On The Principles of Political Economy, and TaxationRicardo, David
General
On The Principles of Political Economy, and Taxation
Ricardo, David
Economics
Adam Smith, however, maintains that the proportion which falls to the
landlord would be increased by a diminished cost of production, and
therefore, that he would receive a larger share as well as a larger
quantity, from an abundant than from a scanty produce. "A rice field,"
he says, "produces a much greater quantity of food than the most fertile
corn field. Two crops in the year, from thirty to sixty bushels each,
are said to be the ordinary produce of an acre. Though its cultivation
therefore requires more labour, a much greater surplus remains after
maintaining all that labour. In those rice countries therefore, where
rice is the common and favourite vegetable food of the people, and where
the cultivators are chiefly maintained with it, _a greater share of this
greater surplus should belong to the landlord than in corn countries_."
Mr. Buchanan also remarks, that "it is quite clear, that if any other
produce which the land yielded more abundantly than corn, were to become
the common food of the people, the rent of the landlord would be
improved in proportion to its greater abundance."
If potatoes were to become the common food of the people, there would be
a long interval during which the landlords would suffer an enormous
deduction of rent. They would not probably receive nearly so much of the
sustenance of man as they now receive, while that sustenance would fall
to a third of its present value. But all manufactured commodities, on
which a part of the landlord's rent is expended, would suffer no other
fall than that which proceeded from the fall in the raw material of
which they were made, and which would arise only from the greater
fertility of the land, which might then be devoted to its production.
When from the progress of population, land of the same quality as before
should be taken into cultivation, to produce the food required, and the
same number of men should be employed in producing it, the landlord
would have not only the same proportion of the produce as before, but
that proportion would also be of the same value as before. Rent then
would be the same as before; profits, however, would be much higher,
because the price of food, and consequently of wages, would be much
lower. High profits are favourable to the accumulation of capital. The
demand for labour would further increase, and landlords would be
permanently benefited by the increased demand for land.
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.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account