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
Let us suppose land of diminishing qualities. The best would naturally
be settled first, and as population increased production would take in
the next lower quality, and so on. But, as the increase of population,
by permitting greater economies, adds to the effectiveness of labor,
the cause which brought each quality of land successively into
cultivation would at the same time increase the amount of wealth that
the same quality of labor could produce from it. But it would also
do more than this—it would increase the power of producing wealth on
all the superior lands already in cultivation. If the relations of
quantity and quality were such that increasing population added to
the effectiveness of labor faster than it compelled a resort to less
productive qualities of land, though the margin of cultivation would
fall and rent would rise, the minimum return to labor would increase.
That is to say, though wages as a proportion would fall, wages as a
quantity would rise. The average production of wealth would increase.
If the relations were such that the increasing effectiveness of labor
just compensated for the diminishing productiveness of the land as it
was called into use, the effect of increasing population would be to
increase rent by lowering the margin of cultivation without reducing
wages as a quantity, and to increase the average production. If we now
suppose population still increasing, but, between the poorest quality
of land in use and the next lower quality, to be a difference so great
that the increased power of labor which comes with the increased
population that brings it into cultivation cannot compensate for
it—the minimum return to labor will be reduced, and with the rise of
rents, wages will fall, not only as a proportion, but as a quantity.
But unless the descent in the quality of land is far more precipitous
than we can well imagine, or than, I think, ever exists, the average
production will still be increased, for the increased effectiveness
which comes by reason of the increased population that compels resort
to the inferior quality of land attaches to all labor, and the gain
on the superior qualities of land will more than compensate for the
diminished production on the quality last brought in. The aggregate
wealth production, as compared with the aggregate expenditure of labor,
will be greater, though its distribution will be more unequal.
Thus, increase of population, as it operates to extend production to
lower natural levels, operates to increase rent and reduce wages as a
proportion, and may or may not reduce wages as a quantity; while it
seldom can, and probably never does, reduce the aggregate production of
wealth as compared with the aggregate expenditure of labor, but on the
contrary increases, and frequently largely increases it.
Public-domain text, read in full here on John Shaqi.
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