Essays on some unsettled Questions of Political Economy
John Stuart Mill · en
As the gross profit may be very different though the rate of profit be
the same; so also may the absolute price paid for labour and tools be
very different, and yet the proportion between the price paid and the
produce obtained may be just the same. For greater clearness, let us
omit, for the present, the consideration of tools, materials, &c, and
conceive production as the result solely of labour. In a certain
country, let us suppose, the wages of each labourer are one quarter of
wheat per year, and 100 men can produce, in one year, 120 quarters. Here
the price paid for labour is to the produce of that labour as 100 to
120, and profits are 20 per cent. Suppose now that, in another country,
wages are just double what they are in the country before supposed;
namely, two quarters of wheat per year, for each labourer. But suppose,
likewise, that the productive power of labour is double what it is in
the first country; that by the greater fertility of the soil, 100 men
can produce 240 quarters, instead of 120 as before. Here it is obvious,
that the real price paid for labour is twice as great in the one country
as in the other; but the produce being also twice as great, the ratio
between the price of labour and the produce of labour is still exactly
the same: an outlay of 200 quarters gives a return of 240 quarters, and
profits, as before, are 20 per cent.
Profits, then (meaning not gross profits, but the rate of profit),
depend (not upon the price of labour, tools, and materials--but) upon
the ratio between the price of labour, tools, and materials, and the
produce of them: upon the proportionate share of the produce of industry
which it is necessary to offer, in order to purchase that industry and
the means of setting it in motion.
* * * * *
We have hitherto spoken of tools, buildings, and materials, as
essentials of production, co-ordinate with labour, and equally
indispensable with it. This is true; but it is also true that tools,
buildings, and materials, are themselves the produce of labour; and that
the only cause (cases of monopoly excepted) of their having any value,
is the labour which is required for their production.
If tools, buildings, and materials were the spontaneous gifts of nature,
requiring no labour either in order to produce or to appropriate them;
and if they were thus bestowed upon mankind in indefinite quantity, and
without the possibility of being monopolized; they would still be as
useful, as indispensable as they now are; but since they could, like air
and the light of the sun, be obtained without cost or sacrifice, they
would form no part of the expenses of production, and no portion of the
produce would be required to be set aside in order to replace the outlay
made for these purposes. The whole produce, therefore, after replacing
the wages of labour, would be clear profit to the capitalist.