FREE BOOKS

Author's List




PREV.   NEXT  
|<   36   37   38   39   40   41   42   43   44   45   46   47   48   49   50   51   52   53   54   55   56   57   58   59   60  
61   62   63   64   65   66   67   68   69   70   71   72   73   74   75   76   77   78   79   80   81   82   83   84   85   >>   >|  
e, but in any case we shall see that it is due in great part to the laws of nature. The part of our subject which we are now going to consider is called the #distribution of wealth#, because it teaches us how the wealth produced is distributed (Latin, _dis_, apart, and _tribuere_, to allot) between the labourers, the owners of land, the owners of capital, and the government. The part which the labourer gets is called #wages#; the share of the land owner is called #rent#; that of the capitalist is #interest#; and the government take #taxes#. We may say that, as a general rule, the produce of work is divided into four shares, which may be thus shown: #produce = wages + rent + interest + taxes.# #39. The Labourer's Share--Wages.# It ought to be carefully remembered that the names #wages#, #rent#, and #interest#, as here used, do not exactly agree in meaning with the names as we employ them in common life. The wages paid to workmen are sometimes more than wages, being partly interest; the rent almost always consists partly of interest; and what is called interest may in some degree be really wages or rent. By #wages# we mean, in political economy, nothing but what goes to pay for the trouble of labour. But many workmen own their own tools; masons have a boxful of chisels, mallets, rules, &c.; carpenters often require twenty or thirty pounds' worth of planes and other implements; a pianoforte maker sometimes owns seventy pounds' worth of tools; even gardeners require spades, rakes, a barrow, scythe, or perhaps a mowing machine and a roller. Now, all such tools represent so much invested capital, and a certain amount of interest must be paid for this capital. A pianoforte maker might expect five pounds a year as interest upon the cost of his tools. But true wages, are what remains after allowance has been made for such interest, and it would be proper to subtract also what is paid to the government as taxes. #40. The Land Owner's Share--Rent#, the second part of the produce, means, in political economy, what is paid for the use of a natural agent, whether land, or beds of minerals, or rivers, or lakes. The rent of a house or factory is, therefore, not all rent in our meaning of the word. Capital has been spent in building the house or factory, and interest must be paid on this capital; we must then deduct this interest from what is commonly called the rent, before we can find out what is really rent. The ground ren
PREV.   NEXT  
|<   36   37   38   39   40   41   42   43   44   45   46   47   48   49   50   51   52   53   54   55   56   57   58   59   60  
61   62   63   64   65   66   67   68   69   70   71   72   73   74   75   76   77   78   79   80   81   82   83   84   85   >>   >|  



Top keywords:

interest

 
called
 

capital

 

pounds

 

government

 

produce

 
political
 

economy

 

workmen

 

partly


pianoforte

 

meaning

 

require

 
factory
 
wealth
 

owners

 

represent

 

mowing

 

machine

 

roller


spades
 

implements

 
ground
 

planes

 
twenty
 
thirty
 

seventy

 

barrow

 

scythe

 
gardeners

invested
 
building
 
Capital
 
minerals
 

rivers

 

natural

 

subtract

 

proper

 

expect

 
amount

deduct

 

carpenters

 

allowance

 
commonly
 

remains

 

degree

 

labourers

 
labourer
 

tribuere

 

capitalist