Principles of Political Economy, Vol. 2 — John Shaqi
Principles of Political Economy, Vol. 2Roscher, Wilhelm
General
Principles of Political Economy, Vol. 2
Roscher, Wilhelm
Economics
Agricultural products of equal quantity and quality are produced on
pieces of land of unequal fertility, even when the same amount of skill
is displayed by the husbandman, with very different outlays of capital
and labor.[150-1] And yet the price of these products in the same market
is uniformly the same. This price must, on the supposition of free and
intelligent competition, be, in the long run, at least high enough to
cover the cost of production on even the worst soil (the margin of
cultivation according to Fawcett), which must be brought under
cultivation in order to satisfy the aggregate want. (See § 110.) This
worst land need yield no rent.[150-2] The better land which, with an
equal outlay of labor and capital, produces a greater yield, furnishes
an excess over the cost of production.[150-3] This excess is rent,
which, as a rule, is obviously higher in proportion as the difference in
fertility between the worst and the better land is greater. The person
who cultivates the land of a stranger may unhesitatingly turn this rent
over to the owner; since, notwithstanding his so doing, all that he has
himself contributed to production in labor and capital of his own,
returns to him entire in the product.[150-4]
According to § 34, a continual increase in the amount of labor and
capital lavished on the fertilization of land, agricultural science
remaining the same, leads, sooner or later to this, that every new
addition of capital or labor becomes relatively less remunerative than
the preceding.[150-5] The worse the land is, the sooner is this point
reached. Hence, it necessarily happens that, with an increase in the
aggregate want of agricultural products, greater and greater amounts of
labor and capital are employed in the further fertilization of land, and
that there comes to be a greater difference between the fertility of the
worst and better lands, in consequence of which the rent of the latter
rises.[150-6]
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