Our problem is that we have been trapped in this dichotomy between capitalism and socialism, and the pathetic compromise known as welfare capitalism. In 1879, Henry George explained in his book Progress and Poverty how poverty is created through land monopoly. His solution was a type of land reform known as a land value tax. This would essentially make the land rent common property without sacrificing the benefits of private land tenure, and at the same time allow people to keep the part of their income earned through their labor.