1. Annotated Books of Henry George: Volume 1
Fred Foldvary on
Our Land and Land Policy

2. About the book First book by Henry George. George was 31 years old.
He already understood the economics of land and rent.
Economic history: the massive giveaways of land by the US Government, to rail roads, veterans, colleges, speculators.

3. Monopolization of land
Not an “absolute monopoly” of one seller.
The classical meaning of monopoly.
A resource or industry in which the supply cannot be increased.
An entrant must buy rights from an existing holder.
An entry monopoly.

4. American economic history
Only 1/7 of land transferred to homesteaders.
Southern states had blocked western expansion.
During the Civil War, Southern opposition was gone.
Homestead Act of 1862.
Land-Grant College Act of 1862.
States with little federal land got land in other states.

5. Land grabbing Speculators used “dummy entrymen” to get land.
Land grants to railroads induced land speculation in San Francisco.
High prices, then the depression of 1873.
1868 article, “What the Railroad Will Bring Us”.

6. Land fraud in California
Spanish land grants, Mexican ranches.
Fraudulent takeovers, facilitated by Land Offices.

7. Commentary: Small government in 1800s?
The federal government had huge deficits during the 1800s.
The spending was in land value, not money.

8. Commentary: the European conquest
The “Discovery” doctrine declared by the Vatican.
1455 Pope Nicholas V issued the Romanus Pontifex.
The first Christians to “discover” land held by non- Christians obtain a legitimate claim to the land.
Was adopted by the UK and the United States.
American land law not from common law or natural law, but from the Vatican.

9. Commentary: American revolution & land
Doctrine of Discovery used by Supreme Court 1823, Johnson v. M’Intosh.
American revolutionaries were land speculators.
After 1763 UK restricted western expansion.
Land speculators lost status and potential wealth.
Therefore revolution.

10. What land policy means today
US policy has been massive subsidies to big landowners.
Continues today as implicit subsidies to title holders.
Public works the mother of all subsidies.
Special tax reductions for real estate: deductions for property taxes and mortgage interest, capital gains tax exemption, legal-fiction depreciation, tax-free property sales (exchanges), property tax limitations.

11. What we should do
Point out that government policy subsidizes land value.
Taxes paid by the rich are clawed back as rent (Harrison).
What we want: an end to the subsidies.
Truly free markets have no subsidies!
Make LVT opponents admit that they favor subsidies that create privilege, inequality, poverty, boom-busts, and punitive taxation!