Progress And Poverty

In this concise text, the distinguished American philosopher John Dewey compiled excerpts from the massive Progress and Poverty to provide those unfamiliar with Henry George's work with the essence of the author's thinking on economics. In his Foreword, Dewey noted, "It would require less than the fingers of the two hands to enumerate those who from Plato down rank with [George]. No man, no graduate of a higher educational institution, has a right to regard himself as an educated man in social thought unless he has some first-hand acquaintance with the theoretical contribution of this great American thinker." Fifteen brief chapters feature passages from George's highly influential book and examine why poverty persists throughout periods of economic and technological progress as well as the basis for economic cycles of boom and bust.

Condemning the post-industrial economy to protracted periods of economic failure, this thought-provoking book documents how the integrity of economics as a discipline was deliberately compromised in the United States towards the end of the 19th century. Several chairs of economics were funded at leading universities to rebrand economics to justify unearned income. The tools for this strategy became neo-classical economics, and, unlike classical economists like Adam Smith who described wealth as the product of three factors--land, labor, and capital--the new theorists reduced these to two: labor and capital, thus treating land as capital. This concealed the benefits enjoyed by those in receipt of the rent from land. The effect, the authors reveal, was to deprive professional economists of the ability to diagnose problems, forecast important trends, and prescribe solutions.

America's remarkable explosion of industrial output and national wealth at the end of the nineteenth century was matched by a troubling rise in poverty and worker unrest. As politicians and intellectuals fought over the causes of this crisis, Henry George (1839–1897) published a radical critique of laissez-faire capitalism and its threat to the nation's republican traditions. Progress and Poverty (1879), which became a surprise best-seller, offered a provocative solution for preserving these traditions while preventing the amassing of wealth in the hands of the few: a single tax on land values. George's writings and years of social activism almost won him the mayor's seat in New York City in 1886. Though he lost the election, his ideas proved instrumental to shaping a popular progressivism that remains essential to tackling inequality today. Edward T. O'Donnell's exploration of George's life and times merges labor, ethnic, intellectual, and political history to illuminate the early militant labor movement in New York during the Gilded Age. He locates in George's rise to prominence the beginning of a larger effort by American workers to regain control of the workplace and obtain economic security and opportunity. The Gilded Age was the first but by no means the last era in which Americans confronted the mixed outcomes of modern capitalism. George's accessible, forward-thinking ideas on democracy, equality, and freedom have tremendous value for contemporary debates over the future of unions, corporate power, Wall Street recklessness, government regulation, and political polarization.

Embedded in the consciousness of Americans throughout much of the country's history has been the American Dream: that every citizen, no matter how humble his beginnings, is free to climb to the top of the social and economic ladder. Poverty and Progress assesses the claims of the American Dream against the actual structure of economic and social opportunities in a typical nineteenth century industrial community--Newburyport, Massachusetts. Here is local history. With the aid of newspapers, census reports, and local tax, school, and savings bank records Stephan Thernstrom constructs a detailed and vivid portrait of working class life in Newburyport from 1850 to 1880, the critical years in which this old New England town was transformed into a booming industrial city. To determine how many self-made men there really were in the community, he traces the career patterns of hundreds of obscure laborers and their sons over this thirty year period, exploring in depth the differing mobility patterns of native-born and Irish immigrant workmen. Out of this analysis emerges the conclusion that opportunities for occupational mobility were distinctly limited. Common laborers and their sons were rarely able to attain middle class status, although many rose from unskilled to semiskilled or skilled occupations. But another kind of mobility was widespread. Men who remained in lowly laboring jobs were often strikingly successful in accumulating savings and purchasing homes and a plot of land. As a result, the working class was more easily integrated into the community; a new basis for social stability was produced which offset the disruptive influences that accompanied the first shock of urbanization and industrialization. Since Newburyport underwent changes common to other American cities, Thernstrom argues, his findings help to illuminate the social history of nineteenth century America and provide a new point of departure for gauging mobility trends in our society today. Correlating the Newburyport evidence with comparable studies of twentieth century cities, he refutes the popular belief that it is now more difficult to rise from the bottom of the social ladder than it was in the idyllic past. The "blocked mobility" theory was proposed by Lloyd Warner in his famous "Yankee City" studies of Newburyport; Thernstrom provides a thorough critique of the "Yankee City" volumes and of the ahistorical style of social research which they embody.

In his new book, Poverty and Progress: Realities and Myths about Global Poverty, renowned development economist Deepak Lal draws on 50 years of experience around the globe to describe developing-country realities and rectify misguided notions about economic progress. Unique among books that have emerged in recent years on world poverty, Poverty and Progress directly confronts intellectual fads of the West and dismantles a wide range of myths that have obscured an astounding achievement: the unprecedented spread of economic progress around the world that is eliminating the scourge of mass poverty.