The Fallacy of Georgism

Did you know equlibrium is a mercantilist fallacy that was denounced by philosophers in the 18th century?

Juan

Jan 10, 2022

0 min read

Table of Contents

In a nutshell, it seems that in George’s time, wages were falling or unemployment was high or there was a productivity wage gap.

The economists at that time said that it’s because capital was scarce.

In “The Current Doctrine of Wages—Its Insufficiency” George tries to disprove it by saying wages do not come from capital but from labor itself.

To prove his point, he then gives examples of workers producing value by themselves.

However, unlike Adam Smith, he does not see the labor in big organizations.

So in the entrepreneur-level or small scale, George’s arguments seem true, but in reality they will fail in big organizations.