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
If invention and improvement still go on, the efficiency of labor
will be still further increased, and the amount of labor and capital
necessary to produce a given result further diminished. The same causes
will lead to the utilization of this new gain in productive power for
the production of more wealth; the margin of cultivation will be
again extended, and rent will increase, both in proportion and amount,
without any increase in wages and interest. And, so, as invention
and improvement go on, constantly adding to the efficiency of labor,
the margin of production will be pushed lower and lower, and rent
constantly increased, though population should remain stationary.
I do not mean to say that the lowering of the margin of production
would always exactly correspond with the increase in productive power,
any more than I mean to say that the process would be one of clearly
defined steps. Whether, in any particular case, the lowering of the
margin of production lags behind or exceeds the increase in productive
power, will depend, I conceive, upon what may be called the area of
productiveness that can be utilized before cultivation is forced to
the next lowest point. For instance, if the margin of cultivation be
at 20, improvements which enable the same produce to be obtained with
one-tenth less capital and labor will not carry the margin to 18, if
the area having a productiveness of 19 is sufficient to employ all the
labor and capital displaced from the cultivation of the superior lands.
In this case, the margin of cultivation would rest at 19, and rents
would be increased by the difference between 19 and 20, and wages and
interest by the difference between 18 and 19. But if, with the same
increase in productive power the area of productiveness between 20
and 18 should not be sufficient to employ all the displaced labor and
capital, the margin of cultivation must, if the same amount of labor
and capital press for employment, be carried lower than 18. In this
case, rent would gain more than the increase in the product, and wages
and interest would be less than before the improvements which increased
productive power.
Nor is it precisely true that the labor set free by each improvement
will all be driven to seek employment in the production of more wealth.
The increased power of satisfaction, which each fresh improvement gives
to a certain portion of the community, will be utilized in demanding
leisure or services, as well as in demanding wealth. Some laborers
will, therefore, become idlers and some will pass from the ranks of
productive to those of unproductive laborers—the proportion of which,
as observation shows, tends to increase with the progress of society.
Public-domain text, read in full here on John Shaqi.
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