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Sunday, December 23, 2018

Progressive Era

From Wikipedia, the free encyclopedia

The Progressive Era is a period of widespread social activism and political reform across the United States that spanned from the 1890s to the 1920s. The main objectives of the Progressive movement were eliminating problems caused by industrialization, urbanization, immigration, and political corruption
 
The movement primarily targeted political machines and their bosses. By taking down these corrupt representatives in office, a further means of direct democracy would be established. They also sought regulation of monopolies (trust busting) and corporations through antitrust laws, which were seen as a way to promote equal competition for the advantage of legitimate competitors.

Many progressives supported prohibition of alcoholic beverages, ostensibly to destroy the political power of local bosses based in saloons, but others out of a religious motivation. At the same time, women's suffrage was promoted to bring a "purer" female vote into the arena. A third theme was building an Efficiency Movement in every sector that could identify old ways that needed modernizing, and bring to bear scientific, medical and engineering solutions; a key part of the efficiency movement was scientific management, or "Taylorism".

Many activists joined efforts to reform local government, public education, medicine, finance, insurance, industry, railroads, churches, and many other areas. Progressives transformed, professionalized and made "scientific" the social sciences, especially history, economics, and political science. In academic fields the day of the amateur author gave way to the research professor who published in the new scholarly journals and presses. The national political leaders included Republicans Theodore Roosevelt, Robert M. La Follette, Sr., and Charles Evans Hughes and Democrats William Jennings Bryan, Woodrow Wilson and Al Smith. Leaders of the movement also existed far from presidential politics: Jane Addams, Grace Abbott, Edith Abbott and Sophonisba Breckinridge were among the most influential non-governmental Progressive Era reformers.

Initially the movement operated chiefly at local levels; later, it expanded to state and national levels. Progressives drew support from the middle class, and supporters included many lawyers, teachers, physicians, ministers, and business people. Some Progressives strongly supported scientific methods as applied to economics, government, industry, finance, medicine, schooling, theology, education, and even the family. They closely followed advances underway at the time in Western Europe and adopted numerous policies, such as a major transformation of the banking system by creating the Federal Reserve System in 1913 and the arrival of cooperative banking in the US with the founding of the first credit union in 1908. Reformers felt that old-fashioned ways meant waste and inefficiency, and eagerly sought out the "one best system".

Government reform

Disturbed by the waste, inefficiency, stubbornness, corruption, and injustices of the Gilded Age, the Progressives were committed to changing and reforming every aspect of the state, society and economy. Significant changes enacted at the national levels included the imposition of an income tax with the Sixteenth Amendment, direct election of Senators with the Seventeenth Amendment, Prohibition with the Eighteenth Amendment, election reforms to stop corruption and fraud, and women's suffrage through the Nineteenth Amendment to the U.S. Constitution.

The middle class philosophy

Charlotte Perkins Gilman (pictured) wrote these articles about feminism for the Atlanta Constitution, published on December 10, 1916.
 
A hallmark group of the Progressive Era, the middle class became the driving force behind much of the thought and reform that took place in this time. With an increasing disdain for the upper class and aristocracy of the time, the middle class is characterized by their rejection of the individualistic philosophy of the upper ten. They had a rapidly growing interest in the communication and role between classes, those of which are generally referred to as the upper class, working class, farmers, and themselves, and sought to define these terms. Along these lines, the founder off Hull-House, Jane Addams, coined the term "association" as a counter to Individualism, with association referring to the search for a relationship between the classes. Additionally, the middle class (most notably women) began to move away from prior Victorian era domestic values. Divorce rates increased as women preferred to seek education and freedom from the home. Victorianism was pushed aside in favor of the rise of the Progressives.

Muckraking: exposing corruption

Magazines experienced a boost in popularity in 1900, with some attaining circulations in the hundreds of thousands of subscribers. In the beginning of the age of Mass media the rapid expansion of national advertising led to the cover price of popular magazines falling sharply to about 10 cents, lessening the financial barrier to consuming them. Another factor contributing to the dramatic upswing in magazine circulation was the prominent coverage of corruption in politics, local government and big business, especially by journalists and writers who were labeled muckrakers. They wrote for popular magazines to expose social and political sins and shortcomings. Relying on their own investigative journalism; muckrakers often worked to expose social ills and corporate and political corruption. Muckraking magazines, notably McClure's, took on corporate monopolies and crooked political machines while raising public awareness of chronic urban poverty, unsafe working conditions, and social issues like child labor. Most of the muckrakers wrote nonfiction, but fictional exposés often had a major impact as well, such as those by Upton Sinclair. In his 1906 novel The Jungle Sinclair exposed the unsanitary and inhumane practices of the meat packing industry. He quipped, "I aimed at the public's heart and by accident I hit it in the stomach," as readers demanded and got the Pure Food and Drug Act.

The journalists who specialized in exposing waste, corruption, and scandal operated at the state and local level, like Ray Stannard Baker, George Creel, and Brand Whitlock. Others such as Lincoln Steffens exposed political corruption in many large cities; Ida Tarbell is famed for her criticisms of John D. Rockefeller's Standard Oil Company. In 1906, David Graham Phillips unleashed a blistering indictment of corruption in the U.S. Senate. Roosevelt gave these journalists their nickname when he complained they were not being helpful by raking up all the muck.

Modernization

The Progressives were avid modernizers, with a belief in science and technology as the grand solution to society's flaws. They looked to education as the key to bridging the gap between their present wasteful society and technologically enlightened future society. Characteristics of Progressivism included a favorable attitude toward urban-industrial society, belief in mankind's ability to improve the environment and conditions of life, belief in an obligation to intervene in economic and social affairs, a belief in the ability of experts and in the efficiency of government intervention. Scientific management, as promulgated by Frederick Winslow Taylor, became a watchword for industrial efficiency and elimination of waste, with the stopwatch as its symbol.

Women

Across the nation, middle-class women organized on behalf of social reforms during the Progressive Era. Using the language of municipal housekeeping women were able to push such reforms as prohibition, women's suffrage, child-saving, and public health. 

Middle class women formed local clubs, which after 1890 were coordinated by the General Federation of Women's Clubs (GFWC). Historian Paige Meltzer puts the GFWC in the context of the Progressive Movement, arguing that its policies:
built on Progressive-era strategies of municipal housekeeping. During the Progressive era, female activists used traditional constructions of womanhood, which imagined all women as mothers and homemakers, to justify their entrance into community affairs: as "municipal housekeepers," they would clean up politics, cities, and see after the health and well being of their neighbors. Donning the mantle of motherhood, female activists methodically investigated their community's needs and used their "maternal" expertise to lobby, create, and secure a place for themselves in an emerging state welfare bureaucracy, best illustrated perhaps by clubwoman Julia Lathrop's leadership in the Children's Bureau. As part of this tradition of maternal activism, the Progressive-era General Federation supported a range of causes from the pure food and drug administration to public health care for mothers and children, to a ban on child labor, each of which looked to the state to help implement their vision of social justice.

Women's suffrage

"The Awakening": Suffragists were successful in the West; their torch awakens the women struggling in the East and South in this cartoon by Hy Mayer in Puck Feb. 20, 1915.
 
The National American Woman Suffrage Association (NAWSA) was an American women's rights organization formed in May 1890 as a unification of the National Woman Suffrage Association (NWSA) and the American Woman Suffrage Association (AWSA). The NAWSA set up hundreds of smaller local and state groups, with the goal of passing woman suffrage legislation at the state and local level. The NAWSA was the largest and most important suffrage organization in the United States, and was the primary promoter of women's right to vote. Carrie Chapman Catt was the key leader in the early 20th century. Like AWSA and NWSA before it, the NAWSA pushed for a constitutional amendment guaranteeing women's voting rights, and was instrumental in winning the ratification of the Nineteenth Amendment to the United States Constitution in 1920. A breakaway group, the National Woman's Party, tightly controlled by Alice Paul, used civil disobedience to gain publicity and force passage of suffrage. Paul's members chained themselves to the White House fence in order to get arrested, then went on hunger strikes to gain publicity. While the British suffragettes stopped their protests in 1914 and supported the British war effort, Paul began her campaign in 1917 and was widely criticized for ignoring the war and attracting radical anti-war elements.

Philanthropy

The number of rich families climbed exponentially, from 100 or so millionaires in the 1870s, to 4000 in 1892 and 16,000 in 1916. Many subscribed to Andrew Carnegie's credo outlined in The Gospel of Wealth that said they owed a duty to society that called for philanthropic giving to colleges, hospitals, medical research, libraries, museums, religion and social betterment.

In the early 20th century, American philanthropy matured, with the development of very large, highly visible private foundations created by Rockefeller, and Carnegie. The largest foundations fostered modern, efficient, business-oriented operations (as opposed to "charity") designed to better society rather than merely enhance the status of the giver. Close ties were built with the local business community, as in the "community chest" movement. The American Red Cross was reorganized and professionalized. Several major foundations aided the blacks in the South, and were typically advised by Booker T. Washington. By contrast, Europe and Asia had few foundations. This allowed both Carnegie and Rockefeller to operate internationally with powerful effect.

Democracy

President Theodore Roosevelt
President William Howard Taft
President Woodrow Wilson
Theodore Roosevelt (1901–1909; top), William Howard Taft (1909–1913; middle) and Woodrow Wilson (1913–1921; bottom) were the main progressive U.S. Presidents; their administrations saw intense social and political change in American society.
 
Many Progressives sought to enable the citizenry to rule more directly and circumvent machines, bosses and professional politicians. The institution of the initiative and referendums made it possible to pass laws without the involvement of the legislature, while the recall allowed for the removal of corrupt or under-performing officials, and the direct primary let people democratically nominate candidates, avoiding the professionally dominated conventions. Thanks to the efforts of Oregon State Representative William S. U'Ren and his Direct Legislation League, voters in Oregon overwhelmingly approved a ballot measure in 1902 that created the initiative and referendum processes for citizens to directly introduce or approve proposed laws or amendments to the state constitution, making Oregon the first state to adopt such a system. U'Ren also helped in the passage of an amendment in 1908 that gave voters power to recall elected officials, and would go on to establish, at the state level, popular election of U.S. Senators and the first presidential primary in the United States. In 1911, California governor Hiram Johnson established the Oregon System of "Initiative, Referendum, and Recall" in his state, viewing them as good influences for citizen participation against the historic influence of large corporations on state lawmakers. These Progressive reforms were soon replicated in other states, including Idaho, Washington, and Wisconsin, and today roughly half of U.S. states have initiative, referendum and recall provisions in their state constitutions.

About 16 states began using primary elections to reduce the power of bosses and machines. The Seventeenth Amendment was ratified in 1913, requiring that all senators be elected by the people (they were formerly appointed by state legislatures). The main motivation was to reduce the power of political bosses, who controlled the Senate seats by virtue of their control of state legislatures. The result, according to political scientist Henry Jones Ford, was that the United States Senate had become a "Diet of party lords, wielding their power without scruple or restraint, on behalf of those particular interests" that put them in office.

Municipal reform

A coalition of middle-class reform-oriented voters, academic experts, and reformers hostile to the political machines started forming in the 1890s and introduced a series of reforms in urban America, designed to reduce waste, inefficiency and corruption, by introducing scientific methods, compulsory education and administrative innovations. 

The pace was set in Detroit Michigan, where Republican mayor Hazen S. Pingree first put together the reform coalition. Many cities set up municipal reference bureaus to study the budgets and administrative structures of local governments. 

Progressive mayors took the lead in many key cities, such as Cleveland, Ohio (especially Mayor Tom Johnson); Toledo, Ohio; Jersey City, New Jersey; Los Angeles; Memphis, Tennessee; Louisville, Kentucky; and many other cities, especially in the western states. In Illinois, Governor Frank Lowden undertook a major reorganization of state government. In Wisconsin, the stronghold of Robert La Follette Sr., the Wisconsin Idea used the state university as a major source of ideas and expertise.

Rural reform

As late as 1920, half the population lived in rural areas. They experienced their own progressive reforms, typically with the explicit goal of upgrading country life. By 1910 most farmers subscribed to a farm newspaper, where editors promoted efficiency as applied to farming. Special efforts were made to reach the rural South and remote areas, such as the mountains of Appalachia and the Ozarks.

The most urgent need was better transportation. The railroad system was virtually complete; the need was for much better roads. The traditional method of putting the burden on maintaining roads on local landowners was increasingly inadequate. New York State took the lead in 1898, and by 1916 the old system had been discarded in every area. Demands grew for local and state government to take charge. With the coming of the automobile after 1910, urgent efforts were made to upgrade and modernize dirt roads designed for horse-drawn wagon traffic. The American Association for Highway Improvement was organized in 1910. Funding came from automobile registration, and taxes on motor fuels, as well as state aid. In 1916, federal-aid was first made available to improve post-roads, and promote general commerce. Congress appropriated $75 million over a five-year period, with the Secretary of Agriculture in charge through the Bureau of Public Roads, in cooperation with the state highway departments. There were 2.4 million miles of rural dirt rural roads in 1914; 100,000 miles had been improved with grading and gravel, and 3000 miles were given high quality surfacing. The rapidly increasing speed of automobiles, and especially trucks, made maintenance and repair a high priority. Concrete was first used in 1933, and expanded until it became the dominant surfacing material in the 1930s. The South had fewer cars and trucks and much less money, but it worked through highly visible demonstration projects like the "Dixie Highway."

Rural schools were often poorly funded, one room operations. Typically, classes were taught by young local women before they married, with only occasional supervision by county superintendents. The progressive solution was modernization through consolidation, with the result of children attending modern schools. There they would be taught by full-time professional teachers who had graduated from the states' teachers colleges, were certified, and were monitored by the county superintendents. Farmers complained at the expense, and also at the loss of control over local affairs, but in state after state the consolidation process went forward.

Numerous other programs were aimed at rural youth, including 4-H clubs, Boy Scouts and Girl Scouts. County fairs not only gave prizes for the most productive agricultural practices, they also demonstrated those practices to an attentive rural audience. Programs for new mothers included maternity care and training in baby care.

The movement's attempts at introducing urban reforms to rural America often met resistance from traditionalists who saw the country-lifers as aggressive modernizers who were condescending and out of touch with rural life. The traditionalists said many of their reforms were unnecessary and not worth the trouble of implementing. Rural residents also disagreed with the notion that farms needed to improve their efficiency, as they saw this goal as serving urban interests more than rural ones. The social conservatism of many rural residents also led them to resist attempts for change led by outsiders. Most important, the traditionalists did not want to become modern, and did not want their children inculcated with alien modern values through comprehensive schools that were remote from local control. The most successful reforms came from the farmers who pursued agricultural extension, as their proposed changes were consistent with existing modernizing trends toward more efficiency and more profit in agriculture.

Overseas possessions: the Philippines

The Philippines were acquired by the United States in 1899, after victory over Spanish forces at the Battle of Manila Bay and a long series of controversial political debates between the senate and President McKinley and was considered the largest colonial acquisition by the United States at this time.

While anti-imperialist sentiments had been prevalent in the United States during this time, the acquisition of the Philippines sparked the relatively minor population into action. Voicing their opinions in public, they sought to deter American leaders from keeping the Asian-Pacific nation and to avoid the temptations of expansionist tendencies that were widely viewed as "un-American" at that time.

Philippines was a major target for the progressive reformers. A 1907 report to Secretary of War Taft provided a summary of what the American civil administration had achieved. It included, in addition to the rapid building of a public school system based on English teaching, and boasted about such modernizing achievements as:
steel and concrete wharves at the newly renovated Port of Manila; dredging the River Pasig; streamlining of the Insular Government; accurate, intelligible accounting; the construction of a telegraph and cable communications network; the establishment of a postal savings bank; large-scale road-and bridge-building; impartial and incorrupt policing; well-financed civil engineering; the conservation of old Spanish architecture; large public parks; a bidding process for the right to build railways; Corporation law; and a coastal and geological survey.
In 1903 the American reformers in the Philippines passed two major land acts designed to turn landless peasants into owners of their farms. By 1905 the law was clearly a failure. Reformers such as Taft believed landownership would turn unruly agrarians into loyal subjects. The social structure in rural Philippines was highly traditional and highly unequal. Drastic changes in land ownership posed a major challenge to local elites, who would not accept it, nor would their peasant clients. The American reformers blamed peasant resistance to landownership for the law's failure and argued that large plantations and sharecropping was the Philippines' best path to development.

Elite Filipina women played a major role in the reform movement, especially on health issues. They specialized on such urgent needs as infant care and maternal and child health, the distribution of pure milk and teaching new mothers about children's health. The most prominent organizations were the La Protección de la Infancia, and the National Federation of Women's Clubs.

Race relations

Across the South black communities developed their own Progressive reform projects. Typical projects involved upgrading schools, modernizing church operations, expanding business opportunities, fighting for a larger share of state budgets, and engaging in legal action to secure equal rights. Reform projects were especially notable in rural areas, where the great majority of Southern blacks lived.

George Washington Carver (1860-1943) was well known for his research projects, especially involving agriculture. He was also a leader in promoting environmentalism.

Rural blacks were specially involved in environmental issues, in which they developed their own traditions and priorities.

Although there were some achievements that improved conditions for African Americans and other non-white minorities, the Progressive Era was the nadir of American race relations. While white Progressives in principle believed in improving conditions for minority groups, there were wide differences in how this was to be achieved. Some, such as Lillian Wald, fought to alleviate the plight of poor African Americans. Many, though, were concerned with enforcing, not eradicating, racial segregation. In particular, the mixing of black and white pleasure-seekers in "black-and-tan" clubs troubled Progressive reformers. The Progressive ideology espoused by many of the era attempted to correct societal problems created by racial integration following the Civil War by segregating the races and allowing each group to achieve its own potential. That is to say that most Progressives saw racial integration as a problem to be solved, rather than a goal to be achieved. As white progressives sought to help the white working-class, clean-up politics, and improve the cities, the country instated the system of racial segregation known as Jim Crow.

Legal historian Herbert Hovenkamp argues that while many early progressives inherited the racism of Jim Crow, as they begin to innovate their own ideas, they would embrace behaviorism, cultural relativism and marginalism which stress environmental influences on humans rather than biological inheritance. He states that ultimately progressives "were responsible for bringing scientific racism to an end".

Family and food

Colorado judge Ben Lindsey, a pioneer in the establishment of juvenile court systems

Progressives believed that the family was the foundation stone of American society, and the government, especially municipal government, must work to enhance the family. Local public assistance programs were reformed to try to keep families together. Inspired by crusading Judge Ben Lindsey of Denver, cities established juvenile courts to deal with disruptive teenagers without sending them to adult prisons.

During the progressive era more women took work outside the home. For the working class this work was often as a domestic servant.  Yet working or not women were expected to perform all the cooking and cleaning. This "affected female domestics' experiences of their homes, workplaces, and possessions, While the male household members, comforted by the smells of home cooking, fresh laundry, and soaped floors, would have seen home as a refuge from work, women would have associated these same smells with the labor that they expended to maintain order." With increased in technology some of this work became easier. The "introduction of gas, indoor plumbing, electricity and garbage pickup had a significant impact on the homes and the women who were responsible form maintaining them." With the introduction of new methods of heating and lighting the home allowed for use of space once used for storage to become living spaces. Women were targeted by advertisements for many different products once produced at home. These products were anything from mayonnaise, soda, or canned vegetables.

The purity of food, milk and drinking water became a high priority in the cities. At the state and national levels new food and drug laws strengthened urban efforts to guarantee the safety of the food system. The 1906 federal Pure Food and Drug Act, which was pushed by drug companies and providers of medical services, removed from the market patent medicines that had never been scientifically tested.

With the decrease in standard working hours, urban families had more leisure time. Many spent this leisure time at movie theaters. Progressives advocated for censorship of motion pictures as it was believed that patrons (especially children) viewing movies in dark, unclean, potentially unsafe theaters, might be negatively influenced in witnessing actors portraying crimes, violence, and sexually suggestive situations. Progressives across the country influenced municipal governments of large urban cities, to build numerous parks where it was believed that leisure time for children and families could be spent in a healthy, wholesome environment, thereby fostering good morals and citizenship.

Eugenics

Some Progressives sponsored eugenics as a solution to excessively large or underperforming families, hoping that birth control would enable parents to focus their resources on fewer, better children. Progressive leaders like Herbert Croly and Walter Lippmann indicated their classically liberal concern over the danger posed to the individual by the practice of eugenics. The Catholics strongly opposed birth control proposals such as eugenics.

Constitutional change

The Progressives fixed some of their reforms into law by adding amendments 16, 17, 18, and 19 to the US Constitution. The 16th amendment made an income tax legal (this required an amendment due to Article One, Section 9 of the Constitution, which required that direct taxes be laid on the States in proportion to their population as determined by the decennial census). The Progressives also made strides in attempts to reduce political corruption through the 17th amendment (direct election of U.S. Senators). The most radical and controversial amendment came during the anti-German craze of World War I that helped the Progressives and others push through their plan for prohibition through the 18th amendment (once the Progressives fell out of power the 21st amendment repealed the 18th in 1933). The ratification of the 19th amendment in 1920, which recognized women's suffrage was the last amendment during the progressive era. Another significant constitutional change that began during the progressive era was the incorporation of the Bill of Rights so that those rights would apply to the states. In 1920, Benjamin Gitlow was convicted under the Espionage Act of 1917 and the case went all the way to the Supreme Court, where the justices decided that the First Amendment applied to the states as well as the federal government. Prior to that time, the Bill of Rights was considered to apply only to the federal government, not the states.

Prohibition

Prohibition was the outlawing of the manufacture, sale and transport of alcohol. Drinking itself was never prohibited. Throughout the Progressive Era, it remained one of the prominent causes associated with Progressivism at the local, state and national level, though support across the full breadth of Progressives was mixed. It pitted the minority urban Catholic population against the larger rural Protestant element, and Progressivism's rise in the rural communities was aided in part by the general increase in public consciousness of social issues of the temperance movement, which achieved national success with the passage of the 18th Amendment by Congress in late 1917, and the ratification by three-fourths of the states in 1919. Prohibition was essentially a religious movement backed by the Methodists, Baptists, Congregationalists, Scandinavian Lutherans and other evangelical churches. Activists were mobilized by the highly effective Anti-Saloon League. Timberlake (1963) argues the dries sought to break the liquor trust, weaken the saloon base of big-city machines, enhance industrial efficiency, and reduce the level of wife beating, child abuse, and poverty caused by alcoholism. 

Agitation for prohibition began during the Second Great Awakening in the 1840s when crusades against drinking originated from evangelical Protestants. Evangelicals precipitated the second wave of prohibition legislation during the 1880s, which had as its aim local and state prohibition. During the 1880s, referendums were held at the state level to enact prohibition amendments. Two important groups were formed during this period. The Woman's Christian Temperance Union (WCTU) was formed in 1874. The Anti-Saloon League which began in Ohio was formed in 1893, uniting activists from different religious groups. The league, rooted in Protestant churches, envisioned nationwide prohibition. Rather than condemn all drinking, the group focused attention on the saloon which was considered the ultimate symbol of public vice. The league also concentrated on campaigns for the right of individual communities to choose whether to close their saloons. In 1907, Georgia and Alabama were the first states to go dry followed by Oklahoma, Mississippi, North Carolina, and Tennessee in the following years. In 1913, Congress passed the Webb-Kenyon Act, which forbade the transport of liquor into dry states. 

By 1917, two thirds of the states had some form of prohibition laws and roughly three quarters of the population lived in dry areas. In 1913, the Anti-Saloon League first publicly appealed for a prohibition amendment. They preferred a constitutional amendment over a federal statute because although harder to achieve, they felt it would be harder to change. As the United States entered World War I, the Conscription Act banned the sale of liquor near military bases. In August 1917, the Lever Food and Fuel Control Act banned production of distilled spirits for the duration of the war. The War Prohibition Act, November, 1918, forbade the manufacture and sale of intoxicating beverages (more than 2.75% alcohol content) until the end of demobilization. 

The drys worked energetically to secure two-third majority of both houses of Congress and the support of three quarters of the states needed for an amendment to the federal constitution. Thirty-six states were needed, and organizations were set up at all 48 states to seek ratification. In late 1917, Congress passed the Eighteenth Amendment; it was ratified in 1919 and took effect in January 1920. It prohibited the manufacturing, sale or transport of intoxicating beverages within the United States, as well as import and export. The Volstead Act, 1919, defined intoxicating as having alcohol content greater than 0.5% and established the procedures for federal enforcement of the Act. The states were at liberty to enforce prohibition or not, and most did not try.

Consumer demand, however, led to a variety of illegal sources for alcohol, especially illegal distilleries and smuggling from Canada and other countries. It is difficult to determine the level of compliance, and although the media at the time portrayed the law as highly ineffective, even if it did not eradicate the use of alcohol, it certainly decreased alcohol consumption during the period. The Eighteenth Amendment was repealed in 1933, with the passage of the Twenty-First Amendment, thanks to a well-organized repeal campaign led by Catholics (who stressed personal liberty) and businessmen (who stressed the lost tax revenue).

Education

The Progressives sought to reform and modernize schools at the local level. The era was notable for a dramatic expansion in the number of schools and students attending them, especially in the fast-growing metropolitan cities. By 1940, 50% of young adults had earned a high school diploma. The result was the rapid growth of the educated middle class, who typically were the grass roots supporters of Progressive measures. During the Progressive Era, many states began passing compulsory schooling laws. An emphasis on hygiene and health was made in education, with physical and health education becoming more important and widespread.

Women's education in home economics

A new field of study, the art and science of homemaking, emerged in the Progressive Era in an effort to feminize women's education in the United States. Alternatively called home arts, or home economics, the major curriculum reform in women's education was influenced by the publication of Treatise on Domestic Economy, written by Catherine Beecher in 1843. Advocates of home economics argued that homemaking, as a profession, required education and training for the development of an efficient and systematic domestic practice. The curriculum aimed to cover a variety of topics, including teaching standardized way of gardening, child-rearing, cooking, cleaning, performing household maintenance, and doctoring. Such scientific management applied to the domestic sphere was presented as a solution to the dilemma middle class women faced in terms of searching for meaning and fulfillment in their role of housekeeping. The feminist perspective, by pushing for this type of education, intended to explain that women had separate but equally important responsibilities in life with men that required proper training.

Children and education

There was a concern towards working-class children being taken out of school to be put straight to work. Progressives around the country put up campaigns to push for an improvement in public education and to make education mandatory. It was further pushed in the South, where education was very much behind compared to the rest of the country. The Southern Education Board came together to publicize the importance of reform. However, many rejected the reform. Farmers and workers relied heavily on their eldest children, their first born, to work and help the family's income. Immigrants were not for reform either, fearing that such a thing would Americanize their children. Despite those fighting against reform, there was a positive outcome to the fight for reform. Enrollment for children (age 5 to 19) in school rose from 50.5 percent to 59.2 between 1900 and 1909. Enrollment in public secondary school went from 519,000 to 841,000. School funds and the term of public schools also grew.

Medicine and law

The Flexner Report of 1910, sponsored by the Carnegie Foundation, professionalized American medicine by discarding the scores of local small medical schools and focusing national funds, resources, and prestige on larger, professionalized medical schools associated with universities. Prominent leaders included the Mayo Brothers whose Mayo Clinic in Rochester, Minnesota, became world-famous for innovative surgery.

In the legal profession, the American Bar Association set up in 1900 the Association of American Law Schools (AALS). It established national standards for law schools, which led to the replacement of the old system of young men studying law privately with established lawyers by the new system of accredited law schools associated with universities.

Social sciences

Progressive scholars, based at the emerging research universities such as Harvard, Columbia, Johns Hopkins, Chicago, Michigan, Wisconsin and California, worked to modernize their disciplines. The heyday of the amateur expert gave way to the research professor who published in the new scholarly journals and presses. Their explicit goal was to professionalize and make "scientific" the social sciences, especially history, economics, and political science. Professionalization meant creating new career tracks in the universities, with hiring and promotion dependent on meeting international models of scholarship.

Economic policy

President Wilson used tariff, currency, and anti-trust laws to prime the pump and get the economy working.

The Progressive Era was one of general prosperity after the Panic of 1893—a severe depression—ended in 1897. The Panic of 1907 was short and mostly affected financiers. However, Campbell (2005) stresses the weak points of the economy in 1907–1914, linking them to public demands for more Progressive interventions. The Panic of 1907 was followed by a small decline in real wages and increased unemployment, with both trends continuing until World War I. Campbell emphasizes the resulting stress on public finance and the impact on the Wilson administration's policies. The weakened economy and persistent federal deficits led to changes in fiscal policy, including the imposition of federal income taxes on businesses and individuals and the creation of the Federal Reserve System. Government agencies were also transformed in an effort to improve administrative efficiency.

In the Gilded Age (late 19th century) the parties were reluctant to involve the federal government too heavily in the private sector, except in the area of railroads and tariffs. In general, they accepted the concept of laissez-faire, a doctrine opposing government interference in the economy except to maintain law and order. This attitude started to change during the depression of the 1890s when small business, farm, and labor movements began asking the government to intercede on their behalf.

By the start of the 20th century, a middle class had developed that was leery of both the business elite and the radical political movements of farmers and laborers in the Midwest and West. The Progressives argued the need for government regulation of business practices to ensure competition and free enterprise. Congress enacted a law regulating railroads in 1887 (the Interstate Commerce Act), and one preventing large firms from controlling a single industry in 1890 (the Sherman Antitrust Act). These laws were not rigorously enforced, however, until the years between 1900 and 1920, when Republican President Theodore Roosevelt (1901–1909), Democratic President Woodrow Wilson (1913–1921), and others sympathetic to the views of the Progressives came to power. Many of today's U.S. regulatory agencies were created during these years, including the Interstate Commerce Commission and the Federal Trade Commission. Muckrakers were journalists who encouraged readers to demand more regulation of business. Upton Sinclair's The Jungle (1906) was influential and persuaded America about the supposed horrors of the Chicago Union Stock Yards, a giant complex of meat processing plants that developed in the 1870s. The federal government responded to Sinclair's book and The Neill-Reynolds Report with the new regulatory Food and Drug Administration. Ida M. Tarbell wrote a series of articles against Standard Oil, which was perceived to be a monopoly. This affected both the government and the public reformers. Attacks by Tarbell and others helped pave the way for public acceptance of the breakup of the company by the Supreme Court in 1911.

When Democrat Woodrow Wilson was elected President with a Democratic Congress in 1912 he implemented a series of Progressive policies in economics. In 1913, the Sixteenth Amendment was ratified, and a small income tax was imposed on higher incomes. The Democrats lowered tariffs with the Underwood Tariff in 1913, though its effects were overwhelmed by the changes in trade caused by the World War that broke out in 1914. Wilson proved especially effective in mobilizing public opinion behind tariff changes by denouncing corporate lobbyists, addressing Congress in person in highly dramatic fashion, and staging an elaborate ceremony when he signed the bill into law. Wilson helped end the long battles over the trusts with the Clayton Antitrust Act of 1914. He managed to convince lawmakers on the issues of money and banking by the creation in 1913 of the Federal Reserve System, a complex business-government partnership that to this day dominates the financial world.

In 1913, Henry Ford dramatically increased the efficiency of his factories by large-scale use of the moving assembly line, with each worker doing one simple task in the production of automobiles. Emphasizing efficiency, Ford more than doubled wages (and cut hours from 9 a day to 8), attracting the best workers and sharply reducing labor turnover and absenteeism. His employees could and did buy his cars, and by cutting prices over and over he made the Model T cheap enough for millions of people to buy in the U.S. and in every major country. Ford's profits soared and his company dominated the world's automobile industry. Henry Ford became the world-famous prophet of high wages and high profits.

Labor unions

Labor unions, especially the American Federation of Labor (AFL), grew rapidly in the early 20th century, and had a Progressive agenda as well. After experimenting in the early 20th century with cooperation with business in the National Civic Federation, the AFL turned after 1906 to a working political alliance with the Democratic party. The alliance was especially important in the larger industrial cities. The unions wanted restrictions on judges who intervened in labor disputes, usually on the side of the employer. They finally achieved that goal with the Norris–La Guardia Act of 1932.

By the turn of the century, more and more small businesses were getting fed up with the way that they were treated compared to the bigger businesses. It seemed that the "Upper Ten" were turning a blind-eye to the smaller businesses, cutting corners where ever they could to make more profit. The big businesses would soon find out that the smaller businesses were starting to gain ground over them, so they became unsettled as described; "Constant pressure from the public, labor organizations, small business interests, and federal and state governments forced the corporate giants to engage in a balancing act." Now that all of these new regulations and standards were being enacted, the big business would now have to stoop to everyones level, including the small businesses. The big businesses would soon find out that in order to succeed they would have to band together with the smaller businesses to be successful, kind of a "Yin and Yang" effect.

Immigration

The influx of immigration grew steadily after 1896, with most new arrivals being unskilled workers from eastern and southern Europe. These immigrants were able to find work in the steel mills, slaughterhouses, and construction crews of the emergent mill towns and industrial cities of the late 19th century. The outbreak of World War I in 1914 halted most transcontinental immigration, only after 1919 did the flow of immigrants resume. Starting in the 1880s, the labor unions aggressively promoted restrictions on immigration, especially restrictions on Chinese, Japanese and Korean immigrants. In combination with the racist attitudes of the time, there was a fear that large numbers of unskilled, low-paid workers would defeat the union's efforts to raise wages through collective bargaining. In addition, rural Protestants distrusted the urban Catholics and Jews who comprised most of the immigrants after 1890, and on those grounds opposed immigration. On the other hand, the rapid growth of the industry called for a greater and expanding labour pool that could not be met by natural birth rates. As a result, many large corporations were opposed to immigration restrictions. By the early 1920s a consensus had been reached that the total influx of immigration had to be restricted, and a series of laws in the 1920s accomplished that purpose. A handful of eugenics advocates were also involved in immigration restriction for their own pseudo-scientific reasons. Immigration restriction continued to be a national policy until after World War II. 

During World War I, the Progressives strongly promoted Americanization programs, designed to modernize the recent immigrants and turn them into model American citizens, while diminishing loyalties to the old country. These programs often operated through the public school system, which expanded dramatically.

Foreign policy

Foreign policy in the progressive era was often marked by a hint of moral supremacy, with assessments of Woodrow Wilson and William Jennings Bryan believing themselves to be 'Missionaries of Democracy' being accurate, with them believing that they were "Inspired by the confidence that they knew better how to promote the peace and well-being of other countries than did the leaders of those countries themselves." Similar ideas and language had already been used previously in the Monroe Doctrine, wherein Roosevelt claimed that the United States could serve as the police of the world, using its power to end unrest and wrongdoing on the western hemisphere. Using this moralistic approach, Roosevelt argued for intervention with Cuba to help it to become a "just and stable civilization", by way of the Platt amendment. Wilson used a similar moralistic tone when dealing with Mexico. In 1913, while revolutionaries took control of the government, Wilson judged them to be immoral, and refused to acknowledge the in-place government on that reason alone.

War

Although the Progressive Era was characterized by public support for World War I under Woodrow Wilson, there was also a substantial opposition to World War I.

Decline

In the 1940s typically historians saw the Progressive Era as a prelude to the New Deal and dated it from 1901 (when Roosevelt became president) to the start of World War I in 1914 or 1917. Historians have moved back in time emphasizing the Progressive reformers at the municipal and state levels in the 1890s.

End of the Era

Much less settled is the question of when the era ended. Some historians who emphasize civil liberties decry their suppression during World War I and do not consider the war as rooted in Progressive policy. A strong anti-war movement headed by noted Progressives including Jane Addams, was suppressed after Wilson's 1916 re-election, a victory largely enabled by his campaign slogan, "He kept us out of the war." The slogan was no longer accurate by April 6 of the following year, when Wilson surprised much of the Progressive base that twice elected him and asked a joint session of Congress to declare war on Germany. The Senate voted 82–6 in favor; the House agreed, 373–50. Some historians see the so-called "war to end all wars" as a globalized expression of the American Progressive movement, with Wilson's support for a League of Nations as its climax.

The politics of the 1920s was unfriendly toward the labor unions and liberal crusaders against business, so many if not most historians who emphasize those themes write off the decade. Urban cosmopolitan scholars recoiled at the moralism of prohibition, the intolerance of the nativists and the KKK, and on those grounds denounced the era. Richard Hofstadter, for example, in 1955 wrote that prohibition, "was a pseudo-reform, a pinched, parochial substitute for reform" that "was carried about America by the rural-evangelical virus". However, as Arthur S. Link emphasized, the Progressives did not simply roll over and play dead. Link's argument for continuity through the twenties stimulated a historiography that found Progressivism to be a potent force. Palmer, pointing to leaders like George Norris, says, "It is worth noting that progressivism, whilst temporarily losing the political initiative, remained popular in many western states and made its presence felt in Washington during both the Harding and Coolidge presidencies." Gerster and Cords argue that, "Since progressivism was a 'spirit' or an 'enthusiasm' rather than an easily definable force with common goals, it seems more accurate to argue that it produced a climate for reform which lasted well into the 1920s, if not beyond." Some social historians have posited that the KKK may in fact fit into the Progressive agenda, if Klansmen are portrayed as "ordinary white Protestants" primarily interested in purification of the system, which had long been a core Progressive goal. This however ignores the violence and racism central to Klan ideology and activities, that had nothing to do with improving society, so much as enforcing racial hierarchies. 

While some Progressive leaders became reactionaries, that usually happened in the 1930s, not in the 1920s, as exemplified by William Randolph Hearst, Herbert Hoover, Al Smith and Henry Ford.

First Red Scare

Following the period rapid social change saw a worker's uprising turn to a full scale revolution in Russia in 1917 taken over by Bolsheviks along anarchist bombings of 1919 by foreigners encroached a large fear over many citizens of a possible Bolshevism revolt to overthrow values which the United States holds up to mainly capitalism. It saw persecutions of many ideals of the progressive era seeing raids, arrests, and persecutions taken place. Such as the period saw supporters such as worker unions, socialist, and others faced similar prosecutions. Along these convicted were foreigners, African Americans, Jews, Catholics, etc. The US government was also affected both legally and internally as of January 1920 saw 6,000 arrests of persecutions along changes in government policies where the government in acted censorship in the media and suppressing opinion on the matter going as far to use physical assaults or legal arrests having certain civil liberties stripped.

Business progressivism in 1920s

What historians have identified as "business progressivism", with its emphasis on efficiency and typified by Henry Ford and Herbert Hoover reached an apogee in the 1920s. Wik, for example, argues that Ford's "views on technology and the mechanization of rural America were generally enlightened, progressive, and often far ahead of his times."

Tindall stresses the continuing importance of the Progressive movement in the South in the 1920s involving increased democracy, efficient government, corporate regulation, social justice, and governmental public service. William Link finds political Progressivism dominant in most of the South in the 1920s. Likewise it was influential in the Midwest.

Historians of women and of youth emphasize the strength of the Progressive impulse in the 1920s. Women consolidated their gains after the success of the suffrage movement, and moved into causes such as world peace, good government, maternal care (the Sheppard–Towner Act of 1921), and local support for education and public health. The work was not nearly as dramatic as the suffrage crusade, but women voted and operated quietly and effectively. Paul Fass, speaking of youth, says "Progressivism as an angle of vision, as an optimistic approach to social problems, was very much alive." International influences that sparked many reform ideas likewise continued into the 1920s, as American ideas of modernity began to influence Europe.

By 1930 a block of progressive Republicans in the Senate who were urging Hoover to take more vigorous action to fight the depression. There were about a dozen members of this group, including William Borah of Idaho, George W. Norris of Nebraska, Robert M. La Follette Jr., of Wisconsin, Gerald Nye of North Dakota, Hiram Johnson of California and Bronson M. Cutting of New Mexico. While these western Republicans could stir up issues, they could rarely forge a majority, since they were too individualistic and did not form a unified caucus. Hoover himself had sharply moved to the right, and paid little attention to their liberal ideas. By 1932 this group was moving toward support for Roosevelt's New Deal. They remain staunch isolationists deeply opposed to any involvement in Europe. Outside the Senate, however, a strong majority of the surviving Progressives from the 1910s had become conservative opponents of New Deal economic planning.

Georgism

From Wikipedia, the free encyclopedia
Georgist Single Tax poster published in "The Public" a Chicago newspaper (circa 1910-1914)
 
Georgist campaign button from the 1890s. The cat on the badge refers to a slogan "Do you see the cat?" to draw analogy to the land question
 
Georgism, also called geoism and single tax (archaic), is an economic philosophy holding that, while people should own the value they produce themselves, economic value derived from land (often including natural resources and natural opportunities) should belong equally to all members of society. Developed from the writings of the economist and social reformer Henry George, the Georgist paradigm seeks solutions to social and ecological problems, based on principles of land rights and public finance which attempt to integrate economic efficiency with social justice.

Georgism is concerned with the distribution of economic rent caused by natural monopolies, pollution, and the control of commons, including title of ownership for natural resources and other contrived privileges (e.g., intellectual property). Any natural resource which is inherently limited in supply can generate economic rent, but the classical and most significant example of 'land monopoly' involves the extraction of common ground rent from valuable urban locations. Georgists argue that taxing economic rent is efficient, fair, and equitable. The main Georgist policy recommendation is a tax assessed on land value. Georgists argue that revenues from a land value tax (LVT) can be used to reduce or eliminate existing taxes (for example, on income, trade, or purchases) that are unfair and inefficient. Some Georgists also advocate for the return of surplus public revenue back to the people by means of a basic income or citizen's dividend.

Economists since Adam Smith and David Ricardo have observed that, unlike other taxes, a public levy on land value does not cause economic inefficiency. A land value tax also has progressive tax effects, in that it is paid primarily by the wealthy (the landowners), and it cannot be passed on to tenants, workers, or users of land. Advocates of land value taxes argue that it would reduce economic inequality, increase economic efficiency, remove incentives to under-utilize urban land, and reduce property speculation. The philosophical basis of Georgism dates back to several early thinkers such as John Locke, Baruch Spinoza, and Thomas Paine, but the concept of gaining public revenues mainly from land and natural resource privileges was widely popularized by Henry George and his first book, Progress and Poverty (1879).

Georgist ideas were popular and influential during the late 19th and early 20th century. Political parties, institutions and communities were founded based on Georgist principles during that time. Early devotees of Henry George's economic philosophy were often termed Single Taxers for their political goal of raising public revenue mainly from a land value tax, although Georgists endorsed multiple forms of rent capture (e.g., seigniorage) as legitimate. The term Georgism was invented later, and some prefer the term geoism to distinguish their beliefs from those of Henry George.

Main tenets

A supply and demand diagram showing the effects of land value taxation. Note that the burden of the tax is entirely on the land owner, the rental price of land does not change, and there is no deadweight loss.

Henry George is best known for popularizing the argument that government should be funded by a tax on land rent rather than taxes on labor. George believed that although scientific experiments could not be performed in political economy, theories could be tested by comparing different societies with different conditions and by thought experiments about the effects of various factors. Applying this method, he concluded that many of the problems that beset society, such as poverty, inequality, and economic booms and busts, could be attributed to the private ownership of the necessary resource, land. In his most celebrated book, Progress and Poverty, George argues that the appropriation of land for private use contributes to persistent poverty in spite of technological progress, and causes economies to exhibit a tendency toward boom and bust cycles. According to George, people justly own what they create, but that natural opportunities and land belong equally to all.
The tax upon land values is, therefore, the most just and equal of all taxes. It falls only upon those who receive from society a peculiar and valuable benefit, and upon them in proportion to the benefit they receive. It is the taking by the community, for the use of the community, of that value which is the creation of the community. It is the application of the common property to common uses. When all rent is taken by taxation for the needs of the community, then will the equality ordained by Nature be attained. No citizen will have an advantage over any other citizen save as is given by his industry, skill, and intelligence; and each will obtain what he fairly earns. Then, but not till then, will labor get its full reward, and capital its natural return.
— Henry George, Progress and Poverty, Book VIII, Chapter 3
George believed there was an important distinction between common and collective property. Although equal rights to land might be achieved by nationalizing land and then leasing it to private users, George preferred taxing unimproved land value and leaving the control of land mostly in private hands. George's reasoning for leaving land in private control and slowly shifting to land value tax was that it would not penalize existing owners who had improved land and would also be less disruptive and controversial in a country where land titles have already been granted.

Georgists have observed that privately created wealth is socialized via the tax system (e.g., through income and sales tax), while socially created wealth in land values are privatized in the price of land titles and bank mortgages. The opposite would be the case if land rents replaced taxes on labor as the main source of public revenue; socially created wealth would become available for use by the community, while the fruits of labor would remain private. According to Georgists, a land value tax can be considered a user fee instead of a tax, since it is related to the market value of socially created locational advantage, the privilege to exclude others from locations. Assets consisting of commodified privilege can be considered as wealth since they have exchange value, similar to taxi medallions. A land value tax, charging fees for exclusive use of land, as a means of raising public revenue is also a progressive tax tending to reduce economic inequality, since it applies entirely to ownership of valuable land, which is correlated with income, and there is generally no means by which landlords can shift the tax burden onto tenants or laborers.

Economic properties

Standard economic theory suggests that a land value tax would be extremely efficient – unlike other taxes, it does not reduce economic productivity. Milton Friedman described Henry George's tax on unimproved value of land as the "least bad tax", since unlike other taxes, it would not impose an excess burden on economic activity (leading to zero or even negative "deadweight loss"); hence, a replacement of other more distortionary taxes with a land value tax would improve economic welfare. As land value tax can improve the use of land and redirect investment toward productive, non-rentseeking activities, it could even have a negative deadweight loss that boosts productivity. Because land value tax would apply to foreign land speculators, the Australian Treasury estimated that land value tax was unique in having a negative marginal excess burden, meaning that it would increase long-run living standards.

It was Adam Smith who first noted the efficiency and distributional properties of a land value tax in his book, The Wealth of Nations:
Ground-rents are a still more proper subject of taxation than the rent of houses. A tax upon ground-rents would not raise the rents of houses. It would fall altogether upon the owner of the ground-rent, who acts always as a monopolist, and exacts the greatest rent which can be got for the use of his ground. More or less can be got for it according as the competitors happen to be richer or poorer, or can afford to gratify their fancy for a particular spot of ground at a greater or smaller expense. In every country the greatest number of rich competitors is in the capital, and it is there accordingly that the highest ground-rents are always to be found. As the wealth of those competitors would in no respect be increased by a tax upon ground-rents, they would not probably be disposed to pay more for the use of the ground. Whether the tax was to be advanced by the inhabitant, or by the owner of the ground, would be of little importance. The more the inhabitant was obliged to pay for the tax, the less he would incline to pay for the ground; so that the final payment of the tax would fall altogether upon the owner of the ground-rent.
Both ground-rents and the ordinary rent of land are a species of revenue which the owner, in many cases, enjoys without any care or attention of his own. Though a part of this revenue should be taken from him in order to defray the expenses of the state, no discouragement will thereby be given to any sort of industry. The annual produce of the land and labour of the society, the real wealth and revenue of the great body of the people, might be the same after such a tax as before. Ground-rents and the ordinary rent of land are, therefore, perhaps, the species of revenue which can best bear to have a peculiar tax imposed upon them. ... Nothing can be more reasonable than that a fund which owes its existence to the good government of the state should be taxed peculiarly, or should contribute something more than the greater part of other funds, towards the support of that government.
Benjamin Franklin and Winston Churchill made similar distributional and efficient arguments for taxing land rents. They noted that the costs of taxes and the benefits of public spending always eventually apply to and enrich, respectively, the owners of land. Therefore, they believed it would be best to defray public costs and recapture value of public spending by applying public charges directly to owners of land titles, rather than harming public welfare with taxes assessed against beneficial activities such as trade and labor.

Henry George wrote that his plan for a high land value tax would cause people "to contribute to the public, not in proportion to what they produce ... but in proportion to the value of natural [common] opportunities that they hold [monopolize]". He went on to explain that "by taking for public use that value which attaches to land by reason of the growth and improvement of the community", it would, "make the holding of land unprofitable to the mere owner, and profitable only to the user". 

A high land value tax would discourage speculators from holding valuable natural opportunities (like urban real estate) unused or only partially used. Henry George claimed this would have many benefits, including the reduction or elimination of tax burdens from poorer neighborhoods and agricultural districts; the elimination of a multiplicity of taxes and expensive obsolete government institutions; the elimination of corruption, fraud, and evasion with respect to the collection of taxes; the enablement of true free trade; the destruction of monopolies; the elevation of wages to the full value of labor; the transformation of labor saving inventions into blessings for all; and the equitable distribution of comfort, leisure, and other advantages that are made possible by an advancing civilization. In this way, the vulnerability that market economies have to credit bubbles and property manias would be reduced.

Sources of economic rent and related policy interventions

Income flow resulting from payments for restricted access to natural opportunities or for contrived privileges over geographic regions is termed economic rent. Georgists argue that economic rent of land, legal privileges, and natural monopolies should accrue to the community, rather than private owners. In economics, "land" is everything that exists in nature independent of human activity. George explicitly included climate, soil, waterways, mineral deposits, laws/forces of nature, public ways, forests, oceans, air, and solar energy in the category of land. While the philosophy of Georgism does not say anything definitive about specific policy interventions needed to address problems posed by various sources of economic rent, the common goal among modern Georgists is to capture and share (or reduce) rent from all sources of natural monopoly and legal privilege.
 
Henry George shared the goal of modern Georgists to socialize or dismantle rent from all forms of land monopoly and legal privilege. However, George emphasized mainly his preferred policy known as land value tax, which targeted a particular form of unearned income known as ground rent. George emphasized ground-rent because basic locations were more valuable than other monopolies and everybody needed locations to survive, which he contrasted with the less significant streetcar and telegraph monopolies, which George also criticized. George likened the problem to a laborer traveling home who is waylaid by a series of highway robbers along the way, each who demand a small portion of the traveler's wages, and finally at the very end of the road waits a robber who demands all that the traveler has left. George reasoned that it made little difference to challenge the series of small robbers when the final robber remained to demand all that the common laborer had left. George predicted that over time technological advancements would increase the frequency and importance of lesser monopolies, yet he expected that ground rent would remain dominant. George even predicted that ground-rents would rise faster than wages and income to capital, a prediction that modern analysis has shown to be plausible, since the supply of land is fixed.

Common ground rent is still the primary emphasis of Georgists because of its large value and the known diseconomies of misused land. However, there are other sources of rent that are theoretically analogous to ground-rent and are debated topics of Georgists. The following are some sources of economic rent.
  • Extractable resources (minerals and hydrocarbons)
  • Severables (forests and stocks of fish)
  • Extraterrestrial domains (geosynchronous orbits and airway corridor use)
  • Legal privileges that apply to specific location (taxi medallions, billboard and development permits, or the monopoly of electromagnetic frequencies)
  • Restrictions/taxes of pollution or severance (tradable emission permits and fishing quotas)
  • Right-of-way (transportation) used by railroads, utilities, and internet service providers
  • Issuance of legal tender
  • Privileges that are less location dependent but that still exclude others from natural opportunities (patents)
Where free competition is impossible, such as telegraphs, water, gas, and transportation, George wrote, "[S]uch business becomes a proper social function, which should be controlled and managed by and for the whole people concerned." Georgists were divided by this question of natural monopolies and often favored public ownership only of the rents from common rights-of-way, rather than public ownership of utility companies themselves.

Georgism and environmental economics

The early conservationism of the Progressive Era was inspired partly by Henry George and his influence extended for decades afterward. Some ecological economists still support the Georgist policy of land value tax as a means of freeing or rewilding unused land and conserving nature by reducing urban sprawl.

Pollution degrades the value of what Georgists consider to be commons. Because pollution is a negative contribution, a taking from the commons or a cost imposed on others, its value is economic rent, even when the polluter is not receiving an explicit income. Therefore, to the extent that society determines pollution to be harmful, most Georgists propose to limit pollution with taxation or quotas that capture the resulting rents for public use, restoration, or a citizen's dividend.

Georgism is related to the school of ecological economics, since both propose market based restrictions for pollution. The schools are compatible in that they advocate using similar tools as part of a conservation strategy, but they emphasize different aspects. Conservation is the central issue of ecology, whereas economic rent is the central issue of geoism. Ecological economists might price pollution fines more conservatively to prevent inherently unquantifiable damage to the environment, whereas Georgists might emphasize mediation between conflicting interests and human rights. Geolibertarianism, a market oriented branch of geoism, tends to take a direct stance against what it perceives as burdensome regulation and would like to see auctioned pollution quotas or taxes replace most command and control regulation.

Since ecologists are primarily concerned with conservation, they tend to emphasize less the issue of equitably distributing scarcity/pollution rents, whereas Georgists insist that unearned income not accrue to those who hold title to natural assets and pollution privilege. To the extent that geoists recognize the effect of pollution or share conservationist values, they will agree with ecological economists about the need to limit pollution, but geoists will also insist that pollution rents generated from those conservation efforts do not accrue to polluters and are instead used for public purposes or to compensate those who suffer the negative effects of pollution. Ecological economists advocate similar pollution restrictions but, emphasizing conservation first, might be willing to grant private polluters the privilege to capture pollution rents. To the extent that ecological economists share the geoist view of social justice, they would advocate auctioning pollution quotas instead of giving them away for free. This distinction can be seen in the difference between basic cap and trade and the geoist variation, cap and share, a proposal to auction temporary pollution permits, with rents going to the public, instead of giving pollution privilege away for free to existing polluters or selling perpetual permits.

Revenue uses

The revenue can allow the reduction or elimination of taxes, greater public investment/spending, or the direct distribution of funds to citizens as a pension or basic income/citizen's dividend.

In practice, the elimination of all other taxes implies a very great land value tax, greater than any currently existing land tax. Introducing a land value tax greater than the value of existing taxes would, at an uncertain point, inevitably cause the price of all land titles to decrease. George did not believe landowners should be compensated, and described the issue as being analogous to compensation for former slave owners. Other geoists disagree on the question of compensation; some advocate complete compensation while others endorse only enough compensation required to achieve Georgist reforms. Geoists have also long differed from George as to the degree of rent capture needed. Historically, those who advocated for public rent tax only great enough to replace other taxes were known as endorsers of single tax limited.

Synonyms and variants

Most early advocacy groups described themselves as Single Taxers, and George reluctantly accepted "single tax" as an accurate name for his main political goal—the repeal of all unjust or inefficient taxes, to be replaced with a land value tax (LVT).

Some modern proponents are dissatisfied with the name Georgist. While Henry George was well known throughout his life, he has been largely forgotten by the public and the idea of a single tax of land predates him. Some now prefer the term geoism, with the meaning of geo (from Greek γῆ "earth, land", as incidentally is in Greek the first compound of the name George (whence Georgism) < (Gr.) Geōrgios < geōrgos "farmer" or geōrgia "agriculture, farming" < + ergon "work") deliberately ambiguous. The terms Earth Sharing, geonomics, and geolibertarianism (see Libertarianism) are also used by some Georgists. These terms represent a difference of emphasis, and sometimes real differences about how land rent should be spent (citizen's dividend or just replacing other taxes); but all agree that land rent should be recovered from its private recipients.

Compulsory fines and fees related to land rents are the most common Georgist policies, but some geoists prefer voluntary value capture systems that rely on methods such as non-compulsory or self-assessed location value fees, community land trusts, and purchasing land value covenants.

Some geoists believe that partially compensating landowners is a politically expedient compromise necessary for achieving reform. For similar reasons, others propose capturing only future land value increases, instead of all land rent.

Though Georgism has historically been considered as a radically progressive or socialist ideology, some libertarians and minarchists take the position that limited social spending should be financed using Georgist concepts of rent value capture, but that not all land rent should be captured. Today, this relatively conservative adaptation is usually considered incompatible with true geolibertarianism, which requires that excess rents be gathered and then distributed back to residents. During Henry George's time, this restrained Georgist philosophy was known as "single tax limited", as opposed to "single tax unlimited". Henry George disagreed with the limited interpretation but accepted its adherents (e.g., Thomas Shearman) as legitimate "single-taxers" [Georgists].

Influence

Henry George, whose writings and advocacy form the basis for Georgism.

Georgist ideas heavily influenced the politics of the early 20th century. Political parties that were formed based on Georgist ideas include the United States Commonwealth Land Party, the Henry George Justice Party, the Single Tax League, and Denmark's Justice Party

In the UK during 1909, the Liberal Government included a land tax as part of several taxes in the People's Budget intended to redistribute wealth (including a progressively graded income tax and an increase of inheritance tax). This caused a crisis which resulted indirectly in reform of the House of Lords. The budget was passed eventually—but without the land tax. In 1931, the minority Labour Government passed a land value tax as part III of the 1931 Finance act. However, this was repealed in 1934 by the National Government before it could be implemented. 

In Denmark, the Georgist Justice Party has previously been represented in Folketinget. It formed part of a centre-left government 1957–60 and was also represented in the European Parliament 1978–79. The influence of Henry George has waned over time, but Georgist ideas still occasionally emerge in politics. In the United States 2004 Presidential campaign, Ralph Nader mentioned Henry George in his policy statements.

Economists still generally favor a land value tax. Milton Friedman publicly endorsed the Georgist land value tax as the "least bad tax". Joseph Stiglitz stated that: "Not only was Henry George correct that a tax on land is non-distortionary, but in an equilibrium society … tax on land raises just enough revenue to finance the (optimally chosen) level of government expenditure." He dubbed this proposition the Henry George theorem.

Communities

Several communities were also initiated with Georgist principles during the height of the philosophy's popularity. Two such communities that still exist are Arden, Delaware, which was founded in 1900 by Frank Stephens and Will Price, and Fairhope, Alabama, which was founded in 1894 by the auspices of the Fairhope Single Tax Corporation. Some established communities in the United States also adopted Georgist tax policies. A Georgist in Houston, Texas, Joseph Jay "J.J." Pastoriza, promoted a Georgist club in that city established in 1890. Years later, in his capacity as a city alderman, he was selected to serve as Houston Tax Commissioner, and promulgated a "Houston Plan of Taxation" in 1912. Improvements to land and merchants' inventories were taxed at 25 percent of appraised value, unimproved land was taxed at 70 percent of appraisal, and personal property was exempt. This Georgist tax continued until 1915, when two courts struck it down as violating the Texas Constitution in 1915. This quashed efforts in several other Texas cities which took steps towards implementing the Houston Plan in 1915: Beaumont, Corpus Christi, Galveston, San Antonio, and Waco.

The German protectorate of the Kiautschou Bay concession in Jiaozhou Bay, China fully implemented Georgist policy. Its sole source of government revenue was the land value tax of six percent which it levied in its territory. The German government had previously had economic problems with its African colonies caused by land speculation. One of the main reasons for using the land value tax in Jiaozhou Bay was to eliminate such speculation, which the policy achieved. The colony existed as a German protectorate from 1898 until 1914, when seized by Japanese and British troops. In 1922 the territory was returned to China. 

Henry George School of Social Science in New York

Georgist ideas were also adopted to some degree in Australia, Hong Kong, Singapore, South Africa, South Korea, and Taiwan. In these countries, governments still levy some type of land value tax, albeit with exemptions. Many municipal governments of the US depend on real property tax as their main source of revenue, although such taxes are not Georgist as they generally include the value of buildings and other improvements. One exception is the town of Altoona, Pennsylvania, which for a time in the 21st century only taxed land value, phasing in the tax in 2002, relying on it entirely for tax revenue from 2011, and ending it 2017; the Financial Times noted that "Altoona is using LVT in a city where neither land nor buildings have much value".

Institutes and organizations

Various organizations still exist that continue to promote the ideas of Henry George. According to The American Journal of Economics and Sociology, the periodical Land&Liberty, established in 1894, is "the longest-lived Georgist project in history". Founded during the Great Depression in 1932, the Henry George School of Social Science in New York offers courses, sponsors seminars, and publishes research in the Georgist paradigm. Also in the US, the Lincoln Institute of Land Policy was established in 1974 based on the writings of Henry George. It "seeks to improve the dialogue about urban development, the built environment, and tax policy in the United States and abroad".

The Henry George Foundation continues to promote the ideas of Henry George in the UK. The IU is an international umbrella organization that brings together organizations worldwide that seek land value tax reform.

Reception

The economist Alfred Marshall believed that George's views in Progress and Poverty were dangerous, even predicting wars, terror, and economic destruction. Specifically, Marshall was upset about the idea of rapid change and the unfairness of not compensating existing landowners. In his lectures on Progress and Poverty, Marshall opposed George's position on compensation while fully endorsing his ultimate remedy. So far as land value tax moderately replaced other taxes and did not cause the price of land to fall, Marshall supported land value taxation on economic and moral grounds, suggesting that a three or four percent tax on land values would fit this condition. After implementing land taxes, governments would purchase future land values at discounted prices and take ownership after 100 years. Marshall asserted that this plan, which he strongly supported, would end the need for a tax collection department of government. For newly formed countries where land was not already private, Marshall advocated implementing George's economic proposal immediately.

Karl Marx considered the Single Tax platform as a regression from the transition to communism and referred to Georgism as "Capitalism’s last ditch". Marx argued that, "The whole thing is ... simply an attempt, decked out with socialism, to save capitalist domination and indeed to establish it afresh on an even wider basis than its present one." Marx also criticized the way land value tax theory emphasizes the value of land, arguing that, "His fundamental dogma is that everything would be all right if ground rent were paid to the state." Georgists such as Fred Harrison (2003) replied to these Marxist objections.

Richard T. Ely, known as the "Father of Land Economics", agreed with the economic arguments for Georgism but believed that correcting the problem the way Henry George wanted (without compensation) was unjust to existing landowners. In explaining his position, Ely wrote that "If we have all made a mistake, should one party to the transaction alone bear the cost of the common blunder?"

John R. Commons supported Georgist economics, but opposed what he perceived as an environmentally and politically reckless tendency for advocates to rely on a one-size-fits-all approach to tax reform, specifically, the "single tax" framing. Commons concluded The Distribution of Wealth, with an estimate that "perhaps 95% of the total values represented by these millionnaire [sic] fortunes is due to those investments classed as land values and natural monopolies and to competitive industries aided by such monopolies", and that "tax reform should seek to remove all burdens from capital and labour and impose them on monopolies". However, he criticized Georgists for failing to see that Henry George's anti-monopoly ideas must be implemented with a variety of policy tools. He wrote, "Trees do not grow into the sky—they would perish in a high wind; and a single truth, like a single tax, ends in its own destruction." Commons uses the natural soil fertility and value of forests as an example of this destruction, arguing that a tax on the in situ value of those depletable natural resources can result in overuse or over-extraction. Instead, Commons recommends an income tax based approach to forests similar to a modern Georgist severance tax.

Other contemporaries such as Austrian economist Frank Fetter and neoclassical economist John Bates Clark argued that it was impractical to maintain the traditional distinction between land and capital, and used this as a basis to attack Georgism. Mark Blaug, a specialist in the history of economic thought, credits Fetter and Clark with influencing mainstream economists to abandon the idea "that land is a unique factor of production and hence that there is any special need for a special theory of ground rent" claiming that "this is in fact the basis of all the attacks on Henry George by contemporary economists and certainly the fundamental reason why professional economists increasingly ignored him".

Robert Solow endorsed the theory of Georgism, but is wary of the perceived injustice of expropriation. Solow stated that taxing away expected land rents "would have no semblance of fairness"; however, Georgism would be good to introduce where location values were not already privatized or if the transition could be phased in slowly.

Milton Friedman agreed that "the Henry George argument" is "the least bad" means of raising needed public revenue. However, Friedman viewed Georgism as partially immoral, due to a difference of opinion about the validity of vested property rights in land. Georgists agree with Friedman that land titles should remain private, however they believe that the private capture of unimproved land-rents is inherently unjust, drawing comparisons to slavery.

George has also been accused of exaggerating the importance of his "all-devouring rent thesis" in claiming that it is the primary cause of poverty and injustice in society. George argued that the rent of land increased faster than wages for labor because the supply of land is fixed. Modern economists, including Ottmar Edenhofer have demonstrated that George's assertion is plausible but was more likely to be true during George's time than now.

An early criticism of Georgism was that it would generate too much public revenue and result in unwanted growth of government, but later critics argued that it would not generate enough income to cover government spending. Joseph Schumpeter concluded his analysis of Georgism by stating that, "It is not economically unsound, except that it involves an unwarranted optimism concerning the yield of such a tax." Economists who study land conclude that Schumpeter's criticism is unwarranted because the rental yield from land is likely much greater than what modern critics such as Paul Krugman suppose. Krugman agrees that land value taxation is the best means of raising public revenue but asserts that increased spending has rendered land rent insufficient to fully fund government. Georgists have responded by citing studies and analyses implying that land values of nations like the US, UK, and Australia are more than sufficient to fund all levels of government.

Anarcho-capitalist political philosopher and economist Murray Rothbard criticized Georgism in Man, Economy, and State as being philosophically incongruent with subjective value theory, and further stating that land is irrelevant in the factors of production, trade, and price systems, but this critique is seen by some, including other opponents of Georgism, as relying on false assumptions and flawed reasoning.

Austrian economist Friedrich Hayek credited early enthusiasm for Henry George with developing his interest in economics. Later, Hayek said that the theory of Georgism would be very strong if assessment challenges did not result in unfair outcomes, but he believed that they would.

After studying Progress and Poverty, Tyler Cowen concluded, "George had some good economic arguments, but [. . .] was politically naive. At the margin we should move in George’s direction, but ultimately landowners have to be part of the building coalitions rather than pure victims."

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