Rent Unmasked Fred Foldvary’s Chapter 4: Shifting the Landscape: Mason Gaffney as Ultimate Heterodox

Heterodox schools of economic thought Economics not a unified science. Mainstream school of thought: neoclassical. Others: Marxist, Austrian, Institutional, Post- Keynesian, and Geoclassical! or Georgist. Land-centric theory makes it a school.

Neoclassical deficiency Neoclassical economic theory not incorrect, but incomplete. Does not keep it real. Main task of economics is … ?

Main task of economics The main task of economics is to understand the implicit reality beneath superficial appearance. Political-campaign economics: sees unemployment and job loss; blames trade, the superficial appearance. Land rent is not the explicit payment of tenant to landlord, Land rent is an implicit reality. Need theory to understand rent.

Geoclassical school The Georgist school integrates ethics and economics. Rent properly belongs to the members of the relevant communities. The public collection of rent is not redistribution; It is the proper initial distribution. Rent takings are redistribution.

Students of Mason Gaffney Rate my professor. “Professor Gaffney has been one of the most insightful persons I have ever met. He is full of economic knowledge and is willing to explain a concept to you in great detail if you ask for it. For me, he is one of the greatest teachers I have had and one of the most interesting person I've met too.” One student commented, “he is too stuck on George.”

Mason Gaffney the Complete Economist Mase worked on the three aspects of economics: 1) Theory 2) Economic history 3) History of economic thought Heterodox economics provides alternative explanations of reality. Neoclassical theory failed to eliminate the causes of social problems.

False trade-offs Equality versus efficiency. Environment versus goods. Economic freedom versus governmental aid and control Taxes versus debt.

The Gaffney Quantum Leap Effect Land use depends on the tax system. Gross receipts tax can shift land use to much less output and employment, because it does not account for costs. A marginal firm unable to pass on the tax will shut down. Taxing rent generates a quantum shift upward, because it taxes the surplus, or the net after costs.

Gaffney on economic history & thought History and facts: The taxable capacity of land. Gaffney’s greatest heterodox contribution: The Corruption of Economics.