Elizabeth J. Magie was born in Macomb, Illinois, to James Magie, a newspaper editor and abolitionist, and Mary Jane Ritchie. Her early life was steeped in progressive ideals and a belief in social justice, factors that heavily influenced her later work.

James Magie, her father, introduced her to the writings of Henry George, particularly 'Progress and Poverty,' which deeply influenced her understanding of land monopoly and its societal consequences. He also supported her intellectual pursuits, fostering her independent thinking.

Magie pursued various careers, including stenography and story writing. These roles exposed her to different social classes and provided her with insights into the economic realities of the time. Her writing often reflected her concerns about social inequality.

Magie worked as a stenographer, typist, and secretary, demonstrating her versatility and resourcefulness. She also started writing short stories and poetry, showcasing her creative talent and her keen observation of social issues.

Magie invented 'The Landlord's Game,' a board game designed to illustrate the economic consequences of land monopoly and the benefits of a single tax system, as proposed by Henry George. This marked a pivotal moment in her life, solidifying her commitment to using games as a tool for social commentary.