In 1879, a man asked “How come all this new economic development and industrialized technology hasn’t eliminated poverty and oppression?” That man was Henry George, his answer came in the form of a book called Progress & Poverty, and this is a review of that book.
Henry George is variously known for leading an early movement that popularized Universal Basic Income, sporting a fancy beard while shouting “The Rent Is Too Damn High!” and inspiring a popular board game that was shamelessly ripped off and repackaged as Monopoly.
But he didn’t just write a book. He also ran for Mayor of New York city in 1886, beating out some rando Republican named “Theodore Roosevelt,” but ultimately losing to the favored candidate of Tammany Hall, who saw George’s radical economic ideas as a threat to their well-oiled political machine (Andrew Yang take note). He ran again in 1897 but died just 4 days before the election, prompting a national outpouring of mourning. According to Ralph Gabriel’s Course of American Democratic Thought, in New York alone 200,000 people came to see his body lying in repose, half of which had to be turned away. For context, that one crowd was roughly the size of 10% of the entire population of New York at the time.
The Book as a Book
Progress and Poverty is quite readable compared to other 19th-century economic tomes, but has a tendency to repeat itself. This isn’t without purpose – George goes to great pains not to be misunderstood; rather than expecting his readers to tease out the meaning of dense prose and spending the next century arguing with each other about what he “really meant”, he goes on for pages and pages beating a single concept to absolute death, just to be sure.
As a 19th century treatise of Political Economy, the book doesn’t match what a modern reader might expect from a book on Economics because it’s not packed to the gills with charts, graphs, tables, and statistics (though it does provide a good number of citations and figures). Nevertheless his argument was compelling enough to spawn an entire economic school of thought known variously as Georgism or Geoism that persists to this day.
Nowadays Georgism gets slapped with the “heterodox” label, but it’s still relevant enough to get the likes of Paul Krugman and Milton Friedman to grudgingly agree to key points, and Friedrich Hayek is alleged to have been inspired by it to pursue economics in the first place. Marx, on the other hand, wasn’t a fan, seeing it as a last-ditch attempt “to save capitalist domination and indeed to establish it afresh on an even wider basis than its present one… [George] also has the repulsive presumption and arrogance which is displayed by all panacea-mongers without exception.” I guess you can’t please everyone.
George spends the first few books of Volume I establishing terms and methodically tearing apart the prevailing economic theories of his day before presenting his own alternative theories about how the “three factors of production” – land, labor, and capital – relate to each other in the “laws of distribution.” He then explains why the existing system causes poverty to advance alongside progress, and why we see industrial depressions. Then, he identifies the root cause of the problem (land ownership and speculative rent) and presents his solution (the Land Value Tax) in Volume II. He spends the entire second volume explaining why it is moral and just, how it should be applied, and why it will solve all of our problems.