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[A paper presented at the Fifth
International Conference to promote Land Value Taxation and Free
Trade, Caxton Hall, Westminster, London, 1-5 September, 1936]
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It is no infrequent opinion that the present economic
crisis and its vast unemployment are mainly a result of
over-population. If a good number of people cannot get employment and
sufficient food, the simple conclusion may be, that it is because we
have too many people. And if population is increasing so rapidly as
has been the case in many countries, during the last century, the
first thought is, that this cannot continue without reaching a point
where the number of people has grown far beyond the area of hind at
its disposal and the means of subsistence available.
Arguments against this opinion are easily to be found: at the same
time, as we speak about over-population, we speak about
over-production too; corn has been burned, coffee has been sunk in the
sea and other good things, useful for the maintenance of life, have
bees destroyed in similar ways. And during late years it has been one
of the chief occupations of the politicians to restrict production,
diminish import, raise prices, fix quotas and in other ways make
hindrances to production and exchange. In face of the increase of
population it would appear to be a clear political task to enforce an
increase of production. But the common policy has done just the
opposite. As long as we -are carrying on such a foolish policy we have
no right to speak about over-population, because it seems obvious that
we have not too many people but we have too foolish politicians.
Further reference may be made to the decreasing birth-rate, which
to-day in many countries is transforming the problem of
over-populations into the opposite problem of nations dying.
Or we can refer to the huge amount spent in armaments. If but",
fourth or a third of this amount, now spent in means of destruction,
were to be used for providing means of production, we should be able
to provide a livelihood: for many more people. And as long as we are
wasting our economic power in making means of destruction, it is
absurd to speak about over-population.
But studying the problem we may find facts which cannot be swept away
by arguments like these. Japanese friends have told me about the
conditions of Japan as follows : Japan is a very over-crowded country.
The area of land fit for cultivation is comparatively small because
barren mountains occupy more than 80 per cent of the country. Owing to
this, the holdings, particularly in the southern part of the country,
are very small - from scarcely two to about four acres each. In the
hot climate the farmers of the South are able to harvest twice a year.
Nevertheless it is impossible to divide the land into still smaller
parcels, if the farmers are to be able to subsist. The farmers are
working in a primitive but generally in a very clever and careful way
too, and the output is not likely very much to be raised by procuring
modern machinery.
But the population of Japan is increasing by about 700,000 a year
(to-day, a million a year) "and," said the Japanese, "
if we are to be able to provide maintenance for more people in the
future, we have to develop our industries and get markets in foreign
countries, where we can sell our product getting food in return.
Otherwise the day may come when some of our people run the risk of
dying from starvation.''
Furthermore, it is to be remembered that Japan is in need of some raw
materials: coal, iron, oil, and other things quite necessary for its
industrial work and development.
At present the Russian population is increasing by about 3-1/2
millions a year. If this continues with the same rapidity it would
exceed 100 millions within the next 30 years. Russia is but a poor
nation in many respects living at the stage of the Middle Ages. If it
is to be possible for the Russians to provide livelihood for an
increase like that, it surely will be necessary for them to develop
their whole economic system up to the stage of modem time. Can it be
regarded as possible within 30 years to provide the huge masses of
capital needed and to educate the nation, making people able to manage
the new economic order ? And can it be avoided, that the neighbouring
nations will feel the Russian increase and development as a threat of
invasion and war?
As a threatening background of this overwhelming task of the Russians
we have the proclamation of Mr Hitler in his book Mein Kampf:
That the excellent German nation ought to increase to a number of 250
millions. Looking forward to such an increase, Mr Hitler regards the
present area of natural resources of Germany as too small for such a
number of people, and he frankly proclaims the right of Germans to
conquer land from the Russians, who are of the Slavonic race, and
possessed of Marxian ideas too, and consequently, as a matter of
course, may be regarded as an inferior nation which the excellent
Germans have a clear right to expel.
During the last century most of the European countries have had a
unique increase of population. From the year 1800 up to the present
time the population of all Europe has increased three times, and in
some countries, for instance, Denmark, the populations have increased
four times. A simple calculation shows, that it seems quite impossible
to have an Increase going on with the same rapidity in the future.
Thus, during a period of 780 years, Denmark, for instance, would have
about 14,000 millions of inhabitants, and the population of all Europe
would reach an astronomical number. We may consider such a calculation
as being a good joke, but it tells the remarkable fact, that it is
impossible to expect the increase of population to go on with the same
rapidity in the future as has been the case during the last century,
and thinking of the future we must take this fact into our
considerations.
As mentioned, the decreasing birth-rate at present is confronting
some nations with just the opposite problem. But that only makes the
situation more complicated, because this phenomenon is not to be found
in all nations. It cannot be stated as a law of nature, that as soon
as a nation has reached a number of people to which its natural
resources are adequate, the birth-rate will automatically decrease in
an adequate Way. The decreasing birth-rate is no world-wide
phenomenon, and it is quite possible that, for instance, Russia,
India, China, Japan and nations inspired by a Mr Hitler or a Mr
Mussolini, may have continually a rapid increase of population while
others are stagnating. If that be the case, it may give rise to many
difficult problems.
How are we to face all these complicated and difficult problems? In
the short time at my disposal I can mention only a few fundamental
points of view:
- Increasing population demands more land for homesteads,
dwellings and industrial enterprises and a wider access to raw
materials too. Accordingly, the first problem emerging is, how to
secure everybody this access in a just and proper way. The
prevalent land system is doing just the opposite. By the right of
private ownership the access to land and raw materials is a
monopoly of the privileged landlords, and all other people have to
pay the landowners for the access to these things which are of
fundamental necessity for work and life. As the land is not
expanding along with the increase of population, the increase
inevitably must raise the price of the land available. In this way
the present land system is a barrier hindering the people from
living and working on fair conditions, and, note well, this
barrier is automatically growing higher and higher along with the
increasing population. Consequently, such a system is
automatically a barrier to the increase itself, a barrier which
easily leads the pressure of the growing population into channels
of expansion and militarism.
By the Taxation of Land Values we are able to establish a system
securing equal right for everybody in respect to access to land
and raw materials. Its constructive idea is, that when the
individuals demand land to be used for then-private purpose, they
are demanding for themselves the possession of what all other
citizens have an equal right to possess. Excluding their
fellow-citizens, they have the liability of compensating the rest
for the deprivation caused. That can be done simply by their
paying to the community, to be used for the commonweal, a rate
adequate to the value of the land they dispose over. By this
system equal right is secured to alias well as to each individual.
Long ago, when the Jews were living in Egypt, one of the Egyptian
kings tried to settle the problem emerging from a very rapid
increase of the Jewish population, by commanding all new-born
Jewish boys to be drowned in the Nile. As good Pastor Ghf>
Notfcto Christians we find this to be a very sinful proceeding.
But when, by our present land system, we are barring the way of
the people to land and work, we are in fact throwing many of our
fellow-men into the river of unemployment where many of them are
drowned by idleness and distress. I think, that in the Judgment of
God this shall not be regarded as less sinful than the procedure
of the Egyptian king.
We must have a new land-system if the land question caused by
increasing population is to be settled in a just and proper way.
- An increasing population demands a production of more
commodities. Consequently, the only adequate policy must be a
policy of forcing and stimulating the production. Political
history tells us, that the best way to do so, is to establish
freedom to produce in accordance with the law of supply and
demand. But most of the nations to-day are carrying on nearly the
opposite policy. We are seeking to diminish production, raise the
prices and prevent exchanges by means of restrictions, quotas and
tariff-barriers. In spite of the increasing population we are
carrying on a policy which diminishes the mass and enhances the
prices of the articles needed for the maintenance of life. Such a
policy is directly hostile to an increasing population. As long as
we prevent free trade in these ways, we are preventing the
economic development needed.
- Increasing population and growing civilization demand a
constant development of the productive system. Such a development
requires capital ready for investment, and, in accordance to the
law of diminishing return, the requirement of capital must be
expected to increase with a growing rapidity. Capital does not
grow on every bush and is not in other ways to be found in
abundance, but it must be created by work and savings. Especially
in poor countries it may be no easy task to procure sufficient
capital. It is obvious that increasing population demands economic
development. But then it is obvious too, that the increase to a
certain extent depends upon the amount of capital at disposal.
Here we are facing a very serious economic law: the increase of
population needs a proportionate increase of capital if want and
distress shall not be the result.
If the nations would agree to disarmament we should be able to save
much capital for production of commodities. But we should not
exaggerate the result of disarmament in this respect. It is always
easier to make means of destruction than means of maintenance of life,
because in the last ease we have to co-operate with Nature itself. By
cleverness and capital we can get more and more corn from a certain
area of land, but we cannot shorten the time needed for growth.
Armaments mainly are made of things which do not grow. Means of
subsistence mainly are things which have to grow. That makes an
important difference, and it would not be wise to think, that by
disarmament the problem of capital is immediately solved. It will
always be our responsibility to make harmony between the increase of
population and the increase of capital if the increase shall not
result in disorder and distress.
Some nations are increasing their populations very rapidly, others
very slowly, while still others are stagnating. Some nations are very
progressive in mind, others are very conservative in respect to habits
and traditions. It is nearly unavoidable that the stagnating and less
progressive nations should feel the risk of being invaded or exploited
by the others. When; for instance, the German nation has a rapid
increase of population while the French stagnate, we may well
understand why France is fearing an invasion by the Germans. And that
may be felt as a real menace long before the Germans have attained the
250 millions proclaimed by Mr Hitler. Or - when the Arabs of Palestine
at present are revolting against the Jews it is easy to see the
economic interests of the Arabian landlords behind. But that is only
one of the causes of the revolt. Another one is, that the Arabs
certainly feel that if the Jews grow numerous in Palestine, the Arabs
cannot compete with them, and then the result at least may be, that
the Arabs may be expelled from a country, which to-day they consider
as their native country. When most of the nations at present prevent
foreigners from getting work and land within their boundaries such
feelings surely are the chief motives.
That presents to us some very difficult and burning problems: What
does an equal right to the land in respect to the different nations
mean? Is it only within the boundaries of the respective country that
the people have an equal right? If we maintain the idea of an equal
right to the land regardless of the nationality does it then mean,
that nations, who have a progressive and increasing population, have a
clear right to invade and settle hi countries with stagnating
populations?
Thomas Carlyle, the Scottish philosopher, once has said : that the
first of all gospels is, that a lie cannot live for ever. The history
of mankind tells us as another gospel of an equal importance, that
unjust social orders cannot live for ever. It is one of the
best traits of the character of man that he always reacts against
injustice and iniquity. Among all the different opinions about what is
to be regarded as injustice, we always find as a general opinion, that
inequality in respect to social conditions is considered as an evident
sign of injustice and iniquity and therefore is always to be opposed
in the most powerful ways. This natural attitude of men against
inequality makes it obvious, that equality of social conditions is the
only firm foundation upon which a lasting social order, able also to
be the basis of effective co-operation and fellowship, can be built
up.
We, therefore, are in a close contact with the law of nature ruling
the social order, when we proclaim the system of Land Value Taxation
and Free Trade as being the only firm foundation of a social order,
able to meet with the demands emerging from increasing population and
able to secure co-operation and fellowship.
A firm foundation is of the utmost importance, but it is not the
whole building. Increasing population is presenting to us important
problems of economic, international, racial and moral character, which
are to be settled by means that are hi accordance with their nature.
We are confronted with the problem of making harmony between the
increase of population and the increase of capital necessary for the
economic development needed. I wish I could characterize this as being
a pure economic problem, but as far as I can see, it comprehends a
very serious moral problem too, because the harmony mentioned also
depends upon the self-control of man. Thinking of the international or
racial problems referred to, it seems obvious that to a large extent
they are psychological or moral problems to be settled by education
and information, by which the contradictions are reconciled. But let
it be added, in the most emphatic manner, that if we do not endeavour
to secure a true base, all such work is done in vain.
Fading all these different problems we must understand, that if the
movement for Land Value Taxation and Free Trade is to be able to lead
mankind into the domain of peace and justice, it must be the herald of
that wider view, comprehending all human affairs, which was formed by
the prophet of Galilee in the words : " Seek ye first the Kingdom
of God and his righteousness and all these things shall be added unto
you." Working in the spirit of these words we may be able to
contribute to the building up of a new world where peace and
righteousness prevail.
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