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
It will be necessary to review in its main branches the whole subject
of the distribution of wealth. To discover the cause which, as
population increases and the productive arts advance, deepens the
poverty of the lowest class, we must find the law which determines
what part of the produce is distributed to labor as wages. To find the
law of wages, or at least to make sure when we have found it, we must
also determine the laws which fix the part of the produce which goes
to capital and the part which goes to land owners, for as land, labor,
and capital join in producing wealth, it is between these three that
the produce must be divided. What is meant by the produce or production
of a community is the sum of the wealth produced by that community—the
general fund from which, as long as previously existing stock is not
lessened, all consumption must be met and all revenues drawn. As I
have already explained, production does not merely mean the making of
things, but includes the increase of value gained by transporting or
exchanging things. There is a produce of wealth in a purely commercial
community, as there is in a purely agricultural or manufacturing
community; and in the one case, as in the others, some part of this
produce will go to capital, some part to labor, and some part, if
land have any value, to the owners of land. As a matter of fact, a
portion of the wealth produced is constantly going to the replacement
of capital, which is constantly consumed and constantly replaced. But
it is not necessary to take this into account, as it is eliminated by
considering capital as continuous, which, in speaking or thinking of
it, we habitually do. When we speak of the produce, we mean, therefore,
that part of the wealth produced above what is necessary to replace the
capital consumed in production; and when we speak of interest, or the
return to capital, we mean what goes to capital after its replacement
or maintenance.
It is, further, a matter of fact, that in every community which has
passed the most primitive stage some portion of the produce is taken
in taxation and consumed by government. But it is not necessary, in
seeking the laws of distribution, to take this into consideration. We
may consider taxation either as not existing, or as by so much reducing
the produce. And so, too, of what is taken from the produce by certain
forms of monopoly, which will be considered in a subsequent chapter
(Chap. IV), and which exercise powers analogous to taxation. After we
have discovered the laws of distribution we can then see what bearing,
if any, taxation has upon them.
We must discover these laws of distribution for ourselves—or, at least,
two out of the three. For, that they are not, at least as a whole,
correctly apprehended by the current political economy, may be seen,
irrespective of our preceding examination of one of them, in any of the
standard treatises.
This is evident, in the first place, from the terminology employed.
Public-domain text, read in full here on John Shaqi.
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