Distributive Justice: The Right and Wrong of Our Present Distribution of WealthRyan, John A. (John Augustine)
PhilosophyChristian
Distributive Justice: The Right and Wrong of Our Present Distribution of Wealth
Ryan, John A. (John Augustine)
Economic history; Income distribution -- Moral and ethical aspects; Wealth -- Religious aspects
The actual payments made by tenants to landowners sometimes leave the
former without the means of decent living. Such had been the condition
of a large part of the Irish tenant farmers before 1881, when the Land
Courts were established. In the course of twenty-five years these
courts reduced the rents by twenty per cent. on the average in upwards
of half a million cases. While a part of the reductions was intended
to free the tenants from the unjust burden of paying rent on their own
improvements, another part was undoubtedly ordered on the theory that
the tenants were entitled to retain a larger share of the product for
their own support. Yet the latter portion of the reduction apparently
represented true economic rent; for it was included in the difference
between the product and the current cost of production; it was
included in the amount that men in Ireland were willing to pay for the
use of land. It was a part of the surplus that they had left after
defraying their expenditures for capital and labour. To be sure, the
tenants in some other countries, say, the United States, would not
have been satisfied with such a small remuneration, and would not have
handed over so much to the landlord; but if the concept of economic
rent is to have any serviceable meaning it must be determined by the
actual returns to capital and labour in each locality, and not by the
standards of some other place which are assumed to be normal. In any
case, the Irish Land Courts did reduce the rents below the level fixed
by competition, by the unregulated forces of supply and demand.
Was this treating the landlords justly? May a tenant ever retain a
part of the rent which the free course of competition would yield to
the landowner? Here we must distinguish between the tenant who is and
the tenant who is not in possession of a holding sufficiently large to
require all the time and labour of a cultivator possessing average
efficiency. The tenant who controls and cultivates less than this
amount of land ought not to expect to get all his livelihood
therefrom. Failure to do so would not necessarily mean that he was
paying exorbitant rent. Holdings of this sort are rightly called
"uneconomic"; that is, they are too small to permit a profitable and
reasonable application of labour and capital. On such holdings the
fair rent would be that amount per acre which would be regarded as
fair for the use of the same land held in farms of "economic" size.
The proper recourse for the occupiers of uneconomic holdings is to get
control of more land, which is exactly what has been happening in
Ireland through the action of the Congested Districts Board.
Public-domain text, read in full here on John Shaqi.
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