Progress and Poverty, by Henry George: A Review

Subtitle: An Inquiry into the Cause of Industrial Depressions and of Increase of Want with Increase of Wealth: The Remedy

I’ve just nearly finished another reading of Progress and Poverty, by Henry George. This time, instead of the unabridged fourth edition, which I’ve read several times, I’m using the simplified edited and abridged version by Bob Drake, published by the Schalkenbach Foundation.

This last simplified version lacks some of the poetic beauty of George’s original verse, but it is also far easier for those who want to initially expose themselves to his revolutionary and progressive ideas to comprehend and assimilate.

I am once again impressed that this self-educated man was one of the handful of greatest thinkers our world has ever produced. By 1879 he had recognized economic laws and principles that the greatest of western political economists had not seen, and still have not seen to this day.  If there is a greater thinker and writer on political and socioeconomic issues in the past 300 years, then I want to read him or her!  It is not Adam Smith, David Ricardo, John Stewart Mill, Karl Marx, Keynes, Freidman, Galbraith, Samuelson, or even Stiglitz.  I have read them all, and all have made their contributions and impacts.  None approaches the clarity and wisdom of George. I suspect that much of his keen perceptions were a result of his self-study; he was not invested in any pet theory or philosophy except the pursuit of universal truth as it relates to economics.

Henry George is the Isaac Newton of economic thought. One day this will be self-evident and universally recognized. For the time his great and potentially lifesaving insights will have to await economic catastrophe and collapse before they are widely seen for the enormous truths they contain.

Rather than say more about the power of his piercing intellect and wisdom, this excerpt might say it better than I could:

Book X, Chapter 4
How Modern Civilization May Decline

X.IV.1

The conclusion we have thus reached harmonizes completely with our previous conclusions.

X.IV.2

This consideration of the law of human progress not only brings the politico-economic laws, which in this inquiry we have worked out, within the scope of a higher law—perhaps the very highest law our minds can grasp—but it proves that the making of land common property in the way I have proposed would give an enormous impetus to civilization, while the refusal to do so must entail retrogression. A civilization like ours must either advance or go back; it cannot stand still. It is not like those homogeneous civilizations, such as that of the Nile Valley, which molded men for their places and put them in it like bricks into a pyramid. It much more resembles that civilization whose rise and fall is within historic times, and from which it sprung.

X.IV.3

There is just now a disposition to scoff at any implication that we are not in all respects progressing, and the spirit of our times is that of the edict which the flattering premier proposed to the Chinese Emperor who burned the ancient books—”that all who may dare to speak together about the She and the Shoo be put to death; that those who make mention of the past so as to blame the present be put to death along with their relatives.”

X.IV.4

Yet it is evident that there have been times of decline, just as there have been times of advance; and it is further evident that these epochs of decline could not at first have been generally recognized.

X.IV.5

He would have been a rash man who, when Augustus was changing the Rome of brick to the Rome of marble, when wealth was augmenting and magnificence increasing, when victorious legions were extending the frontier, when manners were becoming more refined, language more polished, and literature rising to higher splendors—he would have been a rash man who then would have said that Rome was entering her decline. Yet such was the case.

X.IV.6

And whoever will look may see that though our civilization is apparently advancing with greater rapidity than ever, the same cause which turned Roman progress into retrogression is operating now.

X.IV.7

What has destroyed every previous civilization has been the tendency to the unequal distribution of wealth and power. This same tendency, operating with increasing force, is observable in our civilization to-day, showing itself in every progressive community, and with greater intensity the more progressive the community. Wages and interest tend constantly to fall, rent to rise, the rich to become very much richer, the poor to become more helpless and hopeless, and the middle class to be swept away.

X.IV.8

I have traced this tendency to its cause. I have shown by what simple means this cause may be removed. I now wish to point out how, if this is not done, progress must turn to decadence, and modern civilization decline to barbarism, as have all previous civilizations. It is worth while to point out how this may occur, as many people, being unable to see how progress may pass into retrogression, conceive such a thing impossible. Gibbon, for instance, thought that modern civilization could never be destroyed because there remained no barbarians to overrun it, and it is a common idea that the invention of printing by so multiplying books has prevented the possibility of knowledge ever again being lost.

X.IV.9

The conditions of social progress, as we have traced the law, are association and equality. The general tendency of modern development, since the time when we can first discern the gleams of civilization in the darkness which followed the fall of the Western Empire, has been toward political and legal equality—to the abolition of slavery; to the abrogation of status; to the sweeping away of hereditary privileges; to the substitution of parliamentary for arbitrary government; to the right of private judgment in matters of religion; to the more equal security in person and property of high and low, weak and strong; to the greater freedom of movement and occupation, of speech and of the press. The history of modern civilization is the history of advances in this direction—of the struggles and triumphs of personal, political, and religious freedom. And the general law is shown by the fact that just as this tendency has asserted itself civilization has advanced, while just as it has been repressed or forced back civilization has been checked.

X.IV.10

This tendency has reached its full expression in the American Republic, where political and legal rights are absolutely equal, and, owing to the system of rotation in office, even the growth of a bureaucracy is prevented; where every religious belief or non-belief stands on the same footing; where every boy may hope to be President, every man has an equal voice in public affairs, and every official is mediately or immediately dependent for the short lease of his place upon a popular vote. This tendency has yet some triumphs to win in England, in extending the suffrage, and sweeping away the vestiges of monarchy, aristocracy, and prelacy; while in such countries as Germany and Russia, where divine right is yet a good deal more than a legal fiction, it has a considerable distance to go. But it is the prevailing tendency, and how soon Europe will be completely republican is only a matter of time, or rather of accident. The United States are therefore in this respect, the most advanced of all the great nations, in a direction in which all are advancing, and in the United States we see just how much this tendency to personal and political freedom can of itself accomplish.

X.IV.11

Now, the first effect of the tendency to political equality was to the more equal distribution of wealth and power; for, while population is comparatively sparse, inequality in the distribution of wealth is principally due to the inequality of personal rights, and it is only as material progress goes on that the tendency to inequality involved in the reduction of land to private ownership strongly appears. But it is now manifest that absolute political equality does not in itself prevent the tendency to inequality involved in the private ownership of land, and it is further evident that political equality, coexisting with an increasing tendency to the unequal distribution of wealth, must ultimately beget either the despotism of organized tyranny or the worse despotism of anarchy.

X.IV.12

To turn a republican government into a despotism the basest and most brutal, it is not necessary formally to change its constitution or abandon popular elections. It was centuries after Cæsar before the absolute master of the Roman world pretended to rule other than by authority of a Senate that trembled before him.

X.IV.13

But forms are nothing when substance has gone, and the forms of popular government are those from which the substance of freedom may most easily go. Extremes meet, and a government of universal suffrage and theoretical equality may, under conditions which impel the change, most readily become a despotism. For there despotism advances in the name and with the might of the people. The single source of power once secured, everything is secured. There is no unfranchised class to whom appeal may be made, no privileged orders who in defending their own rights may defend those of all. No bulwark remains to stay the flood, no eminence to rise above it. They were belted barons led by a mitered archbishop who curbed the Plantagenet with Magna Charta; it was the middle classes who broke the pride of the Stuarts; but a mere aristocracy of wealth will never struggle while it can hope to bribe a tyrant.

X.IV.14

And when the disparity of condition increases, so does universal suffrage make it easy to seize the source of power, for the greater is the proportion of power in the hands of those who feel no direct interest in the conduct of government; who, tortured by want and embruted by poverty, are ready to sell their votes to the highest bidder or follow the lead of the most blatant demagogue; or who, made bitter by hardships, may even look upon profligate and tyrannous government with the satisfaction we may imagine the proletarians and slaves of Rome to have felt, as they saw a Caligula or Nero raging among the rich patricians. Given a community with republican institutions, in which one class is too rich to be shorn of its luxuries, no matter how public affairs are administered, and another so poor that a few dollars on election day will seem more than any abstract consideration; in which the few roll in wealth and the many seethe with discontent at a condition of things they know not how to remedy, and power must pass into the hands of jobbers who will buy and sell it as the Prætorians sold the Roman purple, or into the hands of demagogues who will seize and wield it for a time, only to be displaced by worse demagogues.

X.IV.15

Where there is anything like an equal distribution of wealth—that is to say, where there is general patriotism, virtue, and intelligence—the more democratic the government the better it will be; but where there is gross inequality in the distribution of wealth, the more democratic the government the worse it will be; for, while rotten democracy may not in itself be worse than rotten autocracy, its effects upon national character will be worse. To give the suffrage to tramps, to paupers, to men to whom the chance to labor is a boon, to men who must beg, or steal, or starve, is to invoke destruction. To put political power in the hands of men embittered and degraded by poverty is to tie firebrands to foxes and turn them loose amid the standing corn; it is to put out, the eyes of a Samson and to twine his arms around the pillars of national life.

X.IV.16

Even the accidents of hereditary succession or of selection by lot, the plan of some of the ancient republics, may sometimes place the wise and just in power; but in a corrupt democracy the tendency is always to give power to the worst. Honesty and patriotism are weighted, and unscrupulousness commands success. The best gravitate to the bottom, the worst float to the top, and the vile will only be ousted by the viler. While as national character must gradually assimilate to the qualities that win power, and consequently respect, that demoralization of opinion goes on which in the long panorama of history we may see over and over again transmuting races of freemen into races of slaves.

X.IV.17

As in England in the last century, when Parliament was but a close corporation of the aristocracy, a corrupt oligarchy clearly fenced off from the masses may exist without much effect on national character, because in that case power is associated in the popular mind with other things than corruption. But where there are no hereditary distinctions, and men are habitually seen to raise themselves by corrupt qualities from the lowest places to wealth and power, tolerance of these qualities finally becomes admiration. A corrupt democratic government must finally corrupt the people, and when a people become corrupt there is no resurrection. The life is gone, only the carcass remains; and it is left but for the plowshares of fate to bury it out of sight.

X.IV.18

Now this transformation of popular government into despotism of the vilest and most degrading kind, which must inevitably result from the unequal distribution of wealth, is not a thing of the far future. It has already begun in the United States, and is rapidly going on under our eyes. That our legislative bodies are steadily deteriorating in standard; that men of the highest ability and character are compelled to eschew politics, and the arts of the jobber count for more than the reputation of the statesman; that voting is done more recklessly and the power of money is increasing; that it is harder to arouse the people to the necessity of reforms and more difficult to carry them out; that political differences are ceasing to be differences of principle, and abstract ideas are losing their power; that parties are passing into the control of what in general government would be oligarchies and dictatorships; are all evidences of political decline.

X.IV.19

The type of modern growth is the great city. Here are to be found the greatest wealth and the deepest poverty. And it is here that popular government has most clearly broken down. In all the great American cities there is to-day as clearly defined a ruling class as in the most aristocratic countries of the world. Its members carry wards in their pockets, make up the slates for nominating conventions, distribute offices as they bargain together, and—though they toil not, neither do they spin—wear the best of raiment and spend money lavishly. They are men of power, whose favor the ambitious must court and whose vengeance he must avoid. Who are these men? The wise, the good, the learned—men who have earned the confidence of their fellow citizens by the purity of their lives, the splendor of their talents, their probity in public trusts, their deep study of the problems of government? No; they are gamblers, saloon keepers, pugilists, or worse, who have made a trade of controlling votes and of buying and selling offices and official acts. They stand to the government of these cities as the Prætorian Guards did to that of declining Rome. He who would wear the purple, fill the curule chair, or have the fasces carried before him, must go or send his messengers to their camps, give them donatives and make them promises. It is through these men that the rich corporations and powerful pecuniary interests can pack the Senate and the bench with their creatures. It is these men who make School Directors, Supervisors, Assessors, members of the Legislature, Congressmen. Why, there are many election districts in the United States in which a George Washington, a Benjamin Franklin or a Thomas Jefferson could no more go to the lower house of a state legislature than under the Ancient Régime a base-born peasant could become a Marshal of France. Their very character would be an insuperable disqualification.

To read the rest of this striking and prophetic passage

http://www.econlib.org/library/YPDBooks/George/grgPP43.html#BookX,Chapter4

Henry George’s profound ideas could save our civilization from impending collapse and chaos, IF acted upon in time. Yet he, George, himself clearly states the reasons in this passage why it is not likely to happen.

For those who would light a candle rather than curse the darkness, Progress and Poverty is a “must read”, either in its original text or in the 2006 simplified form. Public education about how we are being exploited in the areas of money and economics is the only hope of our salvation as a coherent civilization now, absent divine intervention.

Money reform is an important first step, but until we achieve Land Reform, we will never be secure or safe from the forces of monopoly power and despotism. After reading Henry George one easily understands the plain truth of this statement.

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