The basic facts of economics : $b A common-sense primer for advanced studentsPost, Louis F. (Louis Freeland)
General
The basic facts of economics : $b A common-sense primer for advanced students
Post, Louis F. (Louis Freeland)
Economics
Fundamentally, Economic Distribution is a twofold apportionment of
the Wealth produced by Labor from and upon Land, whereby one portion
is naturally allocated to Labor as its producer and the other to
Land-ownership as the controller of Natural Resources and sites.
Presumably, then, as Production of Wealth has two Basic factors--in
technical terms Labor and Land, in other terms Man and Natural
Resources--so Distribution of Wealth has two basic apportionments,
one corresponding to the Labor or Man factor in Production, the other
to the Land or Natural Resource factor--Wages for Labor, Rent for
permission to use Land.
That there can be neither Wages for Labor nor Rent for Land unless
Wealth has been produced, is a manifest law of nature. The nonexistent
being naturally indivisible, Production of Wealth must precede
Distribution of Wealth. Inasmuch, then, as Labor produces all Wealth
and without Labor no Wealth is or can be produced, some Wealth must
naturally be distributed or allocated to Labor as Wages before any can
be distributed or allocated to Land-ownership as Rent.
Consequently, the Wages allocation of Wealth demands consideration
first.
I. WAGES FOR LABOR
As with many another abuse of technical Economic terms, so colloquial
and business interpretations have distorted the significance of the
technical term Wages. Even Economic teachers allow their imaginations
to glide away from the comprehensive significance of this technical
term much as they do from its corresponding technical term Labor.
All too readily does conventional Economic thought, when considering
Wages, center upon the compensation which “shirt-sleeve” classes of
hired men bargain for, “salaries” taking the place of “wages” when
“white collar” workers cross the business line of vision. Still more
select levels of Labor are compensated with “fees,” “commissions,” or
“profits.” To thinking students, however, students of Economics who
recognize Economics as a science subject to natural law rather than a
grouping of arbitrary business customs--to such students all special
or mere conventional kinds of compensation for human service assemble
themselves naturally in the same fundamental category, and for clarity
of thought are always distinguished by the same technical term.
What the term for natural compensation out of human production for
human service in aid of production might better be, is of no importance
provided the term be treated distinctively. For Labor compensation
out of Labor-produced Wealth, Wages if treated distinctively is an
appropriate term, and its long time comprehensive use in Economics
entitles it to preference. Wages, then, the technical term in Economic
science for that natural allocation of some Wealth to Labor, which
produces all Wealth, demands primary consideration in any study of the
Economic phenomena of Wealth Distribution.
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