Economics Explored Rethinking Property and Taxation: The Georgist Approach w/ John August
Nineteenth-century American economist Henry George blamed poverty and depressions on landlords. George argued that their rents were associated mainly with public investments and should be shared with the community. Show host Gene Tunny speaks with returning guest John August about Georgism—the economic philosophy of Henry George that advocates for a single tax on land value. They explore the ethical and economic arguments behind taxing land, its historical popularity, and how it is perceived today. The discussion covers economic rent, speculation, tax distortions, and housing policy, critically examining Georgism's assumptions and limitations. John is the Fusion Party candidate for Bennelong in the upcoming Australian federal election.
Please let Gene know your thoughts on Trump’s tariffs and any questions or comments regarding this episode by emailing Gene at contact@economicsexplored.com.
Timestamps
- Introduction (0:00)
- John August’s Background and Campaign (4:19)
- Georgism and Its Influence (7:25)
- Economic Theory and Georgism (11:35)
- Critique of Georgism (16:19)
- Land Value Taxation and Economic Rent (23:15)
- Impact of Georgism on Economic Policy (31:54)
- Conclusion and Future Discussion (49:33)
Takeaways
- Georgism, developed by Henry George in the 19th century, proposes a radical approach to taxation by advocating for a single tax on land values to address economic inequality and reduce speculation.
- While most economists reject Georgism, the theory continues to have passionate advocates who argue that land value taxation could create a more productive and just economic system.
- The Georgist perspective highlights how public infrastructure and community development can increase land values, creating unearned income for property owners without compensating the broader community.
- Modern Georgists have moved away from the original concept of a 100% land value tax, instead advocating for a significant increase in land value taxation as part of a broader tax reform strategy.
- The theory raises important questions about property speculation, economic rent, and the potential for less distortionary forms of taxation that could promote more equitable economic development.
Links relevant to the conversation
John’s federal election campaign website: John August for Bennelong
https://www.fusionparty.org.au/john_august_bennelong
Grand Pursuit: The Story of Economic Genius - Nasar, Sylvia
https://www.amazon.com.au/Grand-Pursuit-Story-Economic-Genius/dp/0684872986
Fixing Australia’s Housing Crisis: Fusion’s Plan w/ Owen Miller – EP277
Trent Saunders and Peter Tulip’s RBA Discussion Paper “A Model of the Australian Housing Market”:
https://www.rba.gov.au/publications/rdp/2019/2019-01/
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Full transcripts are available a few days after the episode is first published at www.economicsexplored.com.