ABSTRACT
This chapter presents the geo-liberal case for the socialization of rent as an essential market democratic institutional feature of a liberal society of free and equal citizens. It explains how this institution can form the basis of a market democratic version of the property-owning democracy. The chapter highlights the main problems, primarily concerning economic inefficiency and extreme socio-economic inequality, which undermine the model of orthodox laissez-faire capitalism as this has been presented by its leading proponents. It explores the most problematic aspects of this form of socio-economic organization are generated by, or at least greatly exacerbated by, the orthodox market democratic institution of the private appropriation of rent. The proponents of progressive taxation, however, argue that for a number of reasons its economic impact is more likely to be positive than negative. The chapter examines the potential effectiveness of a range of interventionist redistributive institutions as solutions to the problems associated with orthodox laissez-faire capitalism.
