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, in a state of society in which the existing power of labor served
to satisfy all material desires, and there was no possibility of new
desires being called forth by the opportunity of gratifying them,
the effect of labor-saving improvements would be simply to reduce
the amount of labor expended. But such a state of society, if it can
anywhere be found, which I do not believe, exists only where the human
most nearly approaches the animal. In the state of society called
civilized, and which in this inquiry we are concerned with, the very
reverse is the case. Demand is not a fixed quantity, that increases
only as population increases. In each individual it rises with _his_
power of getting the things demanded. Man is not an ox, who, when he
has eaten his fill, lies down to chew the cud; he is the daughter
of the horse leech, who constantly asks for more. “When I get some
money,” said Erasmus, “I will buy me some Greek books and afterward
some clothes.” The amount of wealth produced is nowhere commensurate
with the desire for wealth, and desire mounts with every additional
opportunity for gratification.
This being the case, the effect of labor-saving improvements will
be to increase the production of wealth. Now, for the production of
wealth, two things are required—labor and land. Therefore, the effect
of labor-saving improvements will be to extend the demand for land,
and wherever the limit of the quality of land in use is reached, to
bring into cultivation lands of less natural productiveness, or to
extend cultivation on the same lands to a point of lower natural
productiveness. And thus, while the primary effect of labor-saving
improvements is to increase the power of labor, the secondary
effect is to extend cultivation, and, where this lowers the margin
of cultivation, to increase rent. Thus, where land is entirely
appropriated, as in England, or where it is either appropriated or is
capable of appropriation as rapidly as it is needed for use, as in
the United States, the ultimate effect of labor-saving machinery or
improvements is to increase rent without increasing wages or interest.
It is important that this be fully understood, for it shows that
effects attributed by current theories to increase of population are
really due to the progress of invention, and explains the otherwise
perplexing fact that labor-saving machinery everywhere fails to benefit
laborers.
Yet, to grasp fully this truth, it is necessary to keep in mind what
I have already more than once adverted to—the interchangeability of
wealth. I refer to this again, only because it is so persistently
forgotten or ignored by writers who speak of agricultural production as
though it were to be distinguished from production in general, and of
food or subsistence as though it were not included in the term wealth.
Public-domain text, read in full here on John Shaqi.
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