Paul Justus, formerly of Eureka Springs and currently of Salem, Ore., recently published a book with Linda Hull he hopes will generate more interest in Georgism, the analysis and social philosophy advanced by American economist Henry George in the late 1800s. Georgism advocates equal rights for all and affirms a universal right to share in the gifts and opportunities provided by nature.
While little known today, George was very popular in his day exploring a problem that continues: the great divide between the rich and the poor. His book Progress and Poverty published in 1879 was at the time the best-selling book in the country except for the Bible. His primary concept was to eliminate all taxes except those for land value, which includes natural resources.
In Young George and the Dragon: An Economic Fairy Tale, Justus uses a fairy tale to get across the ideas of Georgism in a simple format. Justus said his book introduces readers to an economic philosophy that, if implemented, could reverse this trend toward growing poverty and, instead, create a win-win-win economic and political system that promotes free enterprise prosperity, economic justice and an ecologically sustainable future.
“Have you ever wondered why the rich get richer and the middle class and poor keep falling behind?” Justus asks. “The fault lies not in the stars, but in our human created economic system. I recommend the story of Young George and the Dragon not only by young adults, but for politicians, too. It is about time that everyone should discover the Holy Grail of Economics.”
Justus recently visited in Eureka Springs on his way to the international Council of Georgist Organizations conference in St. Louis, where the theme is “Bridging the Right and Left Divide.” The conference has members from Nigeria, the Netherlands, and England.
Justus notes that most Georgists are older, leading to concerns about the future of the movement. He wrote the book in the hopes of attracting more young people to the movement.
“Georgism could solve a great deal of our problems,” Justus said. “The challenge is getting young people to know about it.”
According to the Council on Georgism, the central philosophy is the conviction that social problems must be traced to their root causes and remedied at that level, rather than by dealing with mere symptoms. The Georgists say the science of political economy, whose task is to explore such root causes, can and must be understood not just by experts, but by everyday people so that injustice and corruption can’t be foisted on an unwitting public.
“Economic analysis shows that land values, which are due to natural and social processes, should be the source of public revenue, and that taxes on labor, thrift and industry should be eliminated,” the council said. “Properly understood, economics is not a ‘dismal science,’ but a guide for achieving justice and sustainable prosperity.”
In the U.S., the wealthiest one percent possesses 40 percent of the nation’s wealth, while the bottom 80 percent owns seven percent, and the gap is widening. In 2016, economists Thomas Piketty, Emmanuel Saez and Gabriel Zucman concluded that the top one percent earn an average of $1.3 million per year, three times more than in the 1980s. This compares to the bottom 50 percent that averages about $16,000 per year.
Justus said there are versions of the land value tax in cities around the world. “Land value taxes are used in twenty cities in Pennsylvania and gathering steam in Australia and South Korea,” he said.
Justus opposes income taxes, insisting that the fruits of your labor should belong to you and not be taken away. “Taxes on labor and capital put a drag on the economy. Taxing land doesn’t perversely affect the economy. Tax land and you get a more efficient use of that land. For example, vacant lots in a big city would be taxed as much as land with a building on it, so big property owners would be less likely to let land sit vacant.”
While Justus said we need a revolution to address the growing gap between the rich and poor, he also said that land value taxes should be gradually implemented to avoid too much of a disruption of the economy.
Cover art for the book, available at Amazone and Google Books, is by Larry Mansker of Eureka Springs.