Question

In Chapter 1 of Railroad Crossings, what did the writer Henry George predict would happen to CA as a result of the transcontinental railroad? Was he more optimistic or pessimistic about California's integration into the national U.S. economy?

Answer 1

According to Henry George , the completion of the railroad will increase business and population. But this will benefit only a portion of the population and it will not benefit all the people . The general rule makes a distinction between the haves and the have nots and those who have are richier and  those who have not are poorer.He believed that people who possess land, mines,businesses which are established ,will grow richer and people  who  have only their own labor and nothing else will grow poorer.This is due to the fact that the poor will require more capital to purchase land and also to start a business.  Again the wages of labor will become less due to competition and so laborers will find difficult to get capital.

In Henry George's book , the central idea is the element of optimism and hope about California. Transportation like rail road and communication will integrate the US economy from coast to coast and give rise to new industrialist and banking class .Moreover he felt that his single tax theory will reduce inequality and will be the sole source of revenue in US and help to integrate California in theUS economy.