d
with these looms.

The price of wheat raised on The price of cloth woven
good land is the same as that on good looms is the same as
of wheat raised on the marginal that of equally good cloth
zone, and it affords a surplus woven on marginal ones, and
above wages and interest paid it affords a net surplus above
by farmers for labor and the cost of maintaining the
capital used in the tilling stock of looms and the
of the good land. wages and interest paid by
manufacturers for further
capital used in connection
with the good looms.

The existence of this surplus The existence of this surplus
in its original form, that in its original form, that
of wheat, affects the supply of cloth, affects the supply
and the price of that product. and the price of this product.

The fact that farmers pay The fact that _entrepreneurs_
landlords for this surplus pay capitalists for this
has no effect on the price surplus has no effect on the
of wheat. price of cloth.

The more important facts concerning rent have reference to
the original form of it, namely, a product in kind. Whatever
constitutes a part of the supply of anything affects the
price of it. The surplus afforded by good looms is an element
in the supply of cloth, and that afforded by good land is an
element in the supply of wheat. They make these two supplies
larger than they would otherwise be, and of course they are
of cardinal importance in determining price. The rent of
anything is an element in the supply of some kind of goods,
and the annihilation of it would reduce the supply and raise
the price of product in which, in its first estate, it
consists.

CHAPTER XII

ECONOMIC DYNAMICS

_The Efficiency of Static Forces in Dynamic Societies._--The static
state which has thus far been kept in view is a hypothetical one, for
there is no actual society which is not changing its form and the
character of its activities. Five organic changes, which we shall soon
study, are going on in every economic society; and yet the striking
fact is that, in spite of this, a civilized society usually has, at
each particular