An Inquiry into the Nature and Progress of Rent, and the Principles by Which It is RegulatedMalthus, T. R. (Thomas Robert)
General
An Inquiry into the Nature and Progress of Rent, and the Principles by Which It is Regulated
Malthus, T. R. (Thomas Robert)
Rent
In some of these cases, the increase in the price of agricultural
produce, compared with the cost of the instruments of production,
appears from what has been said to be only temporary; and in these
instances it will often give a considerable stimulus to cultivation, by
an increase of agricultural profits, without showing itself much in
the shape of rent. It hardly ever fails, however, to increase rent
ultimately. The increased capital, which is employed in consequence of
the opportunity of making great temporary profits, can seldom if ever be
entirely removed from the land, at the expiration of the current leases;
and, on the renewal of these leases, the landlord feels the benefit of
it in the increase of his rents.
Whenever then, by the operation of the four causes above mentioned, the
difference between the price of produce and the cost of the instruments
of production increases, the rents of land will rise.
It is, however, not necessary that all these four causes should
operate at the same time; it is only necessary that the difference here
mentioned should increase. If, for instance, the price of produce were
to rise, while the wages of labour, and the price of the other branches
of capital did not rise in proportion, and at the same time improved
modes of agriculture were coming into general use, it is evident that
this difference might be increased, although the profits of agricultural
stock were not only undiminished, but were to rise decidedly higher.
Of the great additional quantity of capital employed upon the land in
this country, during the last twenty years, by far the greater part
is supposed to have been generated on the soil, and not to have been
brought from commerce or manufactures. And it was unquestionably the
high profits of agricultural stock, occasioned by improvements in the
modes of agriculture, and by the constant rise of prices, followed only
slowly by a proportionate rise in the different branches of capital,
that afforded the means of so rapid and so advantageous an accumulation.
In this case cultivation has been extended, and rents have risen,
although one of the instruments of production, capital, has been dearer.
In the same manner a fall of profits and improvements in agriculture, or
even one of them separately, might raise rents, notwithstanding a rise
of wages.
It may be laid down then as a general truth, that rents naturally rise
as the difference between the price of produce and the cost of the
instruments of production increases.
It is further evident, that no fresh land can be taken into cultivation
till rents have risen, or would allow of a rise upon what is already
cultivated.
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