History and criticism of the labor theory of value in English political economyWhitaker, Albert C. (Albert Conser)
History
History and criticism of the labor theory of value in English political economy
Whitaker, Albert C. (Albert Conser)
Economics -- Great Britain -- History; Labor theory of value -- Great Britain -- History
“If the established division is adhered to, and all that
is produced is to be divided into rent, profit, and
wages,—and certainly that appears to be the most convenient
classification,—and if wages and profit are to be considered
as the rewards of peculiar sacrifices, ... it is clear that
under the term ‘rent’ must be included all that is obtained
without any sacrifice; or, which is the same thing, beyond
the remuneration for that sacrifice; all that nature or
fortune bestows either without any exertion on the part of the
recipient, or in addition to the average remuneration for the
exercise of industry or the employment of capital.”[147]
Accordingly, rent includes not only the return to land, in the widest
economic sense of this term, but also the return to secret processes of
production, and to talents or extraordinary personal abilities.[148]
This necessitates the very curious use of the words “natural agents” to
include exclusive knowledge of, or right to, an advanced process, and
talents or unusual faculties:
“The mere knowledge of the operations of nature, as long as
the use of that knowledge can be confined either by secrecy or
law, creates a revenue to its possessor analogous to the rent
of land ... so precisely resembling the rent of land, that it
often receives the same name,” (and it must be called rent).
The salary, wages, or remuneration of the laborer may really be composed
of wages, rent, and profits:
“Is then the extraordinary remuneration of the labourers,
which is assisted by extraordinary talents, to be termed Rent
or Wages? It originates in the bounty of nature; so far it
seems to be rent. It is to be obtained only on the condition
of undergoing labour; so far it seems to be wages. It might be
termed ... rent which can be received only by a labourer, or
wages which can be received only by the proprietor of a natural
agent. But as it is clearly a surplus, the labour having been
previously paid for by average wages, and that surplus the
spontaneous gift of nature, we have thought it most convenient
to term it rent.”[149]
6. Does this rent, the surplus of value above reward for true cost
of production, “enter into price?” Senior does not use these words
or discuss this question directly, but, although he follows Ricardo
precisely in explaining rent as a differential return and defends the
doctrine vigorously against Say’s attacks, he assumes nevertheless,
contrary to Ricardo, that rent does “enter into price” in the sense
of constituting a source of permanent disproportionality of value to
subjective cost of production. As was intimated some pages back, the
state of free competition, as understood by Senior, is highly ideal,
postulating not only the ordinary condition of ideal mobility of capital
and labor, but also the use of none but free natural agents:
Public-domain text, read in full here on John Shaqi.
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