Proposition America: Pay for What You Get and Get What You Pay
Frank F. Bille
[A book self-published by the author, 1982 -- Part 1
The following reprint of Mr.
Bille's book repeats the author's use -- for purposes of
emphasis -- of terms and phrases in full capitalization.
Is it not becoming more and more evident that there must be something
FUNDAMENTALLY WRONG with the economic systems of the world?
Not only do the socialistic and communistic countries suffer from
terrible oppression and under-utilization of human and natural
potentials, with chronic shortage of food and consumer goods; but the
so-called "capitalistic" nations also struggle with enormous
difficulties in coping with the problems of INFLATION, UNEMPLOYMENT,
HOUSING SHORTAGE, and a rapidly rising number of POVERTY-STRICKEN
PEOPLE who must be supported by the governments at TAXPAYERS' EXPENSE.
Here in America, the high cost of HOUSING, FOOD, GASOLINE, INSURANCE
and TAXES, which the hard working people must pay, is obviously
detrimental to the American Way Of Life, DEMORALIZING to young couples
who want to raise children, AGONIZING to the old folks with fixed
dollar incomes, DESTRUCTIVE to the nation's moral fibre, and
DISASTROUS to the nation's internal and external SECURITY.
The purpose of this book is to show that these tragic circumstances
are the results of FALLACIOUS DOCTRINES of economics which are of
ancient origin; PRECEPTS OF MEN contrary to the will of God but
perpetuated through many centuries, wrecking nation after nation,
kingdom after kingdom all through recorded history.
The rise and imminent DECLINE of the magnificent AMERICAN
CIVILIZATION follows the same pattern as that of the Roman Empire, the
Spanish, the Chinese, the Russian and the British Empires. In all of
these civilizations there existed an adverse economic condition which
slowly but steadily eroded their strength and made them vulnerable to
internal and external enemies.
According to reliable statistics the NON-PRODUCTIVE labor force of
America which in 1944 was one-third of the whole force has now in 1982
risen to two-thirds; the PRODUCTIVE labor force having been reduced
from two-thirds to one-third. America is losing her place as the most
productive and prosperous, peaceful nation in the world.
While the number of millionaires in America is growing rapidly, the
number of unemployed, poor, dependent people is growing much faster.
The number of property owners is declining while the number of renters
is increasing. And the government is going bankrupt!
WHY IS IT THAT THE MAJORITY OF PEOPLE BECOME POORER, AND A MINORITY
BECOME RICHER WHILK THE TECHNOLOGICAL PROGRESS IS OF ENORMOUS BENEFIT
TO INDUSTRY, COMMERCE AND COMMUNICATION?
IS UNEMPLOYMENT AND POVERTY A NATURAL CONDITION?
The explanations given by today's economists are utterly confusing
and leave US the citizens little hope of betterment. The one great
American economist whose name will be given later in this book
provided us with the REMEDY a hundred years ago. Because this man has
been so thoroughly misrepresented, ignored and maligned, to mention
his name at this point would be to conjure up all the prejudice and
professional ignorance accumulated through a century of
As a true PATRIOT you are anxiously engaged in a good cause and would
like to know exactly what's wrong with the American economy so that
you could base your POLITICAL OPINION on facts. You would want to have
an answer convincing to you as an educated person trained in making
logical conclusions; convincing to you as an honest person who abhors
all injustice. You would want a simple, clear-cut, unsophisticated
explanation which could be understood, adopted and acted upon by the
majority of the American people. Most of you good Americans would also
want an answer that is convincing to you as a CHRISTIAN whose life is
governed by obedience to the LAWS OF GOD.
Whatever the truth is, it must be the same no matter what criterion
is applied to it.
THERE IS SUCH AN ANSWER!
PROPOSITION AMERICA gives you the simple, straightforward answer to a
long list of perplexing economic problems and provides every American
Patriot with a solution and a course of political action which has the
power to solve practically all of the economic problems
SIMULTANEOUSLY. This is possible because the problems have a COMMON
CAUSE. When the FUNDAMENTAL FALLACY is corrected, a multitude of
SOCIAL, ECONOMIC and POLITICAL problems are automatically solved.
The REMEDY is TRUE CAPITALISM, which is expressed in the subtitle:
Proposition America: PAY FOR WHAT YOU GET AND GET WHAT YOU PAY FOR.
The COMMON but little understood CAUSE of universal economic trouble
is that mankind has disregarded the instructions which the Maker of
Heaven and Earth provided for the users of His Product, the earth. But
when all else fails, then perhaps we will READ THE INSTRUCTIONS and do
something about it.
We have violated the fundamental economic principle and the natural
law decreed by the Creator, the law upon which the Lord's promise of
material BLESSINGS are PREDICATED. It is impossible for the Lord to
secure to us His endless blessings when we disregard His all knowing
and wise instructions on HOW TO ADMINISTER His gifts of love.
The Fundamental Economic Principle which we have disregarded is THE
PRINCIPLE OF PROPERTY RIGHT, and the specific Law of God which is
clearly stated in the BIBLE but has been systematically ignored is THE
LAW OF LIBERTY.
From these violations spring the CURSES of unemployment,
underemployment, poverty, lack of housing, lack of food, lack of
education, lack of freedom, economic slavery, oppressive and wasteful
government and excessive taxation, enormous public and private debts,
inflation and bankruptcy of individuals, businesses and of public
entities such as New York City.
There is only one course of action which can carry the American
nation forward towards the cherished condition of GENERAL PROSPERITY
with LIBERTY AND JUSTICE FOR ALL, and which can save US from being
destroyed by internal and external enemies:
UNDERSTAND AND APPLY THE FUNDAMENTAL PRINCIPLES OF
PROPERTY RIGHT AND THE FUNDAMENTAL PRINCIPLES OF THE LAW OF LIBERTY
The economic and political ORDER which would arise on these premises
could be termed TRUE CAPITALISM as contrasted with the present mixture
of FALSE Capitalism, socialism, communism, atheism and materialism.
PROSPERITY would be within everybody's reach, and the LIBERTY of
citizens would be restricted only by the equal rights of all others.
PROPOSITION AMERICA is meant to show, point for point, that this
program is not an impossible dream; that our present so-called "capitalistic"
system is an un-scientific, unnatural, self-destructive mixture of
truths, half-truths and fallacies which will ultimately cause the
destruction of the American Nation if we do not put a halt to it.
There are only these two alternatives, self-destruction or redemption.
America's destiny is to lead the world in righteousness first,
prosperity and peace being the natural consequences thereof. Ancient
prophets have described America as "a land choice above all other
lands" and have stated categorically that this choice land must
be inhabited by righteous people who, if they become "ripe in
their iniquity", will be destroyed.
PROPOSITION AMERICA is not based on a theory concocted by politicians
as the result of an opinion poll. It is not of human origin, and this
writer takes no credit for it. It is based on one single PRINCIPLE,
which is of God and which cannot be disputed, the principle of
PROPERTY RIGHT. The Kingdom of God is governed by sacred laws. If the
principle of property right were not a sacred law the commandment that
"Thou Shalt Not Steal" and "Thou Shalt Not Covet"
would be meaningless.
PROPOSITION AMERICA'S aim is to restore to the American people all
the RIGHTS, PRIVILEGES and BLESSINGS which the Lord God intended for
us to have, and the key to all this is the God-given principle of
Property Right, which is a far cry from that which by the precepts of
men is called "property right."
Many of the good causes for which a multitude of fine American
Patriots are willing to spend their lives would automatically be
fulfilled if PROPOSITION AMERICA were enacted. Therefore, if our
Patriots will endorse this ONE GOOD CAUSE, all the scattered and often
fruitless efforts to save our country from a multitude of dangers will
combine into ONE FORMIDABLE POLITICAL FORCE FOR GOOD, and America will
fulfill her destiny.
PROPOSITION AMERICA, when endorsed by the people and made the LAW OF
THE LAND by act of the Congress, will have far reaching, beneficial
effects on the American economy.
There will be NO MORE INCOME TAXES, NO SALES TAXES, NO BUILDING
TAXES, NO IMPORT DUTIES, NO INHERITANCE TAXES.
In fact, ALL TAXATION of the products of human labor and industry
will be ABOLISHED.
YET, all levels of government will have AMPLE REVENUE with which to
carry out their LEGITIMATE FUNCTION, which is to SECURE JUSTICE by
PREVENTING INJUSTICE. This revenue arises, without taxation, from the
nation's COMMON HERITAGE, the free gifts of God.
GROUND DUTY is the appropriate name for this PUBLIC REVENUE which
will replace all taxation. It is paid by all who partake of the
UNEARNED BENEFITS arising from NATURAL RESOURCES, in proportion to the
VALUE of their LAND HOLDINGS. It is called a DUTY because they OWE it
to the COMMUNITY. The existence of this natural, equitable SOURCE of
public revenue has been carefully concealed by the powers which rule
the world, the powers which are responsible for the UNNATURAL,
INIQUITOUS economic conditions just described.
These evil powers are appropriately referred to as MAMMON, and this
book is an appeal to the greater powers which are known to exist, the
powers bestowed upon those of us who will not knowingly serve the
false god Mammon.
Since the concept of Ground Duty is unknown to most Americans it is
necessary to give it careful explanation, which will be given
throughout this book.
The Federal, State and Local Governments will be reduced to the size
necessary for securing justice by preventing injustice. The functions
of each level of government will be sharply defined.
There will be FULL LOCAL AUTONOMY in all matters which can be handled
locally. Most government revenue will be collected by local
governments, and higher levels of government (State and Federal) will
be supported by APPORTIONMENT between local governments.
Governments will be organized and run in a business-like manner after
the example set by executives of successful American corporations.
Their responsibility will be to secure the greatest possible profit
from the assets entrusted to them, and to yield the greatest possible
DIVIDEND to their SHAREHOLDERS, the American people. Every citizen is
born a shareholder.
Unlimited FREE PRIVATE ENTERPRISE will provide unlimited employment
opportunities (unlimited because the natural opportunities are no
longer monopolized). Consequently, there will be no involuntary
unemployment and poverty. LABOR UNIONS will become OBSOLETE because
PRODUCTION is limited only by the number of workers available.
Employers will-compete with each other to get the best workers and
will have to offer the highest possible WAGES. Every person will have
an opportunity to develop MB TALENTS to the highest degree.
The blessings and joy of HOME OWNERSHIP and a happy family life will
be within everybody's economic means.
There will be NO INFLATION, no recessions or depressions. PRODUCTION
will rise to the limit of the nation's capacity, causing PRICES of
goods to be SLOWLY FALLING while WAGES are stabilized.
The nation's MONEY SUPPLY will be created and OWNED by the national
government through MONETIZATION of the interest-free national CREDIT,
which is the credit given to the nation by all the money-holders in
common, i. e. the people.
The NATIONAL DEBT will be ELIMINATED, and no new national debt will
PRIVATE DEBT will be greatly reduced because title to land can be
acquired without purchase price but on condition of paying the annual
land rent called GROUND DUTY to the local government.
The secondary effects on the nation's cultural and social life will
The nation's economic strength will greatly increase our MILITARY
STRENGTH and preparedness. Our prosperity will be of our own making
and not at other nations' expense. We will still not have any reason
for trying to dominate other nations, and our strength will be a
deterrent to the aggressors.
The government will no longer have a. mandate to extend "Foreign
Aid" or any other form of handouts to anybody. "Public
Welfare" payments will cease, and the responsibility for taking
care of the underprivileged, the sick and the needy will rest upon the
individuals, the family and the charitable organizations formed for
that purpose. Local government welfare assistance will be last resort.
The SOCIAL SECURITY System will be phased out, and the responsibility
for securing a retirement fund will eventually rest upon the
individuals themselves. However, it is expected that the GROUND DUTY
FUND will yield a SURPLUS which can be distributed either as a
DIVIDEND or as an old age PENSION.
All citizens will automatically be INSURED against economic losses
which may befall them due to natural calamities such as fire, floods,
earthquakes, untimely deaths, epidemics, etc. , or accidents. All such
losses not due to any fault of your own will be re-compensated to you
out of the GROUND DUTY INSURANCE FUND. There will be NO PREMIUM to
pay, for the Ground Duty is the premium.
At this point of my "utopian" presentation my reader's
irritation may have reached the boiling point, and the next paragraph,
I warn you, may be "the last straw." But please read on! The
full explanation of these unbelievable statements will be given later.
Remember, our present economic system is an unnatural, cancerous
organism. Having grown up with the unnatural, the natural order seems
weird to us.
There will be an ELIMINATION OF FALSE CAPITAL:
When the owners of land (improved or unimproved) have to pay the full
Ground Duty to the local government they thereby LOSE all the UNEARNED
PROFIT arising from land ownership. They also lose the INVESTMENTS in
land because the land (apart from the improvements) can have NO MARKET
VALUE when no unearned profit can be gained therefrom. The "capital"
invested in land is referred to as FALSE CAPITAL.
Therefore, the land owners are entitled to a COMPENSATION for the
loss of false capital which, to them, is very much a real capital,
perhaps representing all their life savings.
The compensation to all the land owners for the false capital lost
will be distributed once and for all in the year of the "Jubilee"
in such a manner that every person retains for himself the same
percentage of his NET WORTH as all others do. NOBODY suffers any REAL
Details of this EQUALIZATION process will be given in a following
On the following pages will be given the SCIENTIFIC FACTS on which
PROPOSITION AMERICA is founded, together with the MORAL, ETHICAL and
RELIGIOUS reasons why these reforms CAN and MUST become a reality. The
most compelling arguments for PROPOSITION AMERICA are found in the
BIBLE and other sacred literature.
Before going into details, let's look at the PRESENT SITUATION:
The PRICE INFLATION is getting worse (1981. The SHORTAGE OF HOUSING
is becoming desperate. It is almost impossible for the young couples
to buy their first home and expect to pay for it out of the
breadwinner's salary. HOUSE RENT runs as high as HALF of an ordinary
family income. UNEMPLOYMENT is high and rising. POVERTY is becoming
widespread. The NATIONAL DEBT is (1982) about to top the unimaginable
TRILLION DOLLAR mark, and INTEREST thereon is about ONE HUNDRED
BILLION dollars annually, to be paid by the taxpayers before anything
else can be paid for. High INTEREST RATES on loans make it next to
impossible for business and industry to expand and provide more jobs.
BANKRUPTCIES are becoming an epidemic. TAXES take away what the
inflation has left. INSURANCE PREMIUMS are painfully high. PRODUCTIVE
INVESTMENT is DOWN, while UNPRODUCTIVE INVESTMENT is UP. FOREIGN
COMPETITION is overtaking the American industry. FOREIGN INVESTORS buy
up American land and American industry. Etc. , etc.
Economists disagree between themselves, but most believe (1982) that
we are headed for a serious, if not catastrophic, breakdown of our
economy. There is a real possibility that the inflation will run wild
and render the dollar worthless, throwing the nation into chaos, in
spite of anything the Reagan Administration can do. The President said
in his speech on February 18, 1981: "There is nothing wrong with
America that we, acting together, cannot fix. "True, provided --
of course -- that we KNOW what's wrong. That's the PROBLEM! The nation
is not being informed of the FUNDAMENTAL EVIL that is wrecking
America. Basic economic principles are not being taught in our
institutes of learning, and though it is basically a RELIGIOUS and
MORAL matter, no theologian is teaching it, no preacher is preaching
it. Anybody who brings up the subject is usually ignored, or else he
is ridiculed and in various ways effectively silenced.
STOP AND THINK!
IS IT NOT STRANGE that our combined DEBTS, public and private, have
risen to an astronomical amount which EXCEEDS the total amount of ALL
WEALTH owned by the American people and governments combined?
IS IT NOT STRANGE that you automatically OWE Uncle Sam an extra
amount of dollars whenever you have made an extra effort to support
yourself and your family; while, conversely, if you wasted your time
and talents you may be eligible for an AWARD from the same U. S.?
IS IT NOT STRANGE that we must pay $50,000.00 to $100,000.00 for an
ordinary, vacant residential lot, which the Lord God created and gave
us FREE ?
IS IT NOT STRANGE that MONEY comes into existence whenever someone
signs a note secured by real estate or wealth and hands the note to a
bank; and that, on the other hand, money is EXTINGUISHED when the LOAN
is paid off?
PERHAPS you have ready answers to these questions. Please write down
your answers. After reading PROPOSITION AMERICA, please see the notes
We Americans believe in "Government of the people, by the
people, for the people. "The Founding Fathers believed that a
well informed, righteous electorate would produce well informed,
righteous lawmakers who would make just laws beneficial to the people
as well as the nation. They were inspired to formulate our
CONSTITUTION which for two centuries has guided the American nation to
the highest position of liberty, prosperity and power ever experienced
by any nation on Earth.
Then HOW did we get trapped in this economic quagmire? HOW is it
possible that a nation so wealthy, so powerful and possessing the
world's finest constitution is about to go bankrupt and commit
The answer is that the Constitution, great as it is, does NOT define
the fundamental economic principle without which our Pledge of
Allegiance to One Nation, under God, with LIBERTY AND JUSTICE FOR ALL,
becomes merely rhetoric.
AS A FORMALITY, we the people are still invited to express our
opinions and preferences. Thank God for that!
But before BIG BROTHER cuts us off and makes it completely impossible
for us the people to even attempt to GOVERN OURSELVES, let us FACE
REALITIES and get down to BASICS! Until we the Electorate understand
and apply the basic economic principles we will continue to be
manipulated by the politicians who are forever trying to satisfy this
or that special interest lobby. We can be manipulated because we do
not have any STANDARD by which we can judge the Tightness or wrongness
of laws dealing with matters of economics.
PROPOSITION AMERICA sets up such an unfailing standard.
Unless this standard is applied, nothing can save America from going
the way of the Roman Empire which destroyed itself because of its
iniquitous ECONOMIC IMBALANCE.
THE SCIENCE OF PROPERTY RIGHT
There are two fundamental economic principles, the POSITIVE and the
NEGATIVE economic principles.
The POSITIVE economic principle: EVERY OBJECT UNDER THE
SUN HAS A RIGHTFUL OWNER
This is the principle of ECONOMIC BALANCE, BLESSINGS, PEACE
PROSPERITY, HARMONY, LIBERTY, FREE ENTERPRISE, FULL EMPLOYMENT, and
fulfillment of man's mission on Earth.
The RIGHT OF OWNERSHIP, in terms of Political Science, is called
TITLE and can be obtained, scientifically and ethically, in the
following three ways only:
- TITLE can be established by MAKING the object, creating an
- TITLE to the object can be established by GIFT, GRANT or
INHERITANCE from the titleholder. This will be a TRANSFERRED
- TITLE can be established by EXCHANGE between FREE MEN acting
with COMMON CONSENT of objects to which each party, respectively,
has an original or transferred title.
PROPERTY RIGHT according to the POSITIVE ECONOMIC PRINCIPLE is an
UNIVERSAL PRINCIPLE which the Lord God himself honors in all His
dealings with men. His commandment "Thou Shalt Not Steal" is
predicated upon the principle of true property right, without which
the commandment would be meaningless.
The NEGATIVE economic principle:
ANY CLAIM TO OWNERSHIP OF AN OBJECT WHICH THE CLAIMANT HAS NOT
AQUIRED BY EITHER
- MAKING IT
- OR BY GIFT, GRANT OR INHERITANCE FROM TRUE TITLEHOLDER
- OR RECEIVED IN EXCHANGE FOR AN OBJECT OF EQUAL VALUE
IS A DISTURBANCE OF NATURAL ECONOMIC BALANCE AND A VIOLATION OF THE
UNIVERSAL LAW OF GOD: THOU SHALT NOT STEAL
The NEGATIVE ECONOMIC PRINCIPLE is the principle of ECONOMIC
IMBALANCE, which evokes confusion, poverty, unemployment, riots, wars,
disease and wretchedness, and the CURSE of God.
PROPOSITION AMERICA proposes to RESTORE the POSITIVE ECONOMIC
PRINCIPLE in all matters of economics, by causing the American People
to abandon all acts governed by the Negative Economic Principle. In
other words: STOP STEALING!
At first thought, that doesn't seem very far fetched. We don't steal!
What we meant to say was: STOP LEGAL STEALING!
At second thought, that's another matter.
Let us simplify the matter by stating the simple philosophy of TRUE
CAPITALISM: PAY FOR WHAT YOU GET, AND GET WHAT YOU PAY FOR. That's all
there is to it!
If we stick to that axiom we can put America on its feet again. And,
honestly, does that sound too hard? Presumably not.
THE DISTRIBUTION OF WEALTH
PRODUCTION of goods and services in abundance is what makes the
American nation so wealthy. We possess all the FACTORS necessary for
an even greater abundance of wealth. But we have LOST the ability to
make full use of these economic factors.
The term WEALTH comprises CONSUMER GOODS and CAPITAL GOODS. Wealth is
everything which is PRODUCED by LABOR and CAPITAL and which has an
ECONOMIC VALUE. The term VALUE means DESIRABILITY and is measured by
the amount of EXERTION which people are willing to give IN EXCHANGE
for the object, in the MARKET PLACE. SERVICES can be defined as "Wealth
instantly produced and consumed."
The Three Factors of Production
There are three FACTORS OF PRODUCTION: LAND, LABOR and CAPITAL.
LAND is the scientific economic term for ALL NATURAL RESOURCES.
LABOR is the scientific economic term for PEOPLE who exert their
ENERGY and TALENTS in any way whereby they produce goods or services
of VALUE to mankind.
CAPITAL is the scientific economic term for that part of the nation's
WEALTH which is set aside for the purpose of AIDING LABOR in the
PRODUCTION OF MORE WEALTH. It includes wealth which is not yet in the
hands of the consumers but is still in the process of EXCHANGE.
Capital is, so to speak "Labor transformed into a more efficient
The Three Channels of Wealth Distribution
The PRODUCT is DISTRIBUTED by the means of EXCHANGE, to the OWNERS of
Land, Labor and Capital, through three CHANNELS OF DISTRIBUTION: RENT,
WAGES and INTEREST.
The owners of LAND receive RENT for the use of their land. RENT,
properly called LAND RENT as distinct from rent of buildings and other
man-made things, is the UNEARNED INCOME arising from land. "Unearned"
because it arises either from the natural bounty of the land or from
the LOCATION VALUE. In either case, land rent is that part of the
product which exceeds the expenditure of wages and interest.
The workers, LABOR, receive WAGES for their efforts Wages are the
EARNED INCOME or benefits arising from labor of any sort, mental or
manual, whether paid in money or in any other form.
The owners of CAPITAL ("Capitalists" are workers who have
stored up results of their labors for a more efficient use) receive
INTEREST, which, in the true sense of the word, is a form of WAGES for
their stored-up labor. True INTEREST is, therefore, an EARNED INCOME.
THE POSITIVE ECONOMIC PRINCIPLE APPLIED TO THE DISTRIBUTION OF
In spite of all scientific evidence, in spite of all scriptural
evidence and in spite of logic and moral considerations, the "establishment",
i.e. the powers ruling the world, has consistently disregarded the
fact that natural resources, the economic factor number one, LAND, is
NOT the property of men.
THERE IS ONLY ONE, GREAT LANDLORD: THE LORD GOD ALMIGHTY
The POSITIVE ECONOMIC PRINCIPLE states that THE MAKER has the TITLE.
The Lord made the earth, therefore He has the title to it. The Bible
confirms this scientific fact:
"The earth is the LORD'S, and the fulness thereof,
the world and they that dwell therein. For he hath founded it upon
the seas, and established it upon the floods. " (Psalms 24:1-2)
The Bible also declares:
"The heaven, even the heavens, are the LORD'S: but
the earth hath he given to the children of men. " (Psalms
Does the Lord contradict himself when He claims title to something He
has given away? Do the "children of men" actually own the
earth now that He has given it to them? NO. what the Lord has given to
the children of men is NOT the earth itself but the RIGHT TO EXIST on
the earth and use its NATURAL RESOURCES, on certain CONDITIONS. He did
not sell it to US, He LEASED it. Moreover, since the Lord is not a
respector of persons, He did not grant any special favors to anybody.
Everybody has an EQUAL RIGHT to exist on this earth without having to
pay another person for that privilege. That is the ESSENCE of the LAW
OF LIBERTY. That is OUR GOD-GIVEN INHERITANCE.
Each of the Children of Israel who received the LAW OF LIBERTY was
GRANTED a portion of the LAND as a LEASEHOLD, but this INHERITANCE was
CONDITIONAL. They were to obey certain COMMANDMENTS, or else they
would LOSE their INHERITANCE.
"THE LAND SHALL NOT BE SOLD FOREVER: FOR THE LAND IS
MINE; FOR YE ARE STRANGERS AND SOJOURNERS WITH ME. " (Leviticus
This is a clear statement that God is THE GREAT LANDLORD and that MAN
is His TENANT.
As a TENANT, man is required to pay THE GREAT LANDLORD his RENT, in
the Bible called TITHE because it is one-tenth of man's INCREASE
derived from his LABOR on his INHERITANCE.
The Israelites paid the tithe to the Lord, and the Lord used the
revenue to pay the WAGES of His servants, the priestly tribe of LEVI.
To the Levites, the tithe constituted THEIR INHERITANCE, for they were
NOT granted a landed inheritance such as the other tribes.
AND, BEHOLD, I HAVE GIVEN THE CHILDREN OF LEVI ALL THE
TENTH IN ISRAEL FOR AN INHERITANCE, FOR THEIR SERVICES WHICH THEY
SERVE, EVEN THE SERVICE OF THE TABERNACLE OF THE CONGREGATION . . .
... IT SHALL BE A STATUTE FOR EVER THROUGHOUT YOUR GENERATIONS THAT
AMONG THE CHILDREN OF ISRAEL THEY SHALL HAVE NO INHERITANCE (Numbers
According to the COVENANT which the Israelites made with the Lord the
tithe was clearly a contractual payment for benefits received. It was
clearly a LAND RENT. The Israelites paid the Lord for two different
kinds of BENEFITS. Life itself, and the God-given TALENTS bestowed on
the individual was one of the benefits. The God-granted landed
inheritance was the other benefit. We may refer to the tithe as "Soul-and
Land RENT. "
Under the contract (covenant) which they made with the Lord, the
Israelites could not sell their land forever (in perpetuity), for the
land belongs to the Lord. But they could sell it as a SUB-LEASEHOLD
for periods of up to fifty years at a time, after which the land would
REVERT to the man whose INHERITANCE it was, free of charge, in the
year of the JUBILEE.
The LEASEHOLDER would pay a LAND RENT, either as a lump sum once and
for all or as an annual charge:
ACCORDING TO THE NUMBER OF YEARS AFTER THE JUBILEE THOU
SHALT BUY OF THY NEIGHBOR, AND ACCORDING UNTO THE NUMBER OF YEARS OF
THE FRUITS HE SHALL SELL UNTO THEE: ACCORDING TO THE MULTITUDE OF
YEARS THOU SHALT INCREASE THE PRICE THEREOF, AND ACCORDING TO THE
FEWNESS OF YEARS THOU SHALT DIMINISH THE PRICE OF IT: FOR ACCORDING
TO THE NUMBER OF YEARS OF THE FRUITS DOTH HE SELL UNTO YOU
If an Israelite decided to become a merchant, sailor, carpenter or
anything for which he did not need his acres, he could in this way
LEASE his land to someone else and continue to receive the UN-EARNED,
God-given income from his INALIENABLE INHERITANCE while devoting his
time and energy to his trade. But he could not sell his land outright
the way we do today, for that would DEPRIVE HIS CHILDREN of their
inheritance when the money was gone. And nobody would have to make any
DEBT in order to gain access to LAND. The land rent was paid out of
CURRENT INCOME from the land. In contrast, the PRICE we pay for land
today is the CAPITALIZED, FUTURE LAND RENT, and MORTGAGE DEBTS are
putting not only ourselves but our posterity into economic SLAVERY.
The Israelites eventually lost their inheritance because they
VIOLATED the LAW OF LIBERTY. They adopted the idolatrous ways of the
false god BAAL and began to buy and sell land outright, ignoring the
law of REDEMPTION commanded by the Lord:
AND YE SHALL HALLOW THE FIFTIETH YEAR AND PROCLAIM
LIBERTY THROUGHOUT ALL THE LAND UNTO ALL THE INHABIT ANTS THEREOF:
IT SHALL BE A JUBILEE UNTO YOU; AND YE SHALL RETURN EVERY MAN UNTO
HIS POSSESSION AND YE SHALL RETURN EVERY MAN UNTO HIS FAMILY
Please read the entire chapters 25 and 26 to get the full scope of
this tremendously important LAW OF LIBERTY.
We too are violating the Lord's commandment in thinking that we can
own the land and that we can buy and sell for a PRICE like
merchandise. Therefore, WE are NOT receiving the BLESSINGS which were
PREDICATED upon keeping the Lord's commandments. Not that the Lord is
arbitrarily punishing us in revenge; we bring upon ourselves the
natural CONSEQUENCES of UPSETTING THE NATURAL ECONOMIC BALANCE when
some of us get something for nothing while others get nothing for
something. We are applying the NEGATIVE ECONOMIC PRINCIPLE to our
dealings in LAND.
PROPOSITION AMERICA will simply re-instate our BIRTHRIGHT and RESTORE
our long lost EQUAL, INALIENABLE INHERITANCE by adhering to the
PRINCIPLES of the LAW OF LIBERTY.
We cannot use the METHOD employed by the Israelites. We cannot
distribute the land to everybody in equally valuable parcels, but we
can do what is even better. We can distribute the LAND RENT, i.e. the
unearned income from land, which arises partly from the God-given,
inherent qualities of the land and partly from the benefits of a well
organized society, benefits which create LOCATION VALUES.
Since the God-given, inherent qualities of the land are bestowed
EQUALLY to all men, and since the location values are created by us
all IN COMMON, the total land value, or ANNUAL LAND RENT, is clearly
the COMMON PROPERTY of us all according to the POSITIVE ECONOMIC
In keeping with the LAW OF LIBERTY, this common property should be
collected by the COMMUNITY in the form of a GROUND DUTY and be
distributed equally to all persons in the community where it is
produced. Each person would in this way receive his God-given,
un-earned income or INHERITANCE, exactly as each Israelite did when he
leased his inheritance to someone else.
The community (city, county, state, nation) also has COMMON EXPENSES.
The city and county provide streets, sewers, schools, police, fire
protection etc. The state provides freeways, courts, universities,
harbors, etc. The Federal Government provides defense, courts, foreign
relations, national parks, etc.
As a matter of fact, the VALUE (desirability) of the land arises as a
RESULT of all these beneficial PUBLIC WORKS, SERVICES and ACTIVITIES
which serve to secure our possessions, enhance our economic
possibilities and enrich our lives as workers, businessmen and
residents. Also all the beneficial activities of the people in our
various capacities contribute in a large measure to making the land
The commonly owned GROUND DUTY FUND collected from all us land
holders according to the value of our land holdings is the natural
fund from which ALL LEGITIMATE PUBLIC EXPENSES could be disbursed.
Then only the SURPLUS of the people's equal inheritance would be
distributed to the citizens.
The WELL MANAGED PUBLIC SECTOR, in cooperation with a well managed
PRIVATE SECTOR, would greatly ENHANCE the property values and ENLARGE
the GROUND DUTY, while simultaneously keeping the expenses down. The
result would be a greater surplus which could be paid out as a
DIVIDEND to the SHAREHOLDERS, that is, all the citizens of that
Liberation from taxation
With FULL GROUND DUTY in effect, this public revenue will be
immensely large while simultaneously the cost of ADMINISTRATION will
be immensely simplified. Therefore we can ABOLISH all taxes on the
products of human labor: INCOME TAXES, SALES TAXES, PROPERTY TAXES ON
The GROUND DUTY is NOT a tax but a duty.
Free public insurance
Besides taxes, also most INSURANCE PREMIUMS can be abolished. The
Ground Duty Fund will pay the citizens a COMPENSATION for all DAMAGE
from natural causes (fire, flood, earthquake, etc.), from acts of
criminals and from any other calamity not due to any fault of the
individual. There is NO PREMIUM to pay, for the GROUND DUTY is the
Equalization of nominal losses
Of course, when the un-earned income from all land is collected by
local governments from the owners of land the owners LOSE the WHOLE
AMOUNT they have invested in land since the PRICE OF LAND is
determined by the UN-EARNED PROFIT which the titleholders expect to
derive from their land. The landholders are entitled to receive a
COMPENSATION for their LOSS of FALSE CAPITAL.
PROPOSITION AMERICA provides for an EQUALIZATION of these nominal
losses in such a way that NOBODY LOSES but all gain. See the chapter
To avoid misunderstanding, let us make it absolutely clear that you
can BUY AND SELL PROPERTY exactly AS NOW. You take TITLE to land and
improvements exactly as now, the only difference being that THE LAND
COSTS YOU NOTHING, only the IMPROVEMENTS have to be paid for. But then
you must pay the annual GROUND DUTY for the land while the buildings
and improvements are TAX FREE.
You pay full Ground Duty whether the land is vacant or developed.
YOU PAY FOR WHAT YOU GET AND GET WHAT YOU PAY FOR.
You pay the community for the value which the Lord and the community
have bestowed upon the lot, and you pay the carpenters, electricians
and other contractors for the beautiful house they build for you. If
you leave the land vacant, the Lord and the community are bestowing
the value on it IN VAIN unless you pay the Ground Duty, and till you
do develop the land YOU are paying the Ground Duty IN VAIN and have NO
PROFIT. Therefore, no valuable land will remain vacant or
underdeveloped for long. All valuable land will be put to THE HIGHEST
AND BEST USE, and the ensuing BUILDING BOOM will be limited only by
the availability of workers and materials. No more UNEMPLOYMENT!
There will, of course, still be land which is not needed at present.
Such land will become part of the PUBLIC DOMAIN which does not pay
Ground Duty but which is reserved for the use of FUTURE GENERATIONS.
Remember, it is NOT YOU who pays the Ground Duty. THE LAND pays the
Ground Duty if YOU make good use of it.
THE ENEMY OF LABOR AND CAPITAL
The LAND MONOPOLY is the fundamental EVIL which is running US down.
We are all, more or less, either monopoly holders or victims of the
monopoly powers. And let us make it perfectly clear that neither the
monopoly holders nor the victims will like it when the madly
escalating ECONOMIC IMBALANCE is driven to the point where the great
majority of US must pay TWO THIRDS or THREE FOURTHS of our hard earned
income just for the RIGHT TO EXIST (in rents, taxes, insurance
premiums, etc.); when 99% of US are RENTERS and 1% of US are OWNERS.
There will be RIOTS and CIVIL DISORDERS far beyond the chaos we
already have (1982). Therefore, it is IN THE INTEREST of even the most
affluent person that the LAND MONOPOLY be ELIMINATED.
THE CHOICE before US today is between NATIONAL SUICIDE and NATIONAL
REVIVAL, and the latter alternative is possible only if we TURN AROUND
and try to live by the economic laws of God.
ECONOMIC BALANCE or EQUITY is the NATURAL ORDER which will replace
the economic imbalance or INIQUITY of the present if and when we begin
to obey God's commandments and permit true economic science to be
taught and to be acted upon politically.
Our economy can be likened to a huge PIE which is being divided into
wedge-shaped pieces of various sizes. There are three main portions
representing the three CHANNELS of WEALTH DISTRIBUTION: LAND RENT,
WAGES and INTEREST. These three pieces are, in the illustration,
separated by heavy lines. The dotted lines indicate "the way the
pie is eaten. " The pie as a whole represents the TOTAL amount of
WEALTH and SERVICES produced in America in one year, the GROSS
NATIONAL PRODUCT (GNP). It is not a fixed quantity, and the size of
each slice relative to the size of other slices is subject to
VARIATIONS. It is important to visualize that, as the economy
develops, the whole pie will usually grow bigger, and also that a
proportional ENLARGEMENT of any one slice will cause a proportional
DIMINISHING of other slices. Thus, if for instance the slice taken by
TAXES grows disproportionately, the net revenue of Rent, Wages and
Please bear in mind that the relative sizes of the slices in the
illustration in no way reflect statistical facts. It's the HOW and the
WHY we are interested in, not statistics.
The PIE will be cut according to the POWERS which control the three
economic factors, LAND, LABOR and CAPITAL. The more power, the bigger
The LAND RENT is that part of the PRODUCT which is left after payment
of WAGES and INTEREST.
WAGES is that part of the product which is left after payment of the
LAND RENT and INTEREST.
INTEREST is that part of the product which is left after payment of
LAND RENT AND WAGES.
In other words, each of the three economic factors is exerting
political and economic POWER to secure for itself a greater slice of
the pie at the expense of the two others.
Unfortunately, due to the inherent ancient misconception of Property
Rights, the cards are stacked in favor of the Land Monopoly. Labor and
Capital must pay the Land Monopoly a rapidly increasing RANSOM for the
RIGHT TO EXIST and can expand only with difficulty because little is
left of their WAGES and INTEREST after paying these expenses. The
expansion of Capital must be done with funds derived from the Land
Monopoly, and the INTEREST RATES which Capital must pay are
necessarily HIGH because otherwise the funds would be invested in LAND
which yields a higher PROFIT than normally can be earned by
investments in capital (buildings, machinery, etc.)
The Land Monopoly exerts its power by keeping large tracts of land
VACANT or UNDERDEVELOPED, denying Labor and Capital access to the
natural resources necessary for all productive activity. The
landowners, as such, need only WAIT and nay the MINIMAL TAXES on the
land, while Labor and Capital starve for lack of opportunities they
can afford. Eventually, all land, all natural resources become
capitalized at such high ransoms that Labor and Capital cannot
function, and we have UNEMPLOYMENT, POVERTY, RECESSIONS and
Here in America there was plenty of land to share in the beginning.
Therefore, the Land Monopoly had relatively little power, and the
slice of the Pie going to Labor and Capital was relatively large
compared to the Land Rent slice. The early settlers in America were
people who had escaped from the oppression of the Land Monopoly in
Europe. They found LIBERTY in America because they didn't have to pay
other men for the right to live and work on the land. And Labor and
Capital produced the world's greatest and richest nation. For a long
time, the Land Monopoly had relatively little power because of the
abundance of land, the Homesteading Law and the Property Tax which
channelled part of the Land Rent away from the landlords and into the
public treasuries where it belongs.
The PROPERTY TAX was originally a tax on LAND ONLY. Due to the
general confusion about Property Right, the DISTINCTION between LAND
and WEALTH became lost, and eventually the Property Tax was levied
equally on both land and wealth. Land was taxed less and less and
wealth was taxed more and more as INCOME TAXES, SALES TAXES and other
taxes on the products of human efforts replaced the Property Tax. That
development increased greatly the NET UN-EARNED PROFIT, the LAND RENT,
and the Land Monopoly has now grown to the point where the portions
left for WAGES and INTEREST are not just proportionally but ABSOLUTELY
being DIMINISHED. That point is where the wholesome GROWTH of the
whole PIE, the GNP, can no longer be sustained as more money is being
UNPRODUCTIVELY invested in LAND and less money is being PRODUCTIVELY
invested in LABOR and CAPITAL.
STOP AND THINK! Does a vacant lot on Wilshire Boulevard in Los
Angeles become more productive because a man in New York invests ten
million dollars in it? Is it not at least as productive if a Los
Angeles firm takes it over for nothing, puts a skyscraper on it and
starts paying Los Angeles City a million dollars a year in GROUND
LABOR AND CAPITAL feel the pinch and try to fight back the best they
can, but due to the confusion in economic theory, the power of the
LABOR UNIONS and the powers of the CAPITAL OWNERS are aimed at the
WRONG TARGETS. Instead of uniting their powers and fight the
monopolies they fight EACH OTHER because they do not understand the
fact that they are IN THE SAME BOAT!
STRIKES are directed at MANAGEMENT, and when the wage dispute is
settled and higher wages are being paid to LABOR, no greater amount of
WEALTH is being produced, but people have more MONEY to spend. That is
a signal for the LANDLORDS to raise the RENT, and soon the Land
Monopoly has eaten up the whole pay raise, necessitating another round
of strikes. The LANDLORD is making LAND and BUILDINGS available for
RENT, and the rent is raised when the SUPPLY of available land in that
general location falls short of the DEMAND. Therefore, most of the
INCREASE in rent translates into higher land PRICES.
The LAND-OWNER, as such, is completely PASSIVE and produces NOTHING.
He may live in New York and own land in California, from which he
draws his UN-EARNED INCOME. The people of California, with their
industry and co-operation, have created the land value and the land
rent and are therefore, according to the POSITIVE ECONOMIC PRINCIPLE,
the TRUE OWNERS of the land rent, which they don't get. So they must
pay income taxes, sales taxes, etc. to defray their public expenses,
while the landowner can take his un-earned income, pay some income tax
from it and INVEST the rest in more California land.
Our economy is becoming increasingly UNBALANCED because the LAND RENT
does not flow to the rightful owner. According to the POSITIVE
ECONOMIC PRINCIPLE, and according to the Lord's LAW OF LIBERTY, the
land rent belongs to all the people in common, or equally to each and
every person because land rent arises from, first, God's free and
equal gift of natural resources; second, the marvelous co-operation of
the people and the miraculous TECHNOLOGY, which make it possible for
the ordinary citizen to live in greater comfort, security, health and
luxury than any king in ages past. The technological SOCIETY or
COMMUNITY provides streets, highways, railways, airports, police,
fire-protection, courts, hospitals, churches, theatres, restaurants,
shopping centers, water, electricity, gas, telephone, radio,
television, libraries, parks, factories, schools, universities,
amusement parks, museums, etc. GOOD BUSINESS and GOOD EMPLOYMENT
OPPORTUNITIES come along with all these beneficial facilities and
institutions. Whether they are publicly or privately financed they all
together cause the DESIRABILITY, i.e. the VALUE of the land to rise.
In truth, the community EARNED the land rent but is getting only a
very small part thereof in the form of PROPERTY TAX ON LAND VALUES.
An uncalculable amount of money is WASTED because of our unbalanced
economy, A huge BUREAUCRACY arises because of the need for an
ARTIFICIAL BALANCING of the economy. A multitude of LAWS and
REGULATIONS and EXECUTIVE ORDERS must be put into effect in order to
help the individuals, the companies, the cities and even the poor
FOREIGN COUNTRIES which all have become the victims of an unbalanced
economy. And the TAXPAYERS must pay and pay till they run out of work
and money. Then THEY become entitled to a HANDOUT.
But the WORST WASTE is the waste of HUMANS. Lack of FREEDOM to use
the God-given OPPORTUNITIES causes waste of human intelligence and
human aspirations, dreams and longings, the SPIRITUAL GIFTS of God
which, if given a chance, would blossom and enrich our lives
materially, culturally and spiritually.
Just think of all the mothers who must leave their children all day
while they are working to supplement their husbands' income. Is there
any doubt that children need their mothers, and that this condition is
detrimental to Family Life?
The American Dream
Our great American free enterprise, "capitalistic" economy
did not happen by accident. There were spiritual as well as material
factors contributing to our success. The people who built up this
great nation were possessed with a wholesome attitude, aptly described
as "The American Ethic, "a blend of positive ideas both
pragmatic and religious, characterized by a sense of fairness,
tolerance, liberty and justice. As a result we became a classless
society in which most inhabitants were, at the same time, LANDOWNERS,
LABORERS and CAPITAL OWNERS, all three in one. In other words, most
Americans possessed to some degree their God-given share of the
natural resources, their INHERITANCE. And even if they were not owners
of land they received much of their natural BLESSINGS anyway as long
as land was abundantly available, RENT and PRICES were low, and WAGES
were comparatively high. With this came the gift of independence,
self-reliance, industriousness, generosity and PROSPERITY. There was,
and still is, enough land for everybody to share. The abundance of
cheap land spurred a rapid rate of growth. The political UNION and the
absence of trade barriers between the states (Free Trade) created the
most favorable climate for an unprecedented TECHNOLOGICAL DEVELOPMENT,
with MASS PRODUCTION bringing the technical wonders to the people at
prices which they could afford.
That was PROGRESS! THE AMERICAN DREAM!
The American Dream was badly disturbed in the 1930's when the GREAT
DEPRESSION hit the United States. The Land Monopoly and its offspring,
the Money Monopoly, had created a state of economic imbalance which
almost paralyzed the country. The Roosevelt Administration could have
restored full employment, prosperity and peace in a very short time by
applying the Positive Economic Principle. But instead of curing
injustice with justice, Roosevelt's "New Deal" rescued the
Money Monopoly and the Land Monopoly, which had just proven their
perverse nature; established BIG BROTHER GOVERNMENT with its
unmerciful TAX MONOPOLY, introduced SOCIALISM and the LABOR MONOPOLY
and created the WELFARE STATE.
The "New Deal," which pretends that government can perform
many tasks better than Free Enterprise can, was necessary because the
Land Monopoly and the Money Monopoly made it impossible for Labor and
Capital to function at full capacity and provide for the needs of ALL.
These un-natural, socialistic creations violate the God-given
principle of Property Right just as badly as the Land Monopoly and the
Money Monopoly do, but they serve to establish an ARTIFICIAL, though
UNSTABLE ECONOMIC BALANCE, a balance which is continuously upset by
the iniquitous POWERS operating within the system.
In fact, the "New Deal" served to magnify the powers of the
Land Monopoly and the Money Monopoly by forcing the victims of the
monopolies to share their means with each other, to the end that we
may all be alive and able to pay rent and make loans at usurious
interest rates. It goes without saying, that DEAD PEOPLE are of NO USE
to the monopolies.
IN SPITE of the monopolies and the "New Deal" America
proceeded victoriously and emerged from the Second World War stronger
and more prosperous than ever. But we are not so sure about the THIRD
Now the "New Deal" has run its pernicious course and has
served to elevate the Land Monopoly and the Money Monopoly to the
point where the RANSOM we have to pay for the right to exist makes it
IMPOSSIBLE for us to maintain PRODUCTIVE investment and employment. No
matter WHAT the government tries to do, short of establishing Justice,
will only make matters worse.
More and more Americans are now deprived of the chance to become
owners of even a small lot with a house on it. All their income is
spent on RENTS, LIVING EXPENSES, TAXES and INSURANCE. Nothing is left
for the acquisition of either land or capital.
On the other hand, that portion of the population which holds LEGAL
TITLE to land (the Land Monopoly) has an ever growing SURPLUS. This
surplus is further enlarged when LAND VALUE TAXATION is being
DIMINISHED as when California's Proposition 13 was passed in 1978. And
when the INCOME TAX CUTS become effective in 1982, much of the tax
savings will be invested in land, further stimulating the PRICES.
This UNPRODUCTIVE INVESTMENT in land, whether the land is vacant or
developed, diminishes sharply the funds available for PRODUCTIVE
investment. The much needed factories, homes and office buildings etc.
remain unbuilt, and UNEMPLOYMENT gets worse.
If a FEDERAL SALES TAX, the so-called VALUE ADDED TAX (VAT) is
instituted to replace income taxes lost, the brunt of the burden will
be on the CONSUMER, further expanding the GAP between rich and poor.
That's THE END OF THE AMERICAN DREAM!
Perhaps the ugliest but least noticed consequence of the Land
Monopoly is ABSENTEE OWNERSHIP. Places which are abundantly bestowed
with natural resources such as coal, oil, minerals, timber, fertile
land, etc. , are often inhabited mostly by poor people who do not own
much of the land, with poorly financed local governments and schools.
Though they produce enormous amounts of wealth they receive no share
of the bountiful land rent. ABSENTEE OWNERS siphon away the LAND RENT,
while paying only a scant property tax and no income tax to the
community where the land rent is produced.
The astronomical land values of New York City yield too little to the
city government. The income tax on the unearned profits may be paid by
the absentee owners, but not to New York City. The welfare load is
huge, and that most wealthy city is BANKRUPT.
California's Imperial Valley is one of the country's most productive
agricultural areas. Big absentee landowners carry the land rent away,
and poor men do the labor.
Arab Oil Sheiks and Japanese Industrialists buy up large tracts of
land in America. There is nothing to prevent them from carrying off
the fruits of our God-given INHERITANCE, our common property, the land
rent, which we as a community have EARNED.
Higher rents, lack of employment and rising poverty force millions of
-Americans to become dependent on PUBLIC WELFARE. The government
spends billions upon billions of taxpayers' money on aid to the poor
but when the poor families get this extra money, UP GOES THE RENT. For
the rent is determined by what the market will bear. In the end, the
Land Monopoly soaks up all the "welfare" money, and the poor
are no better off. Then, instead of a cry for justice, up goes a cry
for RENT CONTROL. When rent control is in force, no new buildings will
be built unless heavily subsidized by the government, and the existing
apartment buildings will decay for lack of maintenance. Apartment
owners are often hard put because of the high price they have paid and
the high interest rate on mortgage loans.
The taxpayers are SUBSIDIZING the Land Monopoly in many other ways.
Perhaps the most astounding feat of the Land Monopoly is the great
success of REDEVELOPMENT AGENCIES. Private enterprise cannot eradicate
slums and rebuild decaying cities because the low property taxes make
it profitable for landlords to keep the land under-utilized while
waiting for the BIG BIDDER. The Redevelopment Agencies are such big
bidders. There was, for example, a triangular block about one and
one-half acre in size adjacent to the freeway near this town. The
owners were offered a total of $250,000 for it but would not sell.
Then the Redevelopment Agency took action. The block was condemned and
acquired by the RDA for $750,000 and resold to a hotel chain for
$250,000, with a LOSS of half a million dollars, which loss is to be
borne by the taxpayers. The "increment" in property tax
revenues paid by the new hotel over the next forty or fifty years will
pay off the bonds issued. The people got nothing but the land
speculators have already received triple the market price. The value
of the location, enhanced by the freeway, was created by the people in
common, but it went into the wrong pockets.
In fact, all government activities which protect us, improve our
lives and put money into our pockets have a highly stimulating effect
on land prices. Also all activities of the people individually or in
common which are beneficial to the communities serve to increase land
values. SUPPOSE, for instance, that the Christian way of life became
the only way of life, and that crimes, immorality, smoking and
drinking, etc. were to cease. The BENEFICIAL EFFECTS on the community
would be enormous. SAVINGS would increase and the effective DEMAND for
land would increase, driving up the PRICES. The landowners would
become richer still, and the poor would become poorer still as a
result of this VERY DESIRABLE All-American Bliss.