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
But at this point the parallel ceases. That “the fixed and steadfast
earth” should be really whirling through space with inconceivable
velocity is repugnant to the first apprehensions of men in every
state and situation; but the truth I wish to make clear is naturally
perceived, and has been recognized in the infancy of every people,
being obscured only by the complexities of the civilized state, the
warpings of selfish interests, and the false direction which the
speculations of the learned have taken. To recognize it, we have but to
come back to first principles and heed simple perceptions. Nothing can
be clearer than the proposition that the failure of wages to increase
with increasing productive power is due to the increase of rent.
Three things unite to production—labor, capital, and land.
Three parties divide the produce—the laborer, the capitalist, and the
land owner.
If, with an increase of production the laborer gets no more and the
capitalist no more it is a necessary inference that the land owner
reaps the whole gain.
And the facts agree with the inference. Though neither wages nor
interest anywhere increase as material progress goes on, yet the
invariable accompaniment and mark of material progress is the increase
of rent—the rise of land values.
The increase of rent explains why wages and interest do not increase.
The cause which gives to the land holder is the cause which denies to
the laborer and capitalist. That wages and interest are higher in new
than in old countries is not, as the standard economists say, because
nature makes a greater return to the application of labor and capital,
but because land is cheaper, and, therefore, as a smaller proportion
of the return is taken by rent, labor and capital can keep for their
share a larger proportion of what nature does return. It is not the
total produce, but the net produce, after rent has been taken from it,
that determines what can be divided as wages and interest. Hence, the
rate of wages and interest is everywhere fixed, not so much by the
productiveness of labor as by the value of land. Wherever the value
of land is relatively low, wages and interest are relatively high;
wherever land is relatively high, wages and interest are relatively low.
If production had not passed the simple stage in which all labor is
directly applied to the land and all wages are paid in its produce, the
fact that when the land owner takes a larger portion the laborer must
put up with a smaller portion could not be lost sight of.
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