Just Reward: The Nature of Work and Its Remuneration in the Economics and Ethics of Henry George

• Author: BRENDAN HENNIGAN
• Date: 01 October 2012
• DOI: http://doi.org/10.1111/j.1536-7150.2012.00852.x
• Published date: 01 October 2012

NATURE OF WORK

Just Reward: The Nature of Work and Its

Remuneration in the Economics and

Ethics of Henry George

By BRENDAN HENNIGAN*

ABSTRACT. Work is a fundamental reality of human existence. This

essay examines in general terms the idea of work and labor, briefly

explains the biblical foundation of George’s perspective on work, and

presents George’s analysis on unemployment, technological change,

and true competition. Finally, it discusses how access to the natural

opportunities land provides liberates labor and advances the just

distribution of wealth, connects these insights to Catholic Social Teach-

ings (CST), and calls for more cooperation between these natural allies.

Introduction

I said to a Yorkshire sailor on my first voyage, “I wish I was home, to get a

piece of pie.” I recall his expression and tone, for they shamed me, as he

quietly said, “Are you sure you will find a piece of pie there?”

—Henry George (1992: 353)

Work is a fundamental reality of human existence. From ancient to

modern times workers have satisfied their needs and wants by

impressing their labor on the earth’s natural resources. Whether it

involves a farmer ploughing his field, a shipwright building a boat, or

an information technologist developing a new computer software

program, work is one of the means by which humans satisfy their

numerous and infinitely diverse needs, wants, and desires.

It is mostly through work that individuals acquire material goods

and services for their own sustenance and well-being. One of the

central themes that runs through the writings of Henry George is the

*Brendan Hennigan is Research Director of the Canadian Research Committee on

Taxation.

American Journal of Economics and Sociology, Vol. 71, No. 4 (October, 2012).

© 2012 American Journal of Economics and Sociology, Inc.

natural right of all men and women to have equal access to land. He

saw the laws of nature as underpinning the principles that govern the

laws of production and distribution, economic and natural justice, and

social progress. By inquiring into the nature of work one may better

understand the fracture that occurred between man and nature with

industrial and technological advancement.

This essay explores several themes relating to the nature of work. It

examines in general terms the idea of work and labor, briefly explains

the biblical foundation of George’s perspective on work, and presents

George’s analysis on unemployment, technological change, and true

competition. Finally, it discusses how access to the natural opportu-

nities land provides liberates labor and advances the just distribution

of wealth, connects these insights to Catholic Social Teachings (CST),

and calls for more cooperation between these natural allies.

George’s primary purpose was to discover why poverty could coexist

with the increased capacity of nations to create wealth and then to use

these findings to eliminate poverty. He wanted to refute the theory that

wages are drawn from the advance of capital, and to show that there is

no conflict between labor and capital. By examining and adapting the

theories of Adam Smith and David Ricardo, he correlated the laws of

production and distribution and harmonized the economic laws of rent,

wages, and interest. In relation to CST, this essay shows that (1) labor

does have priority over capital and (2) there is no real conflict between

labor and capital in Georgist economics. The reconciliation of George’s

theories with CST succeeds or fails on these two points.

George, unlike Marx, did not believe that the cause of poverty was

an inherent conflict between capital and labor. He did not lay the

blame at the feet of employers. His advocacy (George 1992: 353) was

against a “false and wrongful system,” which deprived working people

of the “natural opportunities of employment.” His call for justice was

based on respect for common and individual property rights, the

independent nature of the laborer, cooperation, and equality of asso-

ciation in society. The thrust of George’s argument (George 2003: 310)

for the elimination of the economic and social evils associated with

poverty was that it be accomplished by the “restoration to all men of

their natural and unalienable right to the use, upon equal terms, of the

elements on which and from which all men must live—the land.”

Just Reward 841

While for George, equitable access to land was the solution for the

problem of progress and poverty, the Catholic Church stresses other

economic and ethical principles. CST increasingly emphasizes the

personal and the cooperative nature of work in helping promote

social justice and the common good among peoples and nations (John

Paul II 1981: 22–24). The focus of a discussion on the rights of workers

and the fair distribution of wealth should be on the intrinsic dignity of

the human person and the valuable contribution of all types of labor

to the development of society. Further, any real solution to the social

problems caused by unemployment, underemployment, industrial

pollution, over-consumption, globalization, labor alienation, workers’

exploitation, and poverty must be sought through sound economic

and ethical principles, addressing the problem of land monopolization

and George’s remedy. The implementation of George’s great social

reforms cannot alone be “accomplished by ‘intelligent self-interest’,

and can be carried out by nothing less than the religious conscience”

(George 1891: 22). (The meaning of “religious conscience” and its

practical application is discussed later.) The tripartite dialogue

between governments, religious groups, and trade unions relates

directly to the subject of work and how communities may better

respond to the economic and ethical character of the work (Peccoud

2004).

What needs to be developed is a philosophy of labor that incor-

porates the economic-ethical principles of Henry George with the

Christian Gospel teachings on work, justice, community, and the

common good. Political and environmental concerns regarding sus-

tainable economic development, workers’ rights, and natural resource

use are a global issue. Ethical considerations and the responsibilities

associated with property rights, stewardship of the earth’s natural

resource, land use, and economic development have particularly

shaped the perspectives of sections of the Georgist movement and the

Catholic Church on work and labor. (Taxation policy may be added to

the Georgist position.) Questions raised are inevitably linked to the

idea of natural rights, fair labor practices, distribution of wealth, and

social development. Today, these issues are indirectly but rapidly

gaining worldwide media attention and affecting public opinion and

international politics, due mainly to grave concerns about the debase-

842 The American Journal of Economics and Sociology