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
Now the interchangeability of wealth necessarily involves an average
between all the species of wealth of any special advantage which
accrues from the possession of any particular species, for no one
would keep capital in one form when it could be changed into a more
advantageous form. No one, for instance, would grind wheat into flour
and keep it on hand for the convenience of those who desire from time
to time to exchange wheat or its equivalent for flour, unless he could
by such exchange secure an increase equal to that which, all things
considered, he could secure by planting his wheat. No one, if he could
keep them, would exchange a flock of sheep now for their net weight in
mutton to be returned next year; for by keeping the sheep he would not
only have the same amount of mutton next year, but also the lambs and
the fleeces. No one would dig an irrigating ditch, unless those who by
its aid are enabled to utilize the reproductive forces of nature would
give him such a portion of the increase they receive as to make his
capital yield him as much as theirs. And so, in any circle of exchange,
the power of increase which the reproductive or vital force of nature
gives to some species of capital must average with all; and he who
lends, or uses in exchange, money, or planes, or bricks, or clothing,
is not deprived of the power to obtain an increase, any more than if he
had lent or put to a reproductive use so much capital in a form capable
of increase.
There is also in the utilization of the variations in the powers of
nature and of man which is effected by exchange, an increase which
somewhat resembles that produced by the vital forces of nature. In
one place, for instance, a given amount of labor will secure 200
in vegetable food or 100 in animal food. In another place, these
conditions are reversed, and the same amount of labor will produce 100
in vegetable food or 200 in animal. In the one place, the relative
value of vegetable to animal food will be as two to one, and in the
other as one to two; and, supposing equal amounts of each to be
required, the same amount of labor will in either place secure 150 of
both. But by devoting labor in the one place to the procurement of
vegetable food, and in the other, to the procurement of animal food,
and exchanging to the quantity required, the people of each place
will be enabled by the given amount of labor to procure 200 of both,
less the losses and expenses of exchange; so that in each place the
produce which is taken from use and devoted to exchange brings back an
increase. Thus Whittington’s cat, sent to a far country where cats are
scarce and rats are plenty, returns in bales of goods and bags of gold.
Public-domain text, read in full here on John Shaqi.
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