50 Times The ‘Georgism’ Online Group Shared Eye-Opening Posts About The Housing Market

The ‘Georgism’ online group, which focuses on “free trade, free land, free people,” was initially created in early spring of 2012. Currently, it boasts 36k members.

The social philosophy and economic theory of Georgism, also known as geoism, basically revolves around one core idea: namely, that the value derived from land (including natural resources and opportunities) should belong equally to all the residents of a community. Furthermore, the value that people create should belong to themselves.

The moderators point out that there are various Georgists, from statists and anarchists to progressives and conservatives. According to the moderators who manage the online community, note that most Georgists support:

1. A broad-based land value taxation scheme, either to mostly or entirely replace existing harmful taxes on income, consumption, and corporations
2. The social redistribution of this revenue either directly, through a Citizens' Dividend, or indirectly, through government programs, to citizens
3. Some (but not all) forms of market intervention by the state
4. The abolition of tariffs, quotas, patents, and other barriers to trade and commerce

While many people are struggling to afford homes, some are finally breaking into the property market. As recently reported by CNN, despite the “daunting” conditions, growing members of the US Generation Z are finally fulfilling their dreams of homeownership.

“The generation now accounts for one in four loans issued to first-time home buyers, according to data from financial services company Intercontinental Exchange. And a Redfin report from January 2024 found that Gen Z’s homeownership rate is outpacing that of Millennials and Gen Xers when they were the same age.”

That’s not to say that everyone has the same chances of owning a home. CNN notes that there’s a “growing divide” between members of Generation Z with stable jobs or financial support and those who are priced out both from owning and even renting property.

Georgism was an economic theory developed by American economist and social reformer Henry George in the late 19th century. According to EBSCO Information Services, though his treatise ‘Progress and Poverty’ was popular, many economists dismissed his ideas. George’s economic theory is partly based on ancient ideas centered on land.

“Many cultures view land as something that is passed from generation to generation, without an individual owning it in the traditional sense. Ownership is viewed as temporary, a rental of the land. The value of land is based on what takes place on it, and this value is reflected in the wealth of the landowner. This view is reflected in modern municipal tax assessments, which include separate values for the land and for any structures on it,” EBSCO explains.

George’s idea was to propose establishing the so-called Single Tax on land values. This tax would fund the government and replace all the other taxes already in place.

“Those who supported this idea did so because of its simplicity, their belief that it would stimulate construction and economic growth by eliminating taxes on structures, and the idea that land, as a fixed resource, should be taxed to benefit society and fund government,” EBSCO writes.

As per EBSCO, people who embrace Georgist philosophy believe that the gifts of nature should benefit all of society. Meanwhile, Georgists argue that social problems should be solved by tracking their root causes and eliminating them at their core, thus doing away with future problems, instead of focusing just on the symptoms.

“According to George, wealth is produced by land, labor, and capital. The distribution of these sources must therefore be at the root of poverty. Land is in fixed supply and is required for all life and production, yet those who own land earn money by allowing others to use it, without the property owner contributing to production,” EBSCO explains.

“Landowners may also refuse to allow their land to be used productively. When good land is withheld from use, labor must use less-productive land. When rents go up, wages and productive investment suffer. This leads to unemployment and cycles of wealth and poverty.”

Therefore, George argued, land rent should benefit society, to ensure that good land is available for use, thus lowering prices and rents.

EBSCO notes that modern supporters of the Single Tax advocate for land value taxation, or LVT.

“LVT assesses property taxes on the value of the land, including improvements made to it, but does not tax any structures on the land. It is often favored in regions where primary land use is agricultural. Economists who advocate for LVT note that valuation of structures is often less stable than land value.”

Meanwhile, land value is mainly influenced by what the land is used for, as well as what happens nearby.

“For example, the value of an acre of land in an agricultural area does not change much based on nearby development, but a plot of land the same size in an urban setting might be valued based on where it is, if, for example, the city experiences demand for usable retail space in that neighborhood.”

What are your thoughts, dear Pandas? Do you think that Georgism is the way to go, or do you think another economic philosophy is more practical?

What’s your perspective as to why housing prices have become so jaw-droppingly ridiculous in recent years? How would you solve the housing affordability crisis if you had free rein?

Do you personally feel that you’re struggling to buy a home, or do you think that you have a fair and decent chance at property ownership? Let us know in the comments below.