Henry George (1839–1897)

This chapter discusses Henry George’s main ideas of Progress and Poverty—the phenomenon of poverty amidst plenty, the wages-fund theory (or whether wages are drawn from advances of capital), theory of population and rent, the relationship between land speculation and recessions and his remedy—the single tax. George agreed with most postulates of the classical political economy namely labour theory of value, labour theory of property, rent as a monopoly price of land, minimal governmental interference and free trade. George believed that rent was an unearned income and land value taxation as a drastic tax to eliminate all rents—past, present and future—would solve all capitalism’s ills, namely, unemployment, poverty, land speculation, business cycles and inequality. George was of the view that while levying land value taxation only site values should be taxed exempting all man-made improvements. He believed that private property was justified as long as it was acquired through one’s own labour. Land value taxation would not only ensure enough revenue for governmental requirements but also obviate the need to levy any other tax. This would act as an incentive on work, productivity and growth.