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 difficulty from which this confusion has sprung is in the
preaccepted theory of wages. For reasons which I have before assigned,
it has seemed to them a self-evident truth that the wages of certain
classes of laborers depended upon the ratio between capital and the
number of laborers. But there are certain kinds of reward for exertion
to which this theory evidently will not apply, so the term wages has in
use been contracted to include only wages in the narrow common sense.
This being the case, if the term interest were used, as consistently
with their definitions it should have been used, to represent the third
part of the division of the produce, all rewards of personal exertion,
save those of what are commonly called wage-workers, would clearly have
been left out. But by treating the division of wealth as between rent,
wages, and profits, instead of between rent, wages, and interest, this
difficulty is glossed over, all wages which will not fall under the
preaccepted law of wages being vaguely grouped under profits, as wages
of superintendence.
To read carefully what economists say about the distribution of wealth
is to see that, though they correctly define it, wages, as they use
it in this connection, is what logicians would call an undistributed
term—it does not mean all wages, but only some wages—viz., the wages
of manual labor paid by an employer. So other wages are thrown over
with the return to capital, and included under the term profits,
and any clear distinction between the returns to capital and the
returns to human exertion thus avoided. The fact is that the current
political economy fails to give any clear and consistent account of the
distribution of wealth. The law of rent _is_ clearly stated, but it
stands unrelated. The rest is a confused and incoherent jumble.
The very arrangement of these works shows this confusion and
inconclusiveness of thought. In no politico-economic treatise that I
know of are these laws of distribution brought together, so that the
reader can take them in at a glance and recognize their relation to
each other; but what is said about each one is enveloped in a mass of
political and moral reflections and dissertations. And the reason is
not far to seek. To bring together the three laws of distribution as
they are now taught, is to show at a glance that they lack necessary
relation.
Public-domain text, read in full here on John Shaqi.
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