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Land Ownership Makes No Sense

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Land Ownership Makes No Sense

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“There’s no such thing as a good landlord” is a rallying cry of offended renters. In the longer term, it could be standard morality that it’s merely flawed to personal land.

In our instances, proudly owning land appears as pure as proudly owning vehicles or homes. And this is smart: The common presumption is which you could privately personal something, with uncommon exceptions for objects comparable to harmful weapons or archaeological artifacts. The concept of controlling territory, particularly, has an extended tenure. Animals, warlords, and governments all do it, and the trendy conception of “fee simple”—that’s, unrestricted, perpetual, and personal—land possession has existed in English frequent regulation for the reason that thirteenth century.

Yet by 1797, US founding father Thomas Paine was arguing that “the earth, in its natural uncultivated state” would all the time be “the common property of the human race,” and so landowners owed non-landowners compensation “for the loss of his or her natural inheritance.” 

A century later, economist Henry George saw that poverty was rising despite increasing wealth and blamed this on our system of owning land. He proposed that land should be taxed at up to 100 percent of its “unimproved” value—we’ll get to that in a moment—allowing other forms of taxes (certainly including property taxes, but also potentially income taxes) to be reduced or abolished. George became a sensation. His book Progress and Poverty sold 2 million copies, and he got 31 percent of the vote in the 1886 New York mayoral race (finishing second, narrowly ahead of a 31-year-old Teddy Roosevelt).

George was a reformer, not a radical. Abolishing land ownership doesn’t require either communism on one end or hunter-gathering on the other. That’s because land can be separated from the things we do on top of it, whether that’s growing crops or building tower blocks. Colloquially, the term “landowner” often combines actual land-owning with several additional functions: putting up buildings, providing maintenance, and creating flexibility to live somewhere short-term. These additional services are valuable, but they’re an ever smaller share of the cost of housing. In New York City, 46 percent of a typical home’s value is just the cost of the land it’s built on. In San Francisco its 52 percent; in Los Angeles, 61 percent. 

The key Georgist insight is that you can tax the “unimproved” value of land separately from everything else. Right now, if you improve some land (e.g., by building a house on it), you’ll pay extra taxes because of the increased value of your property. Under Georgism, you would pay the same tax for your home as for an equivalent vacant lot in the same location, because both your building and the vacant lot use the same amount of finite land.

Today, Georgism as a political movement has stagnated like a vacant lot. But one day, we believe, people will see Georgist taxation as not only economically efficient but morally righteous. 

The proper to reside is mostly thought of the primary of the pure rights. But dwelling requires bodily area—a quantity of not less than a number of dozen liters in your physique to occupy. It’s pointless to declare that somebody has a proper to one thing if they’ll’t purchase its fundamental stipulations. For instance, as a society we expect everybody has a proper to a good trial; since you’ll be able to’t meaningfully have a good trial with out a lawyer, if somebody can’t afford a lawyer, we offer one.  Similarly, on planet Earth not less than, occupying area essentially implies occupying land. Upper-floor residences or underground bunkers nonetheless want the rights to the land beneath or above them. Thus, the suitable to life is definitely spinoff of the extra primal proper to bodily area—and the suitable to area is spinoff of the suitable to land.

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