I found the least bad way to tax

Summary

This video, presented by Mr. Beat, explores the life and economic ideas of Henry George, a 19th-century economist and journalist. George's groundbreaking work, *Progress and Poverty*, introduced the concept of a single land value tax to address wealth inequality and poverty. The video explains how a land value tax works, its benefits, and why it gained massive popularity in George's time. Despite its decline, Georgism has seen a resurgence due to modern housing crises. The video balances humor and insight while delving into the history and relevance of George’s ideas.

Takeaways

• 📚 Henry George was once considered one of the most influential Americans in history, known for his book *Progress and Poverty*, which sold millions of copies worldwide.
• 🌍 George's main idea was the 'single tax'—a land value tax—believing it should be the only tax necessary, as it would efficiently promote productivity and reduce wealth inequality.
• 🏞️ A land value tax only applies to the unimproved value of land, not to any buildings or physical assets on it, and encourages efficient land use.
• 🚜 Henry George's economic views were shaped by his observations of poverty in growing cities, leading him to believe that landowners unfairly benefited from increased land value without contributing to its improvement.
• 📉 The land value tax would prevent land hoarding and speculation, pushing owners to either improve their land or sell it to someone who would, thereby boosting productivity and economic fairness.
• 🏛️ George's political career included a notable run for mayor of New York City, where he finished second in a race influenced by powerful entities like Tammany Hall.
• 🔍 Georgism, George’s economic philosophy, was widely popular in the late 19th century, inspiring the Populist Movement and the Progressive Era in the United States.
• ❓ Georgism faded in popularity due to factors like the rise of urban sprawl, automobiles, and alternative welfare reforms that indirectly benefited landowners.
• 📈 Despite its decline, Georgism has experienced a slight resurgence in modern times, as rising land prices have made homeownership difficult for many, particularly younger generations.
• 🌎 While George’s vision of a single land tax hasn’t been fully realized, variations of land value taxes exist today in countries like Estonia, Singapore, and Denmark.

Q & A

Who was Henry George, and why is he significant?

Henry George was an American economist and journalist who wrote the influential book *Progress and Poverty*. He is significant for advocating a 'single tax' on land value as the solution to economic inequality, making him one of the most famous economic thinkers of his time.

What is the main idea behind Henry George's 'single tax' theory?

The 'single tax' theory proposed by Henry George is a land value tax, where landowners would pay taxes on the unimproved value of land. George believed this tax would prevent land speculation, promote efficient land use, and reduce economic inequality by taxing unearned income from land ownership.

Why did Henry George believe a land value tax would reduce poverty?

Henry George believed that as land value increased due to societal and economic advancements, landowners unfairly profited from it. A land value tax would redistribute this wealth, ensuring that the economic benefits of land belonged to society as a whole, thus reducing poverty.

How did George's personal experiences influence his economic beliefs?

George's personal experiences with poverty and struggling to provide for his family played a significant role in shaping his beliefs. His 'aha' moments, particularly witnessing the high land prices in San Francisco and New York, led him to conclude that land speculation was a major cause of poverty.

Why did Henry George's ideas gain widespread popularity during his lifetime?

George's ideas gained popularity because they resonated with the growing inequality and economic struggles of the industrial age. His clear articulation of how landowners profited unfairly from rising land values, while workers struggled, struck a chord with the public, especially during the Populist and Progressive eras.

What challenges did Henry George face in promoting his land value tax idea?

George faced opposition from powerful landowners and the establishment, such as Tammany Hall in New York. His uncompromising stance on the land value tax and refusal to align with other progressive movements that advocated more government intervention also hindered broader political support.

Why did Henry George's economic ideas decline in popularity after his death?

After George’s death, several factors led to the decline of Georgism, including World War I, the rise of urban sprawl due to increased transportation, and the opposition of landowners who wielded significant political power. Additionally, other reforms like welfare reduced the urgency for a single tax.

How does a land value tax differ from other types of taxes?

A land value tax is imposed only on the unimproved value of land, not on buildings or capital improvements. Unlike other taxes, such as income or sales taxes, it doesn’t cause economic distortions or deadweight loss because the supply of land is fixed and cannot be increased or decreased by market activity.

What are some modern places that have implemented variations of a land value tax?

Modern places that have implemented variations of a land value tax include Estonia, Singapore, Denmark, Taiwan, and certain parts of the United States. However, none have adopted it as comprehensively as Henry George envisioned.

Why is there a renewed interest in Georgism among younger generations?

There is renewed interest in Georgism among younger generations due to rising land prices and housing unaffordability. Many young people feel priced out of the housing market, which makes the land value tax concept appealing as a way to address wealth inequality and speculative landholding.