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Letter from a Young Distributist: Georgism and Distributism

progressandpoverty.substack.com

21–30 of 165 posts

Re: Letter from a Young Distributist: Georgism and Distributism

#21
post #7

It seems like the US already has widespread ownership of property? Home ownership isn't exactly rare. NIMBYism is a consequence of widespread ownership; it's small land owners exercising political power. In the cities, converting apartment buildings to condos is another form of this. Of course, many people believe this is inadequate and we need to go further, with low-income housing and the like. But it's been a long…

> But another issue is that being a stockholder doesn't feel like ownership. It's just an investment; you don't get meaningful control.

Perhaps more employee co-ops would further that goal. Mondragón in Spain is often cited as an example of Distributism in action.

https://distributistreview.com/archive/mondragon-revisited

Re: Letter from a Young Distributist: Georgism and Distributism

#22
post #17
post #11

Earlier quoted context omitted.

Total Federal US Tax Revenues in 2021: $4.05 trillion Total US Mortgages in 2021: $17.1 trillion Once you add the taxes for other jurisdictions of government I can see taxes reaching 30% of total mortgage value. It's fairly clear to me that owning land is extremely expensive in a Georgist society that needs to generate the levels of taxation that fund current government. If land value tax replaces income tax it needs…

To be clear I'm not saying that Georgist taxes are based on the mortgage value I know they are not. I'm comparing the two quantities to establish a rough estimation of how expensive property in a Georgist society that provided a similar level of services would be. If government needed to generate a certain amount of tax revenue comparable to current tax revenue they likely need to charge homeowners an average tax on…

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Re: Letter from a Young Distributist: Georgism and Distributism

#23
post #19

It might be interesting to generate simulation data that attempts to project how these systems and transitions to them might actually play out. It is great to play around with systems thinking and alternatives, but big changes need to have serious analysis up front and robust metrics for judging progress and success.

If you're looking for data, Lars Doucet has written a pretty exhaustive 4-part series going over claims and evidence: https://gameofrent.com/content/progress-and-poverty-review. Obviously there's more to be found out but it looks promising.

Re: Letter from a Young Distributist: Georgism and Distributism

#24
post #18
post #17

Earlier quoted context omitted.

To be clear I'm not saying that Georgist taxes are based on the mortgage value I know they are not. I'm comparing the two quantities to establish a rough estimation of how expensive property in a Georgist society that provided a similar level of services would be. If government needed to generate a certain amount of tax revenue comparable to current tax revenue they likely need to charge homeowners an average tax on…

Except that's not how Georgist tax structure is decided, it is 100% of the land's rental value. If you want a good overview I recommend this exhaustive and data-heavy series of articles: https://gameofrent.com/content/progress-and-poverty-review

Okay some things don't add up. You can't have a Georgist tax as a single revenue source for the government and calculate it off something other than what the government needs for revenue. Either you calculate the Georgist tax rate on the unimproved land value, you add other taxes to government or you slash and burn through government spending to deal with the capped revenue. It's living in fantasy land to say Georgist land value taxes, calculated in precise accordance with this metric and not adjusted upward or downward by revenue needs will be a single source of revenue for all levels of government.

Re: Letter from a Young Distributist: Georgism and Distributism

#25
post #4

Georgism and Distributism is interesting but short of a plan to actually transition the tax infrastructure in that direction this article reduces to an unactionable history lesson. Still worth reading, but not powerful enough for those who want economic change. I'd argue that transitioning is an extremely hard problem. The Georgist system taxes property at extreme rates. In particular, the taxes on property ownership…

I think to start with, we can end prop 13 and fix whatever loopholes that allow billionaire's row penthouses to be taxed a lower rate than regular apartments.

Re: Letter from a Young Distributist: Georgism and Distributism

#26

Earlier quoted context omitted.

I think you might misunderstand Georgism, or maybe I did a poor job explaining it. Georgism does not propose taxing improvements (buildings etc), only the actual land. So many peoples tax burden would be decreased, and if the bank owns the land as in a mortgage, they are the ones paying the tax, not the people taking out the mortgages.

Uh, you might want to learn about tax incidence. If the bank pays the tax, why wouldn't they pass it on to the mortgage holder in the form of higher interest rates or other fees? There are exceptions when businesses are investing for growth and expenses are paid by investors, but normally no business is going to agree to a contract where they lose money. The money to pay expenses comes from customers.

Yeah, I think I misunderstood both the above point and who owns the property in a mortgage. Essentially I think that the land value of the property, which is used in calculation of the property, would go to zero no matter who is paying the tax, reducing mortgages by an equivalent amount if the individual is in charge of paying it, or raising mortgage rates by an equivalent amount if the bank is responsible. Either way it does come out of the individual’s pocket, but mortgages don’t necessarily raise their prices.

Re: Letter from a Young Distributist: Georgism and Distributism

#27
IMVHO this is more a fictional story to justify issues in actual westerns society...

Few purposed vague elements, that if detailed reveal their incoherence:

- subsidiarity :: how a large community/entity can help but not interfere? Let's take a simple example: in India there are various cohort of population, let's focus on Indus and Muslims. Indus consider cows sacred animals, they can be milked but not confined nor slaughtered fro their meat. Muslims eat cows, so slaughter them for that purpose BUT do not eat pigs, a religious crime for them, while Indus have no issues in eating pigs. Suppose you are the bigger entity: how can you help them without interfere?

- family policy :: a family designed by mother, father and children miss a part: the two parents have also their parents, who happen to get elderly, for instance. Their children at a certain point in time will leave family. Making a family an atom who form molecules, means the society can't exists. Original family ideas came from a more practical élites needs: people to live need to be a bit together and reproduce, they need to be balanced in sex terms for that and for social stability BUT "we" (élite) need also something for them. Let's define them a family, saying any family have to give something to the élite: food, young sane people for war etc. Locking peoples in such mindset it's easy to say: you parents need to reproduce, more than one child because he/she can die, some are needed to work to live, some are tribute for war etc do not care much about you, your duty is the family. You child you have a family, you need to represent it, so go to war and work hard, do not care much about your duty it the family. That's the simplest and easiest subdivision of humans to direct them as a flock. As single families they need someone who handle their disputes, they have a simple duty they believe etc. The rest of the society is designed with the same scenario: authorities/élites are "parents", families their children who need to obey.

Autarchy is a dream, sci-fi movies prove it regularly design autonomous starship with a small set of humans traveling the galaxy, in the past that was Conestoga wagon, equally nomadic life and so one. All depict the dream but omit how anything is built. Who built the starship, for instance. That's left aside because it's the core of the gamble: we need something organized differently, often some people forced to live bad life to makes others happy etc.

Taxes is equally used here in psychological terms instead of in economical terms: they are weaponized instead being clearly described as a way to avoid some earn too much respect of others. A social leveling mechanism. Again they aren't cited like that because if so we have to say that money is not a value no-one-really-know who control it but just a symbol we agree to use as a unit of measure for a substrate NOT as the substrate of anything like we do today.

It's a classic way to use emotions for stopping people think and demand clarity, making them blindly trust something.

Re: Letter from a Young Distributist: Georgism and Distributism

#28
post #24
post #18

Earlier quoted context omitted.

Except that's not how Georgist tax structure is decided, it is 100% of the land's rental value. If you want a good overview I recommend this exhaustive and data-heavy series of articles: https://gameofrent.com/content/progress-and-poverty-review

Okay some things don't add up. You can't have a Georgist tax as a single revenue source for the government and calculate it off something other than what the government needs for revenue. Either you calculate the Georgist tax rate on the unimproved land value, you add other taxes to government or you slash and burn through government spending to deal with the capped revenue. It's living in fantasy land to say Georgis…

Well, while Georgism is most famous for advocating for land value taxation the LVT itself is not the only Georgist tax. All forms of economic land, including such things as natural resources and intellectual property, also generate economic rents and are candidates for taxation. Furthermore, cutting taxes on labor and capital increases the value of land significantly, so much of the revenue "lost" by cutting income taxes, sales taxes, corporate taxes etc would flow directly back into land values and return via the LVT.

In any case, there is lots of room for experimentation at the margins and any Georgist reform won't be complete or overnight. Any shift from taxing labor and capital will result in a better and more efficient economy, so don't get too caught up in the abstract end state.

Re: Letter from a Young Distributist: Georgism and Distributism

#29
post #24
post #18

Earlier quoted context omitted.

Except that's not how Georgist tax structure is decided, it is 100% of the land's rental value. If you want a good overview I recommend this exhaustive and data-heavy series of articles: https://gameofrent.com/content/progress-and-poverty-review

Okay some things don't add up. You can't have a Georgist tax as a single revenue source for the government and calculate it off something other than what the government needs for revenue. Either you calculate the Georgist tax rate on the unimproved land value, you add other taxes to government or you slash and burn through government spending to deal with the capped revenue. It's living in fantasy land to say Georgis…

Well other taxes are not precluded by Georgism. See for instance Piguovian taxes and IP taxes. But additionally, I don’t think it can be assumed that the government will continue to need its current amount of revenue. Under subsidiary, the size of the federal government would drastically be reduced as power moves downward to local governments.
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