THE GEORGIST NEWS

    WEB EDITION
    Volume Eight, Number Eight  February 1, 2006


    Welcome to the February issue of The Georgist News.

    You and I are living in a world where interdependence makes great things possible. As Henry George pointed out, our economy develops more and more sophistication and wealth-producing power, while simultaneously every region or part of the overall economy becomes more dependent on others. We can embrace that natural tendency and succeed with it. To be powerful and effective in this world, let's consider working as team-mates even if we are unaccustomed to that. Make synergy work for you!

    The deadline for our March 2006 issue is February 23.

    You can always reach the Georgist News at gn@progress.org

    CONTENTS: (to return here just click the headline)

        1. More on the CGO 2006 Conference
        2. New Policy Study
        3. Major Citizens Dividend Event
        4. Gaffney on the Alaska Permanent Fund
        5. News from Texas
        6. Buy Gasoline Only from CITGO
        7. New Georgist Website
        8. Rebuilding New Orleans
        9. Upcoming Research Forum
      10. Upcoming Monetary Reform Conference
      11. Upcoming Redevelopment Forum
      12. News from the Henry George Institute
      13. Farewell to John Stoner
      14. AT THE MARGIN: Quips and Quotes
      15. About The Georgist News

    1. More on the CGO 2006 Conference

    by Sue Walton

      Greetings from the Windy City! The Henry George School of Chicago and the Better Cities Committee of Illinois are looking forward to hosting the 2006 CGO Conference July 19-23, 2006. Lots of activities are being planned for the assembly proper, but we thought people would like to know more about our Metro Area & Hotel. We encourage you to come early to enjoy our city!

      Some fun facts about the Windy City:

      The four stars on the Chicago flag represent Fort Dearborn, the Chicago Fire, the World's Columbian Exposition, and the Century of Progress Exposition. Among the Field Museum's most prized jewels is the 5,890-carat Chalmerz topaz, which weighed 10,200 carats in the rough. Chicago has twenty-nine miles of lake frontage and fifteen miles of public beach. The central water filtration plant, located on the lakefront north of Navy Pier, is the largest in the world. Chicago's Oceanarium is the world's largest indoor marine mammal pavilion and doubles the size of the John G. Shedd Aquarium, which is the largest indoor aquarium in the world. The Chicago Main Post Office at 433 West Van Buren is the only postal facility in the world you can drive a car through. The Art Institute of Chicago holds the largest collection of impressionist paintings outside the Louvre in Paris. (Free admission on Tuesdays.)

      Fun things to do:

      See Sue the T-rex (Tyrannosaurus rex) and King Tut (special tickets needed) at the Field Museum. Visit U505, the only German U-boat ever captured and brought to the States, which shares space with a Zephyr train, a coal mine, and a Boeing 707 at the Museum of Science and Industry. Get your picture taken at the Bean, a mirrored statue which delights all in Millennium Park. Take a ride up to the 95th floor observatory of Big John (Hancock) or ride the elevators up to the 103rd floor of the Sears Tower, once the world's tallest building, and see three other states: Wisconsin, Indiana and Michigan.

      Like baseball? Both the Chicago White Sox & the Chicago Cubs are easily accessible by public transit. Or if Soccer is your sport, the Mayor's Cup Soccer Tournament will be held July 22-23 at Montrose Harbor Park. The Gay Games will be at Navy Pier July 15-22nd.

    For more information please contact Sue Walton, CGO Administrator, at sns@swwalton.com or 888-262-9015.


    2. New Policy Study

    by Fred Foldvary

      The Civil Society Institute at Santa Clara University, California, has published a policy study by Fred Foldvary: "The Ultimate Tax Reform: Public Revenue from Land Rent."

      You may obtain a free four-page summary from the Civil Society Institute, Santa Clara University, 500 El Camino Real, Santa Clara, CA 95053. You may request multiple copies. Copies have already been sent to 2000 journalists, government officials and institutes, and Georgist organizations.

      Copies of the full 36-page study are available for $10, including shipping. For information, email Fred at ffoldvary@scu.edu or call 408-554-6968.


    3. Major Citizens Dividend Event

    The United States Basic Income Guarantee (USBIG) annual conference, jam-packed with Georgists and others, will take place February 24-26 in Philadelphia, Pennsylvania (U.S.A.). The annual conference of the Eastern Economics Association will be at the same time and place, so you will have even more exciting sessions in which to participate.

    For more information, or simply to view the truly inspiring schedule of events, visit http://www.usbig.net/cong2006/schedule2006.html


    4. Gaffney on the Alaska Permanent Fund

    GN Comments: Last month we discussed George Schultz's endorsement of applying the Alaska Permanent Fund idea to the oil resources of Iraq. Here are some remarks on this subject by Dr. Mason Gaffney, a top expert on this subject.

      "It is an interesting phenomenon. The idea of exporting the Alaska model has, to my surprise, evoked a positive response from many conservative Republicans. These include Alaska's two U.S. senators, and the current governor. It has been copied in Wyoming and New Mexico, both red states like Alaska. The former secretary of state was for it.

      "Jay Hammond, former Governor of Alaska who fathered the plan, was a Republican, although not a conservative one to my knowledge.

      "At the same time, Senator Ted Stevens of Alaska is one of the greediest hardball politicians in Washington when it comes to pork, like his infamous "bridge to nowhere." These people have not suddenly gone all mushy and public-spirited. Something else is working below the surface. We need to figure out what it is.

      "One factor is that tapping oil revenues for in-state use helps lower other taxes, like property taxes. Another is that taking from absentee owners and giving to local residents improves the local balance of payments. A third is that the neo-cons, temporarily in power, are ideologues capable of embracing an abstract concept, even though the "oilies" would foil its implementation in Iraq, as they did. The neo-cons thought they could finance the Iraq war and reconstruction from oil revenues, thus making it more popular (less unpopular) at home."


    5. News from Texas

    GN Comments: Here is a report from Mary Lehmann of Austin, Texas.

      From the land taxing viewpoint, Texas is heading backwards full steam. Most of you may know that the Texas Supreme Court decided the cap on the property tax allowed no "meaningful discretion" for local governments who were having to spend too much of it on schools, so it was like the state spending that property tax money on schools, which is unconstitutional.

      Obviously there is more to that story, but meanwhile, lobbying groups, non-profits calling themselves liberals, and some state reps doing the same, are busy lobbying to have Texas blessed with a State income tax, with the argument that this tax alone is capable of raising the school funds needed, and it's only two pages long. Rumor has it that's what the federal income tax return looked like in 1913.

      The gory details are in Policy Brief #2, "The Best Choice for a Prosperous Texas: A Texas Style Personal Income Tax" and Policy Brief #3, "How to Reduce Property Taxes" published by the Center for Public Policy Priorities. You can download them on your pc (but not on a Mac, I found) from http://www.cppp.org/research.php?aid=482.

      I have invited the author of Policy Brief #3, Dick Lavine, to speak at the Unitarian Universalists' Forum, the best known in Austin, which he will do May 7. He had to promise first to explain to me the superiority of an income tax over a land tax. He also gets my rebuttal which the Texas Observer printed last July after praising the Center's recommendation as "wise" in an earlier issue. Well, it's a start. (See also GroundSwell, Sept/Oct. 2005.) [GroundSwell is the membership publication of Common Ground-U.S.A., http://www.progress.org/cg/ ].

      A candle in all this darkness may be Keep The Land. With the money from selling a longtime residence, it has turned into a Foundation and will, upon receiving requests, issue its priorities in considering grants.
      Address: Keep The Land Foundation, 3710 Cedar St. #10, Austin, TX 78705.


    6. Buy Gasoline Only from CITGO

    by Hanno Beck

      In the January 2006 Georgist News I reported that CITGO appeared, at least on the surface, to be by far the most Georgist of gasoline stations. I asked Georgist News readers for further views, and the results, though few, were completely positive. So let us make a rare endorsement. If you must buy gasoline, buy it at CITGO. The profits go to the democratically elected government of Venezuela for its programs, rather than into private monopolist pockets. Natural resource values should benefit all citizens, not just a few.


    7. New Georgist Website

    GN Comments: We welcome a new Georgist web site called, "Freedom's Edge."

    This site was created by David Brooks and features a wide range of materials concerned with freedom and the central role of Georgism is advancing freedom for all persons.

    Visit http://home.itfix.aunz.com./radical/


    8. Rebuilding New Orleans

    by Ed Dodson

      Although I live in New Jersey, just outside of Philadelphia, the local newspaper this past weekend carried a commentary by a university professor named Richard Florida (florida@gmu.edu), expressing concerns about the approach being taken to rebuild the City of New Orleans. His concerns were primarily over the loss of ethnic and cultural diversity.

      I sent our newspaper, the Philadelphia Inquirer, the following comments, with a copy to Professor Florida. Perhaps a few others have additional thoughts they might want to share. You can write to the paper at Philadelphia-Inquirer-Currents (currents@phillynews.com).

      Since the tragic events that destroyed much of the City of New Orleans, we have heard from many in the scientific community that what happened was inevitable. The natural environment offered great advantages to those who first settled in the area because the river is a remarkable pathway to commerce and migration of people into the center of the North American continent. At the same time, the region was, for reasons that have been clear for many decades, not a good location for a large, urban center.

      In terms of how cities are developed and managed, New Orleans is unique only with regard to the specific measures required to make the land area hospitable to human habitation. There are very few locations around the globe that are not to some extent "in harm's way."

      What has been lost to us is a central observation about the process of population center growth that has crucial public policy implications. The value of land increases over time because of aggregate public and private investment rather than by what any individual owner of land does to improve land they hold. And yet, virtually every city fails to collect even a small percentage of this value in order to pay for public goods and services. Rather, most revenue is raised by imposing taxes on the production of goods and services, on property improvements, on wages and salaries, on sales of goods, and on business revenue. The result of the revenue schemes adopted by cities is very much in opposition to what common sense would dictate: new construction and rehabilitation of existing structures is penalized; job-creating activities are discouraged; and investment is drawn away from cities to suburban fringes, creating sprawl development patterns. At the same time, low effective rates of taxation on land holding results in vast tracts of urban land left undeveloped or minimally used as surface parking lots or, worse, left heavily polluted and abandoned by owners who have moved on or gone out of business, leaving the cleanup bill to the citizens who remain.

      New Orleans presents a very visible case of publicly created land values. Only by the construction of the levee system was the quantity of dry land expanded. So long as the levee system held back the water - and the public believed the system was unlikely to fail - New Orleans continued to attract visitors and residents. The demand for locations on which to construct commercial buildings and residences increased. The effectively low tax rates on land values could be continuously capitalized into higher and higher land prices. Then the levees broke, and much of the city was flooded. Not only were buildings destroyed, but the "land values" generated by the artificial creation of dry land essentially disappeared overnight.

      Hundreds of millions of dollars in taxpayer-provided funds have already been expended to shore up the levee system and pump out the invading waters. Billions more will have to be expended to bring the system up to a standard of protection deemed necessary because of heightened, long-term environment changes. When investors are convinced these public expenditures will be made, that the dry land will remain dry and development permitted, they will once again begin acquiring sites.

      Despite pronouncements by federal and state officials that every effort is being made to assist lower-income families and others who have lost most or all of their personal possessions, their homes, and their employment, this disaster - as with all disasters - has created an opportunity for some who have access to financial reserves to come in and acquire for very little money, the properties of people who are desperate for cash. We can be sure that speculators are moving in to take advantage of the uncertainty of the future, "gambling" that land values will recover over time, and that the expenses of making this happen will fall on others.

      My recommendation to the officials in New Orleans is to include in its plan of recovery the recapture of public expenditures that result in rising land values. Ideally, as the city condemns flooded areas and demolishes existing damaged structures, title to the land should be held by the city and offered for lease to the highest bidder rather than sold outright. This strategy would enable the city to accurately track the recovery of the city's land markets and to set the rate of taxation on privately owned land to closely match what the land would lease for if publicly held. At the same time, the city should exempt property improvements from the tax base. This will greatly encourage new construction and the renovation of buildings that need to be upgraded against future possible flood damage. A uniform exemption of buildings from the tax base is a far better way to rebuild the city than piecemeal abatements to particular developers.

      If the above-recommended measures are adopted by New Orleans, other cities will have a clear example to follow of how to create a thriving, urban environment that provides quality public goods and services to all residents.


    9. Upcoming Research Forum

    The Community Affairs Offices of the Federal Reserve System and the Corporation for Enterprise Development (CFED) invite you to submit papers for a policy research forum entitled, "Closing the Wealth Gap: Building Assets among Low-Income Households." The research forum will be held in conjunction with the CFED 2006 Assets Learning Conference, September 19-21, 2006, in Phoenix, Arizona, U.S.A..

    The Program Committee welcomes research papers and policy studies related to asset- and wealth-building topics, such as the role of tax policy in asset accumulation, housing and wealth, innovations in asset building products and programs, and cost-benefit analyses of asset-building policies. For more details on all topic areas and submission guidelines, please visit http://www.frbsf.org/community/resources/callforpapers.pdf


    10. Upcoming Monetary Reform Conference

    The American Monetary Institute, now in its tenth year, announces the second annual Monetary Reform Conference, to be held September 21-24, 2006, at Roosevelt University in Chicago, Illinois, U.S.A..

    GN Comments: As more information becomes available, we will share it with you. In the meantime, if you wish additional details, contact Stephen Zarlenga at ami@taconic.net


    11. Upcoming Redevelopment Forum

    A group called "New Jersey Future" is hosting an event on February 22, 2006, called "Redevelopment Forum 2006: Leveraging Assets to Build Stronger Communities." Will Georgists attend?

    Georgist policies would make redevelopment more likely than sprawl development. New Jersey is the most densely populated of the 50 states and can benefit enormously from "infill" development rather than sprawl.

    For more information on New Jersey Future and the upcoming forum, visit http://www.njfuture.org/index.cfm


    12. News from the Henry George Institute

    The Henry George Institute now has its full three-course series in Principles of Political Economy available in updated WWW editions. The newest offering is a version of the old Applied Economics course, using the abridged text of Protection or Free Trade and a pile of supplemental readings aimed at helping the student understand the momentous questions of globalization.

    The online course is brand-new - in "beta-test" version - and things may be revised or added before we're ready to go fully public.

    GN Comments: If you would like to assist in the testing of this online course, please volunteer to Lindy Davies at lindy@henrygeorge.org


    13. Farewell to John Stoner

      John Stoner, husband of Common Ground-U.S.A. president, Nadine Stoner, passed away on January 21, 2006. The funeral was held January 26 at First United Methodist Church, Beloit, Wisconsin, U.S.A..

      Many of us knew John as a frequent attendee of CGO conferences with Nadine.

      John grew up in Duluth, Minnesota, and received his Master of Arts in Science from U.M. Duluth. He was a 10th grade science teacher in the Beloit school system 1961-1994, having previously taught at the Red Lake Indian Reservation High School in Minnesota.

      He was active in the Beloit Education Association and the First United Methodist Church, and was chairman of the board of the Teachers Credit Union. After retirement he became active in the Beloit Area Retired Educators Association (BAREA) and served as treasurer from 1996.

      If memorials are made, they may be directed to the BAREA Scholarship Fund or to the First United Methodist Church Scholarship Fund.

    GN Comments: If you would like to know mailing addresses for Nadine Stoner, the BAREA Scholarship Fund, or the First United Methodist Church Scholarship Fund, please contact Sue Walton at sns@swwalton.com.


    14. AT THE MARGIN: Quips and Quotes

      What men and women need is encouragement ... Instead of always harping on a man's faults, tell him of his virtues. Try to pull him out of his rut of bad habits.
      - Eleanor H. Porter

      It is for us to pray not for tasks equal to our powers, but for powers equal to our tasks, to go forward with a great desire forever beating at the door of our hearts as we travel toward our distant goal.
      - Helen Keller

      We need to teach the next generation of children from Day One that they are responsible for their lives. Mankind's greatest gift, also its greatest curse, is that we have free choice. We can make our choices built from love or from fear.
      - Elizabeth Kubler-Ross


    15. About The Georgist News

    The Georgist News, a project of the Robert Schalkenbach Foundation, is an (plain text) email newsletter. It is brought to you free of charge. Its purpose is to keep you updated on the latest news, world events, projects, and initiatives of relevance to people who, like Henry George, seek a world free from special privilege and free from the causes of poverty.

    gn@progress.org

    The Georgist News on the WWW - http://www.georgist.com/


    Contributing to this issue:
    Lindy Davies, Ed Dodson, Fred Foldvary, Mason Gaffney, Mary Lehmann, Chris Toto, Sue Walton
    Copy Editor: Enzo Piccone
    Proofreader: Caspar Davis
    Archivist: Stewart Goldwater
    Owner: The Robert Schalkenbach Foundation
    Founder: Adam Monroe
    Publisher: Hanno T. Beck


    The Georgist News Volume Eight, Number Eight February, 2006