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
By natural Economic law all Wealth in Distribution goes to Wages as
compensation to Labor, up to the point at which differences in the
desirable qualities or locations (or both) of particular portions of
Land disclose relatively high and low opportunities for Production.
In those circumstances Wages for production on the superior Land would
be higher--a larger product of Wealth--than for the same Labor-power
expended on inferior Land. Consequently another natural law of
Economics becomes manifest. Rent for superior Natural Resources arises.
It is the difference between Labor productiveness on the poorest Land
in use and the productiveness of equal Labor-power on better Land.
Thus Rent has a place along with Wages in the primary Distribution of
Wealth. This Economic phenomenon is to be more definitely described
farther on. Meanwhile the phenomenon of Wages commands our principal
attention.
So long as Land freely offers equal opportunities for Production, the
category of Wages comprehends the whole product of Labor. It is only
as variations in the desirability of particular kinds and locations of
Land play a part in Production that Wages as a whole are distinguished
from total product. In those circumstances, however, the Wages category
embraces the entire Product less Rent for superior Land.
It is not to be inferred, though, that deductions for Rent necessarily
reduce Wages as a quantity. In normal circumstances the fact is the
reverse of that. Although Rent reduces the proportion of Wages to
Wealth it does not necessarily reduce the aggregate of Wages. On the
contrary, Wages may be more in quantity when normal Rent is deducted
from aggregate Wealth than before Rent arises. The reason is that
Rent takes of Wealth only a surplus which is measured by degrees of
superiority of the better over the poorest Land in demand.
Subject, then, to normal in contradistinction to arbitrary deductions
for Rent, the Wages allocation of Wealth is assignable to earners
in the Labor category in shares approximately proportionate to the
desirability of their respective services.
Subsidiary classifications of Wages are identified by more or less
descriptive terms for colloquial convenience and private accounting
purposes. Among these terms are “salaries,” “commissions,” “profits,”
“fees,” “labor costs,” and “dividends.” All of them are doubtless
convenient for keeping track of private business or other personal
details; nor are they objectionable for Economic research provided they
be not considered as primary or fundamental.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account