Dilemmas of 21st century land value capture: Examining Henry George’s legacy in a new Gilded Age

Abstract

This essay reviews 20th century applications of Henry George’s thought by local and national policy makers in the Anglo-American context with the goal of better interpreting contemporary debates about land value capture (LVC). Proponents of LVC mechanisms argue that incentive zoning, planning obligations/exactions, special assessments, transfers of development rights, density bonusing, and tax increment financing can rebalance public and private wealth and promote economically redistributive development where direct government spending on social goods is not politically possible. Critical scholars question this stance, arguing that interventions pursued under the LVC banner often deliver publicly generated wealth to already-affluent parties while contributing to price escalation that harms low-income and middle-class citizens. An examination of Henry George’s foundational ideas sheds light on the challenges policy makers have faced in attempting to recover the “unearned increment” for the public. This analysis provides useful context for present-day debates about the advisability and practical effects of land value capture mechanisms.