The Ricardian theory of land rents led to a movement in the late nineteenth century called the single-tax movement. What was the goal of this movement and what was its economic rationale?

David Ricardo, an English economist, developed the Ricardian theory of land rents in the early 19th century. It deals with the distribution of income in an economy, emphasizing on the role of land as a productive and scarce resource. Ricardian theory states that the rent of land is determined by the surplus of production (the difference between the total production and the costs of production) and that this rent leads to an unequal distribution of wealth in the economy.

The Ricardian theory of land rents led to a movement in the late 19th century called the single-tax movement. An American economist and social reformer named Henry George popularized this movement by publishing a book called 'Progress and Poverty' in 1879. The main idea behind the single-tax movement was to replace all taxes in an economy with a single tax on the unimproved value of land. This tax aimed to create a more equitable distribution of income.

The primary goal of the single-tax movement was to eliminate poverty and achieve social equity by taxing land-owners based on the unimproved value of their land. Landowners could not avoid this tax by hiding the true value of the land or by deviating the land's actual use. Therefore, it aimed at reducing income inequality, improving the productivity of the land, and promoting more efficient utilization of resources.

The economic rationale behind the single-tax movement was based on the Ricardian theory of land rents. Since land rents are generated by the difference between total production and production costs in classical economics, taxing only the unimproved value of land would capture the entire economic rent without distorting the economy. This tax was considered efficient as it didn't discourage fruitful investments and productive activities, had broad revenue potential, and didn't deter landowners from using the land productively. Moreover, the single-tax movement aimed to eliminate the need for other taxes such as income, sales, or property taxes, which could have negative impacts on individual economic activities and overall economic growth. By targeting land, proponents of the single-tax movement believed that the tax burden would be shifted to the owners, encouraging the efficient use of land and reducing the concentration of wealth in the hands of a few. In summary, the single-tax movement originated from the Ricardian theory of land rents and was popularized by Henry George in the late 19th century. The movement aimed at achieving social equity and poverty eradication by replacing all taxes with a single tax on the unimproved value of land. The economic rationale behind this movement was to create a more equitable distribution of income by capturing the entire economic rent without distorting the economy and encouraging the efficient use of land resources.