The wealth which will be consumed in producing future wealth is, as we
have seen, called _Capital_. For instance: if a man has a ton of wheat
and eats half of it while he is doing nothing but taking a holiday, or
doing work which has some moral but no material effect--that is not
Capital. But if he uses the other half to keep himself alive while he
is ploughing and sowing for a future harvest, and keeps a little of it
for the seed of that harvest, all that he so uses is _Capital_. Since
control of wealth is necessary, no matter of what kind the wealth be,
it is clear that there must be property not only in what is about to
be consumed in enjoyment but also in Capital. Someone, then, must own
Capital.
But here comes in a very important addition. The fertility of land,
space upon which to build, mines of metal, water power, natural
opportunities of any kind and natural forces, _though they are not
wealth_,[2] are the necessary conditions for producing wealth. Someone,
therefore, must control these also: someone must have the power of
saying, “This field shall be ploughed and sown thus and thus. This
waterfall must be made to turn this turbine in such and such a spot,
and the power developed must be applied thus and thus.” For if no one
had such power the fertility of the land, the force of the stream,
would be wasted.
Property, therefore, extends over two fields, one of which is itself
divided into two parts. A.--It extends over natural forces. B.--It
extends over wealth, and, in the case of B, wealth, it extends over B.1
wealth to be used for future production (which kind of wealth, when it
is so used, is called Capital), and also B.2 wealth which is going to
be consumed without the attempt to produce anything else: consumed,
as the phrase goes, “in enjoyment.”[3] Natural forces may be grouped,
as we have grouped them in the first part of this book, under the
conventional term “Land.” So Property covers Land and Capital, as well
as Wealth to be consumed without the attempt to produce other wealth.
You may put the whole thing in a diagram thus:--
[Illustration]
In studying the social effects of Property it is convenient to group
together _Land_ and that part of wealth which is used for further
production and is called _Capital_, and to call the two “_the means of
production_”: because, in a great many social problems the important
point is not who owns the Capital separately or the land separately,
but who owns the whole bundle of things which constitute the “Means of
Production,” without which no production can take place.
Public-domain text, read in full here on John Shaqi.
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