Henry George and Clark's Paradigm

We begin this essay with an analysis of the criticism of orthodox economics from a philosophy of science and methodological point of view. Rather than idealized models, a careless definition of ”capital” appears to be the problem. We owe this careless definition to John Bates Clark (1847–1938). Clark introduced a new paradigm that proposed that land is not a separate factor of production, but only a form of capital. His theory was a reaction to the American economist and philosopher Henry George (1839–1879) who sold millions of books and was exceptionally popular. George advocated a substantial land value tax and influenced political debate for several decades in the Anglo-Saxon world and elsewhere. We sketch George’s ideas in their historical context and give an overview of his unappreciated impact on global scientific, political and cultural history. Finally, we also show George’s relevance in today’s world and provide a scientific and social critique of the Clark paradigm.