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
In what has preceded, I have, of course, spoken of inventions and
improvements when generally diffused. It is hardly necessary to say
that as long as an invention or an improvement is used by so few that
they derive a special advantage from it, it does not, to the extent of
this special advantage, affect the general distribution of wealth. So,
in regard to the limited monopolies created by patent laws, or by the
causes which give the same character to railroad and telegraph lines,
etc. Although generally mistaken for profits of capital, the special
profits thus arising are really the returns of monopoly, as has been
explained in a previous chapter, and, to the extent that they subtract
from the benefits of an improvement, do not primarily affect general
distribution. For instance, the benefits of a railroad or similar
improvement in cheapening transportation are diffused or monopolized,
as its charges are reduced to a rate which will yield ordinary interest
on the capital invested, or kept up to a point which will yield an
extraordinary return, or cover the stealing of the constructors or
directors. And, as is well known, the rise in rent or land values
corresponds with the reduction in the charges.
As has before been said, in the improvements which advance rent, are
not only to be included the improvements which directly increase
productive power, but also such improvements in government, manners,
and morals as indirectly increase it. Considered as material forces,
the effect of all these is to increase productive power, and, like
improvements in the productive arts, their benefit is ultimately
monopolized by the possessors of the land. A notable instance of this
is to be found in the abolition of protection by England. Free trade
has enormously increased the wealth of Great Britain, without lessening
pauperism. It has simply increased rent. And if the corrupt governments
of our great American cities were to be made models of purity and
economy, the effect would simply be to increase the value of land, not
to raise either wages or interest.
CHAPTER IV.
EFFECT OF THE EXPECTATION RAISED BY MATERIAL PROGRESS.
We have now seen that while advancing population tends to advance rent,
so all the causes that in a progressive state of society operate to
increase the productive power of labor tend, also, to advance rent, and
not to advance wages or interest. The increased production of wealth
goes ultimately to the owners of land in increased rent; and, although,
as improvement goes on, advantages may accrue to individuals not land
holders, which concentrate in their hands considerable portions of the
increased produce, yet there is in all this improvement nothing which
tends to increase the general return either to labor or to capital.
But there is a cause, not yet adverted to, which must be taken into
consideration fully to explain the influence of material progress upon
the distribution of wealth.
Public-domain text, read in full here on John Shaqi.
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