What is Georgism?
Georgism is an economic and political philosophy based on the ideas of the American writer Henry George. Its central claim is that land is different from other kinds of wealth because no one made it. As towns grow and public services improve, land becomes more valuable, but this rise in value is created by the community rather than by the owner. Georgists argue that this land value should be collected for the public through a tax on land, while taxes on work, trade and buildings should be reduced or removed.
Core beliefs
- People should keep the full value of what they produce through their own work and investment.
- The value of land and natural resources is created by the community and belongs to all.
- A tax on the value of land, not buildings, is the fairest and most efficient source of public revenue.
- Taxes on labor, trade and production should be reduced or abolished.
- Free trade between nations benefits ordinary people.
History
Henry George published Progress and Poverty in 1879. He asked why poverty persisted even as economies grew and argued that landowners captured much of the gain through rising rents. His remedy became known as the single tax, a tax on land values as the main source of government revenue. The book sold widely, and George ran for mayor of New York City in 1886, finishing second. He also wrote a book defending free trade. His ideas influenced reformers such as Tom L. Johnson and Louis F. Post, and the businessman Joseph Fels funded Georgist campaigns. Lizzie Magie designed The Landlord's Game in 1904 to illustrate Georgist ideas, and it later inspired the game Monopoly. Sun Yat-sen in China was also influenced by George.
Variants
Classical Georgists favor a single tax on land. Modern supporters often call for a land value tax as one part of a broader tax system. Geolibertarians combine Georgist land taxation with libertarian views on most other issues. Others extend the principle to natural resources, the radio spectrum and pollution, arguing that fees for using shared resources should be paid to the public, sometimes as a citizen's dividend.
Criticisms
Critics on the free-market right, including some libertarians, argue that a land tax is still a tax on property owners, that separating land value from building value is very difficult, and that a high land tax could amount to public control of land. Others note that land ownership does not always match ability to pay, so the tax can burden people who are land rich but cash poor. Critics on the left argue that Georgism focuses on land and ignores inequality arising from capital and wages. Some economists also doubt that land revenue alone could fund a modern state.
In practice
No country has adopted a pure single tax. However, land value taxation has been used in parts of Australia, New Zealand, Denmark and western Canada, and some cities in Pennsylvania have used split-rate property taxes that tax land more heavily than buildings. Taiwan's constitution includes a land value tax principle linked to Sun Yat-sen. Many economists across schools regard land value taxes as efficient, and the idea appears in debates on housing costs.