Paraic Lally explains Georgism economic model and its application

Paraic Lally

According to:
Georgism, Capitalism, and Socialism
Some people have mistakenly called Henry George either a capitalist or a socialist, but he was not either, at least not in any simple sense. One might say that George’s philosophy mixes capitalism and socialism, but it is more accurate to say that it is a distinctive philosophy that is neither capitalist nor socialist.
The central principles of capitalism in its purest form are
1) free exchange of goods in an unregulated market;
2) limited taxes to pay for limited government, and
3) private ownership of property.
The central principles of socialism are
1) government control or regulation of the market;
2) high taxes to pay for expanded government services; and
3) government ownership of major industries (particularly large industries that are prone to monopoly control).
The central principles of Georgism are
1) free exchange of goods in markets, with limited regulation of commerce;
2) no taxes on labor; high taxes on certain kinds of property;
3) private ownership of property, but fully offset by taxes that virtually eliminate unearned wealth.
Georgists agree with socialists that capitalism has failed to reconcile fairness with efficiency. Whereas capitalist policies increase national income, they also cause extreme inequality.