Henry George and Clark's Paradigm

Henry George (1839–1897) was among the most widely read economists of his era,yet he has remained a systematically marginalized figure in the subsequent history of economic thought. This essay contends that his influence is indispensable for understandingthe conceptual foundations of modern economics—and, in particular, the paradigmestablished by John Bates Clark (1847–1938). Clark collapsed land into capital, dissolving it as a distinct factor of production. This marked a paradigmatic shift, driven bypolitical pressures rather than scientific reasoning: it was formulated in direct responseto George’s radical proposal to socialize the economic rent of land. To make this case, theessay begins with a methodological critique of orthodox economics through the lens ofthe philosophy of science, in particular with respect to the definition of capital. George’sideas are situated in their historical context, reconstructing his ethical and scientificreasoning and his extraordinary, if often overlooked, influence in the Anglo-Saxon worldand beyond. It concludes by assessing the continuing relevance of George’s insights andby exposing the limitations of Clark’s paradigm, which still shapes economic theory andpolicy today.