Alanna Hartzok

The global financial crisis has demonstrated a deep systemic failure of the prevailing economic paradigm. So far, efforts to remedy the situation have failed to address the root causes of the meltdown and are digging the American people deeper into the hole of public debt.

In an op-ed titled “Obama’s Ersatz Capitalism” earlier this year, Joseph Stiglitz wrote that the bailout of banks by taxpayers is a “partnership in which one partner robs the other.” Considering that in 2004 the top 1 percent of the population of the United States owned more than $2.5 trillion more wealth than the bottom 90 percent, and that even in 1996 about 350 billionaires held more wealth than nearly half of humanity, we have surely arrived at the end of the capitalist monopoly game.

Rent-Seeking and Economic Restructuring

Alternative economic analysts have traced the severe wealth gap problem to the ability of the so-called FIRE sector—finance, insurance, and real estate—to concentrate large amounts of money, resources, and power into ever fewer hands via a variety of rent-seeking behaviors. “Rent” connotes unearned income. Alternative analysis considers economic rent to be a socially generated surplus that is being privately captured.

As an economy generates wealth, the price of land and other natural resources increases. Because the gifts of nature cannot be produced by human effort and supply cannot be increased to meet demand, holders of land and natural resources are in a position to capture the surplus—economic rent—generated by labor and capital.

While economic rent is essentially a measure of the social surplus it is not regarded as such under neoliberal economics, which treats this value as a market commodity for private profiteering. This fundamental flaw in market economics has created a highly inequitable global economic system. Lack of knowledge as to how to correct this flaw, and retain the benefits, efficiencies, and individual freedoms of the market, was the impetus for the emergence of centrally managed and controlled state socialism. An economic restructuring based on a full understanding of the role of economic rent is needed for a new economic framework beyond both the old right and the old left.

Read more at Policy Innovations

Alanna Hartzok, who we toured around Australia in 2006, has a new book: The Earth Belongs to Everyone. Signifying the clarity of this work, Alanna has been awarded the 2008 Radical Middle Political Book Award. The annual award is given to books that best exemplify a politics that’s grounded in practical reality, but at the same time are deeply creative and imaginative.

Alexia Eastwood provides this review in commondreams.org

Sharing the land and resources of the world more equally is the basis for the ‘Next World Economy’ founded upon comprehensive tax reform and Earth Rights Democracy, says a new book by Alanna Hartzok.

In ‘The Earth Belongs to Everyone’, Alanna Hartzok establishes equal rights to the earth and its resources as a basic human right, identifying sharing as a key ethic in constructing the ‘Next Economy’. This compilation of essays represents the author’s life journey, weaving personal narratives and new economic perspectives around the themes of Earth Rights Democracy and land rights issues. In providing practical and applicable policy solutions, Alanna Hartzok’s analysis stands out in its capacity to inspire optimism and propose affirmative action.

Just $20 from Melbourne’s most extensive economics bookshop.

Hear Alanna discuss the book on this week’s Renegade Economists radio show.

photo credit: thelastminute

Summary

The Earth Belongs to Everyone – that’s the title of the new book by last week’s guest, UN rep Alanna Hartzok. She discusses why wage/ rent slavery is no different, if not worse than outright slavery. US dramas and a touch of Garnaut fill the show. Below are the notes host Karl Fitzgerald scurries through as he/I traverse through the gammut of issues that economics effects.

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“When the people find they can vote themselves money, that will herald the end of the republic”. — Benjamin Franklin

The Earth Belongs to Everyone – Book details

Order Alanna Hartzok’s excellent new book to get to the bottom of the drive to war and insights to the subliminal chains we wear each and every day with every tax dollar we pay.

A Collection of Articles and Essays by Alanna Hartzok. Themes include: Democracy, Earth Rights and the Next Economy; Sharing Our Common Heritage; Land for People, Not for Profit; Financing Local to Global Public Goods; Women, Earth and Economic Power; From Warfare to Earthshare.

Alanna Hartzok – Earth Rights International website
Alanna 2006 tour details, multimedia

Other articles covered:
If you’re going to bailout anybody Money to the People!

Once again, the real estate interests and their financial symbiants will get rescued from the folly of ignoring the inevitable real estate cycle. The real estate cycle is caused by government and gets rescued by government. This indicates the real purpose of government: to protect and subsidize the landed interests, including lenders who use land as collateral. Since land values periodically crash, the real interests need to be bailed out if they are to keep being protected. Meanwhile, worker-tenants pay not only taxes but higher rents to the landed royalty.

A government of the people rather than of the landed royalty would require either anarchism, so that all state subsidies to landed interests cease, or else the public collection of all the economic rent, and its equal distribution to the people as cash or as civic services. That rent would replace all punitive taxation, would eliminate recessions and depressions and poverty, and would remove the suffocation of enterprise now taking place. But the very system of land royalty also controls education, so few will learn the right lesson from the great real estate crash of 2008.

Public dollars are already lining speculator pockets on Wall Street

Bailing out big banks means more of the same. Look where the AIG money went. Where billions of Fed dollars are going. And the underlying land — called housing” — market still has not hit bottom. We trim, blend, and append five 2008 articles: Bloomberg of Sept. 29 by Mark Pittman, the Associated Press of Sept. 29 by Min Lee, Reuters of Sep 24, and CBS MarketWatch of Sept 24 and 17.

Steve Keen: Hank Paulson the evil scientist, not the hero

Paulson, like his many buddies in Wall Street who also paid themselves enormous “wages” (Paulson paid himself US$37 million in 2005 as CEO of Goldman Sachs), deluded himself into believing that subprime lending made economic sense.

Even in the weekend that it was worked out, five major financiers failed — Wachovia in the USA, Bradford and Bingley in the UK, Fortis NV in Belgium, Hypo Real Estate in Germany, and even Iceland’s major bank Glitnir — leading to state takeovers costing well over US$50 billion. How long would a US$700 billion Antidote last in today’s climate?

Music

Thanks to the following artists for their beautiful work:
Your Body Could Start A War (Feat. Leah) by LAL
Samba MachineKassin+2 (from the album “Futurismo” on Luaka Bop)

thxs also to Dublab for providing much of the music we play via their free mp3 blog

Over 12 talks and 450 plus people heard Alanna’s core message –

“We all have an equal right and a birth right to the Earth. The earth has a biological & ecological right to its future too. We are promoting a new form of property rights where what you build with your own hands, what you labour for, is your private property. You shouldn’t be taxed for something productive you are doing. What we are saying is that the gifts of nature, the land & natural resources of the earth belong to we the people. We all deserve a fair share of the profits from these natural gifts. This is a natural form of public finance policy”

Alanna was kind enough to leave a few of her keynote presentations for us to digest:

Triple Dip Plus – Oz Tour Master file (3MB, powerpoint)
True Cost Economics (2.2MB, powerpoint)

Such a direct description of this system saw Alanna give presentations to Australian Greens leader Bob Brown and the Victorian Greens State Convention. Radio interviews took place on the ABC, 3CR and RRR’s Long Grass Sessions.

RRR Interview – MP3, 15.24m, 14.4MB

Visiting Hobart’s Female Factory in ‘the Valley of Death’ (as it was once known), Alanna was shocked to read of the hardships of women sent to Australia for stealing food. She soon joined the dots. “They didn’t tell the real story, they keep suppressing the real issue, the enclosure of the commons, that’s what led to the petty crime”. Back in the days of the commons, poor or unemployed people could always find something productive to do by ‘working the commons’ by planting their own crop or grazing their herd on the unused (typically the least valuable) land. From these ‘common’ lands enough could be earned to barter with others so that a basic existence could be maintained. Sounds like a human right, yeah?”

Asked about the chances for change in today’s conservative environment, Alanna pointed out “look, imagine when there was slavery, did they ever think they’d get out of it? I mean people were actually saying that slave-holders should be compensated for giving up this ‘right’!!! Strong people said NO, there must be justice and we must move beyond this.”

“Look at women’s suffrage. Women were whipped in jails over raising questions about the right to vote These women must have thought they were in a hopeless position during the depths of those dark nights in jail. But in time they got this policy through, though it’s still not universal.”

“Now in time people will see that an Earth Rights Democracy is the way for true freedom, a true democracy. Do you think the creator planned for life to be this difficult, for some to get free rides and others to be taxed for all their hard work? For the earth to be easy pickings and polluted at the same time?”

“Now you’re not going to fully get this in a one hour lecture, ‘cause you all know how hard it is to look outside the square, especially when we’re conditioned to consider things from a capital versus labour analysis, but be patient. As a young woman I too was concerned with poverty, disease and the indigenous. With this new perspective hopefully now embedded in your outlook, you will see how much of a pivotal issue this is.”

Make sure you email us to sign up for a trial subscription to our Progress Magazine to continue your understanding of this outrageous concept – “Pay for what you take, not what you make”.

Melbourne – Hobart – Brisbane – Sydney

Alanna Hartzok is a Co-leader of the Earth Rights Institute and a UN NGO representative. She has worked extensively with the UN HABITAT on local funding issues and has a long list of public speaking engagements including the World Urban Forum, US Institute for Ecological Economics Conference, and the Eastern Economics Association Conference (NY).

Lecturer, legislative reformer and grass roots activist, Alanna Hartzok’s vast array of interests sees her moving between villages in Nigeria to the halls of power at the UN. Her central focus is that with greater insight we can orchestrate a tax shift policy that addresses major local and global problems.

Alanna hopes to help show “that there is an alternative economic paradigm which addresses the dis-functions of the current system, rather than simply the symptoms, an approach that is both more efficient and more equitable than the current one. People working for justice need to understand what we mean by the land problem and its place within an ethical and human rights framework.”

In her 2001 E.F. Schumacher Lecture she said “The needs of the people and the needs of the planet are one and the same: protection, care, validation, respect, appreciation, creative expression. Thus, the ethics of the Next Economy will flow out of a profound perception that the rights of human beings and the rights of the planet are one and the same. The Next Economy will be founded on ethics so simple and basic that thoughtful human beings will say, “Yes, this is true.” The force of truth is a liberating force, always has been and always will be. Mahatma Gandhi knew and taught this. Gandhi lived according to sattyagraha, the truth force.”

From 1993 until 1998 she was involved in a very tough political campaign to bring in legislation which made taxes more efficient and fair in her native Pittsburgh, Pennsylvania. She learnt first hand that to change land laws much education of lawmakers is necessary along with an enormous amount of patience and resilience.

However Alanna does more than give lectures and talk to politicians. She is actively involved in bringing about peace and prosperity. This is seen with her involvement with the building of an Eco Village Living and Learning Centre in Odi, Nigeria. This is a region continually in conflict over oil rents, and Alanna and her Team are developing connections in Bayelsa State in the Niger Delta, working to develop a Resource Trust similar to the Alaska Permanent Fund.

While in Australia Alanna will address many diverse groups whose interests range from democracy to infrastructure funding, the green tax shift and peace. Upon hearing Alanna’s message you will gain a new policy outlook for which many of the world’s problems would be simplified if only the policy makers respected fundamental economic laws.

Alanna Hartzok CV Highlights:

Current:

- Working with the UN HABITAT Agency’s Land Tenure Center to develop worldwide training programs
- Finishing a book – The Earth Belongs to Everyone – A Collection of Articles and Essays by Alanna Hartzok, to be published by the Institute for Economic Democracy
in July 2006.
- Advising associates of United for a Fair Economy to develop populist education on Land Value Taxation methodology in Pennsylvania
- Preparing a presentation for the World Urban Forum, Vancouver 2006

Articles featured in:

Creating a Sustainable World: Past Experiences, Future Struggles edited by Trent Schroyer and Thomas Golodik (The Apex Press, 2006)
- article: Land Ethics and Public Finance Policy as if People and Planet Mattered

A World that Works: Building Blocks for a Just and Sustainable Society, by Trent Schroyer (The Bootstrap Press)
- article: Pennsylvania’s Success with Local Tax Reform

Building a More Democratic United Nations, edited by Frank Barnaby (Frank Cass),
- article: Acting As If the Second Assembly Already Exists.

Planet Champions: Adventures in Saving the World by Jack Yost (Bridge City Books)

Synopsis:

• March 2006 – delivered her delivered her 40th major lecture in the last 4 years, a two hour presentation to a group of progressive Federal Democrats in Washington on tax reform.
• 2004 – set up Nigeria’s first Eco-Village in Odi, Niger Delta
• 2001 E.F Schumacher Lecture – Democracy, Earth Rights & the Next Economy. Talk reprinted in light of critical acclaim by the E.F Schumacher Society
• 2001 – represented the Green Party in Pennsylvania State elections.
• 1993 – initiated tax reform legislation and worked with state Senator Terry Punt and his staff to guide it through Pennsylvania legislative hearings to nearly unanimous passage of Senate Bill 211, signed by Governor Thomas Ridge as Act 108 in November of 1998.

The True Cost Economics forum is attempting to link the industries of Science, Insurance and Economics together. Science is leading the way with the evidence of Global Warming. The rapidly increasing cost of Insurance is alerting us of the dangers to ignoring nature’s law. Economics needs to direct the behaviour of consumers towards looking after the planet.

A new economic paradigm is needed to ensure a liveable planet is left for future generations. It has been over 120 years since the last economic paradigm change to Neo Classical Economics (NCE). The previous change was 110 years before that, when Adam Smith wrote the Wealth of Nations and Classical Economics was born.

The concern with most moves towards a green economic system is the inflationary effect eco-taxes add. Alanna Hartzok from the Earth Rights Institute (USA) will discuss how this pressure can be reduced and why the UN HABITAT is so interested in her work.

Whilst much of the scientific world has provided evidence of the problems associated with Global Warming, it is up to progressive thinkers to start pushing the solutions to some of these problems.

Aims:

1. To hold a 1 Day public forum promoting the need for a transition towards a True Cost Economic system. It is the best way we can attempt to keep up with the changing climate of this modern world.
2. Provide clear evidence of how quickly & effectively economics affects behaviour.
3. Demonstrate how Science may be able to help in valuing
a. watershed’s and other present day intangibles
ie the value of a tree
4. Encourage Insurance to lobby for a new economic paradigm by offering lower premiums to those environmentally active.
5. Demonstrate how a comprehensive True Cost Economic system can prioritise the earth’s living systems and simultaneously free small business from the shackles of paperwork and prohibitive rents.

Speakers:

• Alanna Hartzok (Earth Rights Institute, USA)
• Dr Ian McPhail (Commissioner for Environmental Sustainability)
• Associate Professor Frank Fisher (Nat. Centre for Sustainability)
• Kenneth Davidson, (Journalist, The Age)
• Francis Grey (Economist at Large)
• Jose Ramos (Centre for Social change Research, QUT)
• Dominic Gilligan (Sustainable Living Festival)
• Karl Fitzgerald (Earthsharing Australia)

The Venue:

The National Centre for Sustainabilty, Swinburne, Hawthorn. Enter off Park St (parallel to Burwood Road) and head to Building TD, room TD121. Check map here.

Summary:

This event will promote the fact that progressives must talk in the language of the market to open the ears of the corridors to power.

The true cost of avoiding such a transition towards responsible economics is quickly becoming apparent. Let’s insure against the power of nature by following the money trail and scientifically re-directing it towards a profitable future for all generations.