But all this we must leave to a later part of our study. For the moment
what we have to get clearly into our heads are these three things: (1)
_Natural Forces_, (2) _Human Energy_, and (3) _Accumulated stores and
implements_, which are called, generally, for the sake of shortness:
_LAND_, _LABOUR_ and _CAPITAL_. In the absence of any one of these
three, production of Wealth is impossible. All three must be present;
and it is only the combination of all three which makes the process of
producing economic values possible.
POINTS ABOUT CAPITAL.
There are _three_ important things to remember about Capital.
1. The first is that what makes a particular piece of wealth into
capital is not the kind of object to which the economic value
attaches, but the _intention_ of using it as capital on the part of
the person who controls that object; that is, the intention to use
it for the _production of future wealth_. Almost any object can be
used as capital, but no object is capital, however suitable it be for
that purpose, _unless there is the intention present of using it as
capital_. For instance: One might think that a factory power engine
was always Capital. The economic values attaching to it, which make
an engine worth what it is are nearly always used for the production
of future wealth, and so we come to think of the engine as being
necessarily capital simply because it is an engine, and the same is
true of factory buildings and all other machinery and all tools, such
as hammers and saws and so on.
But these things are not capital _in themselves_; for if we do not use
them for the production of future wealth they cease to be capital. For
instance, if you were to put the engine into a museum, or to keep a
hammer in remembrance of someone and not use it, then it would not be
capital.
And this truth works the other way about. At first sight you would say,
for instance, that a diamond ring could not be capital: it is only a
luxurious ornament. But if you use it to cut glass for mending a window
it is capital for that purpose.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account