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The Theory of Prosperity

The Theory of Prosperity


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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1902 Excerpt: ...point of view, rent is the price of labor substitutes. They do not increase the price of products, because goods made by them have the same price as those made by men. The price-fixing articles are always those made by labor. The substitutes do not influence price, nor are they used at the expense of the laborers or of the capitalists. Neither wages nor the interest on capital goods are altered. Whoever pays rent increases his productive power by the exact amount of rent. This superiority is due to the use of some labor force that permits him to dispense with laborers. It is to him a matter of indifference whether this labor force or more laborers are employed. The expenditure of funds is the same. It is proper, therefore, to think of the fund paid out in this way as wages. It has its value fixed by wages, and comes from the same source as do wages. The wages fund, when the term is rightly used, includes all money paid for labor and for all substitutes for labor. It is this wages fund, not true wages, that is the fund to be contrasted with the interest on capital goods. All return from industry is either interest or a part of the wages fund. The wages fund in this broad sense is a differential to interest, which as a return for capital goods is marginal. There is thus a meaning to the diagram just used, if wages fund be put in the place of wages. Rent is wage-determined, but not wages. Thrown together, the two make a true differential that stands in contrast with interest. Changing the point of view, capital goods is made a fixed quantity, and labor an increasing quantity. Additional labor, in the sense of more days' work, adds a decreasing amount to the total product. Labor thus becomes marginal, and the marginal return to the labor fixes the pay of all la...


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Product Details
  • ISBN-13: 9781152060067
  • Publisher: Rarebooksclub.com
  • Publisher Imprint: Rarebooksclub.com
  • Height: 246 mm
  • No of Pages: 64
  • Spine Width: 3 mm
  • Width: 189 mm
  • ISBN-10: 1152060066
  • Publisher Date: 01 May 2012
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Weight: 132 gr


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