Principles of Political Economy: Abridged with Critical, Bibliographical, and Explanatory Notes, and a Sketch of the History of Political Economy
John Stuart Mill · en
The owners, however, of those portions of the produce enjoy a privilege;
they obtain a value which yields them more than the ordinary profit. The
advantage depends on the possession of a natural agent of peculiar
quality, as, for instance, of more fertile land than that which determines
the general value of the commodity; and when this natural agent is not
owned by themselves, the person who does own it is able to exact from
them, in the form of rent, the whole extra gain derived from its use. We
are thus brought by another road to the Law of Rent, investigated in the
concluding chapter of the Second Book. Rent, we again see, is the
difference between the unequal returns to different parts of the capital
employed on the soil. Whatever surplus any portion of agricultural capital
produces, beyond what is produced by the same amount of capital on the
worst soil, or under the most expensive mode of cultivation, which the
existing demands of society compel a recourse to, that surplus will
naturally be paid as rent from that capital, to the owner of the land on
which it is employed.
The discussion of rent is here followed wholly from the point of
view of value, while before (Book II, Chap. VI) the law of rent
was reached through a limitation of the quantity of land due to
the influence of population. In the former case the rent and
produce were stated in bushels. By introducing price now (as the
convenient symbol of value), instead of the separate increased
demands of population in our illustration than used (p. 240), it
will be seen how the same operation, looking at it solely in
respect to value, brings us to the same law:
Price A B C D
per
Bushel.
24 18 12 6
bushels bushels bushels bushels
Total Rent. Total Rent. Total Rent. Total
value of value of value of value of
product. product. product. product.
$1.00 $24.00 $0.00 .... .... .... .... ....
$1.33 $32.00 $8.00 $24.00 $0.00 .... .... ....
$2.00 $48.00 $24.00 $36.00 $12.00 $24.00 $0.00 ....
$4.00 $96.00 $72.00 $72.00 $48.00 $48.00 $24.00 $24.00