On The Principles of Political Economy, and TaxationRicardo, David
General
On The Principles of Political Economy, and Taxation
Ricardo, David
Economics
If both the manufacturer and farmer employed ten men, on wages rising
from 24_l._ to 25_l._ per annum. per man, the whole sum paid by each
would be 250_l._ instead of 240_l._ This is, however, the whole addition
that would be paid by the manufacturer to obtain the same quantity of
commodities; but the farmer on new land would probably be obliged to
employ an additional man, and therefore to pay an additional sum of
25_l._ for wages; and the farmer on the old land would be obliged to pay
precisely the same additional sum of 25_l._ for rent; without which
additional labour, corn would not have risen. One will therefore have to
pay 275_l._ for wages alone, the other, for wages and rent together;
each 25_l._ more than the manufacturer: for this latter 25_l._ they are
compensated by the addition to the price of raw produce, and therefore
their profits still conform to the profits of the manufacturer. As this
proposition is important, I will endeavour still further to elucidate
it.
We have shewn that in early stages of society, both the landlord's and
the labourer's share of the _value_ of the produce of the earth, would
be but small; and that it would increase in proportion to the progress
of wealth, and the difficulty of procuring food. We have shewn too, that
although the value of the labourer's portion will be increased by the
high value of food, his real share will be diminished; whilst that of
the landlord will not only be raised in value, but will also be
increased in quantity.
The remaining quantity of the produce of the land, after the landlord
and labourer are paid, necessarily belongs to the farmer, and
constitutes the profits of his stock. But it may be alleged, that though
as society advances, his proportion of the whole produce will be
diminished, yet as it will rise in value, he, as well as the landlord
and labourer, may, notwithstanding, receive a greater value.
It may be said for example, that when corn rose from 4_l._ to 10_l._,
the 180 quarters obtained from the best land would sell for 1800_l._
instead of 720_l._; and therefore, though the landlord and labourer be
proved to have a greater value for rent and wages, still the value of
the farmer's profit might also be augmented. This however is impossible,
as I shall now endeavour to shew.
In the first place, the price of corn would rise only in proportion to
the increased difficulty of growing it on land of a worse quality.
Public-domain text, read in full here on John Shaqi.
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