Poverty's Causes
Frederick Verinder: My Neighbor's
Landmark: Short Studies in Bible Land Laws (1911) — Chapter 3: The
Meaning of the Landmark
"Selfishness," says a modern writer, referring to a similar but
shorter passage in Isa. v. 8-10, "is the great sin in all ages and
peoples. As soon as national institutions have awakened the sense of personality
and
the feeling of self-respect, the desire of accumulating wealth grows
with them. And in no form is it more liable to abuse than in connection with
possession
of land. Men desire, by an almost universal instinct, to possess property in
land. … Yet, since the land cannot be increased in quantity, its possession
by one man is the exclusion of another, and the Hebrew laws endeavor to meet
this difficulty by special provisions, the breach or evasion of which the prophet
now denounces in His first 'woe' on the selfish landowner. He who
can join house to house, and lay field to field, when he knows, and long has
known,
face to face, the very man, wife and child whom he has dispossessed, and can
drive out by his own simple act his fellow-men to be desolate in their poverty,
in order that he may be alone in his riches, may expect a punishment proportioned
to his crime. Such men were the nobles of Judah and Israel throughout
the land; and the prophet heard ringing in his ears, the declaration of
Jehovah, the
King of the land, that the great and fair palaces should become as desolate
as the peasants' and yeomen's cottages which had made place for them: — the
vineyard of ten acres shall yield but eight gallons of wine, and the cornfield
shall give back but a tenth part of the seed sown in it." ... Read
the whole chapter,
including footnotes
Frederick Verinder: My Neighbor's
Landmark: Short Studies in Bible Land Laws (1911) — 4:
The Year of Jubilee: Land and Liberty
§4. In our "Diamond Jubilee" procession, on 22nd June 1897,
the visible embodyments of Samuel's forecast were paraded before the eyes of
an admiring public; a procession of rent-eaters and tax-eaters, titled and
other, along a lane of forty thousand fighting men. The then Prince of Wales
fathered a "Jubilee" fund for postponing the public support and
control of the public hospitals. His gracious consort started another fund
for giving
one square meal for once in a while to some of the beggars and outcasts
who people the slums. But a real Jubilee on Old Testament lines would,
if carried into practice in Bible-reading England, render five-sixths of the
hospitals
unnecessary by remedying the social injustices which breed avoidable sickness
and cause premature death; and, by establishing equity as the basis of social
relations, would abolish the slums, and impose starvation as a penalty only
upon wilful and obstinate idlers. To the Hebrews, the Jubilee meant a year's
holiday. The Victorian equivalent for this was a day's holiday
by Royal proclamation — a
holiday for which many workmen had to pay by the loss of a day's wages — and
even this (so incurably are we given over to the worship of Mammon) was announced,
not as a national holiday, or as a religious holy-day, but as a "Bank" holiday.
This was entirely worthy of a nation of shopkeepers, who exploited even a revel
of "loyalty" in the interests of Diamond Jubilee Syndicates, gathering
unearned increment along the line of route at an "expected," but
not always realised, "profit" to the shareholders of thousands
per cent.
In England, with its immense wealth and its chronic poverty, with its Empire
upon which the sun never sets and its slums where the sun never rises, there
is nothing more greatly to be desired than a real Jubilee. Once in
every generation the Hebrew people were called to a National rejoicing: not
because the courtiers'
prayer, "O King, live for ever" had sounded in royal ears for half
a century, but because the reign of social justice was being re-established;
because the erstwhile disinherited was once more a free man and a citizen. If
the principles of the Hebrew land laws were applied under our constitutional
monarchy, we could with the greater heartiness "sing with heart and voice,
God save the King," because we should no longer fear that a crowd of hungry
men might send back, as a sort of dismal echo, the dreary chorus, "We've
got no work to do." ...
§ 6. It is plain that, under such a Law, the growth of a wealthy landlord
class with large estates on the one hand, and of a landless pauper class
on the other, were rendered alike impossible. Although there might be, and naturally
would be, inequalities arising from varying degrees of industry, there would
be no such extremes of poverty and riches as we are familiar with. The
two idle classes — the wealthy idlers of the West end and the starving
idlers of the East — which disgrace our modern "civilisation," could
not coexist with the equality of opportunity secured by the Hebrew Law. The
prayer of Agur, the son of Jakeh, perhaps represents the ideal of such a
society. "Give
me neither poverty nor riches; feed me with food convenient for me; lest I be
full and deny Thee, and say, Who is the Lord? or lest I be poor, and steal, and
take the name of my God in vain." "The sleep of a laboring man is sweet,
whether he eat little or much but the abundance of the rich will not suffer him
to sleep. There is a sore evil which I have seen under the sun, namely, riches
kept for the owners thereof to their hurt." A writer in the Book of Proverbs
tells us that "much food is in the tilled land of the poor; but there is
that is destroyed by reason of injustice," while Isaiah drives the lesson
home by his description of the barrenness of the land under monopoly. "There
is that withholdeth what is justly due, but it tendeth only to want. ... He that
withholdeth corn [and, may we not add, he that withholdeth the land on which
alone the corn can be grown], the people shall curse him" "As the partridge
sitteth on eggs, and hatcheth them not; so he that getteth riches, and not by
right, shall leave them in the midst of his days, and at his end shall be a fool." For "better
is a little with righteousness than great revenues with injustice."
146 Le but principal de cette institution etait de maintenir
autant de possible l'egalite primitive du partage des terres, de reparer
les perturbations arrivees dans le courant de quarante-neuf ans, et de
prevenir ainsi le complet et durable apprauvissement de certaines familles
plus malheureuses que d'autres (Dict. Encycl. de la Theol. Catholique,
s.v., Jubile). "With the consistent administration of this 1aw, a
class wholly without property would have been impossible in Israel" (Oehler,
Theol. of the O.T.,i. 348). Jahn (Biblical Archaeology) well describes
the Jubilee as "a regulation which prevented the rich from coming
into possession [by "free trade in land"] of large tracts of
land, and then leasing them out in small parcels to the poor; a practice
which anciently prevailed, and does to this day, in the East." [Heinrich
Hein writes: Moses endeavored to bring property into harmony with morality,
with the true law of reason, and this he accomplished by the introduction
of the Year of Jubilee, in which alienated land that was inherited . .
. fell back to the original owner, regardless of the manner in which it
had been disposed of. This institution forms the most decided contrast
to that "outlawry" with the Romans, where after the lapse of
a certain time the actual possessor of a property could not be compelled
by the legitimate owner to return the property, if he could not bring evidence
to show that he had demanded restitution in due legal form. This last condition
left the field open to every possible fraud, especially in a state where
despotism and jurisprudence were in bloom, and where the lawful possessor
had in his power all the means of intimidation, especially when confronted
by the poor man who could not afford the expenses which a contest involved.
The Roman was soldier and lawyer at the same time, and he knew how to defend
with his glib tongue the property taken from others, often with the sword.
--S.].
... Read the whole chapter,
including footnotes
Frederick Verinder: My Neighbor's
Landmark: Short Studies in Bible Land Laws (1911) —Chapter
5: Land, Labor and Learning
§ 5. The seventh year was also called the year of release, "partly
because the land was "released" from cultivation, and partly because
there was then a general remittance of all debts due from one Hebrew to another,
and a manumission of all Hebrew bondservants. The war-cries of monopolists
against reform in modern times would have been treated with scanty respect
by Moses and the prophets. They recognised neither the right of the landlord
to "do what he liked with his own," nor the "sacredness of (private)
contract" made against public policy, nor the inalienable right of every
(white) man to "whop his own nigger," or to sweat his own wage-slave.
The Law aimed at making involuntary and undeserved poverty, as nearly as
might be, impossible. When and where, through the vices or frailty of human
nature,
it crept in, temporarily and in spite of the Law, the most careful provision
was made for mitigating its evils. ... Read the whole chapter,
including footnotes
Frederick Verinder: My Neighbor's
Landmark: Short Studies in Bible Land Laws (1911) — Appendix
A. The Encroachments of Injustice
The setting up of a privileged class —
"He (the King) will take your fields, and your vineyards and your
oliveyards, even the best of them, and give them to his servants. And He
will take the tenth of your seed, and of your vineyards, and give them to
his officers,309 and to his servants. And he will take your menservants,
and your maidservants, and your goodliest young men,310 and your asses, and
put them to his work. He will take the tenth of your sheep, and ye shall
be his servants. And ye shall cry out in that day because of your king, which
ye shall have chosen you" (1 Sam. 8:14-18; cp. Ezek. 46:16-18; Jer.
22:13-17, on which see above, Chap. 7 § 3).
"Thy princes are rebellious, and companions of thieves: every one loveth
gifts [i.e. bribes], and followeth after rewards: they judge not the fatherless,
neither does the cause of the widow come unto them. Therefore saith the Lord,
the Lord of hosts, the mighty One of Israel, Ah, I will ease Me of Mine adversaries,
and avenge Me of Mine enemies" (Isa. 1:23, 24).
— leads to land monopoly —
"The Lord standeth up to plead, and standeth to judge the people. The
Lord will enter into judgment with the ancients of His people, and the princes
thereof: for ye have eaten up the vineyard; the spoil of the poor is in your
houses. What mean ye that ye beat My people to pieces, and grind the faces
of the poor? saith the Lord God of hosts"(Isa. 3:13-15).
"Woe unto them that join house to house, that lay field to field, till
there be no room, and ye be made to dwell alone in the midst of the earth!" (Isa.
5:8 [R.V.]; cp. Mic. 2, 3, on which see above, Chap. 3. § 10).
"Woe unto them that decree unrighteous decrees, and that write grievousness
which they have prescribed; to turn aside the needy from judgment, and to
take away the right from the poor of My people, that widows may be their
prey, and that they may rob the fatherless" (Isa. 10: 1, 2).
— and extremes of riches and poverty.
"Thus saith the Lord; For three transgressions of Israel, and for four,
I will not turn away the punishment thereof; because they sold the righteous
for silver, and the poor for a pair of shoes; that pant after the dust of the
earth on the head of the poor, and turn aside the way of the meek: … and
they lay themselves down upon clothes laid to pledge every altar, and they
drink the wine of the condemned in the house of their god" (Amos
2:6-8).
"For among My people are found wicked men; they watch, as fowlers lie
in wait; they set a trap, they catch men. As a cage is full of birds, so are
their houses full of deceit; therefore they are become great, and waxen rich.
They are waxen fat, they shine: yea, they overpass in deeds of wickedness:
they plead not the cause, the cause of the fatherless, that they should prosper;
and the right of the needy do they not judge. Shall I not visit for these things?
saith the Lord: shall not My soul be avenged on such a nation as this?" (Jer.
5:6-29 [R.V.]).
B. The Effects of Land Monopoly
The denial of equal rights in land drives drives men to the
least productive soil — produces poverty — hunger in the midst of plenty — homelessness — misery
in overcrowded cities — crime — and black despair.
"There are that remove the landmarks;
They violently take away flocks and feed them.
They drive away the ass of the fatherless,
They take the widow's ox for a pledge.
They turn the needy out of the way:
The poor of the earth hide themselves together.
Behold, as wild asses in the desert
They go forth to their work, seeking diligently for meat;
The wilderness yieldeth them food for their children.
They cut their provender in the field;
And they glean the vintage of the wicked.
They lie all night naked without clothing,
And have no covering in the cold.
They are wet with the showers of the mountains,
And embrace the rock for want of a shelter.
There are that pluck the fatherless from the breast,
And [R.V.m.] take in pledge that which is on the poor:
So that they go about naked without clothing,
And being an-hungred they carry the sheaves;
They make oil within the walls of these men;
They tread their wine-presses, and suffer thirst.
From out of the populous city men groan,
And the soul of the wounded crieth out:
Yet God imputeth it not for folly.
These are of them that rebel against the light
They know not the ways thereof.
Nor abide in the paths thereof.
The murderer riseth with the light, he killeth the poor and needy;
And in the night he is as a thief.
The eye also of the adulterer waiteth for the twilight,
Saying, No eye shall see me:
And he disguiseth his face.
In the dark they dig through houses:
[R.V.m.] Which they had marked for themselves in the daytime;
They know not the light.
For the morning is to all of them as the shadow of death;
For they know the terrors of the shadow of death.
(Job 24:2-17 [RV.]). ... Read the
whole appendix,
including footnotes
1. Land: The Hope
of the Oppressed on Every Continent
At the start of the 1990s, while the Berlin Wall and the authoritarian regimes
in Eastern Europe toppled, Latin American communities and clergy who were
operating under the banner of liberation theology began throwing off the
yoke of oppression.
The uprising of subjected peoples around the world lends immediacy to the
search for genuine liberation. While many emphasize political matters, equally
critical are the ethical and economic underpinnings of liberation. To ignore
these will likely result in a tragic disillusionment for the people who have
made the enormous sacrifices to chart new courses.
In How the Other Half Dies,
Susan George wrote that "The most pressing cause of the abject
poverty which millions of people in this world endure is that a
mere 2.5% of landowners with more
than 100 hectares control nearly three quarters of all the land
in the world - with the top 0.23% controlling half." To recognize this social plague for what it is, and
to avert a backlash of despair, requires a clear understanding of two great
themes: the Promised Land and the Wasteland.
The Promised Land is the hope of the
landless, literally, land, the gateway to opportunity. Abraham
in Mesopotamia and the Israelites in bondage in Egypt so wished
for their own land that they left homes and familiar surroundings
and risked death
to seek the distant place God had promised, a land rich in
milk and honey, where a day's labor would put food on the table
and allow their children
to grow into adulthood. This exodus pattern has been repeated
over and over, from the migrations of prehistory to the boat
people of our day.
For centuries, immigrants have poured into the Americas, looking
for the inheritance denied to them in the Old World — their
portion of land.
But the Promised Land is not so much a geographic place as
it is a hope and a vision of a just social order. Modern
society has many wondrous features,
but it certainly is not the Promised Land in its full glory. Indeed,
we are "modern
captives" who sense the Promised Land as a primitive instinct,
as a deep longing, and as a cry from the depths of our captivity
that the world should
be different.
All of us, no less than the Hebrews
in Egypt, are captives of structures imposed upon us. To enslave people,
today as three thousand years ago, is to rob them of the value of their
labor. Millions of working people living in severe poverty are robbed
of the fruits of their labor. Through various forms of exploitation,
especially the monopolization of land rights, large segments of humanity
are oppressed, dehumanized, held in bondage. One factor enabling governments to legalize
land theft and lend respectability to exploitative landlordism is the
general silence of religious and intellectual leaders about humanity's
common rights to land.
We begin to penetrate and
overcome this silence when we realize that the Wasteland is
wasted land, unfulfilled
potential, producing no "milk and honey." Speculators in both
urban and rural areas hoard land on which the hungry, the homeless,
and the jobless could feed, shelter, and employ themselves. Keeping
valuable lands idle causes artificial shortages that drive up rents
which poor people must pay for poor land. Land hoarding deserves much of the blame for creating
the Wasteland: it forces people into the "desert." There,
people find the oases controlled by more land monopolists
who must be paid
a ransom for access to nature's life-sustaining water. And
as we will see, the primary focus of Biblical economic laws
was the prevention
of precisely this sort of usurpation of God's gifts to all
creatures.
The midbar,
the biblical Wasteland, is only part desert. It has towns
and pastures, but it lacks
the "fullness
of life." This anomaly is mirrored in the modern Wasteland, crowded with factories,
skyscrapers and mansions — along with ugly blight and squalid
slums.
The point of departure of liberation theology is the recognition of the awful
fact that millions lead subhuman lives. The rural landless seek refuge in
cities, often becoming squatters in barrios or favelas with open sewage and no safe water
supply. They may earn fifteen dollars a month if they find work at all. Children
live in the streets and go to bed hungry. Illness and drought, and even complaining
of their lot, may lead to premature death. And they can see the Mercedes
behind the iron gates of walled mansions. (Ironically, mercedes is also
a Spanish legal term denoting title to a large grant of land.) Like poor
Lazarus in the parable of Jesus (Luke 16:19-31), they survive on the crumbs
that fall
from the rich man's table. When judgement comes to the rich man, he receives
no mercy because he had shown none. ...
6. Suffering in the Wasteland: Independence — or
In Dependency?
The Wasteland is a disturbing transition zone between Egypt and the Promised
Land, between bondage and liberation. So Latin American today, in its second
century after independence, finds itself in a wilderness between colonial subjugation
and genuine self-determination.
Liberation theologians point to institutional evil, rather than individual evil,
as the major factor keeping the poor trapped in the Wasteland. They shift the
critical focus from problems caused by evil leaders to the oppression caused
by large impersonal forces. And they further point out that these forces are
not to be found solely in developing nations. (For example, in most societies,
even developed ones, male-dominated social structures dehumanize women.) They
remind us how a military-industrial complex, multinational corporations, government
bureaucracies, giant banking centers, or other powerful institutions or organizations
may depersonalize citizens, depriving them of effective control over their own
lives.
The 1950s was an optimistic decade of developmentalism. But by 1967, Pope Paul
VI questioned this optimism in his encyclical, Populorum Progressio. He saw rich
nations developing quickly while poor nations developed slowly. He saw discord
between people and nations arising from glaring worldwide inequalities of power
and possessions. These conflicts arose in part, the Pope said, from too narrowly
conceiving development as limited to economic growth. He called for broadening
the
goal to promote the good of every person, with emphasis on the whole
person.
While in parts vague and offering no radical solutions, the Pope's encyclical
nevertheless dramatized how poor nations may be held captive by economic dependence
on rich ones, and served to correct a popular belief that economic growth alone
is sufficient for progress.
Four years later, Gustavo Gutierrez raised a more substantive critique of developmentalism
in his epochal work, A Theology of Liberation. As he saw it, underdevelopment,
instead of being a step on the way to progress, is really the historical end-product
of the economic expansion of the great capitalist countries. The amount of fat
of wealthy nations is directly related to the amount of hunger of poor nations.
Thus the first step toward liberation must be to sever the bondage of dependence.
Gutierrez did not purport to be stating anything original, but simply advanced,
in a theological context, ideas drawn from Andre Gunder Frank, Fernando Henrique
Cardoso, and other secular Latin American social scientists who had produced
various systems of dependency theory, based, in some cases, on Lenin's doctrine
of
imperialism.
It would be fatuous to deny that some of Latin America's poverty is
traceable historically to the operations of First World companies and
to the intervention
of First World governments, as dependency theory holds. Due to the
influence of Gutierrez and later Boff and others, dependency theory
became a cardinal
tenet of liberation theology. However, the theory is now recognized
by Boff and Gutierrez
as being of questionable value as a key to the solution or even diagnosis.
Gutierrez now writes that the theory "does not take sufficient account
of the internal dynamics of each country or of the vast dimensions
of
the world of the poor."
The existence of dependence does not automatically
justify the charge that it stems from exploitation. This charge
assumes a zero-sum situation where one region can increase its wealth
only at the expense
of other regions, which is to overlook the evidence that the world's
wealth is not static but constantly being magnified by human enterprise.
Economically,
Canada is heavily dependent upon U.S. trade and investment, yet its
standard of living is among the highest on earth — due, in no small measure, to
precisely that trade and investment. Albania, by contrast, was until recently
the least dependent of all nations; under Enver Hoxha it followed a policy of
almost total isolation, and neither traded nor maintained diplomatic relations
even with other Marxist states. Yet its standard of living was the lowest in
Europe — due, in
no small measure, to precisely that
policy.
Insofar as dependency theory is (in a limited sense) analytically correct,
the social ills to which it calls attention could be substantially dispelled
by the
proper allocation to the public of land and land value, or rent. Instead, most
of the land rent is misappropriated by foreign corporations or domestic land-owning
oligarchies. We will return to this very important point in Chapter 8. ...
8. Power in the Wasteland: Understanding
Essential Relationships
Many liberation theologists ignore the role of land ownership and do not even
include land in the indexes of their books. Yet none would deny that land hoarding
and land access are fundamental issues of
justice and economic development.
The following two passages by Henry George, the economist who made the most definitive
statements on land's role in political economy, illustrate the fundamental characteristics
of land that are missed or ignored by modern economic analysts of the left and
the right:
Does
the passenger who enters a railroad car obtain the right to scatter
his baggage over all the seats and compel the passengers who come
in after him to stand up? ... We arrive and we depart... passengers
from station to station, on an orb that whirls through space — our
rights to take and possess cannot be exclusive; they must be bounded
everywhere by the equal rights of others. Just as the passenger in
a railroad car may spread himself and his baggage over as many seats
as he pleases, until other passengers come in, so may a settler take
as much land as he chooses, until it is needed by others — a
fact which is shown by the land acquiring a value....
On the land we are born, from it we live,
to it we return again — children of the soil as truly as is the blade
of grass or the flower of the field. Take away from man all that belongs
to the land, and he is but a disembodied spirit. Material progress cannot
rid us of our dependence upon land.
Beneath all ideologies, there are basic factors and relationships that underlie
economic behavior. To understand the (otherwise inexplicable) omission of attention
to land's economic importance, it is useful to go
back to these basics.
-
The term "Land" refers to the whole material
universe, exclusive of people and their products. Not the creation
of human labor, yet essential to labor, it is the raw material from which
all wealth is fashioned. It includes not only soil and minerals, but water,
air, natural vegetation and wildlife, and
all natural opportunities — even
those yet to be discovered. It is a passive factor of production,
yielding wealth only when labor is applied to it.
- Labor includes
all human powers, mental and physical, used directly
or indirectly to produce goods or to render service in exchange.
Labor is often
thought of as work
that is done for hire, at fixed wages, mainly excluded
from the risk-taking and decision-making that is normally classed
under the heading of "entrepreneurship".
Yet labor, properly understood, includes all human
exertion in production — including
mental exertion. The payment to labor is called Wages. And it is important to remember
that the payment, or return, to labor does not include
any returns that are the result of monopoly.
-
Capital is
the economic term that is most
profoundly misunderstood and confused. For the term to make sense
in any
systematic analysis
of wealth distribution,
we must define capital in its
classical sense as "wealth which is used to
aid in further production, instead of being directly consumed." Since production
is not completed until the product is in the hands of the consumer, products
on their way to market, or "wealth in the course of exchange," are
also considered capital.
Now, the objective of all economic behavior
is the satisfaction of human desires. Human beings always seek to satisfy their
desires with the least exertion: this self-evident proposition lies at
the heart of our concepts of economic value and
exchange. The primary thing needed for satisfaction
is, of course, the tangible things, made from natural resources,
that satisfy
human
desires and
have exchange value. Things that meet these four
fundamental criteria are termed "wealth". But money, bonds,
and mortgages are but claims upon and measures of this
value; they are not
the wealth they symbolize.
A clear understanding of these basic definitions points immediately
to the primacy of land as an economic factor. Human beings have inescapable
material needs of
food, clothing and shelter. Regardless of how long a chain of exchanges
they may pass through in a modern economy, these things ultimately
have their source
in the land; they
can come from nowhere else. Human
beings need land in order to live. But if we must pay rent
to a private
land "owner" for access to the gifts of nature, it amounts
to being charged a fee for our very right to live.
Land's value goes up when
population increases and technological and economic development
make labor more productive. Those
who "own" land often withhold it from use, expecting to capture its increased
value in the future — thus, the possession of land
enables people to take an
income that they did nothing to produce.
Speculative withholding of land has disastrous
consequences. Peasants who seek land on which to survive are pushed out to poorer
and poorer lands. These "sub-marginal" lands become their alternative
place for self-employment. With such a poor alternative, they have no choice
but to accept very low wages. Rent — the payment to landowners — absorbs
more
of the wealth
produced on all sites.
Land speculation also prevents development near the center
of cities, pushing it to the outskirts while the center
decays from neglect
and slums increase.
The "sprawl" engulfs
farms and forests, even as it raises the price of land,
making use and development more costly.
Rapid destruction of the Amazon rain forest in Brazil dramatizes how
the unnatural phenomenon of sprawl has an ominous worldwide impact
on the environment. In Brazil,
ten per cent of the landowners own 80 percent of the land, while one
million peasants are forced off the land each year. And a mere one
per cent controls
48 percent of the cultivable land. The only place in Brazil where there
is land for the taking is in the Amazon rain forest. The destruction
of the rain forest
is caused by a system that perpetuates artificial land shortages. Nearly
four-fifths of Brazil's arable land is covered by sprawling latifundios,
most of which are
held by speculators who produce nothing.
Here is the root cause
of poverty. When laborers are faced with the choice of
either bare subsistence wages or land that can barely
maintain life, labor itself is marginalized and cannot
effectively bargain on its own behalf. Wages, generally,
on all land, are driven down toward the point
of bare subsistence. Returns to capital are also depressed
for the same reason, deterring investment. When this is
carried to an extreme — when people
can no longer afford the goods being produced and when there is little profit
in applying
capital — the economy collapses. The inflated land
market, on which the speculative
frenzy has fed, collapses too.
Since the Great Depression, such total ruin has been minimized in more
developed nations through Keynesian measures: monetary expansion, massive
public works
and welfare programs. In Third World countries, such Keynesian expedients,
which support high speculative rent levels, work only if demand for
exports is strong.
When that demand weakens, the weight of external debt becomes so crushing
as to defy redemption.
The Third World debt crisis is taken by many as the clearest
sign of the correctness of dependency theory. It is asserted
that Western
moneylenders
have extended
loans to corrupt regimes, knowing that the nations' peoples
would have to sacrifice to bear ever-increasing burdens.
But when we recognize
the land problem as the
basic cause of
the kind of economic collapse that has led to the "foreign debt
crisis", it becomes clear that Western financial interests
did not create those maladies but rather exploited the
hapless economic policies
of developing nations
for their own gain.
Some defenders of the
status quo admit that all land titles may be traced either
to acts of force or fraud (or to the more
respectable-sounding "priority of occupation"). But, they
add, we cannot start over; society has for centuries given
legal sanction to private landed property.
Innumerable contracts have been executed on the basis of
this sanction, and these include the good faith purchase
of land. For society to withdraw this sanction,
they
claim, would be a breach of trust.
The passage of time,
however, cannot turn a wrong into a right. Kings and popes and governments never had
the moral right to vest in perpetual ownership what God intended for the benefit
of all. If the acquisition of a benefit under the law were to
establish such a vested right, no law could ever be amended, since
it would invariably
work to someone's
disadvantage.
Obviously, change that further rends the fabric of society
is usually self-defeating. And the vast majority of beneficiaries
of unjust
structures — the beleaguered
middle classes — are not intentional wrongdoers but
passive recipients of unearned wealth from a flawed system
they did
not create. The dismantling
of these structures, therefore, should, whenever possible,
be done in ways that avoid excessive hardship
for them. But it must be done.
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wealth concentration
land concentration
wealth from land appreciation
paying twice
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