On This Day

Henry George

American political economist (1839–1897)

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Henry George (September 2, 1839 – October 29, 1897) was an American political economist, social philosopher and journalist. His writing was popular in 19th-century America and sparked several reform movements of the Progressive Era. He inspired the economic philosophy known as Georgism, the belief that people should own the value they produce themselves, but that the economic value of land (including natural resources) should belong equally to all members of society. George famously argued that a single tax on land values would create a more productive and just society.

His most famous work, Progress and Poverty (1879), sold millions of copies worldwide. The treatise investigated the paradox of increasing inequality and poverty amid economic and technological progress, the business cycle with its cyclic nature of industrialized economies, and the use of rent capture such as land value taxation and other anti-monopoly reforms as a remedy for these and other social problems. Other works by George defended free trade, the secret ballot, free (at marginal cost) public utilities/transportation provided by the capture of their resulting land rent uplift, Pigouvian taxation, and public ownership of other natural monopolies.

George was a journalist for many years, and the popularity of his writing and speeches brought him to run for election as Mayor of New York City in 1886 as the United Labor Party nominee and in 1897 as the Jefferson Democracy nominee, where he received 31 percent and 4 percent of the vote respectively and finished ahead of former New York State Assembly minority leader and future President Of The United States Theodore Roosevelt in the first race. After his death during the second campaign, his ideas were carried forward by organizations and political leaders through the United States and other Anglophone countries. The mid-20th century labor economist and journalist George Soule wrote that George was by far "the most famous American economic writer" and "author of a book which probably had a larger world-wide circulation than any other work on economics ever written."

George was born in Philadelphia to a lower-middle-class family, the second of ten children of Richard S. H. George and Catharine Pratt George (née Vallance). His father was a publisher of religious texts and a devout Episcopalian, and he sent George to the Episcopal Academy in Philadelphia. George chafed at his religious upbringing and left the academy without graduating. Instead he convinced his father to hire a tutor and supplemented this with avid reading and attending lectures at the Franklin Institute. His formal education ended at age 14, and he went to sea as a foremast boy at age 15 in April 1855 on the Hindoo, bound for Melbourne and Calcutta. He ended up in the American West in 1858 and briefly considered prospecting for gold but instead started work the same year in San Francisco as a type setter.

In California, George fell in love with Annie Corsina Fox from Sydney, Australia. They met on her seventeenth birthday on October 12, 1860. She had been orphaned and was living with an uncle. The uncle, a prosperous, strong-minded man, was opposed to his niece's impoverished suitor. But the couple, defying him, eloped and married on December 3, 1861, with Henry dressed in a borrowed suit and Annie bringing only a packet of books.

The marriage was a happy one, and four children were born to them. On November 3, 1862, Annie gave birth to Henry George Jr. (1862–1916), a future United States Representative from New York. Early on, even with the birth of future sculptor Richard F. George (1865–1912), the family was near starvation. George's other two children were both daughters. The first was Jennie George, (c. 1867–1897), later to become Jennie George Atkinson. George's other daughter was Anna Angela George (1878–1947), who would become mother of both future dancer and choreographer Agnes de Mille and future actress Peggy George, who was born Margaret George de Mille.

Following the birth of his second child, George had no work and no money and had to beg for food. As he approached the first well-dressed stranger he saw in the street, George, normally a lawful man, decided to rob him if he was unwilling to help. Fortunately, the man took pity on him and gave him five dollars.

George was raised as an Episcopalian, but he believed in "deistic humanitarianism". His wife Annie was Irish Catholic, but Henry George Jr. wrote that the children were mainly influenced by Henry George's deism and humanism.

After deciding against gold mining in British Columbia, George was hired as a printer for the newly created San Francisco Times. He was able to immediately submit editorials for publication, including the popular What the Railroads Will Bring Us (1868), which remained required reading in California schools for decades. George climbed the ranks of the Times, eventually becoming managing editor in the summer of 1867.

George's first nationally prominent writing was his 1869 essay The Chinese in California, in which he wrote that Chinese immigration should be ended before Chinese immigrants overrun the western United States.

George worked for several papers, including four years (1871–1875) as editor of his own newspaper, the San Francisco Daily Evening Post, and for a time running the Reporter, a Democratic anti-monopoly publication. George experienced four tough years of trying to keep his newspaper afloat and was eventually forced to go to the streets to beg. The George family struggled, but George's improving reputation and involvement in the newspaper industry lifted them from poverty.

Political and economic philosophy

George began as a Lincoln Republican, then eventually became a Democrat. He was a strong critic of railroad and mining interests, corrupt politicians, land speculators, and labor contractors. He first articulated his views in an 1868 article entitled "What the Railroad Will Bring Us." George argued that the boom in railroad construction would benefit only the lucky few who owned interests in the railroads and other related enterprises, while throwing the greater part of the population into abject poverty. This had led to him earning the enmity of the Central Pacific Railroad's executives, who helped defeat his bid for election to the California State Assembly.

One day in 1871, George went for a horseback ride and stopped to rest while overlooking San Francisco Bay. He later wrote of the revelation that he had:

I asked a passing teamster, for want of something better to say, what land was worth there. He pointed to some cows grazing so far off that they looked like mice, and said, "I don't know exactly, but there is a man over there who will sell some land for a thousand dollars an acre." Like a flash it came over me that there was the reason of advancing poverty with advancing wealth. With the growth of population, land grows in value, and the men who work it must pay more for the privilege.

Furthermore, on a visit to New York City, he was struck by the apparent paradox that the poor in that long-established city were much worse off than the poor in less developed California. These observations supplied the theme and title for his 1879 book Progress and Poverty, which was a great success, selling over three million copies. In it George made the argument that a sizeable portion of the wealth created by social and technological advances in a free market economy is possessed by land owners and monopolists via economic rents, and that this concentration of unearned wealth is the main cause of poverty.

George considered it a great injustice that private profit was being earned from restricting access to natural resources while productive activity was burdened with heavy taxes, and he indicated that such a system was equivalent to slavery. This is also the work in which he made the case for a land value tax in which governments would tax the value of the land itself, thus preventing private interests from profiting upon its mere possession but allowing the value of all improvements made to that land to remain with investors.

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