Progress and Poverty, Volumes I and II: An Inquiry into the Cause of Industrial Depressions and of Increase of Want with Increase of WealthGeorge, Henry
General
Progress and Poverty, Volumes I and II: An Inquiry into the Cause of Industrial Depressions and of Increase of Want with Increase of Wealth
George, Henry
Economics; Single tax
The preceding examination has, I think, conclusively shown that the
explanation currently given, in the name of political economy, of the
problem we are attempting to solve, is no explanation at all.
That with material progress wages fail to increase, but rather tend
to decrease, cannot be explained by the theory that the increase of
laborers constantly tends to divide into smaller portions the capital
sum from which wages are paid. For, as we have seen, wages do not come
from capital, but are the direct produce of labor. Each productive
laborer, as he works, creates his wages, and with every additional
laborer there is an addition to the true wages fund—an addition to the
common stock of wealth, which, generally speaking, is considerably
greater than the amount he draws in wages.
Nor, yet, can it be explained by the theory that nature yields less to
the increasing drafts which an increasing population make upon her; for
the increased efficiency of labor makes the progressive state a state
of continually increasing production per capita, and the countries of
densest population, other things being equal, are always the countries
of greatest wealth.
So far, we have only increased the perplexities of the problem. We
have overthrown a theory which did, in some sort of fashion, explain
existing facts; but in doing so have only made existing facts seem
more inexplicable. It is as though, while the Ptolemaic theory was
yet in its strength, it had been proved simply that the sun and
stars do not revolve about the earth. The phenomena of day and night,
and of the apparent motion of the celestial bodies, would yet remain
unexplained, inevitably to reinstate the old theory unless a better
one took its place. Our reasoning has led us to the conclusion that
each productive laborer produces his own wages, and that increase in
the number of laborers should increase the wages of each; whereas,
the apparent facts are that there are many laborers who cannot obtain
remunerative employment, and that increase in the number of laborers
brings diminution of wages. We have, in short, proved that wages ought
to be highest where in reality they are lowest.
Nevertheless, even in doing this we have made some progress. Next to
finding what we look for, is to discover where it is useless to look.
We have at least narrowed the field of inquiry. For this, at least, is
now clear—that the cause which, in spite of the enormous increase of
productive power, confines the great body of producers to the least
share of the product upon which they will consent to live, is not the
limitation of capital, nor yet the limitation of the powers of nature
which respond to labor. As it is not, therefore, to be found in the
laws which bound the production of wealth, it must be sought in the
laws which govern distribution. To them let us turn.
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