A history of economic doctrines : $b from the time of the physiocrats to the present dayGide, Charles
History
A history of economic doctrines : $b from the time of the physiocrats to the present day
Gide, Charles
Economics -- History
Such is the theory of rent, celebrated above all economic doctrines, and
concerning which it might be said that no doctrine, not even that of
Malthus, has ever excited such impassioned criticism. For this there are
several reasons.
In the first place, it led to an overthrow of the majesty of the “natural
order” by simply depicting some of its gloomier aspects. Men had been led
to believe that the “order” was for ever beyond challenge. Now, however,
it seemed that if the new doctrine was true then the interests of the
landed proprietors were opposed not only to those of every other class
in the community—for sharing always begets antagonism—but also to the
general interest of society as a whole.
For what are the real interests of proprietors? First, that population
and its demands should increase as rapidly as possible in order that men
may be forced to cultivate new lands, and that these new lands should be
as sterile as possible, requiring much toil and thus causing an increase
in rents. Exhaustive labour bestowed upon the cultivation of land that is
gradually becoming poorer and poorer would soon make the fortune of every
landlord.
As a class, proprietors have every interest in retarding the progress of
agricultural science, a paradox which the slightest reflection will show
to be true. Every advance in agricultural science must mean more products
from the same amount of land and a check upon the law of diminishing
returns, resulting in lower prices and reduced rents, since it would
no longer be necessary to cultivate the poorer soils. In a word, since
rent is measured by reference to the obstacles which thwart cultivation,
just as the level of water in a pond is determined by the height of the
sluice, everything that tends to lower this obstacle must reduce the
rent. In mitigation of this charge it must, however, be noted that, taken
individually, every proprietor is of necessity interested in agricultural
improvement, because he may have an opportunity of benefiting by larger
crops before the improvements have become general enough to lower prices
and to push back the margin of cultivation. If every proprietor argued
in this way, individual interest would finally cheat itself, to the
advantage of the general public. But this is nothing to be very proud of.
Public-domain text, read in full here on John Shaqi.
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