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
To illustrate: In a simple state of society, each man, as is the
primitive mode, works for himself—some in hunting, let us say, some in
fishing, some in cultivating the ground. Cultivation, we will suppose,
has just begun, and the land in use is all of the same quality,
yielding a similar return to similar exertions. Wages, therefore—for,
though there is neither employer nor employed, there are yet wages—will
be the full produce of labor, and, making allowance for the difference
of agreeableness, risk, etc., in the three pursuits, they will be on
the average equal in each—that is to say, equal exertions will yield
equal results. Now, if one of their number wishes to employ some of his
fellows to work for him instead of for themselves, he must pay wages
fixed by this full, average produce of labor.
Let a period of time elapse. Cultivation has extended, and, instead of
land of the same quality, embraces lands of different qualities. Wages,
now, will not be as before, the average produce of labor. They will be
the average produce of labor at the margin of cultivation, or the point
of lowest return. For, as men seek to satisfy their desires with the
least possible exertion, the point of lowest return in cultivation must
yield to labor a return equivalent to the average return in hunting
and fishing.[37] Labor will no longer yield equal returns to equal
exertions, but those who expend their labor on the superior land will
obtain a greater produce for the same exertion than those who cultivate
the inferior land. Wages, however, will still be equal, for this excess
which the cultivators of the superior land receive is in reality rent,
and if land has been subjected to individual ownership will give it a
value. Now, if, under these changed circumstances, one member of this
community wishes to hire others to work for him, he will have to pay
only what the labor yields at the lowest point of cultivation. If
thereafter the margin of cultivation sinks to points of lower and lower
productiveness, so must wages sink; if, on the contrary, it rises,
so also must wages rise; for, just as a free body tends to take the
shortest route to the earth’s center, so do men seek the easiest mode
to the gratification of their desires.
Here, then, we have the law of wages, as a deduction from a principle
most obvious and most universal. That wages depend upon the margin of
cultivation—that they will be greater or less as the produce which
labor can obtain from the highest natural opportunities open to it is
greater or less, flows from the principle that men will seek to satisfy
their wants with the least exertion.
Now, if we turn from simple social states to the complex phenomena of
highly civilized societies, we shall find upon examination that they
also fall under this law.
Public-domain text, read in full here on John Shaqi.
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