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 laws of the distribution of wealth are obviously laws of
proportion, and must be so related to each other that any two being
given the third may be inferred. For to say that one of the three parts
of a whole is increased or decreased, is to say that one or both of the
other parts is, reversely, decreased or increased. If Tom, Dick, and
Harry are partners in business, the agreement which fixes the share of
one in the profits must at the same time fix either the separate or the
joint shares of the other two. To fix Tom’s share at forty per cent. is
to leave but sixty per cent. to be divided between Dick and Harry. To
fix Dick’s share at forty per cent. and Harry’s share at thirty-five
per cent. is to fix Tom’s share at twenty-five per cent.
But between the laws of the distribution of wealth, as laid down in
the standard works, there is no such relation. If we fish them out and
bring them together, we find them to be as follows:
Wages are determined by the ratio between the amount of capital devoted
to the payment and subsistence of labor and the number of laborers
seeking employment.
Rent is determined by the margin of cultivation; all lands yielding as
rent that part of their produce which exceeds what an equal application
of labor and capital could procure from the poorest land in use.
Interest is determined by the equation between the demands of borrowers
and the supply of capital offered by lenders. Or, if we take what is
given as the law of profits, it is determined by wages, falling as
wages rise and rising as wages fall—or, to use the phrase of Mill, by
the cost of labor to the capitalist.
The bringing together of these current statements of the laws of the
distribution of wealth shows at a glance that they lack the relation to
each other which the true laws of distribution must have. They do not
correlate and co-ordinate. Hence, at least two of these three laws are
either wrongly apprehended or wrongly stated. This tallies with what we
have already seen, that the current apprehension of the law of wages,
and, inferentially, of the law of interest, will not bear examination.
Let us, then, seek the true laws of the distribution of the produce of
labor into wages, rent, and interest. The proof that we have found them
will be in their correlation—that they meet, and relate, and mutually
bound each other.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account