VC financing, the analysis has shown that Singapore is more successful due to effective use of innovation financing policies in the catch-up process to develop its economy and strong network linkages with US Silicon Valley. The case of Thailand has shown poor network linkages with redundant organizations/agencies competing on offering similar innovation financing schemes. The study offers effective innovation financing policy recommendations to support the national economic development. The research provides useful insights and lessons for other economies aimed at strengthening the entrepreneurial financing system.     

Henry George's Land Reform: A Comment on Pullen

Henry George described his proposal to tax land rent as tantamount to abolition of the private ownership of land . However, Pullen's suggestion that it might better be described as "conditional, modified, or restricted ownership" falls foul of the fact that all ownership is conditional, modified, or restricted in some sense. Whereas, for George, the private ownership of labor products may be positively justified on grounds of equity, and is subject only to conditions that apply to ownership in general, the private ownership of land may be permitted , but only on grounds of social utility, and only if a radical condition (social appropriation of most of its rent) is met that satisfies the demands of equity.     

John Dewey and Henry George: The Socialization of Land as a Prerequisite for a Democratic Public

John Dewey frequently praised Henry George, author of a plan to confiscate land values with a “single tax.” Scholars have failed to account for Dewey's support of George. Some have argued that it should not be taken seriously because it is at odds with their interpretation of Dewey's philosophy. This article demonstrates that Dewey perceived the socialization of land values as an essential step toward creating a true democracy. Furthermore, Dewey's interest in George was not an aberration; it was exemplary of his faith in ideology, theory, and transformative social policy. Despite contentions to the contrary, pragmatists of the early 20^th century never emphasized skepticism, moderation, or rote empiricism. In fact, Dewey embraced the philosophy of Henry George as a general theory of history of society. During the Great Depression, Dewey attacked the piecemeal reformism of the New Deal in favor of the comprehensive vision of Henry George.     

Energy footprint of the city: Effects of urban land use and transportation policies

Urban land use and transportation policies have dramatic effects on the density and spatial distribution of residences in large cities. Effects of these policies have been analyzed using numerical urban simulation models. At the same time, the US Energy Information Administration’s Residential Energy Consumption Survey has allowed researchers to investigate the relation between household energy consumption and characteristics of housing units.This paper links these two lines of inquiry by demonstrating how simulation results on the implications of land use and transportation policies for the spatial form of cities can be used to compute implications for energy consumption. The resulting Urban Energy Footprint Model, “UEFM,” allows one to trace the implications of a change in land use zoning or transportation policy through its effects on housing markets and residential location to the resulting changes in energy use for residential and commuting purposes – i.e. to understand the energy footprint of transportation, housing, and land use policies. Accordingly, the UEFM provides, perhaps for the first time, a link between urban and energy economics, and can allow measurement of rebound effects of energy policies in a more general equilibrium context.     

Henry George's Land Reform: The Distinction between Private Ownership and Private Possession

Henry George stated that the taxation of land rent would amount to the abolition of the institution of private ownership of land, thereby alienating all those who, whether for economic or ideological reasons, regard the private ownership of land as essential for social order and progress. George believed that under his proposed reform the private ownership of land would be replaced by private possession. But his distinction between ownership and possession appears to have been based on a misconception of the nature of private ownership. His proposed reform could have been more logically described as a conditional, modified, or restricted private ownership of land, rather than as the abolition of private ownership of land.     

Site Value Taxation on Australia

A bstract . Site value taxation is neither a new nor a strictly western concept. Taxing land based on location was proposed in India around 300 B.C. François Quesnay, David Ricardo and John Stuart Mill were among the economists favoring land taxes but Henry George is credited with bringing it about in several areas, notably Australia. That subcontinent has experimented with the land tax on the national as well as the state and local levels but it is presently used only on the latter two. Empirical tests of the tax instrument are few. Pollock and Shoup (1977) forecast that eliminating the tax on improvements would increase investment levels by about 25 per cent in the long run. Hutchinson (1963) found great differences in house values and stocks. This study evaluates the effects of site value taxation on the basis of multivariate regression analysis. It finds strong evidence that, where improvements are relieved of taxation and more revenues are obtained from land values, the average value of housing is significantly higher and the value of the housing stock substantially larger.     

Henry George and the Classical Scientific Research Program: The Economics of Republican Millennialism

Abstract . Henry George's classicism was evident in his acceptance of “hard core” assumptions inherent in classical economic analysis, notably that rational self-interested behavior exercise in competitive markets maximized economic welfare. However, George's “stage theory,” the “Law of Human Progress,” led him to reject the classical nexus between social and economic welfare. The emergence of an exchange economy improved efficiency and economic welfare, but institutional changes lagged behind, particularly the redefinition of property rights. Consequently, economic growth based on land as a private rather than public good widened the gap between economic efficiency and social welfare. Hence George's paradox of poverty amidst progress. George resolved the equity efficiency conflict by treating land as a public good. Then, the sale of monopoly rights to land through the “single tax” on land rents captured the difference between the private and social costs of land use.     

Homelessness and Inequality

Homelessness and housing insecurity in the United States are not so much a housing problem or a poverty problem as a visible sign that growing wealth inequality has left millions of people unable to earn enough to afford adequate housing. The classical economists David Ricardo and Henry George linked wealth inequality by arbitrage to unequal income and wages. The greater the inequality of wealth, the greater the inequality of income and the lower the wages at the bottom. Neoclassical economics has largely obscured this relationship. Consequently, proposals from both conservatives and liberals to address homelessness focus narrowly on housing. Ultimately, reducing wealth inequality requires national tax reform and a return to vigorous antitrust enforcement. However, cities can reduce local inequality by making property tax assessments uniform, or, better yet, by shifting to taxing land only.     

Lessons of Enduring Value: Henry George a Century Later

A bstract . Henry George , in the judgment of Joseph Schumpeter, was an economist , self taught but, for his time, a century ago, well taught. George's writings can serve mankind constructively today. He wrote brilliantly in showing the destructiveness for human well-being of tariffs which obstruct international trade. His language shows clearly why such impediments to trade wastefully depress levels of living and opportunity. George foresaw some of the more sophisticated reasons why socialism could not be economically successful and also why it would threaten human freedom. Regarding the possibilities of reducing poverty , however, George has not been fully confirmed by a century's experience. But the reasoning that underlies his case for relying on land taxation for government revenue deserves serious attention today.     

Henry George and the Catholic View of Morality and the Common Good, I

A bstract . On the issuance of the first of the modern social encyclicals, Rerum Novarum , Henry George, the American economist and social philosopher , criticized its author, Pope Leo XIII , for defending a limited right to own land and for limiting the right of private ownership of labor products. George did so by reasoning from Locke's ground that each human has a property right in one's person. George distinguished between possession (and use) and ownership of land on the ground of the common good. That required equality of mutual opportunity , which George would achieve by a Single Tax on all land values. Land reform , he held, would lead to moral reform , and thus to a society based on justice. Pope Leo goes beyond the Schoolmen in stressing a natural right to property, including land, which he asserted must be regarded as sacred. This right, he said, was not absolute, but subject to be used, according to God's Will, for the benefit of others. George looked to a change in the economic structure by reform of land tenure and use to establish a just social order ; Leo to religion and the church , the government, moral individuals and voluntary associations to do so.     

Alfred Russel Wallace's Campaign to Nationalize Land

A bstract . Alfred Russel Wallace rose to fame with Charles Darwin: They independently found the principle of natural selection. Wallace later focused on reforming Great Britain's land tenure system, under which a few owners had come to control most of the land, while most citizens had little or none of their own. In Land Nationalization (1882) Wallace proposed for the state to acquire all land, with limited compensation. The state would then lease it by auction, but to actual users only. Wallace saw his kinship with Henry George, and opened doors to help George tour Britain as a speaker. For years their ideas were linked by friend and foe, and together had great impact on British politics.     

Riches,Real Estate,and Resistance: How Land Speculation,Debt, and Trade Monopolies Led to the American Revolution

Why did the colonies of North America rebel against England in 1775? More than ideas of political freedom were at stake. It is unlikely that the colonists would have demanded independence if powerful land speculators, merchants, and urban artisans had not joined forces to protect their economic interests. England had levied taxes on the colonies, and the colonists had successfully overturned those measures. Taxation was a superficial problem. But in 1773, when England imposed a commercial monopoly on tea sales, and in 1774, when it cut off settlement in western lands, the colonists saw no choice but to rebel and create their own nation. George Washington, Thomas Jefferson, Patrick Henry, George Mason, Richard Henry Lee, and other wealthy Virginians who led the American Revolution stood to lose their huge investment in potential land sales if England maintained control of the colonies.