Locke's Proviso

Yes, I'm still meant to be on internet silence, but Linux and various bits of software have me stumped for a while until I get some help from the mailing lists, so I thought I'd cast my mind over the implications of the court case this week that resulted in a jury deciding that it was okay to commit a crime in order to prevent what the perpetrators believed would be a greater harm in the future. The case in point was that they had committed (and admitted) criminal damage by climbing a chimney at a Kent power station with the intent of scrawling graffiti on it in protest at its pollution record and plans to expand the facility, which, their oh so clever advocate declared would cause more and more widespread damage to people and property through the global warming it would contribute to.

Now, some of the more unthinking environmentalists might see this as a great victory. A court recognized that global warming was such an imminent threat to life and property that it was justifiable to commit brazen thuggery leading to criminal damage on anything that allegedly contributed to that global warming. Yay!?

Nay! I have two problems with this.

First is the acceptance, apparently by both judge and jury (and so, you may think, all "reasonable people"), not just that anthropogenic climate change is a fact but also such a grave threat that it justifies individuals taking the law into their own hands. To my mind this is still a matter in the political arena. Not only are there still, and perhaps growing, voices of dissent on the very premise of the debate; that mankind is responsible for such a change that it is a threat to the planet's very future. But also about what to do about it and when. A power station after all merely supplies a demand. Is the power generator guilty or the consumer making those demands? It is more dangerous to disrupt existing dwindling supplies before we have worked out how to replace them with cleaner affordable technologies? If the threat from global warming is real, so presumably is the threat of harm through disrupted power supplies.

Second is how this operates as a precedent in other, possibly more serious cases - although I heard someone saying that this decision will not be treated as forming a precedent, I'm not clear how that can be prevented. It is okay to murder an abortionist in order to stop the immediate harm to others he or she will cause? That threat, after all, is far more immediate and traceable to an individual than the effects of a single coal power station amongst all the coal fired power stations and other "climate vandals". We're starting to get not only into the realms of Philip K Dick's pre-crime but vigilante prevention of what individuals claim may be a pre-crime. This is hardly the basis for the rule of law.

Oh, you can say that no court is going to acquit a murderer because they thought they were preventing a bigger crime, but actually we already do. The "reasonable force" defense can be used to justify a death in the process of preventing an immediate threat to others' life. This decision seems to extend the boundaries of "immediate threat" let alone accurate identification of the person causing that immediate threat.  One could, and many do, fight abortion on the basis that the most immediate threat t future generations of humanity is eradicating them before they are born.  If we're going to adopt a principle (and I do) that we have a responsibility of stewardship not to harm future generations' survival on the planet then it would be legitimate for others to argue more forcefully that we have a responsibility to see those future generations actually survive as far as birth!

Anyway, two odd sounding sources provide what I believe are better alternative "precedents" to work from. First, there is a Catholic maxim that it is not legitimate to cause one moral bad, or an act that could foreseeably lead to morally bad consequences in order to prevent another, even near certain, specific bad. It is used mostly about abortion again. It is used to argue that it is not even permissible to abort a new life in order to prevent the death of the mother - often in the circumstances of an ectopic pregnancy for example.

Of course the world's aggressors, including the US and UK, routinely ignore this. They argue that foreseeable "collateral damage" is permissable to remove a dictator, for example. It is not. Terrorising and killing the people of Bagdad in "Shock and Awe", even as "collateral", was morally repugnant, notwithstanding our general agreement that the regime they were trying to punish or remove was also morally repugnant. The results of ignoring of this basic principle are there for us all to see - there can be little doubt now that more people in Iraq have suffered for longer under the oversight of the western occupying forces than it is likely would have happened at the hands of the previous repugnant regime. At least there could have been alternatives that held less potential for further suffering.

But on the environment, the libertarians' respect for the rule of law provides a better alternative to various bearded crusties climbing a chimney and committing vigilante criminal damage. Locke's proviso can be used, for example, to tackle pollution. If you, a power generator or anyone else - a pig farm even, pollute the atmosphere we both have to share, we have the right to legal remedy. Just as much as if you came along and started digging a hole in my prize rose border. Indeed this ought to work better than any political "solution". Protectionism is a political strategy, and even Green politicians will forcibly protect their favourite, in this case, power generation mechanism against legitimate complaint of harm. If planning permission were truly privatised, those affected most would almost certainly do better out of it than they will once the government has removed most of their rights in order to force their political idea of strategic energy infrastructure through.

Yes, we all need power, but left to ourselves we would probably not choose to have a nuclear reactor at the bottom of our garden. But, as they say, everyone has their price. If, collectively, my neighbourhood decided that the compensation on offer was enough when weighed against the costs of electricity or the convenience of not having a long transmission route or any potential danger they'd accept that nuclear reactor. If nobody accepts any price for nuclear, they have to weigh that decision against the potential alternatives. If nobody wants a giant power station, then we perhaps have to accept that we will have to help our neighbours fund micro-generation.

Over on the Ludwig von Mises Economics blog last week, Ben O'Neill, an Australian libertarian and academic, wrote a piece against the welfare state in Is the Starving Man Free? and the full article is here:

'Modern "liberals" who advocate the view that government should provide us with the necessities or alleged necessities of life rarely appreciate that this assistance rests on a system of mass robbery and enslavement that is highly inimical to their professed belief in liberty. In fact, the advocates of such policies present them in quite the opposite light, as enhancing our liberty.'

Now, much as I hesitate to go up against an article at the great Mises Institute, this issue goes to the heart of differences between some liberals and some libertarians, though not this liberal libertarian. Indeed it is one of the core messages of the "Liberal Alternative" book we are compiling under the auspices of ALTER, and, to give it a plug, what I will be talking about in the ALTER fringe next Saturday evening in Liverpool, alongside James Graham, Tony Vickers and Vince Cable.

I also believe it gives some libertarians a "bad rap"; seeming to leave the "safety net" to the possible vicissitudes of private charity gives them a "beggar thy neighbour" reputation. Yet Liberals, and before the Ayn Rand/Ludwig von Mises school of libertarianism the mutualists and individualist anarchists like Lysander Spooner, had a neat response. For the record, I tend to agree that if we take from people what they earn with their own labour and resourcefulness it is coercion and even theft, but there is a source of value that properly belongs to us all, and not, as in the current predominant model, to the occupier - rent.

Benjamin Franklin wrote:

But notwithstanding this increase (of population), so vast is the territory of North America, that it will require many ages to settle it fully; and, till it is fully settled, labor will never be cheap here, where no man continues long a laborer for others, but gets a plantation of his own; no man continues long a journeyman to a trade, but goes among these new settlers, and sets up for himself.

[From: Observations Concerning for Increase of Mankind (1751), Sec. 8, Works, Vol. II, p. 225]

If we had free land, nobody would starve, unless that is they could not physically lift a spade to grow their own sustenance. The poor could up-sticks, spread out to the next available plot of unoccupied land and cultivate it. It would be a basic existence to be sure, but one that would not depend on another to provide, by state coercion or by reliance on private charity. And in time, one which could provide the most basic means of providing not just sustenance but opportunities to create wealth.

Now the fact is, we are not in that happy situation Franklin described. We do not have "free land". It is all enclosed. And indeed it would not suit modern, sophisticated, "civilized" (in the sense of "urbanized") humanity well if we did have lots of unused land lying around being unproductive. But the corollary of that is that there is no way the landless poor can sustain themselves without recourse to selling their labour to another. And in that state of desperation where one is about to "starve" one is surely more than most liable to coercion by that other. "Will work for food" maybe a simple slogan, but it hides a desperation likely to be seized upon by the unscrupulous.

Ralph Waldo Emerson said:

Then he says: "If I am born into the earth, where is my part? Have the goodness, gentlemen of this world, to show me my wood lot, where I may fell my wood, my field where to plant my corn, my pleasant ground where to build my cabin." ..."Touch any wood or field or house-lot on your peril," cry all the gentlemen of this world; "but you may come and work in ours for us, and we will give you a peice of bread."

[From: The Conservative, A Lecture delivered at the Masonic Temple, Boston, December 9, 1841]

Now what of the other side of O'Neill and the Mises style libertarians' claim that for the state to take anything from everyone to support the "starving man", to give him his basic needs, is "mass robbery and enslavement"? Well, as I said, I tend to agree that taking anything of what someone has made with his own labour or resourcefulness is theft. It is justified by the "liberals" that O'Neill castigates (that's most of us!) on the several grounds that it prevents a greater evil - the starving man, that it pays for the inputs that enable us to make money from our labour - our education and that of others to work for us, and the somewhat vague assertion that those who have much should give more to support those who have less. But it is still an offense against self-ownership; that which John Locke describes as being able to retain the fruits of our own labour.

But there is value in land that the owner does not create for him or herself. It is two hundred years since David Ricardo showed that rent increases to absorb the extra productivity that can be gained from a good piece of land compared with an inferior piece with no effort from the land owner, as owner. There is a perfectly reasonable strand of libertarianism, known as geolibertarianism, that asserts that since this rent is not earned by the landowner, but created by the expenditure of others, in labour and capital, that gives a particular location more social and commercial attractiveness, it is legitimate to collect this value from owners to compensate those who suffer from lack of land. And in a modern, urbanized economy, this would mean cash with which to satisfy their most basic needs, a "Citizen's Income" allowing them then to sell their labour, their bellies full and their body rested, without having to accept a potentially exploitative bargain.

Unlike taking part of what a person earns from his labour, impinging on his or her self-ownership, this can be justified because it is value that the owner does not earn for themselves, that it does not affect their ability to earn from their labour in future, and as a user fee in return for the state's or community's protection of their right to occupy such a location, a user fee in proportion to the potential natural productivity of that location, whether they make use of that potential productivity or not. Location is a monopoly, protected by the state; libertarians are against monopoly and state protection. It forms a neat, virtuous circle, from which those left without access to free land can be supported without the "mass robbery and enslavement" O'Neill rightly denounces.

Anyone who has read more than one post of my blog will realize that I am a passionate supporter of Land Value Tax. In other forums, when the subject comes up, people sometimes feel, and say, that I pursue the issue too zealously. Even those that support some LVT are sometimes embarrassed at the "hard core Georgists" like myself shrilly calling for more. I know plenty who regard the claims from some of us as to the myriad benefits Land Value Tax could bring as just plain rubbish - "nothing could be that good and not have been tried".

None more so than when housing policy is to the fore, as it ought to have been, floods permitting, these past couple of weeks. No sooner was the Housing Green Paper published to great fanfare than it seemed for all the coverage that half our existing housing stock was plunged knee deep in water and all the discussion about housing was about building in flood plains or not rather than the rather more pressing issue of ensuring everyone has a decent place to call their own in the first place.

So, read on if you want to try to understand just why it is that "hard core Georgists" like myself so fundamentally believe that not only is Land Value Tax the only permanent solution to the broken market that is housing, but also why it forms such a core part of any human being's fundamental right to an opportunity to achieve personal freedom and the root of many equity and economic justice issues. I hope you'll understand at least that we are not talking about just a different way of raising tax but a radical shift in how we think about tax itself and more importantly an alternative view of our relationship to the planet's resources and each other.

Land: our common birthright

The headline of Polly Toynbee's article on the green paper from Tuesday 24th July, "Everyone is entitled to a stake in the nation's soil and bricks", showed promise that at least one of the chaterati was going to describe this basic principle. Though she failed convincingly to explain the entitlement the headline proclaimed or how one might achieve such an entitlement the sentiment embodied in that headline gets close to the core rationale for Land Value Taxers.

Every human being ever born is ultimately utterly dependent on the bounty of our common planet's natural resources to survive. Consequently every human being ever born has to have a common entitlement to a share of that bounty if they are ever to achieve self-ownership. If you are always dependent on another for a place to rest your bones, that other has a coercive relationship over you, you are dependent on them for how much of the fruits of your labours you are able to keep.

It's an easy thing to say and in an agrarian, low population, subsistence economy a relatively easy thing to envisage - everyone simply spreads out until they've got enough land each of a quality sufficient to keep themselves alive by their own labours on that land, growing food for subsistence and no more. Indeed, John Locke, proto-liberal to some of us, said that since it was mankind's calling to be steward and master of his planet, you have the right to take as much as you can keep and make good use of with one important proviso - that you always leave as much left over, and of as good quality, to be divvied up amongst everyone else.

But such an economy isn't conducive to human development as a whole. In order the better to put nature's bounty to use for everybody's benefit we specialize, in specializing we come together in markets, communities, cities, and our relationship with land changes, though our dependence on it does not diminish. Johann Heinrich von Thunen described and then David Ricardo explained how human interactions and communities create rental value in land - those locations closer to where more people want to circulate, live, conduct commercial or social activities rise in value simply by virtue of where they are.

In fact, the rental value of a location in land is the financial expression of by how much that location breaches Locke's Proviso mentioned above - that you can take and own as much as you like, so long as you leave enough for everyone else, of as good quality, for everyone else who needs to be in that location to share. Collecting that value and pre-distributing it to all the people that together create that value - via a Land Value Tax (others have described it as the "Community Collection of Rent" perhaps more descriptively) and a Citizen's Dividend - is giving each person the financial value of their birthright to a piece of land.

Now, there are lots of objections to such a scheme, frequently voiced by those who do already own, or by those who don't think this could produce significant amounts of revenue. I shall try and anticipate and respond to some of those objections in following articles. But I hope at least that you get the picture as to why some of us believe LVT is more important than just another taxation method. The sharing of the land value we all collaborate in creating is a fundamental right to an equitable share of our common inheritance in a complex world where it just isn't practical for us to spread out and have an equal share of actual land each.

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