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The Libertarian Pledge " I hereby certify that I do not believe in or
advocate the initiation of force as a means of achieving political or
social goals," which we have signed does not lead us to a particular notion
of land ownership (land includes all resources of nature). The range of
notions goes from the monopoly ownership of all land by one individual, to
the common ownership of all land by the collective. The Libertarian Party
philosophy is incomplete. It tells us how to behave regarding ownership,
but it does not explain what initially constitutes ownership. A more
focused inquiry is necessary. We suggest economics, ecology and evolution
as brought together in human natural history.
Libertarians believe each individual has the right to life, liberty, and
property. Yet, we cannot truly have these without an equal access to
natural resources. Government since its earliest beginnings has prevented
equal access. We agree with Thomas Paine and others that the government
system of unequal rights to land has distorted the equity of opportunity in
the state of nature and the unearned value from land should be returned to
all as just compensation for their loss of opportunity to share in the
bounty of nature, because of the landownership system established by the
State. As we consider this proposition we need to keep in mind the
libertarian principle, initiate no harm. Historically, land ownership has
been either collective (communism or socialism) or government granted
monopoly to individuals or groups. Neither of these ownership systems honor
the libertarian idea of initiate no harm, as they do economic harm.
Historian Fernand Braudel asserts the existence of three economies in
dynamic opposition to each other. The three economies are: 1) the market
economy, consisting of the great mass of transactions that show up in
statistics today and involve competitive activity; 2) the self-sufficiency
economy, consisting of bartering of goods and services, or cooperative
activities; and 3) the capitalist economy, today as in the past consisting
of the big financial transactions carried out by a small percentage of
extremely wealthy individuals, families and corporations. For most of its
history the capitalist economy has been dominated by government monopoly
capitalism as was the case with the big Indies companies. The State has
created this situation in land ownership as well.
The loss of liberty throughout prehistory and history seems to be closely
associated with the power and natural resources of the average individual
being usurped by the shamans, the warriors, or the elders. This loss has
usually occurred where individuals have been restricted from moving away
from coercion, by natural environments, religious beliefs, or a lack of
power. The vast majority of governments that have come into being during
historic time have done so through coercive means. The power elite takes
control of the land and the fruits of the commoner's labor. The individual
in their natural state are separated from their means of survival by the
coercion. Then to consolidate their power, the power elite grant (as an
extension of sovereign immunity and eminent domain) land titles and tax
subsidies to a less powerful elite. A coalition large enough to hold the
balance of the population in servitude, is born.
In evolutionary terms, the inefficiency of this kind of government,
wherein the unproductive members force the productive members of society to
support them, lead to ineffective competition with other governments. This
ineffective competitiveness will cause the government to collapse or will
bring about modifications that increase competitiveness.
In feudal times, right to person and property was limited to the
land-lords. Later, such measures as the Enclosure Acts further reduced the
rights of peasants who were forced from the land. The Industrial Revolution
provided work and raised the standard of living for most. In America,
access to cheap land allowed the workers a means of sucess. After 1788,
Americans were determined not to repeat the mistakes of the English in the
creation of mercantilist corporations with land monopolies. Corporations
were limited in power and duration to accomplish specific tasks such as
building roads.
After the Civil War, corporations grew in power and influence. With
government granted special privleges, corporations controlled large tracts
of land in the western territories. Poverty grew with progress; most men
were denied land ownership and free access to a competitive economic
infrastructure necessary for free commerce. The law favored the
corporations and land monopolists. After the depression of 1873-77,
corporations dominated government, land, capital, and labor. Even today,
78% of all private land is owned by 5% of the population and corporations
have greater access to public lands and natural resources then individuals.
The chief culprit in monopoly practices has always been the State.
Large-size governments and organizations create inaccurate information
feedback loops; the more over-centralized the decision making apparatus the
more likely a bad decision regarding the problem at hand. In economics the
worst case is centralized command and control; the best case is a natural
economic balance, in a Braudelian sense between the three economies
(community economy, market economy, and capital economy). For example, in
the USA we do not have a natural economy in land, but rather
over-concentrated land ownership as a historical result of the "system of
unequal rights in land introduced by the warlords turned royalty, and after
the revolutions of 1689 and 1776, ratified by republics who granted land
monopolies after killing the original inhabitants.
Under the system of land monopoly, land owners benefitted from price
increases in land without making improvements. The over-concentrated land
ownership pattern increases the cost of land rental to the landless by
keeping land out of use, mostly to get the unearned value of land as a
result of everyone else' economic activity. The unearned economic power of
the landed can coerce just as effectively as the weapons of the warrior.
The landless are denied an equal opportunity to natural resources and an
equal opportunity to compete. And if this cultural path is not modified,
the USA natural economy will become more distorted and it will eventually
collapse, as did the USSR. The problem with the USSR was they favored the
community economy over the market and capital economies. They failed to see
that the whole group benefits economically by making sure each individual
has an adequate resource base in a free market economy from which to
operate. A restructuring of monopoly landownership practice while
maintaining present possession and use practices can resolve the
libertarian desire for an orderly society without relying on a coercive
government to achieve that order. The collection of an annual deed fee
based on the unearned rental value that accrues to land by virtue of site
location and natural resource value, and using that fee for compensation to
those displaced from equal opportunity to use natural resources, is all
that is needed to right this wrong.
It is the duty of the libertarian movement to continue increasing the
number of people enjoying the fruits of life, liberty, and the pursuit of
happiness. We need to dismiss the erroneous Neoclassical economic
assumption that land is merely capital, and return to the clarity of
Classical Economists' claim of three factors of production: land, labor and
capital. Land is a unique factor of production since it was not made by
human hands. We need to view it as such. To fully have the right to life,
liberty, and property, all individuals need to have equal access to land
and natural resources. There is a cost to having an organized and orderly
society. Richard Epstein makes the case for a few simple rules being
necessary to make a libertarian society. Such a society would minimize the
cost to individuals to enjoy the fruits of an order which makes freedom and
peace possible. Self-ownership, the right to property in the Lockean
sense, the right to equitable contract, a fair means of conflict
resolution, and torts for injury and damages must be protected in a
libertarian society. The right to property must include equal access to
natural resources or in lieu of that, just compensation.
Credit for inspiration in this essay: David Bergland-Libertarianism in One
Easy Lesson, 1984; Fernand Braudel-Civilization and Capitalism, 1981;
Robert Carneiro-A Theory of the Origin of the State, 1970; Henry
George-Progress and Poverty, 1879; James Miller-Living Systems, 1978;
Thomas Paine-Agrarian Justice, 1797; Richard Epstein-Simple Rules for a
Complex World, 1995.
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