A smallholder holds on because it sets him free.

From James C Scott's Two Cheers for Anarchy, chapter on The Petite Bourgeoisie that is treated with contempt by so many. One definition he provides is this: "The distaste for the petty bourgeoisie also has, I believe, a structural source: one that is shared by the erstwhile socialist bloc and large capitalist democracies. The fact is, almost all forms of small property have the means to elude the state's control: small property is hard to monitor, tax, or police; it resists regulation and enforcement by the very complexity, variety, and mobility of its activities."

To make a very long story very short, Homo sapiens has been around for something like 200,000 years. States were only "invented" roughly five thousand years ago, and until about a thousand years ago most of humankind lived outside anything that could be called a state. Most of those who did live within those states were small property owners (peasants, artisans, shopkeepers, traders). And, when certain rights of representation developed from the seventeenth century on, they were accorded on the basis of status and property. The large bureaucratic organizations that characterize the modern era may be originally modeled on the monastery and the barracks, but they are essentially a product of the last two and a half centuries. This is another way of saying that there is a long history of life outside the state and that life inside the state until the eighteenth century sharply distinguished between a formally unfree population (slaves, serfs, and dependents), on the one hand, and a large smallholder population on the other that disposed, in theory and often in practice, of certain rights to found families: to hold and inherit land, to form trade associations, to choose local village leaders, and to petition rulers. Relative autonomy and independence for subordinate classes thus came in two forms: a life on the margins, outside the state's reach, or a life inside the state with the minimal rights associated with small property.

I suspect that the tremendous desire one can find in many societies for a piece of land, one's own house, one's own shop owes a great deal not only to the real margin of independent action, autonomy, and security it confers but also to the dignity, standing, and honor associated with small property in the eyes of the state and of one's neighbors. For Thomas Jefferson, independent, smallholding cultivation promoted social virtues and was the bedrock of a democratic citizenry:

Cultivators of the earth are the most valuable citizens, they are the most vigorous, the most independent, the most virtuous, and they are tied to their country and wedded to its liberty of interest by the most lasting bonds.5

In the course of living in and reading about peasant societies, I found it impossible to ignore the incredible tenacity with which many marginal smallholders clung to the smallest patch of land. When pure economic logic suggested they would be far better off seeking a profitable tenancy or even moving to town, they held on by their fingernails as long as they possibly could. Those who had no land of their own to farm sought long-lease tenancies, preferably from relatives, that represented the next best thing, in terms of status, to owning one's own fields. Those who had neither their own land nor a viable tenancy and who were reduced to working for others hung on to their house lot in the village to the bitter end. In terms of sheer income, a good many tenant farmers were better off than smallholders, and a good many laborers were better off than small tenants. For the peasantry, however, the difference in autonomy, independence, and hence social standing was decisive. The smallholder, unlike the tenant, depended on no one for land to farm and the tenant, and unlike the laborer, had at least land for the season and control over his or her working day, while the laborer was cast into what was viewed as a demeaning dependence on the good will of neighbors and relatives. The final humiliation was to lose that last physical symbol of independence, the house lot.