Abstract: In the end, there can be no credits or purchasing power but that which comes from the production of wealth and services and the putting of these into the course and channels of exchange. It is, at the last, only by freedom of production and freedom of exchange in unrestricted markets that authentic credits can be established as instruments of exchange. It is only in this way—by freedom of production and exchange—that just and rightful purchasing power can be created and maintained. When this truth becomes well understood, it will be practiced; and all the mystery and all the menace of inflation will have passed away.

Keywords: Banking, credit, inflation, deflation, exchange

Download PDF:

Abstract: It is a commonplace of the current learned diagnoses that modern technology has all but abolished the resistances of nature to the physical production and transportation of goods. Distribution is regarded as less well developed—as the open or broken link between our needs and their ful­fillment, between desire and gratification. To concede this should suggest not that the current processes of distribution should be attacked or abolished but rather that they should be examined and understood, for it should be remem­bered that distribution, for all its difficulties, does at least measurably take place and, like any other phenomena, it can be understood only in terms of its functioning and carrying on and never in terms of its non-functioning or failure to do so.

Keywords: Distribution, market process, ownership, land, productivity

Download PDF: “What is Distribution in the Market Process?”

Abstract: The nineteenth century was a period of unprecedented productivity in the world, occasioned by the widespread development and practice of contract and voluntary exchange. For the first time in history, man began to cease, like other animals, to be essentially predatory on his environment, despoiling and exhausting it, and began instead to make it progressively more productive and more able to support his own kind. Thomas Robert Malthus lived well into this productive century, but his thinking remained in the past, as did that of his contemporary, David Ricardo, and his successors, the Classical Economists, including even J.S. Mill. In this essay Spencer Heath carefully refutes Ricardo’s argument in support of Malthus and stresses the importance of understanding man not in terms of his animal nature, but in terms of his uniquely human potential; that is, his evolving, creative nature.

Keywords: Thomas Malthus, Ricardo’s law of rent, the golden rule, property in land, social evolution, organic society

Download PDF: “Malthus’s Doctrine in Historical Perspective”

Abstract: Society, based on contract and voluntary exchange, is evolving, but remains only partly developed. Goods and services that meet the needs of individuals, such as food, clothing, and shelter, are amply produced and distributed through the market process. However, those that meet common or community needs, while distributed through the market, are produced politically through taxation and violence. These goods attach not to individuals but to a place; to enjoy them, individuals must go to the place where they are. Land owners, all unknowingly, distribute such services contractually as they rent or sell sites. Rent or price is the market value of such services, net after disservices, as they affect each site. By distributing occupancies to those who can pay the highest price, land owners’ interests align with those of society. Without this, tenure would be precarious—by force or favor of politicians. The 18th-century separation of land from state, so little studied by historians, permitted the development of modern property in land. This change is perhaps “the greatest single step in the evolution of Society the world has ever seen.” When land owners realize that they market community services, they will organize to produce and administer them as well, and society will be made whole.

Keywords: Spencer Heath, Georgism, land ownership, public goods, market process, social progress

Download Paper: “Society, Its Process and Prospect”

Abstract: In this article, Spencer Heath offers a general defense and explanation of the capitalist system and a forecast of its further evolution. After showing various ways in which its major functional elements contribute to voluntary exchange, the vital process and central creative act in the economy, Heath observes that the capitalist system is young, evolving, and incomplete. In particular, it has yet to carry the process of voluntary exchange by contract and consent into the field of public services. Heath anticipates this happening through the further development of private property in land. Noting that ground rents are paid out of the productivity of land users, and are the market payment for public services which make productive use of the land possible, Heath foresees a perfect welding of the private and particular interest of the land-owning class with the public and general interest. As landowners come to better understand their interest, he predicts they will begin to monitor public affairs and then fund, supply, and ultimately administer all public services, relieving land users of all taxation and burdensome bureaucratic regulations. Their recompense for thus liberating land usage and providing new services will be the enhanced ground rents and values from the growing demand for land.

Keywords: capitalism, creativity, land ownership, ground rent, public services

JEL Codes: B25, D73, Q15

Download Paper: “The Capitalist System”